Practise marketing-law questions by identifying legal controls, applying them to adverts or products and judging the greatest effect.
CFG is a social enterprise. It buys cocoa beans from local farmers and then uses the beans to make chocolate. Being ethical is important to the business. CFG has developed a new chocolate bar. The Marketing Manager plans to use skimming as its pricing method, and retailers as its distribution channel for the new product. He knows there are many legal controls over marketing that might affect a business.
Identify two ways legal controls over marketing might affect a business.
Way 1:
Way 2:
Award 1 mark per way (max 2).
Points might include:
- No misleading promotion/advertising
- No price fixing/charging very high prices where there is little or no competition
- No selling faulty/dangerous goods/certain ingredients
- Ensure products are fit for purpose
- Price reductions must be genuine
- Increased costs to meet the legal controls/pay fines
- Spend longer time ensuring they meet the legal controls
- May need to alter packaging
- Restrictions on advertising certain products to some age groups/places.
Other appropriate responses should also be credited.
Only award the first two responses given.