Scenario: Balance-Out launch a new Smart WatchThe Shoe Rack is a specialist running gear store located in Pretoria. The business is privately owned andhave been in business since 1980. Runners and running clubs in and around Pretoria are familiar withthe store; not only for the apparel sold, but also for their friendly service and knowledgably employees.The Shoe Rack prides themselves that they sell a variety of brands such as Balance-Out, Adidas, Asics,Saucony and Nike and requires that all employees are runners themselves.The Shoe Rack sells the following running apparel: Shoes, shirts, shorts, and socks. Energy supplements and Smart Watches.Product managers from different brands visit The Shoe Rack on a regular basis, especially when thebrand is launching a new product. During the last visit from Balance-Out Product Manager, sheintroduced a new, state-of-the-art Smart Watch, the S-Tech Intel to the owner of The Shoe Rack.Although some of the watch’s features are already offered by competing brands, however, the S-TechIntel offers some unique benefits to users: It measures and specifies nutrients in the runner’s body and if there are any deficiencies,suggests foods to fill up on those nutrients. The watch can be set that it tells the long-distance runners, when to re-fuel with energy gels orother energy products. It measures the thread on the runner’s shoes and suggest when a new pair of shoes are needed. It warns the runner of imminent injuries looming according to the state of the runner’s body.Balance-out’s Product Manager indicated that The Shoe Rack will have exclusive rights to sell the watchfor the next three months.The Shoe Rack however need to communicate to current and potential customers telling them aboutthe product and why it is a better watch than those currently in the market. As marketing manager ofThe Shoe Rack, you are tasked with this project. 1 - Briefly explain to management of The Shoe Rack what the Consumer Protection act is and inwhat way, if any, the Consumer Protection Act could influence advertising of the S-TechIntel smartwatch. 2 - Discuss five reason(s) for deciding to use consumer advertising over any otheradvertisement classification option. Ensure to motivate the reasons given.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Scenario: Balance-Out launch a new Smart Watch
The Shoe Rack is a specialist running gear store located in Pretoria. The business is privately owned and
have been in business since 1980. Runners and running clubs in and around Pretoria are familiar with
the store; not only for the apparel sold, but also for their friendly service and knowledgably employees.
The Shoe Rack prides themselves that they sell a variety of brands such as Balance-Out, Adidas, Asics,
Saucony and Nike and requires that all employees are runners themselves.
The Shoe Rack sells the following running apparel:
 Shoes, shirts, shorts, and socks.
 Energy supplements and
 Smart Watches.
Product managers from different brands visit The Shoe Rack on a regular basis, especially when the
brand is launching a new product. During the last visit from Balance-Out Product Manager, she
introduced a new, state-of-the-art Smart Watch, the S-Tech Intel to the owner of The Shoe Rack.
Although some of the watch’s features are already offered by competing brands, however, the S-Tech
Intel offers some unique benefits to users:
 It measures and specifies nutrients in the runner’s body and if there are any deficiencies,
suggests foods to fill up on those nutrients.
 The watch can be set that it tells the long-distance runners, when to re-fuel with energy gels or
other energy products.
 It measures the thread on the runner’s shoes and suggest when a new pair of shoes are needed.
 It warns the runner of imminent injuries looming according to the state of the runner’s body.
Balance-out’s Product Manager indicated that The Shoe Rack will have exclusive rights to sell the watch
for the next three months.
The Shoe Rack however need to communicate to current and potential customers telling them about
the product and why it is a better watch than those currently in the market. As marketing manager of
The Shoe Rack, you are tasked with this project.

1 - Briefly explain to management of The Shoe Rack what the Consumer Protection act is and in
what way, if any, the Consumer Protection Act could influence advertising of the S-Tech
Intel smartwatch.

2 - Discuss five reason(s) for deciding to use consumer advertising over any other
advertisement classification option. Ensure to motivate the reasons given.

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