Australian Consumer LawCompetition and Consumer Act 2010

• Protect consumers

• Prevent restricted competition

Legal influences

Legal Influences

Deceptive and misleading

Price discrimination

Implied conditions

Warranties

Deceptive and Misleading

• Fine print

• Before and after

• Tests and surveys

• Country of origin

• Packaging

• Special offer

Bait and SwitchDishonest

Which of the following aspects of marketing is not addressed by consumer law?a) Warranties

b) Positioning

c) Implied conditions

d) Deceptive adevrtising

Which of the following aspects of marketing is not addressed by consumer law?a) Warranties

b) Positioning✔️

c) Implied conditions

d) Deceptive adevrtising

Ethical influencesConduct that goes beyond the legal requirements

Ethical criticisms of marketing

• Creation of needs (materialism)

• Stereotypical images

• Sex sells!

• Product placement

• Invasion of privacy

Ethical

• Truth, accuracy and good taste

• Products that may damage health

• Engaging in fair competition

• Sugging

Truth and Accuracy

Good Taste

Products that may damage health

Engaging in Fair Competition

Sugging / Frugging

What are the benefits and drawbacks to a business of being seen as ethical?

• Time to plan, implement

• Positive Image / Reputation

• Great Publicity

• Not guaranteed to be effective

• Attract Customers

• Cost to business

• Customer Loyalty

• Positive Employee Relations

• Attract Best Employees

• Attract Investors

• Effort to change focus

• No guaranteed returns

Ethics

Concept explorer (answer)What are the benefits and drawbacks to a business of being seen as ethical?

BENEFITS

• Positive Image / Reputation

• Great Publicity

• Attract Customers

• Customer Loyalty

• Positive Employee Relations

• Attract Best Employees

• Attract Investors

DRAWBACKS

• Cost to business

• Time to plan, implement

• Effort to change focus

• Not guaranteed to be effective

• No guaranteed returns

Extended Response – HSC 2012 Q.26

Why are ethical and government regulation important in marketing?

(20 marks)

Legal – ACL, ACCC, deceptive & misleading, price discrimination, implied conditions, warranties

Ethical – criticisms, truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging

Extended Response – HSC 2012 Q.26

Legal

ACL

ACCC

deceptive & misleading (fine print, before and after, tests/surverys, country of origin, packaging, special offer, bait and switch, dishonest)

price discrimination

implied conditions (consumer guarantees)

warranties (refunds, repairs, returns)

Extended Response – HSC 2012 Q.26

Ethical

criticisms (creation of needs, stereotypes, sex sells, product placement, invasion of privacy)

truth, accuracy and good taste in advertising (concealed facts, exaggerated claims, vague statements, good taste)

products that may damage health

engaging in fair competition (cartels, anti-competitive, misuse of power, exclusive dealing, resale price maintenance, mergers)

sugging

Criteria Mark

• Presents a sustained, logical and cohesive response and communicates clearly using relevant business terminology and concepts

• Shows the implications of the importance of ethical behaviour and government regulation to marketing

• Applies relevant case study/studies and contemporary business issues

17 - 20

• Presents a logical and cohesive response using relevant terminology and concepts• Makes eveident the relationship between ethical behaviour or government regulation and

marketing• Uses case study/studies and contemporary business issues

13 - 16

• Communicates using business terminology and concepts• Provides characteristics and features of ethical behaviour and/or government regulation in

marketing• May make some reference to case study/studies and contemporary business issues

9 - 12

• Communicates using some business terminology and concepts• Makes some reference to ethical behaviour and/or government regulation in marketing• May make limited reference to case study/studies and contemporary business issues

5 - 8

• Uses basic business terminology• May refer to case study/studies• May make reference to marketing

1 - 4

Your task …..

….. Each person in the class chooses an aspect of ethical or legal to write about

….. This is completed on Schoolbox as a collaborative document