MGMA01H3 Chapter Notes - Chapter 4: Product Stewardship, Product Lifecycle, Consumerism
Document Summary
High prices: critics charge that the marketing system cause prices to be higher than they would under more sensible" systems because of: Supermarket chains are typically left with barely 1 percent profit on their sales. Differentiated products cosmetics, detergents, toiletries include promotion and packaging costs that can amount to 40 percent or more of the manufacturer"s price to the retailer. Companies mark up goods excessively, pills costing 5 cents may cost . Deceptive practices: marketers are sometimes accused of deveptive practices that lead consumers to believe they will get more value than they actually do. Includes practices such as falsely advertising factory/wholesale" prices. Includes practices as misrepresenting the products features or performance or luring the customers to the store for a bargain that is out of stock. Includes exaggerating package contents through subtle design, using misleading labeling or describing size in misleading terms: competition bureau acts as a watchdog to prevent such practices.
