Achileas Gkanos
12/10/2018
Achileas Gkanos
12/10/2018
Task 4: Describe the limitations and constraints of marketing In this task I will be describing the limitations and constraints of marketing to the Oliver Agency as they are a marketing agency and they will need to know the meanings of each constraint and limitation before they market anything whether it is a product or a service. I will be listing all the Legal Constraints and the Voluntary constraints that a Marketing Agency needs to know so that they stay protected and so that they do not go against any of the above.
What is a Constraint? A constraint could be a restriction or a limitation on something, constraints are things such as laws and regulations that must be followed in media and marketing. These laws and regulations have been set by different regulating bodies so that broadcasters or production companies do not release any obscene media which may not be suitable for audience from different age groups, beliefs, backgrounds, ethics etc.
Legal Constraints 1. Consumer Law: Consumer law regulates private law relationships between a consumer and the businesses that sell goods or/and services. Consumer Law covers a wide range of different kind of topics that businesses must follow. Businesses must keep up to date with the changes that occur so that any of their activities do not end up being illegal and going against the constraints and regulations. 2. Sale of Goods Act 1979: Sale of Goods Act is the way the products are sold and how they are described. The description of the product or service should fit its expectations and its satisfactory quality too. It affects the marketing activity as every organisation should describe the product or service accurately and should be able to face any claims from their customers. For example, if a customer of Nike is not satisfied with the product they should be able to return it, get a refund or ask for new trainers that will satisfy them and meet the customer’s needs. All Nike’s goods should be described at the same level of satisfactory and purpose. If Nike mentions that a product can do certain things and the product can’t then they will be going against the Sale of Goods Act as they are describing the wrong product and giving false information. 3. Trade Descriptions Act 1968: The Trade Description Act 1968 is an Act which prevents all the manufacturers and retailers that mislead their consumers as to what they have been spending their money on. The judiciary can punish companies, organisations or individuals that make false claims about their products or services that they sell. 4. Consumer credit Acts 1974 & 2006: This Act applies to businesses that offer goods or services on credit or organisations/companies that lend money to their consumers. To do that, businesses need to be licensed by the Office of Fair Trading and any complaints are settled and handled by the Financial Ombudsman Service. The businesses are required to keep their consumers updated on their accounts. If a customer fails to pay their loan, then the business should extend the period for the customer can repay the debt. For example, this is where the customer buys a Nike product with credit then pays back the bank with interest. The Consumer Credit Act expects Nike to lend money to consumers or even offer any goods or services on credit.
Achileas Gkanos
12/10/2018
5. Consumer Protection from unfair Trading Regulations 2008: This Act entitles all customers around the world with fair treatment and honesty from businesses they buy products or services from. This legislation targets businesses that do not treat their customers well, with respect and kindness. This Act prevents businesses (any type of business) to use aggressive sales tactics or put false and dishonest promotions. For example, a business could say that there are closing-down sales available when the business is not actually planning to close. 6. Consumer Protection (Distance Selling) Regulations 2000: This Act is all about distance selling. This a type of selling where the customer does not have any face-to-face contact with the business. Some examples of distance selling could be executed through online, phone, mail order, TV shopping channel, interactive TV etc. The Regulations require the business to provide the customer clear information so that they are clear and informed about everything in terms of the purchase that they are about to do. The business must give information to the customer about: Goods or services that they are selling, payment arrangements, and delivery arrangements (How long is it going to take to arrive at the address, when and how is it going to be delivered) consumers’ right to cancel their orders where appropriate. If the customer buys the product then they should be able to try it and then refund it or exchange it if they are not satisfied by it. The business sets a specific period (e.g. 3-4 days available) where the customers can refund/exchange their product, if the time expires then they won’t be able to exchange it or refund it. If Nike fails to do so then this could lead them in serious consequences. 7. Data Protection Act 1998: This Act is designed to protect customers from around the world from any unfair use of their personal details. This Act has an impact on any business that keeps databases with information of their customers, so it is very crucial that the marketing departments of the business sends out direct mails. The information in the databases must be: Secured fairly and lawfully Used only for the main purposes Have to be relevant and adequate Have to be accurate and updated (necessary information only) Not kept for longer than it is necessary Processed with the customer’s rights Procedures that will prevent unlawful processing, destruction, accidental loss and damage to personal and important data Protected from getting transferred to an area outside of the European Economic Area unless protection exists for the data in that specific area
Achileas Gkanos
12/10/2018
Voluntary Constraints 1. Voluntary codes of advertising practice: The ASA is not a part of the legal framework; however, it is an industry body. ASA promotes and maintains the code of advertising, sales of marketing and direct marketing. There are a set of rules that organisations must follow when they market their products or services: Kept within the legal framework Protect customers from any misleading claims Produce an even footing for the advertisers It is very important that organisations ensure they are being legal, decent, honest and truthful. All organisations should ensure that they are always keeping the consumer and the society’s best interests when they are advertising their products or services. If an advertiser breaches the code of practice, then the ASA will be able to:
Check in to see if it approves any advertising before its published or broadcasted Need to refer the advertiser to the Office of Fair Trading Ask any TV stations, radio stations and publishers to withdraw the advertising from their publications or broadcasts.
2. Pressure groups and consumerism: Pressure groups are organised groups working to influence members of the public so that they change their perception of a business and its environment. Pressure groups could also be organisations which campaign for changes in the law and they are known on having a strong influence on the public’s opinions and who they choose to vote for. They can challenge and change the behaviour of a business by:
Writing letters to MPs Contacting the press Organising marches Running campaigns
Consumers on the other hand is a social movement that gives the consumers some power over certain businesses. It identifies the rights for consumers to: Safety Able to choose Need to be informed Need to be heard The Office of Fair Trading has a big part of consumerism as they enforce the consumer legislations and act against unfair traders too. Over the years Nike has come across many pressure groups for different kind of reasons. Some of them are; paying very low labour costs, long working hours for employees in LEDCs such as Ethiopia.
Achileas Gkanos
12/10/2018
3. Acceptable Language: Using acceptable language could be hard sometimes while advertising, however, advertisers need to avoid offending consumers and must be appropriate all the time. The ASA has identified key areas that people find the use of language unacceptable and these areas are; Referring to sex Use any type of swear words and strong language Mock any religions or people’s beliefs Offend their gender, race , religion, sexuality, age or disability Each advertisement is aimed at different kind of audience, businesses need to make sure that their advertisements are appropriate and accessible for their target audience. Nike’s employees are well trained so that they use the suitable language depending on the situation that they are in.
Resources https://whatis.techtarget.com/definition/constraint-project-constraint https://lmvalentinemedia.wordpress.com/creative-media-sector/ethical-and-legal-constraints-inthe-media/ https://prezi.com/2f431hs9dudh/nike/
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