1. Deceptive Sales Practices
Can you name some deceptive sales practices.

2. Referral Sales
Convincing consumers they can save money if they refer the company to other consumers.
Ex. Gyms, Direct TV, Party Plan
How can a referral sale be illegal?

3. Pyramid Schemes Non-sustainable business method.
Exchange of money for enrolling new members for the system.
Usually without a service being delivered.

4. Pyramid Scheme

5. Spoof on the Pyramid Scheme
King of Queens
Spoof on the Pyramid Scheme

6. What is this appealing to?
Advertising
What is this appealing to?

7. Advertising Inform a consumer about a product.
Protected by 1st Amendment.
Government may regulate certain advertisements.

8. Advertisement Tricks Illegal False Advertisements
Misleading Advertisements
Legal
Exaggeration – “Puffing”
Opinion
Sales Talk

9. Price Based Tricks Rebates Inflated Price Comparisons
Introductory Offers

10. Bait and Switch
Advertise a product at a very low price, almost too good to be true
Once consumer is in store, they will say product sold out or may inform you that it is really not what you want
Divert your attention to a higher priced model

11. Bait and Switch Exposed by News Team!

12. Other Misleading Advertisements
Misrepresentations
Advertising the Maximum
Fillers and Oversized Packaging

13.
Splenda

14. Lay’s Potato Chips
Commercial

15. Direct TV
Star Trek

16. Subliminal Messages
A message sent unrecognizable to the conscious mind, but can affect the subconscious and later actions and attitudes
Often used in advertising/propaganda. Effectiveness yet to be proven
First used during WWII to train soldiers to recognize enemy planes
1957 – first used as a form of advertising in a movie – “Drink Coca Cola” “Hungry” “Eat Popcorn!”

17. YouTube - State Issues Warning To 'Deceptive' Dealership
Deceptive Sales Practices Uncovered!
YouTube - State Issues Warning To 'Deceptive' Dealership

18. Now It Is Your Turn! Get Into Assigned Groups
Discuss a Name For Your Product
Create Short Commercial to Sell Your Product – Must be 20 – 30 seconds
Be Sure to Use at least 2 Advertising Tricks Discussed in Class in your Commercial
Will be graded on length, # of advertising “tricks”, group participation