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Understanding the Marketing Environment: Legal, Regulatory, and Social Aspects

Explore the legal, regulatory, and social dimensions shaping marketing strategies. Learn about laws, regulations, stakeholder analysis, and ethics in marketing practice. Discover the impact on businesses and society.

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Understanding the Marketing Environment: Legal, Regulatory, and Social Aspects

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  1. Lesson 3 Macro analysis PESTLE Part 2

  2. Marketing EnvironmentThe Technical Environment • There is a need to distinguish between high/HI tech and low tech • High tech is technology in the widest sense • Lo tech is functional eg the Clockwork Radio. • Rate of Change/Innovation

  3. Marketing EnvironmentThe Legal Environment • Legal = Regulatory framework • Concentrating on the aspects that directly relate to the marketing / commercial activities of an organisation • To start - what are the regulatory areas that you are concerned with?

  4. The Legal Environment • Laws versus Regulation • The law is an ass! = • Regulation is flexible and quick !! • And has the threat of law • RELATED TOPIC CONSUMER LOBBYING

  5. The Law making process • Parliamentary process • The Queens’ Speech • Green Paper - general view point - Conference Pledges • White Paper - Statement of Intent • Draft BILL • 1st reading • 2nd reading • Committee Stage • (amended) Report Stage • 3rd Reading- Both Houses • Royal Assent = ACT • Interpretation of Law = Case Law

  6. Specific Laws • Companies Act 1985 • Trade Descriptions Act 1968 • Consumer Credit Act 1974 • Sale of Goods Act 1979 • Sale of Goods and Services Act 1982 • Consumer Protection Act 1987 • Data Protection Act 1984 (1987) • Equal Pay Act 1970 (1983) • PLUS ….

  7. Key Legislation Areas for Businesses Criminal Law Employment Law Consumer/Competition Laws Company Law Contract Law European Rulings

  8. PLUS • Patents • Health and Safety • Finance Act

  9. The Regulatory Environment • Two main aspects • Government made law • UK • European • International conventions • Self regulation • Industry • Professional

  10. The Regulatory Environment • The four Ps (four Cs) approach • Product - Liability Trademarks Trade Descriptions • Price - Unit pricing Resale Price Maintenance • Place - arrangements with distributors - Silhouette Cartels • Promotion - Trade Descriptions Act, Advertising Issues

  11. Codes of Ethics • AMA • CIM • CBI

  12. Encouraging Environmental Concern • Government actions • Supply chain pressures • External pressures • Self regulation

  13. What is the relevance of social responsibility for the following • Confectionery manufacturer • Oil company • Car manufacturer • Furniture retailer • Mobile phone operator • Supermarket operator

  14. Social Criticisms of Marketing • High prices • High costs of distribution • High advertising/promotional costs • Excessive mark ups • Deceptive practices • misleading advertising • High - pressure selling • Shoddy / unsafe products • Planned / inbuilt obsolescence • Penalising the disadvantaged

  15. Marketing’s impact on society • Encouraging materialism • Imbalance between private and public goods - social goods BUPA versus NHS • Cultural pollution • Abuse of industry power

  16. Consumers’ rights • Information • Protection • Safety • Heard KENNEDY

  17. Homework • Obtain company report for a blue chip • Find out at least three mission statements • What type of organisations are these? • VISA / Scottish Widows/ Holiday Inn, Law Society Ed, Excel, CIM • Explain the potential marketing advantages possessed by a small business compared to a public limited company.USE A POINTS FORMAT • NEWS

  18. Stakeholders • Internal • Connected • External

  19. Internal Stakeholders • Employees • Managers • Owners / shareholders

  20. Connected Stakeholders • Shareholders - again! • Customers • Suppliers • Creditors • Distributors • Partners - Joint Ventures

  21. External Stakeholders • ‘Government’ - local - central - supra national • Regulatory authorities • Local communities • Media • Environmental / pressure groups • Financial Institutions • Competition??

  22. Stakeholder analysis Seven Steps Which publics are important to the organisation’s operations Are they increasing or decreasing in importance? Strength of relationships Impact of corporate actions/operations on the publics

  23. What actual/potential impact could they have on the organisation? What are the interests/motivations of each public group Which publics pose a threat and which an opportunity

  24. Stakeholder issues • Recognising the issues that the organisation faces in terms of stakeholders

  25. Stakeholder relationships • How to you measure them? • Leverage! • Porters Five Forces • Relationship Marketing • What is the ideal relationship

  26. Stakeholders Motivations Employees • How they are treated • What do they want? • United Biscuits Policy? Managers?

  27. Customers • What do they want? • Depends upon the involvement? • Do they want a relationship? Suppliers • What do they want?

  28. Community • Definition of social responsibility • Environmental impact Heathrow MacDonalds Builders Government Competitors

  29. STAKEHOLDERS AND ETHICAL BEHAVIOUR • What are ethics? • Accepted code of behaviour • A set of standards - business and personal • Dealing sensibly with STAKEHOLDERS (publics) • The Human Side of Business

  30. Socio Economic Groupings • ABC1C2DE • A Upper middle class - Senior managers and senior professionals 3% • B Middle class - professionals and managers - Higher Education 10% • C1 Lower middle class - Junior managers / white collar workers 24% • C2 Skilled working class - plumbers electricians etc 30% • D Working class - semi-skilled / unskilles manual workers • E Unemployed / pensioners (on state pensions)

  31. Other classifications • ACORN • MOSAIC • Psychographic/ behavioural • Family life styles • Value groups • Lifestyle • New Social Order

  32. Culture • Ideological system • Technological system • Organisational system • Cultures are supranational

  33. The natural environment and marketing • Role of environmental groups • Social responsibility • Greenhouse effect • Impact on politicians • Ageing population • Family Life Cycle

  34. Sources and Methods • Sources • Primary data • Secondary data • Methods • Market Research techniques • Surveys • Focus Groups • Environmental scanning

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