The following appeared in a memorandum from the marketing department of a children’s clothing manufacturer:

“Our HuggyBunny brand is the bestselling brand of children’s clothing. Parents everywhere recognize the HuggyBunny logo as a mark of quality, and most of our customers show great brand loyalty. Sales reports have shown that parents are more likely to buy children’s clothes with the familiar HuggyBunny brand and logo than otherwise identical clothes without it. Therefore, if we use the HuggyBunny brand name and logo for the new line of clothing for teenagers that our company will soon be introducing, that clothing will sell better than it would if we labeled it with a new brand name and logo.”

Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.

Marketing managers are always on the lookout for ways to increase sales. They understand that the more consumers know about a product, the more likely they are to buy it. Therefore, marketing executives go to great lengths to ensure that consumers know about their brands, both past and present. A case in point is the company in the memorandum. It has already established itself as the premier children’s clothing manufacturer, and its signature product, HuggyBunny, has legions of fans. The manufacturer is understandably concerned that its new line of clothing fail to gain the same traction, and, therefore, is looking for ways to leverage its existing brand power. However, in this case, it seems more likely that the potential customers who are more price conscious may be more likely to bite on the new product without the logo, even if the clothing is identical. For one thing, many teens today enjoy putting their own stamp on clothing and are able to find inexpensive threads at their local thrift shops. Additionally, teenagers have become savvy shoppers and are more likely to compare prices and haggle over price than their parents, so they might choose a less expensive brand rather than one that is more expensive. Therefore, even if the manufacturer’s new line is sold at a lower price, it will not be as profitable as the brand already established in the market

The memo states that sales reports have shown that parents are more likely to buy children’s clothes with the HuggyBunny name and logo. However, that statement is misleading. The company used data from the past, but sales reports are not the best way to gauge how successful a new line will be. A marketing executive should examine trends over time and identify the factors that have affected sales in the past. For example, if the children’s line seems to do well during the spring and early summer, but is sluggish during the fall and winter, that may indicate the need for a different marketing strategy. If the line does not sell at all during the fall and winter, then it likely indicates a problem with the line itself, such as poor quality products, or a lack of marketing and promotion

In addition, the memo suggests that consumers recognize the HuggyBunny brand. If consumers do recognize the brand, then the manufacturer is on the right track. However, if consumers do not recognize the brand, then more promotion and advertising are needed. Marketing managers should determine if consumers recognize the brand, and if so, how. If consumers recognize the brand, then the focus should be on getting the word out about the new line. If consumers do not recognize the brand, then the company may need to create a new line altogether. Either way, the company’s marketing department will be better equipped to make good marketing decisions if managers consider the long-term trends of the market.

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