The Limitations and Constraints Under Which Marketers Operate

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Describe the limitations and constraints under which marketers operate Legal Requirements Marketing can be limited by consumer laws. The sales of goods act 1979 means goods have to be as described and of satisfactory quality. This means descriptions of the products have to be accurate and the quality has to be good. One recent example of bad practice is the ‘Horsemeat’ Scandal. The Horsemeat scandal contravenes the law as many company’s such as ‘Tesco’, ‘Iceland’, ‘Lidl’ and ‘Aldi’ were misleading their customers into thinking they sold beef whereas in fact they were caught selling horse meat which was a breach of the law. Consumer protection from unfair trading regulation 2008 also limits marketing as customers have a right to be treated fairly and honestly. Therefore aggressive sales tactics and dishonest promotions are strictly not allowed. Advertising special offers that aren't in stock is called bait advertising. An example of this is a camera shop runs a national advertising campaign offering cameras at a low price compared to its competitors. However, the trader knows there isn't enough stock to cover the demand in sales. This is an example of the breach of the law. The Data Protection 1998 law protects customers’ personal information. Customers’ information has to be kept safe, confidential and not shared with anyone else. If customer’s information is shared, it is breaching the law. One example of a company breaking the law is Sony. Sony ‘breached the law’ for failing to use up to date security software on its PlayStation Network. This meant that Sony was fined up to £250,000. Voluntary Codes Voluntary codes such as the ASA limit market activity. The ASA stands for the advertising standards authority. ASA self-regulate all advertising activity in the UK. They are allowed to ban adverts that cause offence such as displaying inappropriate material
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