Encouraging

Compliance with Laws

zand Regulations
z

Marketing activities are sometimes

at the forefront of organizational
misconduct. A company must obey all of
the laws and regulations in regards to
how they manage the business, their
staff and their treatment towards their
consumers.
z
Regulatory Agencies

National Regulatory Agencies

influence many marketing activities,
including product development, pricing,
packaging, advertising, personal selling,
and distribution. They have the power to
enforce specific laws, as well as some
discretion in establishing operating rules
and regulations.
 Federal Trade Commission
This agency regulates a variety of
z
business practices and curbs false
advertising, misleading prices, and
deceptive packaging and labelling.
FTC Enforcement Tools
• Cease-and-Desist Order
• Consent Decree
• Redress
• Corrective Advertising

• Civil Penalties
z
Food and Drug
Administration
Enforces laws and
regulations to prevent
distribution of adulterated
or misbranded foods,
drugs, medical devices,
cosmetics, and potentially
hazardous consumer
products.
z
Consumer Product
Safety Commission

Ensures compliance
with the Consumer Product
Safety Act; protects the
public from unreasonable
risk of injury from any
consumer product.
z

Federal Communications
Commission

Regulates communication
by wire, radio, and
television.
z

Environmental Protection
Agency

Develops and enforces

environmental protection
standards and conducts research
into the adverse effects.
z

Federal Power
Commission

Regulates rates and

sales of natural gas
producers, thereby
affecting the supply and
price of gas available to
consumers; also regulates
wholesale rates for
electricity and gas.
z
Major European Commission
Regulatory Departments

 Directorate-General for Competition- takes

action to combat unlawful behavior in the
marketplace such as collusion and monopolies.
 Directorate-General for Health and
Consumers- ensures that food related consumer
goods are not hazardous, emphasizes safety
across five platforms related to the food chains.
z

 Directorate-General for the Environment- enforces

environmental law; investigates maintenance and violations
of rules related to activity impacting nature, water and
biodiversity.

 Directorate-General for Energy- ensures the

development of a European enrgy policy; regulates market
as related to electricity, oil and gas and nuclear energy.
 z
Major Japanese Regulatory Ministries
 Ministry of Economy, Trade and Industry- regulates policies
related to the Japanese economy.

 Ministry of Health, Labour and Welfare- protects the rights

of individuals and workers.

 Ministry of Agriculture, Forestry and Fisheries- overseas

natural resources as an important part of economic activity;
manages natural habitats, promotes rural economic
development.
z

 Ministry of the Environment- Develops

policies related to wildlife management, air
pollution, waste management, and
environment conservation.
 Self Regulatory Forces
and Technological Forces
z
 z
Self Regulatory Forces
-it is an attempt to be good corporate citizens and prevent government 
intervention, some business try to regulate themeselves.
- these programs are not a direct outgrowth of laws
Ex: Better Business Bureau
a system of nongovernment, independent local regulatory agencies
supported by local businesses that help settle problems between
customers and specific business firms.
Council of Better Business Bureau
- is a national organization composed of all local BBB
 z
National Advertising Divisions (NAD)
- operates a self regulatory program that investigate claims
regardig alleged deceptive advertising.
National Advertising Review Board (NARB)
-considers cases in which an advertiser challeges issues
reaised by NAD about an advertisement.
- sponsored bt the council of BBB and three advertising
trage organizations
- has no official enforcement powers
 z

Japan Advertising Review Organization (JARO)

-one that evaluates marketplace complaints related to a

company's advertising content.

- it is formed as a response to increased deception in food

labelling and excessive claims in Japan.

- protect consumers in the Japanese Market by issuing

notifications and warning to advertisers related to
informational concerns about the specific products.
 z
Consumers International

-is an independent orgainization that acts as a

worldwide protector of consumers rights.

- seeks to increase safety and sustainability in

consumer goods and services throughout the world
z
Several regulatory programs have
advantages over government laws and
regulatory agencies
 ● establishment and implementation are
usually less expensive and its guidelines are
generally more realistic and opetational.

 ● guidelines are often less strict than those

established by government agencies.
 z
Technological Forces
TECHNOLOGY

- the application of knowledge and tools to solve problems

and perform tasks more efficiently

- determines how we, as members of society, satisfy our

psychologic needs

- help marketers to reach vast numbers of people more

efficiently through a variety of media.

- it is used by companies to connect employees from all over

the world at lower cost
 z

Reach

 - refers to the broad nature of technology as it moves

through society

Technology Assessment

 - help managers to foresee the effects of new

products and processes on their firm's operation.
z