External constraints upon marketing
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A business is not able to market its goods and services in any way it chooses. It is constrained by laws, ethics, codes of practice and pressure groups. We will look at laws that affect businesses later in the course.
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Ethics
A business may act in a manner that is deemed to be unethical, for example, one of its adverts may insult a cultural group, it might produce a produce a harmful product or it may produce its goods using child labour.
Nike has received a lot of criticism since the 1990s for using cheap labour in Asia in factories where workers were exploited. Worldwide campaigns forced Nike to review their production process and it improved the conditions in its factories.
http://www.warresisters.org/nva996-4.jpg
Tobacco advertising has also changed dramatically in response to public pressure. Cigarette adverts used to show sportsmen and women smoking and they used to imply smoking was good for you. Tobacco advertising is now illegal in the UK.
http://www.blueangel.org.uk/BA/I/12000/BA12756.JPG
Codes of Practice
Some industries have introduced a code of practice. This is a set of rules that the businesses have agreed to follow even though there is no legal requirement for them to do so.
The Advertising Standards Authority (ASA) is responsible for ensuring that all businesses follow the British Code of Advertising and Sales Promotion Practice. The ASA will investigate any adverts that cause offence or are dishonest. If the ASA believes the business has broken the code it will ask it to remove the advertisement. The ASA has no legal powers, but it can refer businesses that refuse to remove an advertisement to the Office of Fair Trading.
The 10 most complained about posters in the UK.
Pressure Groups
Pressure groups will act in the interests of the group it represents, for example, the Consumers’ Association will campaign for consumer rights to businesses and the Government.
