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The following appeared in a memorandum from the owner of Carlo’s Clothing to the staff:“Since Disc Depot, the music store on the next block, began a new radio advertising campaign last year, its business has grown dramatically, as evidenced by the large increase in foot traffic into the store. While the Disc Depot’s owners have apparently become wealthy enough to retire, profits at Carlo’s Clothing have remained stagnant for the past three years. In order to boost our sales and profits, we should therefore switch from newspaper advertising to frequent radio advertisements like those for Disc Depot.”
Discuss how well reasoned . . . etc.Answer: The author concludes that Carlo’s clothing can certainly increase its profitability due to change in advertising media from News Paper to Radio. The author support his conclusion with Disc Depot’s business, which increased last year due to Radio Advertising. Here author completely failed to support his conclusion and his assumption are flawed. Below we can see which things author overlooked.
Firstly, this argument is based on flawed assumption which author makes about Carlo’s Clothing and Disc Depot that have same media access. This both business has different customer segments, so they have different market approach. Music Store needs Radio Ad because their targeted audience can listen to music. However Carlo’s Clothing brand need visual ad so newspaper advertisement is most suitable for their targeted customer. Here author failed to support relation between both these businesses.
Secondly, the author mention that the due to large footfall last year in Music Depot their profitable increased. There might be the chances that last year there was hit songs or other famous music launch due to which the footfall have increased. Author also mention that last year it was in profit he didn’t mention about any other past year loss or profit. Music Depot might be in lost 2 years then Carlo’s Clothing. So it is very unpredictable that switching to Radio Ad will also increase customer for Carlo’s Clothing.
Finally, the owner of Carlo’s Clothing expressed that they have remain stagnant for the last three years. But the disc depot have started advertisement last year. Therefore even though Carlo’s Clothing change their way of advertising it may probably not improve their business. The owner of Carlo’s Clothing should take into account others factors that had influenced the low profits for the three years. For example, the competitors surrounding Carlo's Clothing might have better prices or better service than that of Carlo's Clothing. As a result, the author should re-examine other reasons that can explain the stagnant profits at Carlo's Clothing.
The argument is mistaken because it is based on wrong assumption. The author wrongly assumed that a music store and a clothing store are same. Moreover he failed to differentiate between the purposes of two different advertisement.