The following appeared in a memorandum from a company’s marketing department.
“Since our company started manufacturing and marketing a deluxe air filter six months ago, sales of our economy filter—and company profits—have decreased significantly. The deluxe air filter sells for 50 percent more than the economy filter, but the economy filter lasts for only one month while the deluxe filter can be used for two months before it must be replaced. To increase repeat sales of our economy filter and maximize profits, we should discontinue the deluxe air filter and concentrate all our advertising efforts on the economy filter.”
Discuss how well reasoned... etc
The argument that the sales of deluxe air filter has reduced the company sales of economy air filter and company profits is inherently weak. The argument does not provide enough premises to convincingly states its point. The following assumptions tend to weaken the conclusion and need to be refuted with appropriate evidence to strengthen the argument.
First, the argument assumes that enough sales have been made within the first four months of manufacturing by claiming reduction in repeat orders after six months. This needs to be substantiated with filter sales data before and after the manufacture of air filters.
Second, the argument does not completely describe the deluxe air filter product. The deluxe air filter might have other features and associated accessories, which when advertised effectively might increase the sales as well as the profits of the company,
Third, the argument does not clearly state if the price of the deluxe air filter is promotional or fixed. If promotional, the price may be increased with improved sales and market shared eventually leading to increased profits.
Finally, the argument does not compare the product with competitor’s products and whether the product provides an edge for the company in increasing market share. Such an edge would generate lot more profit in the long run. As stated earlier, the argument is not logically convincing on account of the many assumptions stated above.
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