This is P2 for unit 3 Business level 3.
For this task you are required to describe the limitations and constrains of marketing .
It has all been specified here in this essay for you.
Hope it helps.
BTEC Level 3 National Extended Diploma in Business
Business
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Gustavo Prado
P2
P2- Describe the limitations and constrains of marketing.
For this task I am going to explain the legal and voluntary limitations, explain the
acts; the sale of Goods, The consumer credits and the data protection act.
Explain the difference between legal and voluntary limitations
on marketing:
Voluntary limitation is when the owner of the business decides to make a new
rule for the business which is voluntary, so he can choose either he keeps the
decision or not. Example, if I have a small business across the road and I sell
alcohol drinks. At some point I decide not to sell drinks after 10 pm. This will be
voluntary because it isn’t a legal or illegal matter.
Legal limitation has to do with the law setting up rules which have to be obeyed.
Such as when my business across the road can only sell drinks for over 18s.This
is a rule made from the law, and if I sell for someone younger than that, then I
am disobeying the law.
Sale of Goods Act 1979- This law means that every product that product has
to be sold with the purpose described and with a satisfactory quality. The product
should be as described. And if the description of it does not match what the
product is, then that’s against the law. Example, if the customer sees a water
proof coat in the store, when the customers makes the payment and take it
home, it must still be water proof.
The consumer protection from unfair trading regulations 2008- This Act is
to protect the consumers which might not be treated well by the business. This
law says that all business must not use malicious and aggressive tactic to make
the customer buy the product. Being persuasive and convincing the costumer to
buy the product is allowed but with certain limitations. Example, it would be
wrong if a business is making a sale of 20% off any products, but one day before
they increase the price by 20%. It will be a higher price, with the 20% off, which
means that it will be the same price.
Explain The Consumer Credits Act 1974 and 2006- Consumers Credit act
applies to business which lends money to costumers or offer products and
services with credit. But for business to provide these services and these loans,
they have to be licensed by the office of Fair Trading.
The business that provides these loans and credits need to keep the costumers
aware of their account or updated of everything that is going on the account. If
possible business can extend the pay back of the customers, so they do not
struggle as much. If they have limit of time and they cannot pay, the business
can voluntarily choose to change the repayment day to a favourable day.
Explain the Consumer Protection (Distance selling) regulation 2000- This
act is about costumers buying online or through any way that they do not have
any physical contact with the product and there is no face to face contact
, Gustavo Prado
P2
between the customer and the seller.
Therefore the seller must provide the customer; the information about the
product, how will it be delivered, how will be the payment method and etc. This
information is vital and really important so there will be no issues between the
customer and the business. If there is anything wrong with the product and it
was not mentioned on the description, the customer has the right to retrieve or
decide to give back the product when it is appropriate.
Explain the Data Protection Act 1998- This act was made to prevent
business from misusing the customer’s personal information. This applies for all
the business who keeps the database of customer’s information. This information
must be used only for reasonable purposes and if needed information can be
carried forward, but it shouldn’t be kept more than necessary. Also it’s wrong if
the business shares the information with another business or outside the
business; sometimes it would be needed but only with the requirements and
customer’s permission.
Explain who are the Advertising Standards Authority:
The Advertising Standards Authority is the people who gives rules to the
businesses when they are advertising. Sometimes some advertisements
can be rude or encouraging people to do things that are ethically wrong,
such as drinking. So their job is to give some rules for these
advertisements, so it doesn’t offend no one or influence people to do
wrong things.
Also, including children to advertisements can be a bad thing depending
on what the business is advertising. Example, if a kid is on an alcohol
drink advertisement it would be against the rules. Maybe the business
didn’t mean to make the audience think that children should be involved
with alcohol drinks, but it would emphasize the fact that children should
drink, should be related or involved with alcohol drinks.
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