Kinh tế học - Chapter 23: The law of marketing

This is the prescribed textbook for your course.Available NOW at your campus bookstore!Copyright © 2000 McGraw-Hill AustraliaThe law of marketingChapter 231Copyright © 2000 McGraw-Hill AustraliaThe role of marketing“ To identify the wants or needs of consumers, and to determine how best to satisfy these using the MARKETING MIX.” 2Copyright © 2000 McGraw-Hill AustraliaThe Marketing Mix (4P’S)PRODUCTPRICEPROMOTION PLACE (DISTRIBUTION)* These four factors are largely controllable. 3Copyright © 2000 McGraw-Hill AustraliaExternal forces on the Marketing MixEconomic environmentCultural/social environmentPolitical environment (e.g. A GST)Competitive environmentLegal environment * These factors are largely uncontrollable.4Copyright © 2000 McGraw-Hill AustraliaThe role of lawTo define acceptable vs. unacceptable behaviour (Marketing law includes any regulations that attempt to “draw the line” between acceptable competitive business conduct & unacceptable business practices.) 5Copyright © 2000 McGraw-Hill AustraliaMarketing lawsDesigned to protect:1) Consumers2) Traders3) The competitive system that underpins the “Free Market” Australian economy. 6Copyright © 2000 McGraw-Hill Australia“Product” laws1) Intellectual property e.g.Patents for new inventions Registering a Trade markRegistering a design Copyright 7Copyright © 2000 McGraw-Hill Australia“Product” laws2) Packaging and labellingDesigned to standardise information and protect against misleading/deceptive information. e.g. - weight - content of goods - food ingredients 8Copyright © 2000 McGraw-Hill Australia“Product” laws3) Product liability e.g. Minimum acceptable product safety/quality standards such as: food hygiene regulations manufacturer liability for defective/negligent products 9Copyright © 2000 McGraw-Hill Australia“Price” lawsProtect against practices such as:Price fixingPrice discrimination different prices to different customersPredatory pricingselling below costResale price maintenanceRecommended Retail Price10Copyright © 2000 McGraw-Hill Australia“Promotion” lawsProtect against misleading, deceptive or“high pressure” promotional activities.e.g. Market gamesBait advertising “Cooling off” period for door to door salesPyramid selling schemes 11Copyright © 2000 McGraw-Hill Australia“Place” lawsPrevent suppliers from imposing unreasonable restraints on distributors. e.g.Exclusive dealing - restricting products a distributor may sellTerritorial restraints - restricting the area in which distributor may operateCustomer restraints - restricting the customers a distributor may deal with 12Copyright © 2000 McGraw-Hill AustraliaMarket games and competitionsLottery - a scheme for distributing prizesby lot of chance, in which:  there must be a scheme  there must be a game of chance  consideration must be provided by entrantsLegal if lottery designed to promote trade orbusiness13Copyright © 2000 McGraw-Hill AustraliaTrading stamp promotion Operates by customers saving trading stamps or coupons obtained when purchasing goods from a trader. On reaching a certain number of stamps, the customer can receive a free gift. Types: -Trading stamp companies -Private trading stamp schemes14Copyright © 2000 McGraw-Hill AustraliaAustralian Competition and Consumer Commission (ACCC)Purpose:Undertakes price surveillance Holds inquiries into the supply of specified goods or servicesMonitors the prices, cost and profits of any industry or business 15Copyright © 2000 McGraw-Hill AustraliaProduct packaging and labellingCommon Law ProtectionStatutory Protection Trade Practices Act 1974 (Cwlth)Misleading and deceptive conductUnfair trade practicesProduct safety and information standardsTrade Measurement Legislation - National Measurements Act 1960 (Cwlth) 16Copyright © 2000 McGraw-Hill AustraliaTherapeutic Goods Act 1989 (Cwlth)Legislation to ensure the safety and efficacy of therapeutic goods available in Australia.Functions:Evaluate new therapeutic goodsDevelop test methodsConduct testing programsLiaise with industry.17Copyright © 2000 McGraw-Hill AustraliaFood safetyLaws prohibiting: the sale of food that is unfit for human consumptionmisleading and deceptive advertising.Australian and New Zealand Food Authority (ANZFA) Establishment of Food Standards CodeAssessment of safety of genetically modified food products18Copyright © 2000 McGraw-Hill Australia