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P2 - Describe the limitations and constraints of marketing
Transcript of P2 - Describe the limitations and constraints of marketing
Limitations and constraints
– These are elements or factors that work as a bottleneck ( resource already working at its full capacity). They restrict a project from achieving its potential.
– These are activities that ensure that a company’s products are desirable to customers resulting in profit. They include promoting it, setting a price and eventually making it available.
OFT (Office of Fair Trading)
– is a not-for-profit government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK’s economical regulator. The goal of the OFT is to make markets work well for consumers.
Consumer law is a legal area that focuses on giving protection to the customer when they buy a product or service. This part of the legal system is designed to make sure that consumers buying a product or service are protected against issues such as fraud and miss-selling. I am going to cover the following topics that all come under consumer law.
Sales of Goods Act 1979
Consumer Protection from unfair trading regulations 2008
Consumer Credit Acts 1974 and 2006
Consumer Protection ( Distance Selling) Regulations 2000
Data Protection Act 1998
Consumer Law - Sale of Goods Act 1979
The sale of goods act, is designed to protect consumers and sellers from each other. The Act applies to contracts where property in 'goods' are transferred or agreed to be transferred for a monetary consideration.
Consumer Law - Trade Descriptions Act 1968
The Trade Descriptions Act, 1968, is an act that prohibits mis-descriptions of goods, services, accommodation and facilities provided in the course of trade; to prohibit false or misleading indications as to the price of goods.
‘The factory that supplied Tesco with its 29% horse ‘beefburgers’, for example, was using ‘multiple ingredients from some 40 suppliers in production batches, and the mixture could vary in every half-hour,’ according to the Irish department of agriculture.’
Consumer Law - Consumer Credit Act 1974
The Consumer Credit Act 1974 regulates consumer credit and covers content and form of credit agreements, method of calculating annual percentage rate (APR), procedures relating to events of default, termination or early settlement, credit Advertising, section 75 which gives you extra protection on items costing over £100 and up to £30,000 paid by credit card.
‘The [co-operative] bank said it would pay £114m to compensate customers who had been overcharged on mortgage repayments. It has also set aside £110m to cover breaches of the Consumer Credit Act and an additional £103m in order to compensate customers on mis-sold payment protection insurance.’
By Tom, Dan and Tyler
Distance selling is selling and buying goods or services without face to face contact. For example shopping online, via telephone or on television.
The Consumer Protection (Distance Selling) Regulations give people legal rights when they buy goods from a trader who normally sells goods or services at a distance.
The regulations apply to the sale of goods or services to consumers but not to businesses.
It doesn't matter how you pay for the goods and the regulations apply to both new and second-hand goods.
Consumer Law - Consumer Protection (Distance Selling) Regulations 2000
Consumer Law - Data Protection Act 1988
The Data Protection Act covers data held in electronic formats, and also applies to manual data which are held in what the Act calls a relevant filling system. It is the main piece of legislation that governs the protection of personal data in the UK. Here are some prosecutions, where individuals have breached the Act:
In 2012, Mohammed Ali Enayet, owner of The Lime Lounge in Cleveleys was prosecuted by the ICO for failing to register his premises’ use of CCTV equipment.
Also in 2012, Mr Punjab Sandhu, a director at SAI Property Investments Limited, trading as IPS Property Services, unlawfully obtained details about their tenants from a rogue employee at Slough Borough Council
Voluntary Constraints - Voluntary Codes of advertising Practice
These codes lay down rules for advertisers, agencies and media owners to follow.
They include general rules that state advertising must be responsible, must not mislead or offend, specific rules that cover advertising to children and ads for specific sectors like alcohol, gambling, motoring, health and financial products.
Voluntary Constraints - Acceptable Language
‘The ASA (Advertising Standards Authority) is the UK’s independent regulator of advertising across all media. We apply the Advertising Codes, which are written by the Committees of Advertising Practice. Our work includes acting on complaints and proactively checking the media to take action against misleading, harmful or offensive advertisements.’
‘A TV ad for Center Parcs resorts showed families, that included school aged children, taking part in various activities. On-screen text stated “Selected 4 night midweek breaks from £279 for 4 people”. Small print stated “Excludes school holidays.’
Consumerism & Pressure Groups
Pressure groups can be extremely effective in changing organisational behaviour. Formed by people with a common interest who join together in order to further that interest e.g Greenpeace, Drinkaware, and Amnesty international.
Consumerism is defined as ‘social movement. Seeking to augment the rights of buyers in relation to sellers.