7-2 Response Memo final

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Northeast Community College *

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5236

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Marketing

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Feb 20, 2024

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MEMO To : Don Washington, Director of Marketing, Rewards Membership Alva Ramirez, Director of Sales, Rewards Membership Anne Hernandez, CEO From : Ana Cabrera Gil, Sales and Marketing Consultant Subject : Addressing Legal Team Concerns on Low-Income Marketing and Sales Plan Executive Summary The legal team is concerned about how the public perceives statements and advertisements related to the program's benefits, as well as the ethical issues surrounding direct marketing to low-income populations and data privacy. To address these concerns, it is recommended to focus on the value of the service or product being marketed and establish trust with the target population. Additionally, offering discounts or coupons to help low-income individuals save on purchases can be beneficial. It is important to avoid stereotypes and highlight the benefits and value of the product. Considering a subscription program to sell front-end products and meeting the consumers' needs on their level are other recommended strategies. We value the feedback received from the legal department and will carefully consider their recommendations. Considering their suggestions, our plan includes the implementation of a program specifically designed for students, the introduction of a permission form for guardians, modifications to our advertising lines, the establishment of an education hotline to address membership inquiries, and the provision of a month-to-month membership option. These steps are intended to address the legal and ethical concerns outlined in the Legal Department Memo.

Addressing One Legal Issue The legal team has raised concerns about the advertising practices and data collection methods proposed in the Sales and Marketing Proposal for the Low-Income Marketing and Sales Plan. They emphasize that all advertising must be truthful and supported by evidence according to the U.S. Federal Trade Commission guidelines. The team identifies three requirements: precision in stating program benefits, non-deceptive commercial speech, and substantiating superiority claims. They propose changes such as providing clear facts in advertising slogans, using non-deceptive language, and avoiding misleading descriptions. Addressing One Ethical Issue The legal team has noticed that the methods outlined in the Sales and Marketing Proposal for collecting and utilizing consumer data do not align with the requirements of the California Consumer Privacy Act of 2018. They have specifically drawn attention to the involvement of underage consumers and emphasized the importance of upholding their privacy rights. Providing Recommendation To maintain truthful advertising practices, ABC's marketing should prioritize promptly addressing customer feedback, avoiding false comparisons or exaggerations, and complying with advertising regulations and industry standards. Transparent disclosure of material information that influences purchasing decisions is essential. Moreover, when targeting low-income populations, it is crucial to align the program with their cultural, economic, and social needs. However, it's important to recognize the diversity within this demographic (Ray, 2021). In addition, the marketing and sales teams should stay updated on FTC and revised regulations, for example the revised "Green Guides," issued to assist marketers in ensuring the accuracy and honesty of their claims regarding the environmental characteristics of their products (Vedova & Technology, 2019).

When it comes to addressing data collection concerns, ABC could establish a "non-adult membership" program that minimizes sensitive information collection and requires parental or guardian permission. Furthermore, to comply with the CCPA and guidelines from the California Attorney General, ABC should provide clear notice of data collection, inform customers about opt-out rights, prominently display a "Do Not Sell My Personal Information" link, update the privacy policy regularly, and implement strong data protection measures. To avoid penalties, ABC can only sell the personal information of a child under the age of 16 if they receive explicit consent or an "opt-in," while children under 13 require parental or guardian consent ( California Consumer Privacy Act (CCPA), 2023). .

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Reference California Consumer Privacy Act (CCPA) . State of California - Department of Justice - Office of the Attorney General. (2023, May 10). https://oag.ca.gov/privacy/ccpa MEMO: Concerns about the Marketing and Sales Proposal. (n.d.) Retrieved from MBA 500 Project Three Memo From Legal Department .docx (live.com) How to Market to a Low-Income Group Ray, L. (2021, November 20). How to market to a low-income group . Bizfluent. https://bizfluent.com/how-2317682-market-lowincome-group.html Vedova, H., & Technology, T. F. O. of. (2019, February 28). FTC issues revised “Green guides.” Federal Trade Commission. https://www.ftc.gov/news-events/news/press- releases/2012/10/ftc-issues-revised-green-guides

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