External environment illustration External environment theory

Marketing and the law

Marketing is designed to achieve profitable sales. It involves the use of powerful tools to manipulate the decisions of individuals and of other firms in the private and public sectors. This means that boundaries must be set to define the limits of acceptable behaviour.

Some limitations are imposed on a voluntary basis by firms themselves and by industry-based organisations such as the Advertising Standards Authority. But the law must provide the ultimate source of regulation in areas such as:

  • consumer protection: laws regulating product safety, honesty in product description and rights to refunds and exchanges
  • credit : laws requiring lenders to provide full information about a loan including the Annual Percentage Rate (APR); also giving time for borrowers to change their minds
  • information: obligation to disclose information held about consumers
  • child protection:  age limits for the sale of alcohol and tobacco products; film certification.

Overall the law has to find a balance between the importance of profitable business enterprise and the need to protect consumers from unfair or anti-social marketing activity.

 

 

 

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Supporting Documents

These downloads will help to put external-environment theory into context using real world examples from real businesses.

The use of the marketing mix in product launch
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Find out how NIVEA applied external-environment theory to thrive in the manufacturing industry by downloading our premium case study.

Creating the right marketing mix
Motorola logo

Learn how Motorola employed external-environment theory to prosper in the telecommunications industry by downloading our premium case study.

Meeting customers' needs in growth markets - online gaming
BT logo

Learn how BT employed external-environment theory to succeed in the telecommunications industry by downloading our premium case study.

Entering a new market with a new product
Experian logo

Discover how Experian employed external-environment theory to thrive in the financial services industry by downloading our premium case study.

Using sponsorship to increase brand awareness
Infiniti logo

Find out how Infiniti employed external-environment theory to thrive in the automotive industry by downloading our premium case study.