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Principles of Marketing - Philip Kotler

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Political Environment

On the marketing decisions greatly affect events in the political environment. This environment consists of the legal Legal Code, government agencies and influential community groups that have an impact on the various organizations and individuals and limit their freedom of action within society.

LEGISLATION business regulation. Over time, a growing number of legislative acts regulating entrepreneurial activity. They have appeared in a variety of reasons. The first reason? the need to protect the company of each other. Entrepreneurs with one voice exalt competition, but when it affects their own interests, trying to neutralize it. If they are threatened, they immediately show your teeth.

Until 1970, a subsidiary of the corporation "Borden" company "Real Lemon Foods" held about 90% of powdered lemon juice market. Fearing prosecution under antitrust laws, the company does not interfere with the penetration of the markets of the West Coast region of Chicago and other companies. However, when in 1972, one of its competitors Chicago, the corporation "Golden crown citrus", seized too large, according to the "Real Lemon Foods' market share, the company launched a determined offensive, and in 1974 the Federal Trade Commission filed lawsuit, accusing the "Real Lemon" in establishing predatory pricing and predatory use of marketing tactics for the purpose of destruction konkurenta11.

Consequently, the laws take to define the concept of "unfair competition" and prevent its manifestation. Compliance with these laws should be the Federal Trade Commission and the Antitrust Division of the Ministry of Justice.

The second reason for government regulation? the need to protect consumers from unfair business practices. Some firms, left unattended, can begin to produce bad products, lie in advertising, misleading by packaging and price level. Unfair practices in relation to consumers struggling from the relevant laws, and various government agencies. Many managers come into a rage when any new law that protects the rights of consumers, and yet among them there are those who claim that ".. .poyavlenie consumerism was perhaps the best of all that has happened ... in the last 20 years "(for more on consumerism cm. in Sec. 20) 12.

The third reason for the introduction of state regulation? the need to protect the higher interests of society from unbridled business. After all, business activities are not always gives us a better quality of life. As the deterioration of the environment will be introduced new laws or tightened position of the old. Business leaders have to closely monitor everything that happens in the field of legislation, the planning of the development of products and marketing programs.

Head of marketing must be familiar with federal laws protecting fair competition, consumer interests and the best interests of society, as well as state laws and local laws that would affect its marketing activities in a given area. A list of the most important federal laws are given in Table. 5.

Table 5

The main US laws governing activities in the field of marketing

Law

The main provisions of the law

Sherman Antitrust Act (1890)

Prohibition (a) "monopoly or attempted monopolization", and (b) "contracts, various associations and collusion aimed at restricting trade" interstate or foreign commerce.

Law of the Pure Food and Drug (1906)

Prohibiting the manufacture, sale or transportation of counterfeit or improperly labeled foods or drugs under the interstate commerce. In 1938 he replaced the Federal Law on Food, Drug, and Cosmetic Act. In 1958, it included Amendment supplements to foods, and in 1962 - Kefauver-Harris Amendment included a preliminary test the safety and efficacy of medicines and compulsory indication of the generic names of drugs on the labels and the labels.

Law on quality control of meat products (1906)

Gain control over the observance of sanitary norms in the meat-processing industry and the establishment of quality control of meat products of all companies involved in interstate commerce.

The establishment of the commission - a specialized body with wide powers of investigation and suppression of acts falling under the jurisdiction of Article 5, which states that "unfair methods of competition in the trade is illegal."

Continued Table. 5

Law

The main provisions of the law

Clayton Act (1914)

Supplement to the Sherman Act prohibiting certain types of practical activities (certain kinds of price discrimination, the inclusion in the agreement of points, limiting the partner's actions, the use of restrictive sales practices, the ownership of shares of other corporations and establishing joint directorates) "in cases where the result of such activities may be the substantial lessening of competition or a tendency to establish a monopoly in any sphere of trade. " It provides the ability to bring to justice individually officials offending corporations, but does not apply to the activities of labor and agricultural organizations.

Law Robinsova-Patman (1936)

Amendments to the Sherman Act: added the words "to undermine, the elimination or prevention of competition." Established the illegality of price discrimination (except in certain situations), gave the Federal Trade Commission the right to limit discounts for quantity, prohibiting discounts for brokerage, except discounts independent brokers, as well as the prohibition of discounts for activities to stimulate sales or to provide for this purpose the services or equipment except in cases where they are available to all sellers "on proportionally equal terms."

Miller-Tydings Act (1937)

The amendment to the Sherman Act for exemption from prosecution under the antitrust interstate commerce on the basis of mutual benefit (establishment and maintenance costs). (McGwire Act of 1952 restored the legitimacy of reservations about the party, did not sign the contract.)

Law Wheeler-Lee (1938)

The prohibition of unfair and deceptive acts and practices regardless of whether applied at the same time damage competition; the establishment of the jurisdiction of the Federal Trade Commission over the advertising of food and medicines.

Continued Table. 5

Law

The main provisions of the law

The Law on the Prohibition of the merger (1950)

Amendment of section 7 of the Clayton Act, extending the right to prevent corporate acquisition if such acquisition could have a material adverse effect on competition.

to disclose information about cars Act (1958)

Prohibition inflate Automobile Dealers selling factory price of new cars.

The law on national policies in the field of road safety and road transport (1966)

The introduction of mandatory safety standards for cars and buses.

The law of reflection of the truth on the packaging and labeling of goods (1966)

Introduction to the packaging and labeling regulations of consumer goods. Obliged manufacturers specify the exact content of the package, the name of the manufacturer of the content and the exact amount of content. Approved by the introduction of voluntary standards on uniform packing within the sectors of activity.

The law on ensuring the safety of children (1966)

Prohibiting the sale of potentially dangerous toys and other products. Amendments in 1969 extended its action on the articles which present a potential hazard of electrical, mechanical or thermal effect.

Federal law on the labeling and advertising of cigarettes (1967)

The requirement of obligatory presence on the packaging of cigarettes following sentence: "Caution: Medical Service Management has determined that cigarette smoking is dangerous to your health."

The law of reflection of truth in the proposals for loans (1968)

Obligations of the creditors indicate the true cost of credit transactions classified unlawful use of violence or threat of violence in the reclaiming of payments on previously issued loans, limiting the possibilities of seizure of money the debtor held by a third party. Establish a national commission on consumer finance issues.

The Law on the National Environment Policy Environment (1969)

Establishing a national policy standards in the field of environmental protection and the establishment of quality problems of the Council on the environment, transformed in 1970 by the Environmental Protection Agency.

End Table. 5

Law

The main provisions of the law

Act impartial credit reporting (1970)

Ensuring that the operations of consumer credit reports contain only accurate, relevant and recent data and that these data remain confidential and are provided for guidance only, as appropriate, the proper side.

Safety Act Consumer goods (1972)

The establishment of security issues to the Commission on consumer goods and granting it the right to introduce safety standards for consumer goods, and penalties for failure to comply with these standards.

The law on the establishment of prices for consumer goods (1975)

Prohibition of the use of the maintenance of price agreements between manufacturers and resellers in the framework of interstate commerce.

Magnuson-Moss Act on the improvement of safeguards and work of the Federal Trade Commission (1975)

Giving the Federal Trade Commission the right to impose rules on guarantees for consumers, and consumers how to use the measures of reparation, such as excitement, "class actions", with the simultaneous expansion of the administrative rights commission in the field of suppression of unfair or deceptive acts and practices.

The law on equal opportunities to obtain loans (1975)

The prohibition of discrimination in credit transactions on the grounds of sex, marital status, race, national origin, religion, age, or the receipt of public assistance.

The law on fair debt collection practice (1978)

Ad illegal tiresome persecution or ill-treatment of people who spread false statements, or use unfair practices when collecting debts.

Increased demands by public institutions that monitor compliance with the law. To monitor compliance with the laws of Congress established a number of federal regulatory authorities, including? The Federal Trade Commission, Office of control over the quality of food products, medicines and cosmetics, the Commission on the Interstate Commerce Commission, the Federal Communications Commission, Federal Energy Regulatory Commission, the Civil Aviation Authority, on security issues, the Commission of consumer goods, the Environmental Protection Agency and Office of consumer Affairs. The activities of all these institutions can have a decisive impact on the effectiveness of marketing activities of the company. Following the execution of laws, government agencies typically exhibit prudence. But from time to time their actions are excessively zealous and unpredictable. These institutions work mainly lawyers and economists, often poorly understand the practice of business operations and marketing. To better understand the complex problems in recent years, the Federal Trade Commission has introduced in its staff of marketing experts. During the Reagan administration severity of coercive measures on the part of these institutions is mitigated, noticeable strong trend away from regulirovaniya13.

The growing number of group on protection of the public interest. Over the past two decades we have increased the number and influence of groups on the protection of the public interest. The greatest success was achieved by a group of public civil action Ralph Nader, jealously protects the interests of consumers. Nader transformed consumerism into a powerful social force, starting with a successful offensive against unsafe cars (which resulted in the adoption in 1966 of the Law on national policies in the field of traffic and road safety), and then by investigating the activities of the meat industry, consumer credit, organization repair of cars, insurance and safety of X-ray equipment. Hundreds of other groups for the protection of consumers' interests, as the amateur, and under the auspices of government agencies, and are nationally and at the state level and at the local level.


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