MKTG 477 1st Edition Lecture 25Outline of Last Lecture I. FTC ordersII. FTC remediesOutline of Current Lecture I. FTC remedies continuedII. Exam 2 informationCurrent LectureFTC remedies continuedRestitution remedy- Restitution (remedy) – getting things back to where they were before something bad has happened o Getting consumers back to the same mindset as before the issueo Affirmative disclosure – a disclosure that tells people what they need to know so they nolonger think of the ad claim in the wrong way (required by the FTC)o Corrective advertising – a future advertisement that the FTC requires companies to run with an affirmative disclosure and must reference the previous advertisement they ran with a deceptive messageo Cooling-off periods – typically focused on door to door sales; even if there is no misrepresentation by the salesperson, you have 72 hours to revoke your commitment; trying to get things back to normalo Refunds – you are compensated for the amount you spent on the product- Punishment (remedy) – paying more than what the customer paid for the producto Fines – can be in the millionso Prison o Negative publicity Exam II- Four topics – promotional plan, objective setting, budgeting, and advertising regulations criteriao Day one: 20 multiple choice and 2 short answero Day two: promotional plan, sales response function curves (threshold effect)- Know the types of characteristics/remediesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Percent of sales = 2-5% of revenue - Origin of marketing goals – the
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