Chapter two: The Marketing Environment Pgs. 28-52 The Marketing ...
Chapter two: The Marketing Environment Pgs. 28-52 The Marketing Environment
Provides marketers with direction on how to best market products to meet changing consumer needs. Successful marketing programs must reach out and address changes in the marketplace while also touching areas of increasing interest. The marketing environment-The factors that marketers monitor to stay current and informed- and explain how these factors impact marketing decisions. Looks at demographic trends, socio-cultural changes, the economic environment, the use of technology, the competitive nature of the market, and regulatory forces. Specifically socio-cultural factors, demographic factors, economic factors, technological factors, competitive factors, and regulatory factors. Marketers take this approach and scan the elements of the marketing environment to identify business opportunities. After conducting further analysis and research, marketers integrate sound business ideas into marketing plans that provide direction for the business. Businesses and non-profit organizations use this approach to stay appraised of changes that affect their target markets. Marketers scan the marketing environment and review six key areas of focus: 1) demographic factors 2) socio-cultural forces 3) economic forces 4) technological forces 5) competitive forces 6) regulatory forces
A Marketing Environmental Scan
The process of continually acquiring information on events occurring outside an organization to identify trends and pinpoint opportunities and threats to a business. Marketers use this knowledge to ensure that their goods, services, and ideas are relevant and meaningful Often used as a stepping stone to conduct a more extensive SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) SWOT involves assessing how well a company is faring in servicing its businesses and target consumers by assessing an organizations internal strengths and weaknesses as well its external opportunities and threats. This is in relation to the industry, its competitors, and trends identified in an environmental scan. Used to set future direction for the business and lay groundwork for competitive marketing programs.
Demographic Forces The statistical study of populations is referred to as demographics. Looks at characteristics such as gender, age, ethnicity, income, education, and occupation of a group of people.
It is important for marketers to clearly understand changes that are occurring in the demographic arena to ensure that marketing efforts are well placed and opportunities are not over-looked. Based off data the Canadian population is growing older, contains diverse generations, is moving into the suburbs of large cities, is becoming more ethnically mixed, and is increasingly living in non-traditional families- we look at these trends and identify their impact on marketing efforts.
An Aging Population 11.7 percent of population between ages 55-64 – all time high Population over the age of 65 is increasing due to low birth rates, and better health care This age group represents 13.7 percent of pop, resulting in a higher amount of seniors who require different goods and services. People over the age 50 control 75% of the net worth of Canadian households Diverse Generations Marketers note four main generational groups of consumers: baby boomers, generation x, gen y, and gen z Baby boomers – This group now accounts for approx. 60% of expenditures on consumer goods and services, and will continue to be a key force as it moves into its seniors years, marketers have notice this group and are developing products to address these needs. Marketers take note of changes and adjust their communication platforms accordingly. Generation X- the group of people born after the baby boomers, they are becoming a key influence in the market. Gen Y- Group of people born between 1975-1991, mostly children of baby boomers, 27.5% of population. In time this generation is expected to become as influential as their baby boom parents. Gen Z- born between 1992-2010, grown up with the internet, and as pioneers of social media are considered the most disruptive of generations- net generation. They are discoverers and creators of content that they readily critique and share with others. Each of these generations has different tastes, consumption patterns, and attitudes. For each generation, marketers need to develop distinct marketing programs, products, and services. Ex. Each generation uses media differently. Marketers have to carefully select which communication tools should be used. Marketers adjust their media platforms to meet the evolving habits of their target markets. Big city Dwelling Stats indicate that cities are growing much faster than rural areas, which lag behind the rest of the country in growth rates. Ethnic Diversity Visible minorities now make up 50% of the population in large urban areas
This multicultural mix creates an interesting array of opportunities for marketers. These specific ethnic groups have their own particular interests and habits, which can be addressed in unique ways.
World Markets Growth in underdeveloped areas such as Africa, Asia, and India. China and India alone are home to 2.5 billion people 38% of the world's population. These areas represent future opportunities for marketers seeking to expand into foreign markets. The sheer size of these countries presents an opportunity to sell products and services The Internet allows companies to target foreign markets through online communication tools. Non-Traditional Families Family size has decreased with families having one or two children versus three or four+ More common-law relationships, single-parent families, and blended families This change in family structure impacts marketers who need to determine whether these new trends will affect their markets. Socio-Cultural Forces Socio-cultural trends are more difficult to pinpoint than demographic changes. It is not easy to identify societal and cultural shifts in attitudes, or to track newly evolving trends. Changes tend to be gradual, over a prolonged period of time, and sometimes very subtle. Stats data is not readily available in these areas, but marketers are able to observe changes in society and identify evolving trends and opportunities. Involves consumer research; other times involves a keen eye and good opportunities Socio-cultural forces- cultural values, ideas and attributes that are learned and shared among s group of people. Includes society’s morals and beliefs and is demonstrated through behavior common among a socio-cultural group. Media Usage Marketers note that consumers have taken the reins of the communication channel, choosing how, if, and when to listen to marketing messages. The media landscape is blurring, making marketing communications more complex and challenging. The Internet and portable devices are impacting Canada’s socio-cultural fabric by influencing how consumers interact with each other, gather information, and stay informed- making media accessible at all times. Online platforms have become one of the building blocks of communication campaigns.
The multiplatform media landscape is resulting in socio-cultural changes that see consumers in control of a diverse set of tools to access the media and communicate with each other. This leaves a fragmented media landscape for marketers who find that Consumers, spread across multiple platforms and media outlets, are more elusive and difficult to reach. Marketers respond with integrated marketing communications approaches that use a wider array of communication tools to engage target markets. Traditional media is not ignored in this mix The wide spread of social media is impacting the socio-cultural environment in Canada and providing new communication platforms for marketers. Consumers now intuitively use social media to interact with organizations. Creativity has become a prime ingredient in the social media space used by marketers.
Food Consumption When it comes to ethnic foods, consumers in Canada are exposed to a wide variety of international meals. This variety trickles down to the foods people enjoy and wish to purchase. Marketers note these trends and develop products geared to evolving palates. Health and Fitness Canadian government agencies, the medical profession, the media, and educational institutions all encourage people to be active and fit and to make healthier choices in their lives. Companies recognize this shift in socio-cultural focus and are responding with healthier products and new ideas that address concerns around obesity and its associate medical conditions. This interest in healthy living extends into a variety of avenues, such as the food industry, pharmaceutical business, fitness industry, entertainment world, and toy market. These sectors are developing new products and applications to address this trend. Most significant changes stemming from increased socio-cultural interest in health, fitness, and nutrition is the Canadian children’s food and beverage advertising initiative. Environmental Awareness Canadians are showing a keen interest in being less wasteful, recycling, and making choices that do not negatively impact the environment. Many companies are rallying around the cause, genuinely managing business practices to reduce waste and provide customers with environmentally friendly products. From a consumer perspective, attitudes to green products waver over time and can vary from being highly engaged to being moderately interested.
Marketers monitor consumers’ attitudes to this green trend and carefully measure reactions to green initiatives.
Evolving Gender Roles Over past 30 years, one of the most notable socio-cultural changes in Canada is the evolving roles of women and men in society. Increasingly women are working full time and men are becoming more involved in the household. Resulted in dual-income families that are time starved. Marketers and companies have identified and opportunity to address this issue with more convenience products and better services to help families Example: many public schools have responded to societal change by providing after school daycare and before school to assist working parents. Economic Forces The economy is another area in a marketing environment scan that marketers need to note. The economic ability of a consumer to purchase a product is what interests marketers. Significant change in the economy, will impact a household’s income and ability to purchase Economy- the collective income, expenditures, and resources that affect the cost of running a business or a household. Marketers need to recognize how the economy affects purchase behavior of their specific target groups. Economy consists of micro and macro economic forces. Macroeconomic forces refer to the state of a country’s economy as a whole. Indicators of strength and weakness should be on a marketer’s radar screen so that they can react quickly to changes that affect their consumers. Key economic indicators are its inflation rate, unemployment rate, and its economic growth rate also consumer confidence, are indicators of economic health. Inflation- period when the costs to produce and buy products and services gets higher as prices rise faster than consumer income, consumer purchasing power decreases. Recession- time of slow economic activity with two consecutive periods of negative growth. Production levels decline, unemployment levels rise, and consumers have less money to spend. A country’s cycle fluctuates between different levels of growth depending on the state of the economy, international economic factors, and global pressures. Marketers keep appraised of a country’s key economic indicators – as stated above- to have a clear understanding of whether to expect a downturn or upswing in the economy. Marketers then couple this info with anticipated business performance during the expected economic climate and adjust marketing programs to maximize business results. Microeconomic forces directly refer to the supply and demand of goods and services and how this is impacted by an individual, household or company
decisions to purchase. A marketer needs to be alerted as to how these areas affect consumer buying power. Gross income- total amount of money made in one year including taxes. Disposable income- after-tax income that consumers have left for spending and saving Discretionary income – after-tax income a consumer has left after paying for necessities such as food, shelter, clothing.
Technological Forces Changes in how consumers use technology must be understood by marketers, must be noted in an environmental scan or results will be problematic. Marketers need to know not only what new inventions are coming on the scene but also how consumers are integrating tech into daily lives. Technological forces refer to inventions that stem from scientific or engineering research. Companies need to be aware of tech changes to ensure that their products do not become obsolete. Example list pages 43-44 Competitive Forces Puts a focus on competitive forces that present alternative products to satisfy a need. Various types of competition and each company must consider its present and potential competitors when designing its marketing strategy One of a marketer’s primary concerns is to monitor the competitive activity of products that compete head-to-head with its brands. Any changes made by a major competitor in areas of production, price, place, and promotion are routinely noted. Direct competitors- refers to very similar products sold in the same category ex. Coke vs. Pepsi. Indirect competitors- those products that compete for same buying dollar but in a slightly different category. Ex. Pg. 45- Pizza Hut and Swish Chalet- not direct but both sell take out food so they are essentially indirectly competing. Marketers need to be intimately familiar with competitive products and try to anticipate competitive moves in the marketplace. This will help avoid the pitfalls that can surface from underestimating the competitor. Marketers need to review all major competitors, taking its direction from the choices consumers make between brands and products in the category. More attention is given to those that can directly impact a marketers business. Marketers need to have a clear understanding of the competitive nature of the industry in which they function and factor this into a marketing environmental scan. Monopoly- exists when there is only one company selling in the market.
Oligopoly- occurs when few companies control a market. Ex oil companies that control the gasoline industry companies, shell, petro Canada, husky, Esso dominate the market. Monopolistic competition – this is when a large number of sellers compete with each other, offering customers similar or substitute products. Marketers need to know that in this instance branding plays an important role, as does differentiation and added value activities to draw consumers to the product. Being in touch with consumer needs and adjusting the marketing mix to meet these needs is crucial for long-term survival. Ex jean market – levi’s and calvin klein, seven, guess, diesel Perfect competition – when there are as many sellers with nearly identical products and little differentiation. Ex. Grains, coal, vegetables.
Regulatory Forces
Regulations- restrictions placed on marketing practices by different levels of government and industry associations. Put in place to protect consumers from unscrupulous business practices, to set acceptable standards of practice, and to encourage fair competition. Marketers need to clearly understand all legal and ethical guidelines that affect their business practices and to retain legal guidance as needed to ensure that its practices are legal. Ethical business practices should also be followed to avoid consumer backlash and negative publicity. Marketers need to review other regulatory bodies and associations specific to their industry, as well as those that have jurisdiction in other countries, provinces, or states where they conduct business. The competition bureau is responsible for the administration and enforcement of the competitions act, the consumer packaging and labeling act, the textile labeling act, and the precious metals marketing act. The bureaus role is to promote and motivate and maintain fair competition and to curtail false and misleading representations to sell products. Failure to abide by competition bureau rules can result in fines and jail time. False/and or misleading representations to sell products can result in orders by the competition bureau for companies to publish corrective notices, stop the prohibited practice, pay administrative costs, and pay restitution to purchasers. Advertising standards Canada (asc) is a self-regulatory non-government association run by advertising, media, and marketing professionals with the purpose of setting and regulating standards of professional practice in the advertising industry. Provides advice and pre-clearance services for advertisers. Does not carry over to the legal arena. Canadian radio-television and telecommunications commission (crtc)government agency that sets guidelines and enforces a clear set of regulations on Canadian businesses. Do not call list (dncl)- gives consumers the ability to not receive telemarketer calls by registering their phone numbers of their communication devices. Telemarketers are required by law to subscribe to this list and not to call the numbers on the list.
In all instances, advertising messages need to be legal and ethical, and abide by industry guidelines. It is wise to always obtain legal counsel before launching a campaign to ensure that it is ethical and does not contravene any laws, including criminal ones that may not be mentioned above. Better Business Bureau (bbb)- voluntary alliance of businesses whose members are committed to being fair and honest in their dealings, to promoting self-regulatory practices, and to collecting and dispensing information to help businesses and consumers make sound decisions. Provides businesses with guidelines for building trust in the marketplace. Canadian marketing association (cma) is the backbone of the marketing industry in Canada. Provides guidelines for its members through its code of ethics and standards of practice. Marketers are advertised to become familiar with the guidelines and restrictions that regulate the marketing industry in Canada and also to look further afield to the other countries where they conduct business. Legal advice is prudent. Three important regulatory areas that are highlighted by cma: privacy, spam, and contests. Privacy Personal information protection and electronic documents act (PIPEDA) is being updated to ensure that its adequately protects individuals’ right to privacy. PIEPDA provides business and individuals with guidelines on what information can be collected and shared and distributed. PIEPDA protect personal information. PIPEDA also stipulates that consent is needed for the collection, use, and disclosure of information and that that information must be safely stored. In the online environmental, privacy policies must be clearly posted on all websites and detail what personal information is collected, how it is collected, how it is used and protected, whether info is disclosed to outside parties, and whether the company complies with Canadian privacy legislation and anti-spam laws. Spam Refers to the dissemination of unsolicited electronic messages to recipients. Contests Marketers obtain legal advice and often use professional contest administrators when conducting contests to ensure that they comply with the law. Examples on pg. 50-51
*Chart on page 52.
Provides marketers with direction on how to best market products to meet changing consumer needs. Successful marketing programs must reach out and address changes in the marketplace while also touching areas of increasing interest. The marketing environment-The factors that marketers monitor to stay current and informed- and explain how these factors impact marketing decisions. Looks at demographic trends, socio-cultural changes, the economic environment, the use of technology, the competitive nature of the market, and regulatory forces. Specifically socio-cultural factors, demographic factors, economic factors, technological factors, competitive factors, and regulatory factors. Marketers take this approach and scan the elements of the marketing environment to identify business opportunities. After conducting further analysis and research, marketers integrate sound business ideas into marketing plans that provide direction for the business. Businesses and non-profit organizations use this approach to stay appraised of changes that affect their target markets. Marketers scan the marketing environment and review six key areas of focus: 1) demographic factors 2) socio-cultural forces 3) economic forces 4) technological forces 5) competitive forces 6) regulatory forces
A Marketing Environmental Scan
The process of continually acquiring information on events occurring outside an organization to identify trends and pinpoint opportunities and threats to a business. Marketers use this knowledge to ensure that their goods, services, and ideas are relevant and meaningful Often used as a stepping stone to conduct a more extensive SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) SWOT involves assessing how well a company is faring in servicing its businesses and target consumers by assessing an organizations internal strengths and weaknesses as well its external opportunities and threats. This is in relation to the industry, its competitors, and trends identified in an environmental scan. Used to set future direction for the business and lay groundwork for competitive marketing programs.
Demographic Forces The statistical study of populations is referred to as demographics. Looks at characteristics such as gender, age, ethnicity, income, education, and occupation of a group of people.
It is important for marketers to clearly understand changes that are occurring in the demographic arena to ensure that marketing efforts are well placed and opportunities are not over-looked. Based off data the Canadian population is growing older, contains diverse generations, is moving into the suburbs of large cities, is becoming more ethnically mixed, and is increasingly living in non-traditional families- we look at these trends and identify their impact on marketing efforts.
An Aging Population 11.7 percent of population between ages 55-64 – all time high Population over the age of 65 is increasing due to low birth rates, and better health care This age group represents 13.7 percent of pop, resulting in a higher amount of seniors who require different goods and services. People over the age 50 control 75% of the net worth of Canadian households Diverse Generations Marketers note four main generational groups of consumers: baby boomers, generation x, gen y, and gen z Baby boomers – This group now accounts for approx. 60% of expenditures on consumer goods and services, and will continue to be a key force as it moves into its seniors years, marketers have notice this group and are developing products to address these needs. Marketers take note of changes and adjust their communication platforms accordingly. Generation X- the group of people born after the baby boomers, they are becoming a key influence in the market. Gen Y- Group of people born between 1975-1991, mostly children of baby boomers, 27.5% of population. In time this generation is expected to become as influential as their baby boom parents. Gen Z- born between 1992-2010, grown up with the internet, and as pioneers of social media are considered the most disruptive of generations- net generation. They are discoverers and creators of content that they readily critique and share with others. Each of these generations has different tastes, consumption patterns, and attitudes. For each generation, marketers need to develop distinct marketing programs, products, and services. Ex. Each generation uses media differently. Marketers have to carefully select which communication tools should be used. Marketers adjust their media platforms to meet the evolving habits of their target markets. Big city Dwelling Stats indicate that cities are growing much faster than rural areas, which lag behind the rest of the country in growth rates. Ethnic Diversity Visible minorities now make up 50% of the population in large urban areas
This multicultural mix creates an interesting array of opportunities for marketers. These specific ethnic groups have their own particular interests and habits, which can be addressed in unique ways.
World Markets Growth in underdeveloped areas such as Africa, Asia, and India. China and India alone are home to 2.5 billion people 38% of the world's population. These areas represent future opportunities for marketers seeking to expand into foreign markets. The sheer size of these countries presents an opportunity to sell products and services The Internet allows companies to target foreign markets through online communication tools. Non-Traditional Families Family size has decreased with families having one or two children versus three or four+ More common-law relationships, single-parent families, and blended families This change in family structure impacts marketers who need to determine whether these new trends will affect their markets. Socio-Cultural Forces Socio-cultural trends are more difficult to pinpoint than demographic changes. It is not easy to identify societal and cultural shifts in attitudes, or to track newly evolving trends. Changes tend to be gradual, over a prolonged period of time, and sometimes very subtle. Stats data is not readily available in these areas, but marketers are able to observe changes in society and identify evolving trends and opportunities. Involves consumer research; other times involves a keen eye and good opportunities Socio-cultural forces- cultural values, ideas and attributes that are learned and shared among s group of people. Includes society’s morals and beliefs and is demonstrated through behavior common among a socio-cultural group. Media Usage Marketers note that consumers have taken the reins of the communication channel, choosing how, if, and when to listen to marketing messages. The media landscape is blurring, making marketing communications more complex and challenging. The Internet and portable devices are impacting Canada’s socio-cultural fabric by influencing how consumers interact with each other, gather information, and stay informed- making media accessible at all times. Online platforms have become one of the building blocks of communication campaigns.
The multiplatform media landscape is resulting in socio-cultural changes that see consumers in control of a diverse set of tools to access the media and communicate with each other. This leaves a fragmented media landscape for marketers who find that Consumers, spread across multiple platforms and media outlets, are more elusive and difficult to reach. Marketers respond with integrated marketing communications approaches that use a wider array of communication tools to engage target markets. Traditional media is not ignored in this mix The wide spread of social media is impacting the socio-cultural environment in Canada and providing new communication platforms for marketers. Consumers now intuitively use social media to interact with organizations. Creativity has become a prime ingredient in the social media space used by marketers.
Food Consumption When it comes to ethnic foods, consumers in Canada are exposed to a wide variety of international meals. This variety trickles down to the foods people enjoy and wish to purchase. Marketers note these trends and develop products geared to evolving palates. Health and Fitness Canadian government agencies, the medical profession, the media, and educational institutions all encourage people to be active and fit and to make healthier choices in their lives. Companies recognize this shift in socio-cultural focus and are responding with healthier products and new ideas that address concerns around obesity and its associate medical conditions. This interest in healthy living extends into a variety of avenues, such as the food industry, pharmaceutical business, fitness industry, entertainment world, and toy market. These sectors are developing new products and applications to address this trend. Most significant changes stemming from increased socio-cultural interest in health, fitness, and nutrition is the Canadian children’s food and beverage advertising initiative. Environmental Awareness Canadians are showing a keen interest in being less wasteful, recycling, and making choices that do not negatively impact the environment. Many companies are rallying around the cause, genuinely managing business practices to reduce waste and provide customers with environmentally friendly products. From a consumer perspective, attitudes to green products waver over time and can vary from being highly engaged to being moderately interested.
Marketers monitor consumers’ attitudes to this green trend and carefully measure reactions to green initiatives.
Evolving Gender Roles Over past 30 years, one of the most notable socio-cultural changes in Canada is the evolving roles of women and men in society. Increasingly women are working full time and men are becoming more involved in the household. Resulted in dual-income families that are time starved. Marketers and companies have identified and opportunity to address this issue with more convenience products and better services to help families Example: many public schools have responded to societal change by providing after school daycare and before school to assist working parents. Economic Forces The economy is another area in a marketing environment scan that marketers need to note. The economic ability of a consumer to purchase a product is what interests marketers. Significant change in the economy, will impact a household’s income and ability to purchase Economy- the collective income, expenditures, and resources that affect the cost of running a business or a household. Marketers need to recognize how the economy affects purchase behavior of their specific target groups. Economy consists of micro and macro economic forces. Macroeconomic forces refer to the state of a country’s economy as a whole. Indicators of strength and weakness should be on a marketer’s radar screen so that they can react quickly to changes that affect their consumers. Key economic indicators are its inflation rate, unemployment rate, and its economic growth rate also consumer confidence, are indicators of economic health. Inflation- period when the costs to produce and buy products and services gets higher as prices rise faster than consumer income, consumer purchasing power decreases. Recession- time of slow economic activity with two consecutive periods of negative growth. Production levels decline, unemployment levels rise, and consumers have less money to spend. A country’s cycle fluctuates between different levels of growth depending on the state of the economy, international economic factors, and global pressures. Marketers keep appraised of a country’s key economic indicators – as stated above- to have a clear understanding of whether to expect a downturn or upswing in the economy. Marketers then couple this info with anticipated business performance during the expected economic climate and adjust marketing programs to maximize business results. Microeconomic forces directly refer to the supply and demand of goods and services and how this is impacted by an individual, household or company
decisions to purchase. A marketer needs to be alerted as to how these areas affect consumer buying power. Gross income- total amount of money made in one year including taxes. Disposable income- after-tax income that consumers have left for spending and saving Discretionary income – after-tax income a consumer has left after paying for necessities such as food, shelter, clothing.
Technological Forces Changes in how consumers use technology must be understood by marketers, must be noted in an environmental scan or results will be problematic. Marketers need to know not only what new inventions are coming on the scene but also how consumers are integrating tech into daily lives. Technological forces refer to inventions that stem from scientific or engineering research. Companies need to be aware of tech changes to ensure that their products do not become obsolete. Example list pages 43-44 Competitive Forces Puts a focus on competitive forces that present alternative products to satisfy a need. Various types of competition and each company must consider its present and potential competitors when designing its marketing strategy One of a marketer’s primary concerns is to monitor the competitive activity of products that compete head-to-head with its brands. Any changes made by a major competitor in areas of production, price, place, and promotion are routinely noted. Direct competitors- refers to very similar products sold in the same category ex. Coke vs. Pepsi. Indirect competitors- those products that compete for same buying dollar but in a slightly different category. Ex. Pg. 45- Pizza Hut and Swish Chalet- not direct but both sell take out food so they are essentially indirectly competing. Marketers need to be intimately familiar with competitive products and try to anticipate competitive moves in the marketplace. This will help avoid the pitfalls that can surface from underestimating the competitor. Marketers need to review all major competitors, taking its direction from the choices consumers make between brands and products in the category. More attention is given to those that can directly impact a marketers business. Marketers need to have a clear understanding of the competitive nature of the industry in which they function and factor this into a marketing environmental scan. Monopoly- exists when there is only one company selling in the market.
Oligopoly- occurs when few companies control a market. Ex oil companies that control the gasoline industry companies, shell, petro Canada, husky, Esso dominate the market. Monopolistic competition – this is when a large number of sellers compete with each other, offering customers similar or substitute products. Marketers need to know that in this instance branding plays an important role, as does differentiation and added value activities to draw consumers to the product. Being in touch with consumer needs and adjusting the marketing mix to meet these needs is crucial for long-term survival. Ex jean market – levi’s and calvin klein, seven, guess, diesel Perfect competition – when there are as many sellers with nearly identical products and little differentiation. Ex. Grains, coal, vegetables.
Regulatory Forces
Regulations- restrictions placed on marketing practices by different levels of government and industry associations. Put in place to protect consumers from unscrupulous business practices, to set acceptable standards of practice, and to encourage fair competition. Marketers need to clearly understand all legal and ethical guidelines that affect their business practices and to retain legal guidance as needed to ensure that its practices are legal. Ethical business practices should also be followed to avoid consumer backlash and negative publicity. Marketers need to review other regulatory bodies and associations specific to their industry, as well as those that have jurisdiction in other countries, provinces, or states where they conduct business. The competition bureau is responsible for the administration and enforcement of the competitions act, the consumer packaging and labeling act, the textile labeling act, and the precious metals marketing act. The bureaus role is to promote and motivate and maintain fair competition and to curtail false and misleading representations to sell products. Failure to abide by competition bureau rules can result in fines and jail time. False/and or misleading representations to sell products can result in orders by the competition bureau for companies to publish corrective notices, stop the prohibited practice, pay administrative costs, and pay restitution to purchasers. Advertising standards Canada (asc) is a self-regulatory non-government association run by advertising, media, and marketing professionals with the purpose of setting and regulating standards of professional practice in the advertising industry. Provides advice and pre-clearance services for advertisers. Does not carry over to the legal arena. Canadian radio-television and telecommunications commission (crtc)government agency that sets guidelines and enforces a clear set of regulations on Canadian businesses. Do not call list (dncl)- gives consumers the ability to not receive telemarketer calls by registering their phone numbers of their communication devices. Telemarketers are required by law to subscribe to this list and not to call the numbers on the list.
In all instances, advertising messages need to be legal and ethical, and abide by industry guidelines. It is wise to always obtain legal counsel before launching a campaign to ensure that it is ethical and does not contravene any laws, including criminal ones that may not be mentioned above. Better Business Bureau (bbb)- voluntary alliance of businesses whose members are committed to being fair and honest in their dealings, to promoting self-regulatory practices, and to collecting and dispensing information to help businesses and consumers make sound decisions. Provides businesses with guidelines for building trust in the marketplace. Canadian marketing association (cma) is the backbone of the marketing industry in Canada. Provides guidelines for its members through its code of ethics and standards of practice. Marketers are advertised to become familiar with the guidelines and restrictions that regulate the marketing industry in Canada and also to look further afield to the other countries where they conduct business. Legal advice is prudent. Three important regulatory areas that are highlighted by cma: privacy, spam, and contests. Privacy Personal information protection and electronic documents act (PIPEDA) is being updated to ensure that its adequately protects individuals’ right to privacy. PIEPDA provides business and individuals with guidelines on what information can be collected and shared and distributed. PIEPDA protect personal information. PIPEDA also stipulates that consent is needed for the collection, use, and disclosure of information and that that information must be safely stored. In the online environmental, privacy policies must be clearly posted on all websites and detail what personal information is collected, how it is collected, how it is used and protected, whether info is disclosed to outside parties, and whether the company complies with Canadian privacy legislation and anti-spam laws. Spam Refers to the dissemination of unsolicited electronic messages to recipients. Contests Marketers obtain legal advice and often use professional contest administrators when conducting contests to ensure that they comply with the law. Examples on pg. 50-51
*Chart on page 52.
