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Limitations and constraints of marketing
Transcript of Limitations and constraints of marketing
Consumer laws protect customers when they buy products or services and the way they are treated by staff.
If a customer is unsatisfied with the way he/she was treated by a member of staff, they have the right to speak to a manager. This way the customer can make a complaint and the staff member can be dealt with for what he/she did wrong.
In Apple for example, if a customer gets a damaged IPhone he/she has the right to take it back to the store and replace it, as the product did not meet the expectations of quality.
Sales of Goods Act
Sales of Goods Act ensures that the goods being sold should be as described, be of good quality and serve the purpose they are being sold for.
An example of a company that has been in trouble because of the Sales of Goods Act is Tesco as they sold products that had horse meat but described it as 100% beef.
Consumer credit act
This protects the rights of consumers when they purchase goods on credit.
An example of a business breaking this act is when a person bought a car in between £100 and £30,000 from Tesco and they wanted to refund it. The person used Tesco’s bank card and under their agreement it says that using their card would mean items are not refundable. They used this to try to get out of following section 75. The person ended up getting the refund because all credit cards need to follow this Act.
Data Protection Act
The Data Protection Act protects information held about any organisations customers being misused.
The information stored in the database of an company must be: obtained fairly , only to be used for the purpose it was first collected , not kept longer than needed , accurate and up to date and etc.
Few years ago Sony did not protect their customers data and it ended up very badly for them as they had to repay their customers and apologise. This is an example of breaking the Data Protection Act.
Pressure Groups are organisations that seek to influence the changes made by the government or a business.
They can have a strong influence on voting and public opinion.
An Example of pressure groups is the NUS. They tried to influence the government to decrease tuition fees. The pressure groups had a large influence on the Liberal Democrats and a large amount of students voted for them.
Limitations and constraints of marketing
Consumer Protection from unfair Trading Regulations 2008
This new legislation made sure that business could not use any aggressive selling tactics to make the customers want to buy their product.
This is an example of a company breaking the Consumer Protection from unfair trading regulations 2008 and getting fined £250 for high pressure selling tactics.
Voluntary constraints/codes of advertising practice
Voluntary codes of advertising practice
Authorities like the Advertising Standards Authority (ASA) policy the marketing activities done by business.
The ASA has a set of rules that business must follow when marketing: protect customers from misleading statements and follow the legal framework
If a company breaches the code of practise the ASA have authority to ask various broadcasting stations to take their advertisement off air .
The Advertising Standards Authority (ASA) hold responsibility for all the ads that are shown. They have also have rules that adverts need to follow, if they are to make it to make it through.
No violence, bad language or any other types of adverts for above 18 year old viewers shown before 9 pm
No offensive ads towards religion or discrimination against a race.
And no exaggerated adverts, where the product is shown to do something that it doesn't.
Here is an advert that was banned for just that reason:
This presentation was created by Utkarsh, Robert and Milko.
Everyone has contributed to the presentation in their own unique way, which is why this presentation is different from any other.
Thank you for your time!
Consumer Protection (Distance Selling) regulation 2000
If a product has to be sold online, therefore without the customer and a member of staff meeting.
This means that the business needs to make sure that it presents detailed information for each product, as the customer wont be able to ask questions like in a store.
This way they can make sure that customers can easily choose the right product.
This act mainly protects customers from getting a different product than the one they ordered, or if the product arrives damaged, as they can ask for a refund.
If the company refuses, the customer can take this to court, as the act protects them.