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P2: Constraints & Limitations of Marketing
Transcript of P2: Constraints & Limitations of Marketing
Sale of Goods Act 1979
The Sales of Goods Act requires all traders to sell products and services as they are described and at a satisfactory quality for consumers. Nike as a company must make sure that all items that they sell to their customers are up to the standards that they portray in order to keep their positive reputation and their market share within the sporting goods market. Activision have been reported for not selling at a satisfactory quality when it came to the game Black Ops.
Watchdog made a report on a massive fault made by Tesco; the business claimed to be selling the new iPad 3 (which originally retails for around £400) for a knockdown price of £50.
Naturally, customers piled into Tesco stores to buy an iPad 3 at this heavily “discounted” price, only to be told that this was a mistake and that £50 was not the actual price of the item.
Watchdog exposed Tesco when this happened back in September 2012
Voluntary Codes of Advertising Practice
Pressure Groups & Consumerism
Consumerism and pressure groups in business aim to exploit and expose the faults made by businesses and put pressure on organisations in order to influence them to act a certain way; e.g. a pressure group supporting animal rights (such as the RSPCA) may protest against animal testing on products sold by cosmetics and healthcare stores. Another example of a pressure group is Watchdog – they are very well known for exposing the faults made by businesses...
An example of an advert which has been banned by ASA is the Centre Parcs advert…
Voluntary Codes of Advertising Practice
Acceptable Language: ASA
The Advertising Standards Authority (ASA) is the UK’s regulatory body who checks through several different types of adverts shown on TV, online, in magazines and newspapers etc. The ASA’s main responsibility is to ensure that the content of any advert broadcasted or published in the UK is acceptable – this means that they regulate the content of advertisements in order to ensure that advertising standards are kept high. They also respond to complaints from the general public and industry about adverts which may be harmful, misleading or offensive.
Consumer credit Acts 1974 & 2006
These Acts apply to businesses offering goods or services on credit, or companies that lend money to consumers.
An example of a breach of this contract is Northern Rock when the went into liquidation and had to borrow £270million from the government to pay back customers under the consumer credit act 2006.
Consumer Protection from Unfair Trading Regulations 2008
This Act means that all customers are entitled to fair treatment and honesty from the business that they are dealing with, it is a new act and is only targeted at business’ that do not treat their customers correctly.
In February 2011, Safe Style UK became the first company to be prosecuted under the regulations. In an action brought by North Lincolnshire Council Trading Standards Department they were found guilty under paragraph 25, and fined £4000 with £18000 costs for repeatedly calling on a consumer in Scunthorpe.
ASA banned it because it was seen to be encouraging parents to take their kids out of school during term time by promoting mid-week breaks
Data Protection Act 1998
The Data Protection Act 1998 is designed to protect customers from unfair use of their personal information.
1 June 2012 A monetary penalty notice for £325,000 has been served on Brighton and Sussex University Hospitals NHS Trust following the discovery of highly sensitive personal data belonging to tens of thousands of patients and staff – including some relating to HIV and Genito Urinary Medicine patients – on hard drives sold on an Internet auction site in October and No vember 2010.