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s l a w

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B u s
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of
Law
The
The role of marketing

“ To identify the wants or needs of


consumers, and to determine how

best to satisfy these using the


MARKETING MIX.”

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The Marketing Mix (4P’S)

• PRODUCT
• PRICE
• PROMOTION
• PLACE (DISTRIBUTION)

* These four factors are largely


controllable.
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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.

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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.)
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Marketing laws
Designed to protect:
1) Consumers
2) Traders
3) The competitive system that
underpins the “Free Market”
Australian economy.

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“Product” laws
1) Intellectual property
e.g.
 Patents for new inventions

 Registering a Trade mark

 Registering a design

 Copyright

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“Product” laws
2) Packaging and labelling
 Designed to standardise
information and protect against
misleading/deceptive information.
e.g. - weight
- content of goods
- food ingredients

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“Product” laws
3) Product liability
e.g. Minimum acceptable product
safety/quality standards such
as:
•food hygiene regulations
•manufacturer liability for
defective/negligent products

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“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


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“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

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“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 12
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

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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 14
Pakistan Competition and
Consumer Commission (PCCC)
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

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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)
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Therapeutic Goods Act 1989 (Cwlth)

Legislation to ensure the safety and efficacy


of therapeutic goods available in Pakistan.

Functions:
• Evaluate new therapeutic goods
• Develop test methods
• Conduct testing programs
• Liaise with industry.

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Food safety
Laws prohibiting:
 the sale of food that is unfit for human

consumption
 misleading and deceptive advertising.

Pakistan Food Authority


 Establishment of Food Standards Code

 Assessment of safety of genetically

modified food products

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