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Unformatted text preview: company’s Sunday newspaper FSIs. One hot item
is a 50-inch flat-panel plasma TV. The list price is
$4,999, but her manager tells her to advertise it at
$3,999, since customers can apply for a $1,000 mailin rebate. The advertised price has attracted many
people to buy the TV; however, Sally has heard
several complaints from customers who found the
rebate process unusually complex and were denied a
rebate because the manufacturer claimed they
hadn’t provided required information. She would
prefer to advertise the “real” list price, knowing that
customers are not guaranteed to receive a rebate. Questions
1. Is it unethical to advertise products at their
post-rebate price in order to increase sales?
Why or why not? What is another sales
promotion method the company could use?
2. Rebate programs are commonly used by
electronic manufactures because the rebates
arouse consumers’ interest; yet only half of
purchasers ultimately claim their rebates. Is a
rebate program itself unethical if the
manufacturer knows that consumers are
unlikely to receive their money? Push Promotions Push Promotions
• Allowances and discounts
• Selling and marketing assistance
• Sales-force support Allowances and Discounts
and recount Volume
allowances Free merchandise Discount
overriders Evaluation Sources
• Sales force feedback
Redemption Public Relations and Sponsorship Public Relations Defined
Public Relations is a managem...
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This document was uploaded on 03/02/2014.
- Spring '14