P2- Describe the limitations and constraints of marketingIn this assignment I will be including the laws and regulations that businesses and companies mustfollow to be following the law.LegislationSales of goods actThe sales of goods act is an act that controls the sale of goods that are bought and sold in the UKand obligatory contract between both parties. The contract of sale statuses that the transfer ofproperty from a seller to a buyer is completed through a money transaction, known as the price.The goods need to meet the standards that they are set as to what it’s supposed to; the expectedlevel. Under the legislation the products that are sold must be fit for its purpose, match thedescription and it’s very important to be installed correctly, if installation was part of the contract.The sale of goods legislation applies to traders and consumers.
An example would be if a high endbag that is bought guaranteed to be at its meeting standard of having a good quality bag. Meaningthe bag for example a Tommy Hilfiger bag is bought at an average price of £180 it’s got a yearguarantee if anything happens to it, there is an option of returning it or receiving a refund. Forexample if the zip breaks within the week, the brand has a reputation of being of high quality whichin this case it did not meet and therefore it’s common practise that the bag will either repaired orreplaced. The reason of having the one year guarantee on the product is to protect the consumerand the manufacturer has confidence in the quality of the product.This can affect the marketing of the business by showing the type of business it is from how it dealssituations like this. For example it may be seen as false advertising because a brand like such isknown for its quality and in this situation the brand, Tommy Hilfiger aren’t following theirexpectations that they lead their customers to believe.
This is not a common thing to happen for abrand like such why that’s why the marketing and advertising of Tommy Hilfiger are always luxuryadverts and don’t usually speak of their quality because they’re already known for it. This may affectthe marketing of it because for the customer that has purchased this bag and had to deal with thisissue may think that the marketing of it isn’t as reliable as it comes across. Even though the way thecompany dealt with the issue was to standard and shouldn’t affect the marketing to a concerninglevel where the company would lose sales.Consumer Protection from unfair trading regulations 2008This act is able to protect all consumers from unfair trading practises and ban misleading tacticswhich later on can lead to taking advantage of the consumers’ role within the trade.
Companiesneed to be aware that they don’t fall in any of these positions because they can lead to seriouslawsuits. The consumers are protected because the advertising within business need to be 100%accurate and not have any misleading or different interpretations for the customer. False advertisingis dangerous for a company because they can easily be caught out. For example local food stores,have coupon codes and prices off. In companies like Tesco, customers had pointed out that in theoryof the average price of the product they had increase the original price and then included thepromotional offer on top to make it look like a bargain; which in such situation it was clear to thecustomers and from this Tesco had lost a fair amount of customers. It was proven that out of 50shops of Tesco 33 included the unfortunate false advertisement which resulted into further largerissues for Tesco. It was an easy mistake that was made because it was shown by research that it wasonly made within the certain stores not online, this affected the company’s reputation as a wholenot just to the customers that they disappointed however to their whole market audience becausein the long run it would cost them more money to build up the fair marketing they were supposed tobe holding before and trust between the company and consumers.This lead to affecting the marketing of the business because for customer it shows the unreliabilityand can be seen as ‘bait and switch’ advertising which means that the company presented anexaggerated term of their sale or product price.
It is where a trader lures a consumer into believinghe can buy a product at a low price when the trader is aware they do not have reasonable stockavailable or are not able to supply at that price; this is also when the trader attempts to 'up-sell' to ahigher priced product.Consumer credit act 1976/2006This act is there to control all credit card transactions and purchases, protection for the consumerswhen they’re taking out a loan and supports the agreement purposes. As a vital element that isincluded it, it also provides a break taking period which is suitable for the consumer. Overchargingcustomers can’t be done anymore because followed by the regulations there’s a followedagreement which companies need to follow. There’s also the most significant protection of them arethe credit cards. Credit card protection can be from £100 all the way to £30,000. For example, theairline Monarch where seen to be having to cancel booked flights because of the worry in whichpeople had for the ones that had already paid.
The act is there to protect the customers, meaningthe customers which paid for the full price of the flight of any flight that cost more than £100 theairline had to give a full price refund to individual customers which had their flight cancelled. The fullrefund of the prices were given directly to the card of original payment however the company hadlost a lot of money having to repair the issues that they had faced throughout this situation anddidn’t have the best repairable start.From an issue like this it affects the marketing of this company because it shows that the companyweren’t reliable in the first place due to them not funding the correct money to their customers andnot giving them enough of a cancelled flight. Once a customer has already paid for a purchase from abusiness and there has been an issue from the receiving end it is full responsibility that the businessneed to take care of refunds. In this case the airline did not deal with it well because for futuremarketing it just portrays that they broke this law act.Customer Protection Regulations 2000This act is here to cover sales made at a distance between businesses and consumers. For example,mail order, catalogue shopping, internet sales, digital TV sales, phone and fax. Within this act thecustomer has every right to cancel the order a long as they contact the company in advance beforethe product has been dispatched.
Having the right to cancel an item that has been sold and receivingyour money back is part of the regulations. Not being a physical transaction, the product must has aclear description of the product stating everything involved and what it may cause included in thepackaging, packed in a sensible way in which the product is delivered to expected standard and mostimportantly a full and correct statement of the price and safe transaction proof. The seller needs toprovide vital information like such to make sure there are no potential scamming problems andespecially safety laws regarding where the product is sold too.
Making sure all information isrequired by the seller is important communication like this is important for the customer to beaware of and makes a problem free transaction. The seller needs to be clear about the extra chargesand if they are tracking the postage of the item, which mainly they should always track their itemthey have just sold because in most correct situations the customer returns the money because theyhave not delivered the item.However recently on Depop there was a purchases made, within two users of the online sellingmarket, the seller of a CD sold their item but with high expectations they had no worry that itwouldn’t get delivered. On the receiving end, the buyer had claimed that they had not received theCD after the 3 weeks that they seller had said they posted, which immediately resulted the sellerthat the CD had got lost and without being able to track the item down there was no proof for whereit being.
After a few months of investigation, between the seller and Depop they had found out thatthe consumer had received the CD within the week it was posted however they had tried to scamthe buyer by trying to get their money back and pretending it hadn’t been received.For the marketing of Depop it may affect their marketing because of how it is seen from theirreliability and their trading not being at expected standard. There were issue within the two usershowever it affected both of them and Depop should have tried to take responsibility over the issue.For future marketing this could affect it badly because it shows the involvement of the business haswith their consumers. In other terms the consumers that experienced were not satisfied and whenthey leave negative reviews whilst Depop is advertised on social media etc.; people that may have afuture interest in the company could read the reviews and find some differences between what themarketing presents and the people’s views on it.Data Protection Act 1998The protection act controls how any consumers’ personal information is used by businesses,organisations, banks and the government.
The data principles are very strict rules which any personneeds to legally follow. It is important that by the law peoples’ information is held safely and secureand fairly kept like everyone’s information should be kept privately. Ethnic backgrounds, health,religion, sexuality, gender and criminal records are all information that should be treated fairlyaccording to the law. An act like this needs to be respected and not abused; an example would be ifa council had shared personal information with people she knew about her patient that she councils.Immediately as the act is there to protect the persons information, the council was automaticallyfired and had lost her ability to work in that type of industry again which ruins her reputations forany further work placements.Personal information is a big responsibility which if not followed properly it can easily be broken andthe person that is responsible for respecting and keeping information like such private can lose theirjob. In this case, with the example I used it the council would have been left with not being a trustworthy council and effect the company in a negative way especially because it is the council.
Makingsure you follow this act is important because it can affect the company by the order data is, it maybe out of date causing errors or increasing the risk of passing on false information. This then affectsthe company by making it look like they don’t have the correct reliability of hiring suitable staffmembers which can pursue their job properly. For future marketing done by the city council it willdefinitely put people off which affects their marketing such as if they advertise people to come visitthe council and then submit their personal information.Voluntary Codes of Advertising PractiseThis code defines how businesses should behave in the marketplace.
They do this by encouraging avariety of businesses and organisations to manner themselves in a style that they would benefit thecommunity they’re in contact with and themselves. Influencing people around and how to behave inthe marketplace. This code specifies for not only products but for services as well and it’s equally asimportant, these codes need to be met for the business to meet the correct marketplace. Anexample of this would be false advertisement within a variety of companies, one of them is MotherCare website. Mother Care are known for having a good reputation within their company howeverthey had misleading advertisements on their website for ‘sale’. The false advertisement lead on topaying back the customers in which the product they purchased and removing the advert completelyoff the website due to it being a false advertisement. Having this faulty mistake within the businessresults to unhappy and disappointed customers.This affects the marketing of the business because it leads the usual customers to expecting theunreliability of their mistake of false advertising.
They told them there was a sale which means fortheir future marketing this will affect their business by them not receiving as many sales as usualbecause people are aware of the sale situation previously.Pressure GroupsPressure groups are organisations which have collectively come together to try and create acampaign for changes in the future law and legislations in certain areas of the businesses. Beingopen for the public it creates a more influential perspective on people’s behaviour and voting.
Thishas a large affect and influence on companies the way companies are run and the roles of thebusiness. Pressure groups give the chance to members of the public to be open about their opinionand voice their free speech. It’s a positive opportunity for the public because it allows people to stillbe involved without being part of any political or democratic parties. They’re an important elementwithin the society’s growth; pressure groups don’t exist in non-democratic countries. There aredifferent type of pressure groups such as promotional groups, interest groups, insider groups andoutsider groups. Having a variety of pressure groups can affect society and then result in affectingthe business world because they can easily restrict people working from certain companies becauseof the people not being ethical.
ConsumerismThis is office fair training, the office fair trading are in charge for protecting all customers intereststhroughout this country as a responsibility this is vital. Certain elements that they will be carryingout are ensuring all the company’s work with healthy, safe and fair place for the company. It is alsovery important to follow the significance of the consumers protection overall. Consumerism forcesbusinesses to work and produce according to the customers’ needs. It represents an important rolein the stages of marketing starting from new product design to communicate throughadvertisements. They also affect how a business cares and worries for their customers’ criticism andknowing how to deal with crisis problems. An example of consumerism in the healthcare industryand it is described as a driving force.Acceptance LanguageThe advertising standards authority are an independent regulator in the UK that are responsible ofthe advertisement that we view are not inappropriate, disrespectful, dishonest or offensive.
Advertisements are viewed by the public from all type of people and age ranges and usually it needsto be a very versatile advert that is released for example of the TV. Regulations are included to makesure they are suitable to be viewed by all members of the public. They monitor what is advertisedand make sure if something inappropriate is shown they will be taking it down; the ASA will bereporting it to them and then they can further on the action or remove the advert completely.Customer feedback is always something that they will take into considerations meaning thelanguage that is spoken in the advert.