BUMKT1501 Introduction To Marketing - Assessment Task 3

Assessment Task 3

Question 2

Peter King is Melbourne Skoda’s top new car salesperson and has been for the last five years. Not only has he topped the car sales tables but 70% of his clients take out financing via a finance company Melbourne Skoda has an affiliation with. His take home pay is a mix of a base salary plus commission from car and finance sales, and the commission from finance is a healthy 35% of the total. Generally, only about 10% of the dealership’s customers take finance.

The dealerships’ owner has just found out from the General Manager that Peter has ‘twisted customers’ arms’ to also take finance despite knowing they had little need for it. Some customers want restitution, or they are threatening to go to TV current affair shows and the press. There are allegations that Peter is also getting a direct kick-back from the finance company. A PR nightmare could be looming despite the dealership supposedly having in-house online training modules on ethics.

Using theories and concepts from your prescribed textbook (pp. 70 to 75), what specific actions do you recommend that the dealership owner and General Manager take with respect to Peter? What should the General Manager do to ensure that unethical practices, do not happen? (approximately 500 words).

10 marks.

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