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.

 

 

 

.


Supporting Documents

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

Meeting customers' needs
Travis Perkins logo

Discover how Travis Perkins employed external-environment theory to prosper in the construction industry by downloading our premium case study.

Planning effective marketing strategies for a target audience
adidas logo

Discover how adidas employed external-environment theory to thrive in the sportswear industry by downloading our premium case study.

Positioning the brand
Chap Stick logo

Learn how Chap Stick applied external-environment theory to succeed in the healthcare industry by downloading our premium case study.

Leading a revolution in banking
Intelligent finance logo

Find out how Intelligent finance employed external-environment theory to prosper in the financial services industry by downloading our premium case study.

Entering a new market with a new product
Experian logo

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