Data and Privacy Collection: Before beginning the marketing process, one needs to gather the contact information of the potential customers. Unfortunately, the process of information collection is more complex than it looks.
The privacy legislation requires the business to notify the people before collecting their details.
Apart from that, one needs to make sure that the collected data will be safe and secured.
Intellectual Properties Issues: Intellectual properties like trademarks and copyrights are required to be protected. As a marketer, one needs to ensure that the policies of others are also not infringed or violated.
Advertising: Misleading advertisements or marketing messages can create serious legal issues. However, it should not affect consumers or their decisions regarding the product. Unfair advertising is strongly prohibited, and marketers are required to tell the truth only. Comparative marketing or advertising should be practiced transparently and fairly without breaching the advertising standards.
These are the three key legal issues that should be kept in mind while building a company or marketing environment for the consumers.
Elements of the Marketing Environment
The elements of the marketing environment influence the working of any organization. These elements are as follows:-
Political Environment: The political marketing environment refers to the instability of the political factors and government policies and risks. Organizations need to consider the political environment when creating business strategies. Federal, local, and state bodies are allowed to set the rules and restrictions on establishing businesses and organizations. The purpose of this regulation is to safeguard both the consumers and the businesses.
Economic Environment: The economic environment includes all the economic factors that can influence the purchasing habits of the consumers or businesses. These factors can affect the performance of a company. The economy of any country alters the market and the marketing plans of the owners accordingly. These factors are beyond an organization’s control and are either macro(large-scale) or micro(small-scale).
Competitive Environment: A competitive marketing environment is an environment where multiple businesses compete within the market. As a result, they use different marketing channels, pricing methods, promotional strategies, etc. Companies are required to follow all the regulations in this system. Direct competitors, indirect competitors, social and technical changes, and regulatory sources are the key elements of a competitive environment.
Technological Environment: Technical marketing environments are the ones in which companies produce products and services. These services are exchanged in such a way in the market that they are rewarded for their efficient and effective performance. In this environment, changes in technology affect the marketing efforts of the firms. The existence of 3D technology, wireless charging, artificial intelligence, automation, etc., are examples of the technological factors that affect a business.
Impacts of Legislation
Governments use legislation to regulate the behavior of a business. It prevents them from user exploitation.
Cost and Profits: Organizations must comply with government legislation. However, it incurs an additional cost in terms of money and time. Some impacts of legislation on the profit of an organization are as follow:-
Supplying training and welfare equipment
Paying higher wages to the staff
Testing products to ensure their safety standards, etc. Marketing Legislation has several marketing and sales advantages and disadvantages. These are:
Ensuring a powerful brand image
Higher sales
Fewer returns
Low risks of impersonation
Fewer chances of being sued by the customers
Production The legislation impacts production significantly. Some of the key impacts of legislation to production are as follows:-
Creating high-quality products and services for more leads
Better customer engagement
Higher productivity in the employees due to better working environment
Products should be produced to meet the satisfactory levels
Using the best quality materials can be expensive
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