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Unit 3 P2

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Describe within the assignment the limitations and constraints, that organisations may face when marketing a product or service.

I will be describing the limitations and constraints of marketing organisation I have chosen is Costa Coffee. It is important for all the businesses to make sure that when marketing they are within the constraints of the law.
The Limitations and constraints are needed for the marketing purpose because the organisation need to follow the laws or else they might get closed or fined by the government for not following this laws. Meaning the organisation is legal to stay on the market and dangerous for the customers for the product or service that the organisation was offering.
Legislation: this is the law which has been promulgated by the legislature or other governing body, or the process of making it.

Statutory law: The written law set down by a legislature (as opposed regulatory law promulgated by the executive branch or common law of the judiciary in a typical democracy of republic) or by the legislator in a case of an absolute monarchy.

Common law: this law is developed by judges through decisions of courts and similar tribunals rather than though legislative statues or executive action branch. Common law system is a legal system that gives great presidential weight to common law, on the principle that it is unfair to treat similar facts differently on different occasions.

Legal constraints:

Sales of goods act 1979- The traders is permitted krispy kremes sell goods that are as they are described and of good quality, this can affect the marketing as it means that any marketing should describe the product accurately and establish any claims.

Consumer protection from unfair trading regulations 2008- The act was put in place so that the customers of Krispy Kremes can be treated fairly it’s important for the company the business is to be honest with the customers at all the time. The act was although put in place to do the opposite and that use, aggressive sale tactics but the up dishonest promotions like closing down sales when the store isn’t really closing down as this is bad as it can make advertising false and not being honest 100% to their customers just so the business makes profit

Consumer credit acts 1974 and 2006- The aim to protect the right of consumers when they purchase goods on credit, traders that make such agreements must obtain a license from the Office of fair trading.

This act doesn’t apply to my chosen organisation, but applies to businesses offering goods or a services on credit, businesses that buy Krispy Kreme products in
Bulk like lilywhites, Tesco or companies who lend money to consumers these types of businesses need to be licensed by the office of
Fair trading as any complaints between the customers about the business
Or the business is about the customer. The dealt with the financial Service, the
Consumer credit act requires businesses that provide credit or a loan to give customers regular updates on their account and when a
Customers fall behind on repayments the FOS may extend the period of
Time for the customer to re-pay the debt this can help prevent the business
From calling bailiffs or using threatening tactics when a customer struggles
With repayments this could affect the company because they will be known
As bullies even though customers need to pay of the credit or the loan they
Can prevent friends and family from using their services. It is important the
Company’s who stock up and buy products in bulk have permission otherwise
This would be seen as illegal trading

Consumer protection (distance selling) regulations 2000- distant selling is any source of selling apart from face to face contact between customer and the business for example through a website or mail order catalogue. For krispy kremes provides their customers with distant selling you can buy products from their website and have it delivered to your door distant
Selling can be an effect of a business because people might not want to buy online as they feel scared to fall victim to fraud this could result in poor sales online. As my organisation provides distant selling they must give their consumers
Business
Goods or services they are selling
Payment arrangements
Delivery arrangements
Consumer rights to cancel their orders

Data protection act 1998- this acts requires krispy kremes is to protect their customers from unfair use of their personal information as they can keep a database of customer information when their marketing department sends out direct emails. The organisation have to make sure that the information from the database must be:
Obtained fairly and lawfully
Used only for the purpose stated during collection
Adequate, relevant and not excessive in relation to the intended use
Accurate and where necessary kept up to date
Not kept for longer than necessary
Processed in line with your rights
Subject to procedures to prevent unlawful processing, accidental loss, destruction and damage to personal data
Protected from transfer to an area outside the EEA unless adequate protection exists for that data in the area
It is important for both organisations to register customers details when they purchase a product online, and to give them the option to opt in and receive information about future offers, this requirement is legal and it would be illegal for any organisation including the two I have chosen to send customers information that they have not requested

Voluntary constraints:
Marketing activities are also watched carefully by the advertising standards authority aka ASA, which is an industry body rather than a legal framework, which promotes and maintains the British code of advertising, sales promotion and direct marketing, these are a set of rules and standards businesse
Krispy Kremes should follow. When marketing this allows them to:
Keep within the legal frame work
Protect customers from misleading claims
Create an even footing for advertisers
The principles of the code permit the organisations advertising to be legal, decent, honest and truthful. It also requires krispy kremes as a business to prepare advertisements with a sense of responsibility and should not produce adverts that are misleading or offensive as this is misleading to the customer and if an advert causes offense e.g. being racist in advertisements having swear words etc this could cost the company millions of pounds due to changing the advert and losing profit, if either business goes against the code of practice the ASA are able to:
Insist that it approves any advertising before it is published or broadcasted
Refer the advertiser to the office of fair trading
Ask TV stations, radio stations and publishers to withdraw the advertising from their broadcasts and publications

It will insist that it approves any advertising before it’s published or broadcast. To ask the TV station, radio station and publishers of the advertising to withdraw from their broadcast and publication. Refer the advertiser to the Office of Fair Trading.

Pressure groups: is an organised group which work to influence the behavior
Or the beliefs of the government or a business they will try and raise awareness of their cause in the media to the public in order to pressurise the business to change. This can result in the business to gain negative publicity and can damage their reputation.

Pressure groups that target krispy kremes:

Earth first- they campaign against the destruction of the environment. They could target krispy kremes as they could destroy the environment to place their stores.

Food commission- an independent food watchdog campaigning for safer,
Healthier food in the UK. They could see krispy kremes un-healthy and could cause problems for people.

Conclusion:
I conclude that the Krispy Kreme is following all the legislation and constraints are used correctly in this following organisation. Therefore this organisation has all the right to stay on the market as its not harming the customers but as its not too healthy I would suggest them to make some of there products that would be healthier for the customers.

Reference:
Btec Level 3 Business Book 1 pages (93-96) webstie http://www.e-lawresources.co.uk/ in search icon http://www.asa.org.uk/ The official ASA website which contains a lot of information that is very good to know for marketing and for the whole business industry.

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