Marketing Law & Ethics
Marketing is a key factor in business, which outlines the concepts of society's needs, wants and demands. It is through the exchanging of products and value with others that laws are needed to regulate the market place. However, certain situations are not provided for in law. As a standard of conduct in business, ethical behaviour is important when facing the challenge of balancing the best interests of consumers. This is because consumers are informed buyers who base moral principals in transactions revolving around an organisation's marketing mix of pricing, product, promotion and place.
Almost every decision made in marketing has some legal significance. From hiring salespeople, introducing a new product, to the not so obvious decisions, will include some type of legal ramification. In an organisation's marketing mix, pricing decisions will adhere to competition law where-by legislation prohibits various forms of anti-competitive behaviour.
Pricing is also affected by general Government policies such as interest rates & tax legislation, especially the introduction of the Goods and Services Tax (GST). Such legislation is an example of a measure with far-reaching implications for everyday marketing practice.
An organisation's logistics concerned with distributing finished products to consumers known in the marketing mix as 'Place' will include; Transport Law, Custom Law, as well as Government Tariff Policies and Subsides. A sale is not finalised until the goods are delivered therefore, an organisation will need to be familiar with legislation covering rail, road and sea transport. Examples include tariff policies that affect specific industries, such as car manufacture, footwear and clothing.
Goods and Service's an organisation offers as a 'Product' has legal significance outside the standard Warranty. As times change and Australians adopt class actions seen in the United States, consumer complaints have led to a governmental campaign...