External Influences On Marketing Flashcards
What are the seven types of external influences on marketing?
Political, economic, social, technological, ethical, legal, environmental
Economic factors that affect marketing
Subsidies Exchange rate Taxation Interest rates Income Growth Government spending Unemployment Inflation Credit available
Effects on marketing as a result of technology
More competition as a result of new technology
Easy access to a wide audience
Increased market size
Increased pressure due to public feedback
Easier to bring a product to market
Regular software updates
Environmental influences on marketing
Improved environmental awareness
Ethical issues marketing
Market research can be considered intrusive
Marketing audience can be selective
Misrepresentation in advertising
Anti competitive practices
Predatory pricing
Bid rigging
Making a product that will be outdated quickly
Social factors affecting marketing
Population rates
Demographics
Age
Religion beliefs
Legal regulations affecting marketing
Advertising standards authority (ASA) Sales of goods act Weights and measures act Unsolicited goods act EU regulations EU directives Data protection The TSA Data protection
What is the sales of goods act?
1) All goods must be of satisfactory quality as described and fit for the intended purpose
2) If not met, businesses must provide replacement for their money back
What are the main sections of the Customer protection from unfair regulation act?
1) A ban on unfair practices
2) A ban on misleading or aggressive practices
3) A blacklist on unfair practices
What are the effects of the weights and measures act?
It is illegal to give short measures or incorrect indication of the amount of a product on sale
What are the effects of the unsolicited goods act?
It is illegal to demand payment for services that have not been provided, the TSA will assist in any court case where the law has been broken
What are EU regulations?
These are practices or laws that have to be adopted and applied in a set way
What are EU directives?
Laws that need to be applied but the member country can decide how to implement them
What is the TSA?
The trading standards authority is a body that investigates breaches of consumer law. They may also assist in court cases is the business does not comply
What is the general principle behind the data protection act?
All information about individuals must be held fairly and used for necessary purposes only. Also allows individuals to know what information is being held about them
