Unit 3 P2 P2: Describe the Limitations and Constraints of Marketing

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UNIT 2 BUSINESS RESOURCES

COURSE: BTEC National Diploma Business
And Management – Year 1 2012
LECTURER`S NAME: Mrs Atkins
ASSIGNMENT: Task 1. Unit3. P2
DATE HANDED IN: 2nd October 2012

INTRODUCTION
It is a requirement of the law that all businesses and organisations abide by given limitations and constraints. This report describes two selected limitations; Sales of Goods Act 1979, The Data Protection Act 1998 and two constraints; Pressure Groups and The Advertising Standards Authority (ASA).
Task Question:
P2: Describe the limitations and constraints of marketing

Limitations
These refer to the limitations and restrictions that may prevent a business or organisation from certain actions. (Mrs Atkins) 1. Sales
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The company was given a firm warning from the UK’s watchdog.

Constraints
These are a number of restrictions businesses have to abide by (Mrs Atkins).

1. The Advertising Standards Authority
The Authority is an independent organisation that targets at ensuring that advertisements display the right description and image of a product. The business complies with the British Code of Advertising, Sales Promotion and Direct Marketing (Bevan et al) which requires that: * All advertisements are not false. * Abide by all legal laws * Create an even footing for advertisers (Bevan et al).

In case the legislations are broken the ASA requires that before that Business is granted the approval of the ASA before any other advertisement. In addition, the authority may appeal to advertising agents to refrain from advertising the company. Last but not least, the ASA may refer the advertiser to the Office of Fair Trading (Bevan et al). In 2009, Auction World had 1,360 complaints on poor customer service, untrue advertisements and poor delivery service. The channel had its licence taken by Ofcom, with referral from the ASA.
Source: http://www.bbc.co.uk/news.

2. Pressure Groups
These are organisations or individuals with strong views that may influence the decisions of businesses and the government.

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