BTEC Business Marketing P2 Describe the limitations and constraints of marketing
Budgetary constraints – A marketing department, like all departments, will receive a budget which they have to work with. In some businesses, especially smaller ones, a small budget may be given, meaning that the marketing department will have to spend their money carefully and it could limit what they can purchase.
Fact 2 Data Protection Act (1998) – The data protection act protects the rights of those individuals on whom data is held. It impacts any business that holds personal information on their customers. It means that if a business breaks the rules and regulations mentioned in this act they will have to face legal punishments. The act limits how businesses uses their customers information
Fact 3 Regulatory bodies – These are self-governing agency responsible for exercising independent authority over some area of business activity, such as ASA (Advertising Standards Authority) which promotes and maintains the British code of Advertising, Sales Promotion and Direct Marketing. It sets rules and standards for businesses to follow keep within legal framework, protect customers from misleading claims, create an even footing for advertisers etc. Consumers can complain or appeal to regulatory bodies such as ASA if they feel a business has not compiled with the regulations.
Regulatory bodies constrain marketing in businesses because it means they have to keep within the standards and rules set and failure to do so can result in bad publicity, problems with the OFT and their advertisements being removed from television, radio etc.
Fact 4 Pressure Groups – A pressure group is an organised group working to influence the behaviours and beliefs of government and/or business. They try to pressure businesses into operating in a certain way and prevent them from doing things they think is wrong or immoral. There are thousands of pressure groups, some focus on environment problems, animals right and so on. They can be considered a constraint to marketing because businesses will have to try their best to keep each and every pressure group happy to avoid bad publicity.
Fact 5 Acceptable Language- Businesses must use acceptable language when advertising.
This constrains businesses because they need to make sure everything they use in advertising is acceptable. ASA identifies the key areas where some people might find language used unacceptable, such as when referring to sex, use of strong language, mocking of peoples religion or spiritual beliefs, offending on grounds of gender, sexuality, race, religion, age or disability and must not show people in a demeaning way. Failure to use acceptable language could result in bad publicity for the business and could result in its advertisements being removed from radio/tv.
Fact 6 Trade Descriptions Act 1968 – This act makes it a criminal offence to apply a false description to any goods, apply misleading advertisements, make misleading statements about price or apply a false description to facilities, services or accommodation.
This constraints marketing in a business because it must make sure it is following all the rules and regulations stated in this act. This could be difficult because when describing goods or creating advertisements the marketing department is trying to make the product/service sound impressive, this could lead to telling slight lies or exaggerations. This is exactly what the business has to be careful of.