Protecting our wallets from our gullible minds CONSUMER AWARENESS CHAPTER 6, PAGE 129.

Protecting our wallets from our gullible minds

CONSUMER AWARENESSCHAPTER 6, PAGE 129

3 Roles in SocietyCitizen

Vote, pay taxesWorker

Create goods or servicesConsumer

Buy and consume goods and servicesTeens spend $80 to $100 Billion and estimate to

double in the next few years

Book – Complete page 129Caveat Emptor = Buyer BewareWe want to live like no one else so later

you can live like no one elseSacrifice to win and want to enjoy the

winningGood salesman know how to sell and is

professional, which can make it funCompanies compete for your MoneyCompetition is fierce for your dollar

Name the Font – TV, Movie, Product1.

5. 7.

9.

8.6.

4.3.2.

13.

18.17.

16.15.14.

12.11.10.

24.21.23.

22.

20.19.

You Tube House, M.D.

Wall-E M*A*S*H

Snickers Warcraft Guitar Hero

Lord of the Rings

Mythbusters

Kiss ESPN Twitter

Amazon Breaking Bad

Indiana Jones

Tron

Simpsons Ikea Skype Harry Potter

Dexter Kraft Twilight SEGA

Page 132 and 133When you are aware of techniques, you

are more wise.4 common marketing strategies:

Personal selling. People learn to talk to you and to assist in you buying stuff

Financing is when they use money as a tool so you do not think about the cost

Repetition to sell productsPositioning

PositioningBrand recognition adds value

Nike is betterColor mattersShelf positioning is boughtPackaging design is huge

Don’t worry but beware and be smart!

Page 135Significant purchase is over $300Physiological changes when making significant

purchases: Buyer’s remorse is when you regretAll have spoiled kid inside, his name is

immaturity With spending devise a plan and follow it Big purchases should be done by saving up

and paying cash

Opportunity Cost: Section 3, page 136Must develop power over purchases

1. Wait overnight2. Consider your buying motives, no amount =

contentment. Sometimes happiness and fun are confused.

3. Never buy anything you do not understand4. Consider the ‘opportunity cost’5. Seek wise Counsel

Short Quiz

1. What is Puffing or Puffery? Puffery as a legal term refers to promotional

statements and claims that express subjective rather than objective views, such that no reasonable person would take them literally.

2. What does FTC stand for and what do they do? Federal Trade Commission

3. Which of the following is legalA. Bait and SwitchB. Phony contestsC. Infomercials

C. Lets watch

Laws you should knowDoor to door sales

3 days to cancel if sign contract at location other than sales floor

Mail OrderMust be shipped in time given, max of 30 days Unordered goods for payment cannot be sent

If it is, must have free return or allow you to keep for free

Under 18, not of age of majority Can only enter ‘necessity’ contracts (food, medical)All sales is, is a contract

Contract Law

1. Offer and Acceptance Must be given offer and must accept

2. Genuine Assent Based on truth without extra pressure

3. Consideration Both parties must receive something of value

4. Legality Must be of something that is legal

5. Capacity Mental ability to enter into a contract

Truth in Advertisement Ads must

Be truthful and non-deceptive; Have evidence to back up their claims; and Not be unfair

Is deceptive if it ads or omits information that Is likely to mislead consumers acting reasonably under the

circumstances; and Is "material" - that is, important to a consumer's decision

to buy or use the product.Is unfair if

It causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and

It is not outweighed by the benefit to consumers.

What can happenCease and desist ordersCivil PenaltiesCorrective advertisements

Illegal Tactics 1: Illegal AdvertisementBait and Switch

Advertise wanted item for low priceOnly expensive items at the store or push by

sales to buy the more expensive itemTo getaway with it use small print:

Limited available per storeOnly certain modelsNo rain checks Certain requirement to get low price (Active

military)

False and Misleading Advertisement

Illegal Tactics: Deceptive Sales PracticeTie In Sales

Get deal if you buy another product you do not want

Maintaining or Creating a MonopolySetting Prices / Price Fixing Agreements to restrict AdvertisementRestraints on other business practices

Chapter 7, page 145

BARGAIN SHOPPING

There is a difference in being frugal vs. cheap

Section 1: Bargain ShoppingMisrepresented – Harm – Win/WinFirst key: Negotiate everythingDon’t be afraid to ask7 Rules of Negotiating:

1. Tell the truth2. Use the power of cash

1. Cash is Emotional & Visual2. Cash has immediacy

3. Understand and use Walk Away power4. Shut up5. That’s not good enough6. Good guy, bad guy is a sale technique 7. If I take away

Page 151Second Key – You must have patienceDon’t get married to a purchaseThird key – Know where to find deals.Trade something of value, goods or just

your servicesPlaces to find great deals:

IndividualsEstate Sales and Public Auctions

Coupons

Why?Great dealsFree Stuff

TypesManufacturer = from company

You give to store, they get money + $.08 back

Store = from storeDouble coupons = store gives double value

If item is on sale + coupon can = FREE

More

Rebates:Send in data = get money back

If on sale and coupon, could get more back then spent

CatalinaIn store dispenser

Reward ProgramsKroger Plus Card, automatic off &

couponPlus = free stuffNegative = Time

How to

The “Coupon Basics”Organize coupons

BooksWatch adsBoxes of old adsElectronic couponsObsessiveMultiple trips / transactionsCheck store coupon Check item fits coupon

Sites to useSmartphone scanner

UPC: Universal Product Code (Wrigley Gum the 1st) Stores or Items siteCouponmom.comCoupons.comSmartsource.comBargainstobounty.comMoneysavingmom.comHouseparty.comGroupon.comBooks: textsbooksrus.com, half.com

More Places to Find Great Deals

4. Garage Sales5. Repo Lot6. Flea Markets7. Refunds and Rebates 8. Foreclosures9. Pawn Shops10. Online Auctions11. Classified12. Consignment Sales – Buy & Sell13. Conventions

Just Remember:How they get youImpulse purchases

Put items you would not normally buy but want in highly visible areas

Store Cash = get you to spend more today and get you back in the store to spend more next week

Steal of deals – buy stuff you do not needAdvertisement Strategies Marketing Crazy Couponing

LIVE on deals &Live within your means

ALTERNATIVE ACTIVITY

What you will do On paper 1: Write down the name of a product that would

be difficult to get teenagers to buy Put in product box

On paper 2 & 3: Write down 2 magazines you read regularly Put in box marked “girls” or “boys”

Groups of 3 or 4Will be given marketing scenario and pick 2 product slips

and decide which you will useIf will be marketed to girls or boy, pick magazine to put ad

in from “girls” or “boys” magazine boxIn ___ minutes come up with print ad campaign based on

your scenario to introduce advertise your productWill be introducing campaign to the class

Wrap-Up activity

1. Which strategy did your group use?2. Which of the campaigns presented was

the most respectful to teenagers?3. Did any reinforce traditional gender

roles?4. Which would be most effective in the real

world? Why?5. If you turned your idea into a TV

commercial, what kind of music and effects could you use to hype the product?

Remember Advertising sets us up to feel dissatisfied -  even if

we think we have everything we need, ads will still try to convince us that there is something else we need.

Advertisers try to show us how much more satisfied, popular, happy, hip, attractive, sexy, fun and in control we would be if we had their product.

Fashion and trends are always changing so that we must continually spend money to be current.

Advertising stresses competition and status versus feeling good about being who you are and accepting others for who they are.