This activity is important because, as a manager, you must be able to understand to what extent nonadvertising types of promotions are regulated. For the IMC manager to effectively include Sales Promotions, Digital Marketing Activities, and Direct Marketing in the IMC, it is critical to ascertain how these promotions are regulated.

$$

The goal of this activity is to demonstrate your ability to apply different promotions in the IMC, given the manner in which they are regulated.

$$

Read the case and answer the questions that follow.

$$

In January $2012,$ essentially no one in the American marketplace knew what a scooter$-$share system was. By $2019,$ in many urban areas and on university campuses, particularly those where Millennials and iGen lived in high density, it was nearly impossible to be unaware of the market. The preponderance of scooters standing waiting for the next rider or lying on the ground where the last rider left it was difficult to avoid.

$$

The trend spread quickly within many markets, and several competitors entered the market, including $$Lemon$,$ Bird, Spin, and Jump. These scooters could be used by anyone and left virtually anywhere, paying for the ride with a downloadable app, at a price generally $15$ cents to $$1$ per minute.

$$

There was substantial interest by other firms to share in the electric shared$-$scooter $$craze$.$ Uber defined itself as a provider of transportation and bought Jump. Google, employer of many Millennials and a firm that encourages a smaller carbon footprint, invested significantly in the start$-$up firms that are competing in a $$hot market.$$ In order to gain market share in the growth stage, competing brands are turning to many types of promotions to induce trial and encourage repeat purchases. However, the IMC manager of Lemon needs to be aware of the regulations guiding and restricting this industry.