Regulatory Forces PDF

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Regulatory forces...

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Regulatory Forces PRODUCT RELATED LEGISLATION: 

Various federal laws in existence specifically address the product component of the marketing mix. Sum are aimed at protecting the company, some of protecting the consumer, and at least one at protecting both.

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The company can protect its competitive position in new and novel products under the patent law which gives investors the right to exclude others from making using selling products and fringe the Peyton patented invention.

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The federal copyright law is another way for a company to protect its competitive position in a product. The copyright law gives the author of a literary, dramatic, musical, or artists work the exclusive right to perform, or otherwise copy that work. Copyright is secured automatically when the work is created.

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Many of these laws come about because of consumerism, in 1960s a movement started to increase the influence, power, and rights of consumers in dealing with institutions.

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Trademarks are intended to protect both the firm selling a trademark product and the consumer buying it.

REGULATORY FORCES….     

Protecting Competition Product Related Legislation Pricing Related Legislation Distribution Related Legislation Advertising and Promotion Related Legislation

For any decision that an organisation makes it is influenced by regulatory forces. Regulation consists of restrictions that the state and federal laws put in place regard to the conduct of the businesses activities. Regulations exist to protect companies as well as consumers. Much of the regulation from the federal and state levels as a result of an active political process that insures competition and fear business practices. For consumers, the focus of legislation is to protect them from unfair trade practices and ensure their safety.

PRICING RELATED LEGISLATION: The pricing component of the marketing mix is the focus of regulation from two perspectives, price-fixing and price discounting.

CONTROL THROUGH SELF-REGULATION: The government has created a safe business environment that protects the consumers as well as creating competition between organisations. An alternative to government control is self regulation. This is when an industry attempts to police itself. Although with self regulation generally two problems arise: noncompliance by members and enforcement.

DISTRIBUTION RELATED LEGISLATION: The government has four concerns regarding distribution (place): Exclusive dealing  This is an arrangement a manufacture makes with the re-seller to handle only its products and not those of competitors . Requirement contracts  Require a buyer to purchase all part of its needs for product from one seller for time period. Exclusive territorial distributorships  As a third distribution issue often under regulatory scrutiny. In this situation, a manufacturer grants a distributor the soul right to sell products in a specific geographical area. Tying arrangement  This is when a seller requires the purchase of one product to also buy another item in the line....