Unit 3
P2; describe the limitations and constraints of marketing.
For P2, learners need to describe the limitations and constraints under which
marketers operate; this should include legal requirements and the use of
voluntary codes and constraints. Learners should relate these constraints to
examples.
Limitations and constraints are legal boundaries set to businesses in order to
work as a bottleneck as it prevents a business from providing its full potential,
it is restricted. Legal Limitations and constraints must be followed and accepted
by businesses, they cannot work around these laws or else it will be illegal and
could possibly be fined.
Sales of Goods Act 1979
This act was created in 1979 and is designed to protect consumers and sellers
from each other. The goods that have been listed by the seller must match the
description provided, be of acceptable quality and also fit for purpose (must
carry out the purpose it is intended to do).
1) The good or service must match the description or the seller/firm will be
breaking the law and the consumer has the right to appeal.
2) If faults weren’t provided the seller, the consumer can appeal as the
good was sold as of unsatisfactory quality.
3) If the seller gave you assurances however were false, you have the
potential right to return it and claim your money.
An example of when a company was sued for the following law, Sales of Good
Act 1979;
In Feb 2016, Apple had claimed that the Apple Watch is scratch-resistant,
however Mr Cross (owner of a scratched apple watch) had ‘scratched’ his
watch and was told it was not covered by warranty. The seller, Apple, had
provided imperfect information as it did not match the description and as a
result MR Cross won a case against the company for breach of the Sale of
Goods Act.
Source: http://www.bbc.co.uk/news/uk-wales-mid-wales-35475433
The Consumer Protection from Unfair Trading Regulations 2008
, This new regulation created in 2008 is produced in order to protect consumers,
from ambiguous or intimidating selling practices. A practice is considered unfair
when it fails to meet the standard of professional diligence, which is usually
expected from a trader. Some traders like to be biased and lead customers
towards purchasing products, customers should make their own decision
whether they want to purchase a product or not, regardless of the trader.
Misleading information is consists of false information, some examples are;
1) Providing deceptive information about the main characteristics of the
product, or incorrect information about the trader himself(e.g. false
qualifications)
2) Copying logos or slogans of large brands to a degree in which the
customer would get confused.
3) When a firm’s commitment (statement) is untrue and have provided
false information to the buyer.
An example of when a company was sued for the following law; The Consumer
Protection from Unfair Trading Regulations 2008
According to Dailymail online, Tesco PLC had been sued £300,000 in August
2013 for misleading customers over half price strawberries offer. Customer
Daphne Smallman stood up to Tesco in a brawl over £1.99 punnets, Tesco had
increased prices to £3.99 in order to make this half price figure stand, in result
Daphne had taken Tesco to court and in result, Tesco has admitted the claims
of big savings were misleading and it has now been fined £300,000 and
ordered to pay £65,000 in costs. This was at odds with guidelines in the
Consumer Protection from Unfair Trading Regulations Act 2008. An offer price
should not carry on for a longer period than an item was sold at its full price.
Source - http://www.dailymail.co.uk/news/article-2397291/Tesco-fined-300-
000-misleading-customers-half-price-strawberries-offer.html
Consumer Credit Acts 1974 and 2006
A credit law which is created in order to provide consumer’s rights against
credit card companies. This act gives consumers a variety of rights against
companies that provide credit. This act dignifies conditions and procedures
which credit companies have to follow.
1) If a consumer purchases a product from a broad that eventually turns
out to be faulty, credit card companies must refund the money if the
good is worth more than £100 and less than £30,000.
P2; describe the limitations and constraints of marketing.
For P2, learners need to describe the limitations and constraints under which
marketers operate; this should include legal requirements and the use of
voluntary codes and constraints. Learners should relate these constraints to
examples.
Limitations and constraints are legal boundaries set to businesses in order to
work as a bottleneck as it prevents a business from providing its full potential,
it is restricted. Legal Limitations and constraints must be followed and accepted
by businesses, they cannot work around these laws or else it will be illegal and
could possibly be fined.
Sales of Goods Act 1979
This act was created in 1979 and is designed to protect consumers and sellers
from each other. The goods that have been listed by the seller must match the
description provided, be of acceptable quality and also fit for purpose (must
carry out the purpose it is intended to do).
1) The good or service must match the description or the seller/firm will be
breaking the law and the consumer has the right to appeal.
2) If faults weren’t provided the seller, the consumer can appeal as the
good was sold as of unsatisfactory quality.
3) If the seller gave you assurances however were false, you have the
potential right to return it and claim your money.
An example of when a company was sued for the following law, Sales of Good
Act 1979;
In Feb 2016, Apple had claimed that the Apple Watch is scratch-resistant,
however Mr Cross (owner of a scratched apple watch) had ‘scratched’ his
watch and was told it was not covered by warranty. The seller, Apple, had
provided imperfect information as it did not match the description and as a
result MR Cross won a case against the company for breach of the Sale of
Goods Act.
Source: http://www.bbc.co.uk/news/uk-wales-mid-wales-35475433
The Consumer Protection from Unfair Trading Regulations 2008
, This new regulation created in 2008 is produced in order to protect consumers,
from ambiguous or intimidating selling practices. A practice is considered unfair
when it fails to meet the standard of professional diligence, which is usually
expected from a trader. Some traders like to be biased and lead customers
towards purchasing products, customers should make their own decision
whether they want to purchase a product or not, regardless of the trader.
Misleading information is consists of false information, some examples are;
1) Providing deceptive information about the main characteristics of the
product, or incorrect information about the trader himself(e.g. false
qualifications)
2) Copying logos or slogans of large brands to a degree in which the
customer would get confused.
3) When a firm’s commitment (statement) is untrue and have provided
false information to the buyer.
An example of when a company was sued for the following law; The Consumer
Protection from Unfair Trading Regulations 2008
According to Dailymail online, Tesco PLC had been sued £300,000 in August
2013 for misleading customers over half price strawberries offer. Customer
Daphne Smallman stood up to Tesco in a brawl over £1.99 punnets, Tesco had
increased prices to £3.99 in order to make this half price figure stand, in result
Daphne had taken Tesco to court and in result, Tesco has admitted the claims
of big savings were misleading and it has now been fined £300,000 and
ordered to pay £65,000 in costs. This was at odds with guidelines in the
Consumer Protection from Unfair Trading Regulations Act 2008. An offer price
should not carry on for a longer period than an item was sold at its full price.
Source - http://www.dailymail.co.uk/news/article-2397291/Tesco-fined-300-
000-misleading-customers-half-price-strawberries-offer.html
Consumer Credit Acts 1974 and 2006
A credit law which is created in order to provide consumer’s rights against
credit card companies. This act gives consumers a variety of rights against
companies that provide credit. This act dignifies conditions and procedures
which credit companies have to follow.
1) If a consumer purchases a product from a broad that eventually turns
out to be faulty, credit card companies must refund the money if the
good is worth more than £100 and less than £30,000.
