legal & ethical issues associated with product promotion strategies
LEGAL AND ETHICAL ISSUES ASSOCIATED WITH PRODUCT PROMOTION STRATEGIES:
Legal issues associated with promotion strategies refer to advertising under legal legislation. When advertising, businesses need to ensure that they follow the laws which disable them from using certain methods of advertising on the intended audience e.g they are not allow to falsely advertise a product as well as using inappropriate methods that are unsuitable for the targeted age group. This can also involve the banning of advertising certain products e.g cigarettes (can not be advertised at all). These laws are regularly checked and enforced by the Australian Association of National Advertisers and the Advertising Standards Bureau (ASB) which handles consumer complaints which include; discrimination on race, sex, aged, religion, sexual preferences, disability or political behavior, violence, language, sexuality or nudity, health and safety and alarm or distress to children.
If the ASB considered something to be inappropriate for any of the reasons above, they can withdraw or change the advertisement.
UNETHICAL PROMOTIONAL STRATEGIES:
Although misleading the consumer is illegal, there are many methods in which companies use to unfairly influence consumers into purchasing goods or services they do not need or cant afford. Examples of a few methods are:
Legal issues associated with promotion strategies refer to advertising under legal legislation. When advertising, businesses need to ensure that they follow the laws which disable them from using certain methods of advertising on the intended audience e.g they are not allow to falsely advertise a product as well as using inappropriate methods that are unsuitable for the targeted age group. This can also involve the banning of advertising certain products e.g cigarettes (can not be advertised at all). These laws are regularly checked and enforced by the Australian Association of National Advertisers and the Advertising Standards Bureau (ASB) which handles consumer complaints which include; discrimination on race, sex, aged, religion, sexual preferences, disability or political behavior, violence, language, sexuality or nudity, health and safety and alarm or distress to children.
If the ASB considered something to be inappropriate for any of the reasons above, they can withdraw or change the advertisement.
UNETHICAL PROMOTIONAL STRATEGIES:
Although misleading the consumer is illegal, there are many methods in which companies use to unfairly influence consumers into purchasing goods or services they do not need or cant afford. Examples of a few methods are:
- Bait and switch - advertising a product on sale with little or no stock to attract consumers into the store in an attempt to get the consumer to purchase more expensive goods.
- Sale price manipulation - Marking a product on sale with a price higher than its original price. Customers are tricked into thinking they are getting a bargain.
- Special prizes or offers - Convincing a consumer to purchase a product before receiving a 'special prize'.
- High-pressure door -to-door selling - Pressuring the consumer, forcing them to purchase a product.
This is an example of false advertising.