You are to assume the role of the director of marketing at Fitness Time, a chain of over 2,000 fitness centers. The senior vice president wants you to analyze claims that the company is acting unethically by marketing misleading information and recommend if changes are needed.
The number of Fitness Time locations is increasing quickly. Ten locations are set to open each month for remainder of the year. Fitness Time prides itself on being more affordable than other gym and on offering equipment and machines for serious athletes as well as people beginning their fitness journey.
There are two levels of membership at Fitness Time: the basic membership and the ultra membership. The basic membership involves 24/7 access to any location, training sessions and mobile app workouts. The ultra membership adds on perks including bringing a guest, discounts on merchandise, use of tanning beds and hydromassage and massage chairs.
In most markets, Fitness Time promotes their membership rates for the basic membership at $1 down and $10/month. Fitness Time places the promotional signs in neighborhoods, on the local Fitness Time websites, social media, in the facilities and on banners and yard signs on the facility properties. The promotional pieces all mention the date when the offer expires.
Customers have determined that the $1 down, $10/month basic membership rate offer truly never expires. The offer expiration date on the promotional pieces simply gets extended. If a promotional sign states the offer expires on April 15, then on April 16 the offer expiration date changes to April 30. Customers think the special deal they are receiving is not special.
Customers feel misled. They are claiming that it is unethical for Fitness Time to promote a special deal with an expiration date that pressures people to become members in a limited time offer, when in fact they can join at any time and receive the same rates.
The senior vice president wants you to analyze the situation and to:
- Explain marketing and why it is important in a growing company
- Describe marketing functions
- Decide if influencing customer buying behavior with a false expiration date is ethical
- Recommend any changes to the promotion, if needed
