Chapter 23 - The law of marketing. After studying this chapter you will be able to: explain the key features of Australian work health and safety (WHS) law, identify the sources of Australian WHS law, summarise the statutory design of WHS law, explain the move to harmonise WHS law throughout Australia by the introduction of model legislation,...
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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill Australia The law of marketing Chapter 23 Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning The role of marketing “ To identify the wants or needs of consumers, and to determine how best to satisfy these using the MARKETING MIX.” Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-3 Australia The Marketing Mix (4P’S) – PRODUCT – PRICE – PROMOTION – PLACE (DISTRIBUTION) * These four factors are largely controllable Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-4 Australia External forces on the Marketing Mix • • • • • Economic environment Cultural/social environment Political environment (e.g A GST) Competitive environment Legal environment * These factors are largely uncontrollable Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-5 Australia The role of law To define acceptable vs unacceptable behaviour (Marketing law includes any regulations that attempt to “draw the line” between acceptable competitive business conduct & unacceptable business practices.) Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-6 Australia Marketing laws Designed to protect: 1) Consumers 2) Traders 3) The competitive system that underpins the “Free Market” Australian economy Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-7 Australia “Product” laws 1) Intellectual property e.g • Patents for new inventions • Registering a Trade mark • Registering a design • Copyright Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-8 Australia “Product” laws 2) Packaging and labelling • Designed to standardise information and protect against misleading/deceptive information e.g - weight - content of goods - food ingredients Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-9 Australia “Product” laws 3) Product liability e.g Minimum acceptable product safety/quality standards such as: – food hygiene regulations – manufacturer liability for defective/negligent products Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-10Australia “Price” laws Protect against practices such as: • Price fixing • Price discrimination – different prices to different customers • Predatory pricing – selling below cost • Resale price maintenance – Recommended Retail Price Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-11Australia “Promotion” laws Protect against misleading, deceptive or “high pressure” promotional activities e.g • Market games • Bait advertising • “Cooling off” period for door to door sales • Pyramid selling schemes Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-12Australia “Place” laws Prevent suppliers from imposing unreasonable restraints on distributors e.g • Exclusive dealing - restricting products a distributor may sell • Territorial restraints - restricting the area in which distributor may operate • Customer restraints - restricting the customers a distributor may deal with Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-13Australia Market games and competitions Lottery - a scheme for distributing prizes by lot of chance, in which: there must be a scheme there must be a game of chance consideration must be provided by entrants Legal if lottery designed to promote trade or business Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-14Australia Trading stamp promotion Operates by customers saving trading stamps or coupons obtained when purchasing goods from a trader On reaching a certain number of stamps, the customer can receive a free gift Types: -Trading stamp companies -Private trading stamp schemes Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-15Australia Australian Competition and Consumer Commission (ACCC) Purpose: • Undertakes price surveillance • Holds inquiries into the supply of specified goods or services • Monitors the prices, cost and profits of any industry or business Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-16Australia Product packaging and labelling Common Law Protection Statutory Protection Trade Practices Act 1974 (Cwlth) » Misleading and deceptive conduct » Unfair trade practices » Product safety and information standards Trade Measurement Legislation - National Measurements Act 1960 (Cwlth) Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-17Australia Therapeutic Goods Act 1989 (Cwlth) Legislation to ensure the safety and efficacy of therapeutic goods available in Australia Functions: – Evaluate new therapeutic goods – Develop test methods – Conduct testing programs – Liaise with industry Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-18Australia Food safety Laws prohibiting: • the sale of food that is unfit for human consumption • misleading and deceptive advertising Australian and New Zealand Food Authority (ANZFA) • Establishment of Food Standards Code • Assessment of safety of genetically modified food products Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 23-19Australia ...The law of marketing Chapter 23 Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning The role of marketing... 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 2 3- 5 Australia The role of law To define... 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill 2 3- 7 Australia “Product” laws 1) Intellectual