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UNIT 3 Introduction to marketing Task 3.2 -P2
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UNIT 3 Introduction to marketing Task 3.2 -P2 this document was graded a distinction*
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Task 3.2LIMITATIONS AND CONSTRAINTS OF MARKETING BY CHERUBET LIMITED
Legal constraints
One of the laws that businesses that sell consumer goods must follow is the Sales of
Good Act, which is also borrowed from the UK Sales and Goods Act of 1979 and is
used in Kenya. This law mainly used when dealing with B2B contracts. In the United
kingdom (UK) another law was introduce in 2015 which is the Consumer Rights Act
2015 that is used in cases involving B2C contract since it is used to ensure that the
rights of the consumer is taken care off. In Kenya the government has developed the
Food, Drugs and Chemical Substances (Food Labelling, Additives and Standards)
(Amendment) Regulations, 2012 which looks at food quality control, food safety,
hygiene, sanitary procedures, packaging, labelling, standards, food additives, cereals,
grains, rice, oils, oilseeds and fats.
Because Cherubet deals in food products, the business must make sure that
information it uses on its packaging is accurate and follows the laws of Kenya that
protects the rights of the consumer. Under the Sales of Goods Act, Cherubet cannot
advertise their products with misleading information about the product; moreover
the quality of the product must be consistent and be exactly as stated on the
package. A good example is that Cherubet may says that their Grandmas porridge
boosts your children’s intelligence and customers are attracted to buy the porridge
because no other business provides this benefit. However Cherubet will have broken
the trades description Act because if the porridge does not have any contents that is
proven to make child extra intelligence overnight. An example of a company that
broke the Sales of Good Act was when in 2013 Tesco started selling horsemeat but
labelled it as beef.
Consumer protection from unfair trading regulations - This law states that
companies should not be dishonest with the customers on what they are buying or
subscribing to. For example, if Cherubet advertises that there is a 40% discount for
20hours on their githeri but there is no discount, many consumers will be interested
in buying the githeri from the stores. However, they lied to their consumers about
the discount sale, which is against the Consumer protection from unfair trading
regulations. A real example is when Facebook was fined 5 billion dollars for a privacy
violation by the Federal Trade Commission (FTC), an independent agency of the
United States government whose principal mission is the enforcement of civil U.S.
antitrust law and the promotion of consumer protection. Facebook was accused of
being dishonest or unclear on how all Facebook users information was collected,
used and sold to advertisers to target their adverts. Facebook and other social media
platforms where then forced to clearly state how the users data will be used and the
user can agree or disagree.
Voluntary constraints
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