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Unformatted text preview: C HAPTER 24 S ALES & M ARKETING : P RICE , D ISTRIBUTION , & R ISK M ANAGEMENT Objectives After studying this chapter, you should have an understanding of: the legal obligations associated with the price component of the marketing mix the legal obligations associated with the distribution (place) component of the marketing mix the role of corporate compliance programs Learning Outcomes Understand how the marketing campaign is subject to marketing law (page 595) Understand the pricing practices that are prohibited (page 596) Understand the distribution practices that are prohibited (page 603) The role of risk management and corporate compliance in marketing (page 608) Chapter Summary An effective marketing campaign cannot lose sight of the regulations controlling the price and distribution of the product. Many pricing strategies at the producer level are unfair but effective in eliminating competition and are therefore prohibited, such as price discrimination, predatory pricing and bid rigging. Other strategies aimed at enticing the consumer in an unfair method are also prohibited, such as advertising sale prices that are not genuine sales. Many distribution methods are also effective in eliminating competition and are at least reviewable, such as mergers and acquisitions. Discriminatory distribution practices give an unfair advantage to some customers at the expense of others, and are not permitted. At the consumer level, some sales techniques that place the consumer in a vulnerable position are controlled, such as door-to-door sales, telemarketing, and the new field of online shopping. Finally, since the aim of the Competition Bureau is compliance before harm, every business should have a risk management strategy to establish guidelines for appropriate behaviour. Study Outline Use this outline to prepare a complete set of notes for this chapter. Price page 595 _______________________________________________________________________ _______________________________________________________________________ 2008 BY N ELSON , A DIVISION OF T HOMSON C ANADA L TD . PART 7: SALES AND MARKETING Pricing practices between producer and commercial purchaser_____________________ _______________________________________________________________________ Pricing conspiracies____________________________________________________ _______________________________________________________________________ Bid rigging___________________________________________________________ Price discrimination____________________________________________________ _______________________________________________________________________ Predatory pricing______________________________________________________ Price maintenance_____________________________________________________ Pricing practices between seller and consumer_______________________________ _______________________________________________________________________ Sale prices ___________________________________________________________...
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