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Limitations and constraints
Task 2 You must describe the limitations and constraints under which marketers operate; this should include legal requirements and the use of voluntary codes and constraints.
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Legal constraints – List the meaning and how Nestle and Kellogs are affected by the following:
Consumer Protection Act (1987) – e.g. an act of Parliament that bans the use of misleading information to encourage potential purchasers to buy . This means that Kellogs and nestle cannot use misleading advertisements to get new customers or sell more products Consumer credit acts Consumer Protection (distance Selling) regulations Data Protection Acts (1984, 1998) Over recent years a wide range of consumer protection measures have been introduced. These laws give responsibilities to the firm and rights to the consumer.
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Code of Advertising practice and Advertising Standards Authority
voluntary codes of practice – List the meaning and give examples of how Nestle and Kellogs are affected by them Examples include: Code of Advertising practice and Advertising Standards Authority Pressure groups Acceptable language Firms and industries take their own steps to ensure good practice in marketing their particular products and services. A growing proportion of firms issue their own codes of ethical practice which are always more demanding than the law. The examples are bodies set up in certain industries to share best practice and improve quality standards in each industry. Consumers can identify if a particular business has been verified by the relevant authority.
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