7-2 MBA 500 Project Three Milestone Response Memo

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Southern New Hampshire University *

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MBA-500-Q5

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Marketing

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Feb 20, 2024

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docx

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Uploaded by CaptainParrot3567

MEMO To : Don Washington, Director of Marketing, Rewards Membership Alva Ramirez, Director of Sales, Rewards Membership Anne Hernandez, CEO From : Larry Anderson, Sales and Marketing Consultant Subject : Addressing Legal Team Concerns on Low-Income Marketing and Sales Plan Executive Summary The sales and marketing department of ABC Beauty Company has set a plan to encourage a low- income membership loyalty program. Based on the information for this program, the legal department has raised legal and ethical concerns that must be addressed before moving forward with the program. The sales and marketing department has been asked to address one legal issue and one ethical issue from the supplied memo from the legal department and will do so below. Until this is done, the company will not be allowed to move forward with the implementation of the low-income loyalty membership program. Addressing One Legal Issue The legal department is concerned with data collection of individuals in school and are not of the age of 18 years old for membership purposes. Since the program will be national, it will require the company to comply with the strictest rules for data collection, such as those of the California Consumer Privacy Act of 2018 (CCPA). In this Act, it states the consumer has, “the right to know about the personal information a business collects about them and how it is shared and used, the right to delete personal information collected from them (with some exceptions), the right to opt out of the sale of the personal information, and the right to non-discrimination for exercising their privacy rights” (Legal Department,

2023). They are requiring the company to come up with an alternative to data collection since these individuals are not 18 years old and cannot enter into said agreement because they are minors. Addressing One Ethical Issue The ethical issue of transparency in language the legal department is requesting is of great importance, as it is ABC Beauty Company’s responsibility to ensure we are not misleading our customers. It is recommended we ensure the target demographic of the low-income population understands what they are able to receive by joining the loyalty membership program. As these individuals, “may have had fewer educational opportunities or less experience with managing personal finances” (Legal Department, 2023). Due to the wording of the agreement, it must be presented to the participant at a level they can clearly comprehend. Providing a recommendation The legal issue raised above is one of great concern, as we want to ensure low-income individuals have the opportunity to participate in, and gain savings from, the loyalty membership program. Since these individuals are not of age to consent, the sales and marketing department suggest these individuals join under a group membership that would reflect only the school they are associated with. Further, the points garnered from the purchases from these sales would be donated to the school in a charitable donation and can be used only for school improvements. This would allow for the individuals to have the opportunity to save money and make an improvement and direct impact within their community. This would satisfy the requirement of not collecting information on individuals under the age of 18 and when the customer turns 18, they can then decide whether or not they would like to continue the membership. The ethical issue posed above must be met strategically and in a way the consumer is educated and clearly understands what they are agreeing to join. In order to achieve the proper language, it

would be imperative to have a focus group of low-income individuals to charter our loyalty membership program agreements before we begin this new process. This will allow us to gauge the response to the wording or “fine print” to become as transparent as possible and meet the request of the legal department of ensuring that this program does not become a predatory for-profit program. If we are not able to ensure the individuals we are attempting to serve can understand what they are agreeing to, we are not doing a just and honorable business proposal.

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References Legal Department (2023). MEMO: Concerns about the Marketing and Sales Proposal . ABC Beauty Company

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