Unit 3 - P2

Topics: Marketing, Consumer, Advertising Pages: 5 (1921 words) Published: May 3, 2015
P2 – Description of the Limitations and Constraints of Marketing Activities Introduction
When marketing their products on the market businesses have to be careful, they must ensure that they are following all of the laws and regulations which have been set up by various governments so that their marketing activities are not stopped. In this report I will describe some of the limitations and constraints which have been put on marketing activities by various authorities.

Consumer Law
All businesses must ensure that their marketing activities fall within the laws and regulations set up by the authorities, In recent years various organisations have put an emphasis on customer protection and thus many laws and regulations have been introduced; all of these must be followed by businesses. Laws and regulations are constantly changing and it is a business’s responsibility to keep up to date with them or else they will feel the repercussions of disobeying them.

Sale of Goods Act 1979
The sales of goods act 1979 is one of the most important asks which all businesses are obliged to follow. The sales of goods act states that business must only sell goods that are as described in marketing (packaging, advertisements, etc.) This means businesses cannot advertise an Apple iMac and then sell a Pear iMac to their customers. Another part of the sale of goods act which businesses have to follow is the part of the act which states that products must be ‘of satisfactory quality’; this means that businesses can only sell products which are of decent quality and not products which wall fall apart when used on first instance. Businesses must ensure that all of their products are described accurately so that they do not fail to follow this act. If a business’s product is not deemed to pass this regulation then the business must substantiate any claims that are made against their products.

An example of a business failing to take into account this regulation would be a product such as a protein shakes. If a business claimed that their protein shake instantly made you more muscular then this would be an example of failing this regulation as the protein shake would most likely only help the growth of muscle and the results are not guaranteed.
Consumer Protection and Unfair Trading Regulations
The customer protection and unfair trading regulations ensures that all customers are entitled to fair treatment and honesty from any business that they deal with. Although this legislation goes against business policies and therefore does not affect most business, it is still necessary as some business do not treat their customers fairly and with honesty. This act stops business from using aggressive sales tactics and the use of dishonest marketing techniques such as ‘closing down sales’ when the business is not actually closing down and is instead just trying to make their business more attractive. Consumer Credit Acts 1974 and 2006

The consumer credit act is an act which applies to business which sell their services and products on credit to their customer and to businesses which loan money to their customers. The consumer credit act was put in place in order to protect customers who use these methods in order to purchase products or to lend money as these types of business can sometimes be misleading and could end up costing the customer a lot of money due to their knowledge of the business being poor, The consumer credit act states that businesses which deal in this manner must be licensed by the Office of Fair Trading (OFT) and it also states that any complaints between business and consumer be settled by the Financial Ombudsman Service (FOS). The act also requires that all businesses who sell products on credit or loan money to their customer give their customers regular updates on the states of their accounts which indicate the amount of money which is to be paid and the reason...
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