I am going to describe the various limitations and constraints that marketers operate under, to give evidence to my explanations I will be listing various examples.
The 9th May Incident in Pakistan A Turning Point in History.pptx
Market limitations
1. Unit 3 P2
Lewis Appleton Miss James
I am goingto describe the variouslimitationsandconstraintsthatmarketersoperate under,togive
evidence tomyexplanationsIwill be listingvariousexamples.
The differentlimitations andconstraintsthatIwill address are;
Salesof Goods Act1979
Consumerprotectionfromunfairtradingregulations2008
ConsumercreditActs1974 and 2006
ConsumerProtection(distance selling)Regulations2000
Data ProtectionAct1998
Voluntarycodesof advertisingpractice (ASA)
Pressure Groups
Acceptable Language
Sales of Goods Act 1979
Thisact statesrulesforthe tradersin businessestomake sure thattheirproductsare being
advertisedasappropriate,thismeansthataproductcan notbe advertisedasbeingable todo
somethingthatitcannot.This act meansthat if any productisadvertisedashavinga use forit that is
not true,the businesswill be breakingthe act and as a consequencecouldhave topay
compensation.Anexample of thisisif abusinesssellsacertainproductsuch as a type of cereal and
theyclaimthat itwill make youlose weight,itwillnotbe true.Theyhave to state that itis healthy
and mayhelpinlosingweight. Anexample of thisbeingbreachedisComet;theywere successfully
suedforbreachingthe act because of a faultylaptopsoldastheywere unable toprove thatit did
not have a defectatthe time of purchase.
http://forums.pepipoo.com/index.php?s=65e67db10ace740b90fb167396e54b1a&showtopic=52242
&pid=478578&st=0&#entry478578
Consumer Protectionfrom Unfair Trading Regulations 2008
Thisact statesthat all customersandconsumersare entitledtofairtreatmentfromthe businessand
require tobe dealtwithinan honestwayby the businesstheyare receivingsuppliesora service
from.Thisact wasintroducedtodeal withthe typesof businessesthatdidnotgive theircustomers
fairtreatmentandhonesty,the introductionof thisactwasrecent comparedto the otheracts. This
act statesthat it isnot acceptable tolie or show aggressiontotheircustomers,suchasaggressionin
advertisementsorpromotingeventsthatare nothappeningsuchas a closingdownsale which
wouldbe usedtoget more customers. Anexample of thisisthatunnamedgymsmayhave been
breakingthisact.
http://www.bbc.co.uk/news/business-16815806
Consumer Credit Acts 1974 and 2006
Thisact appliestothe typesof businessthatdeal insupplyingservicesandgoodsoncreditandalso
the businessesthattake the opportunitytogive theirconsumersthe abilitytotake outloansfrom
the business.These typesof businesseswillhave tobe licensedbythe Office of FairTrading(OFT)
2. Unit 3 P2
Lewis Appleton Miss James
and the customersthathave complaintswill have theircomplaintswiththe businesssettledbythe
Financial OmbudsmanService (FOS).Businessesare requiredtoprovide regularupdatessuchas
weeklyormonthlyupdatestotheircustomersinrelationtotheiraccounts.The FOSmay decide to
helpthe customerwhentheyare fallingbehindontheirrepaymentsbymakinganadjustmenttothe
loanperiodandincrease the time thattheyhave to repayby.This prevents businessesfromlending
money andthenwhencustomersstruggle torepaydebtshavingthe businessthreateningthemwith
bailiffsandothertactics. Thisrule canbe easilybrokensuchasinthe waypaymentprotection
insurance (PPI) waswronglysoldtomanypeople.
http://www.bbc.co.uk/news/business-15538498
Consumer Protection(distance selling) Regulations 2000
Thisact helpsprotectsalesbetweenabusinessandcustomerthatdo notmeetinpersonto make a
transaction,the businessmayoperate onthe internetwhichisone of the mostcommonforms of
distance sellingbuttheycanalsobe advertisingtheirserviceinnewspapersandonthe radio.
Examplesof itemsthatcan be purchasedthroughdistance sellingare onlinebenefitssuchas books,
Cds,Dvds.Clearinformationhastobe providedbythe businessallowingthe customerstohave
more of an informeddecisionaboutwhethertomake atransaction.The informationthatmustbe
giventothe consumerincludesinformationabout firstof all the businessitself,the range of goods
and servicesthattheyare tryingto sell,anarrangementforhow and whenpaymentswill be made,
arrangementsforthe deliveryof the productor service,the righttobe able to cancel theirorderif
the consumerdecidesthattheynolongerwantto buythe product or service.A goodexample of
distance sellingisEbay;thisiswhere manypeople sellitemsthroughauctionorquicksalesonthe
internet,the businesshastomake sure the transactionsgo successfullysothattheydonot break
the act andcause upsettothe consumers.A companycalledHandpickedMediahadbrokenrulesof
disclosure by purchasingblogposts andtweetsforsponsoredpromotionswithoutdisclosingthe fact
clearly.
http://www.mondaq.com/x/168626/Social+Media/Catching+The+Eye+Product+Endorsement+Thro
ugh+Social+Media
Data ProtectionAct 1998
The data protectionact was introducedsothatcustomershave protection inregardsto their
personal information andthe waybusinessesuse it sothatthey do not feel vulnerable to other
people knowingaboutthem. The actstatesthat businessescannotuse the personal information
heldonthe customeragainsttheirwill orinan unfairand unnecessaryway.Anybusinessesthat
keepinformationontheircustomersona database are impactedonby thisact. Thismeansthat it is
importantforthe business whensendingoutdirectmail fromtheirmarketingdepartment,itwould
have to be highstandard.There are eightrulesinthisact and theyare;
The informationhastobe obtainedlawfullyandfairlymeaningthe informationhastobe
obtainedfromthe personandithas to be obtainedwiththe person’sagreement.
The informationmayonlybe usedforspecificpurposesandthe purposescanonlybe those
that were statedduringthe collectionof the information.
3. Unit 3 P2
Lewis Appleton Miss James
The informationhastobe adequate andrelevanttoitspurpose anditcannot be too much
informationonthe customerinrelationtowhatthe businessintendstouse itfor.
The informationhastobe accurate andalso keptupto date where itis necessarytoensure
that the informationonthe customeriscorrect.
The informationisonlytobe keptinthe database while itisneededandmustbe disposed
of afteritis nolongerrequired.
The informationmustonlybe processedwithpermissionfromthe customerandmustbe in
coordinationwiththeirrights.
The informationhastobe protectedfromunlawful processing,accidentallossof the
informationandalsoanychangesor damage to the data.
The informationcanonlystaywithinthe EuropeanEconomicArea(EEA) unlessthere is
protectionexistingforthatdata withinthe areaitisto be transferredto.
An example of whenthiswasbrokeniswhennewsof the worldwasfoundtobe involvedwitha
phone hackingscandal,theyhadrecordedconversationsof people thathadcalledandthe people
were notaware of this whichbreachesthe act.
http://www.guardian.co.uk/media/2011/nov/14/phone-hacking-ni-staff-glenn-mulcaire
Voluntary Codes of Advertising practice
In additiontothe lawsthat state whatthe businessare able tosayaboutwhat theyprovide and
whattheyare not able tosay, the activityinmarketinghasto be policedbythe independent
AdvertisingStandardsAuthority(ASA).Ratherthana legal frameworkthe ASA dealswiththe
promotionandmaintainingthe BritishCode of Advertising,promotionsalesanddirectmarketing
(CAP). There are setrulesforbusinessestofollow;theyhave tokeepwithinthe legalframework,
theyhave to provide protectiontotheircustomersfromclaimsthatmaybe misleading,theyhave to
create an evenfootingforthe groupsthat advertise forthem.Thiscode statesthatall advertising
shouldbe followinglegallegislation,decentintermsof quality,honestandnotmisleadingtotheir
customersandthe businessshouldshow responsibilitytothe consumerandthe society.The
businessesmustfollowthiscode,if theydonotthe ASA can take actioninthe followingways;insist
to the businessthatthe ASA mustapprove of any formof advertisingthe businesswantstouse
before theytryto publishorbroadcastit,give a reference of the advertisertothe office of fair
tradingand ask TV stations,radiostationsandthe groups of people thatare advertisingthe product
to withdrawthe advertisementfromthe broadcaststheymake andtheirpublications. Anexample
of thisisthat companiesthatsell alcoholicproductstrynot to aimtheirmarketingmessagesat
youngerpeople asthiswouldencourage themtodrinkmore.Thisoriginallywasn’tthe case but
companiessuchas Diageohave changedtheirpolicies.
http://www.sourcewatch.org/index.php?title=Voluntary_codes
Pressure groups
A pressure groupis a group of people withsimilarviewswhotry tomake an influence onthe
businessandattemptstochange theirbeliefsandhow theyare behavingtowardssomething.Inthe
UK there are thousandsof pressure groupsof whichcan come invarioussizesandcan be tryingto
4. Unit 3 P2
Lewis Appleton Miss James
achieve adifferentcause.Fortheircause theywill trytoraise awarenessof ittowardsthe public
whichwouldpressure the governmentorbusinesstochange.Itwill alsoraise awarenessof the
businessinvolvedbutitwill be aresultof negative publicitywhich,asa resultwill damage the public
reputationforthe businessandaffectitslevelsof sales,marketinghastoanticipate the actionsof
the pressure groupand planstrategiestodeal withit.Anexample of thisiswhenagroupof people
are all againstthe fact that a newsupermarketisopening.
http://www.bbc.co.uk/news/uk-england-kent-17339174?SThisFB
Acceptable language
Businessesneedtouse acceptable languagethat the publicisable to engage with otherwisethey
riskoffendingthe consumers.The language thatisacceptable canbe subjective,anddifferent
groupsof people will have adifferentreactiontothe advert,thisisdependentonthe textandthe
imagesthatthe businessdecide touse toaccompanythe promotionof theirproductsand the
contextinhowtheyuse it.The advertisingstandardsauthority(ASA)hasstatedwhere businesscan
promote itscontextandthe availabilitytowhatcontextthe advertisement includes,some of the
language thatmay not be acceptedincludes; references tosex,use of stronglanguage orprofanity
whichcan be offensive,talkaboutreligionsormake statementswhichmayoffendpeopleabout
theirbeliefs,showpeopleinaway that isdemeaningandoffendpeople inthe termsof gender,
race, religion,sexuality,age ordisabilities.Language thatischosenforthe advertisementalsoneeds
to be recognisable tothe audience.Forexample if anadvertincluded“txtspk”notmany people may
understanditunlessitwasrelatedtomobile phones.Therefore textlanguage will appeartobe
inappropriate tothe audience. Anexampleof thisisanadvertpromotingSofaKing,the reasonfor
thisisbecause theirslogan“Ourpricesare SofaKingLow!” hintsat a swearword.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9110816/Sofa-King-advert-
banned-for-swearing-slogan.html
Conclusion
I have foundthat marketing departments have variousmethods toabusinessshouldrunand the
contextitoperateswithin.There are certainlawsthatmustbe followedbybusinessestoavoid
prosecution andupsettingthe public.Ifoundthatbusinesses needtofollow all of these lawsto
make sure that theycan do theirobjectives.Ihave alsofoundinformationrelatedtobusinessesthat
use marketing,howtheyuse itandthe advantagesitgainsforthem.The two businessesIdescribed
abouthave usedvariousstrategiessuchastryingto grow and tryingtosurvive,aswell asthisI found
howbrandingaffectsthe recognitionof the businesswhile promotingsales,profitandcustomer
satisfaction.