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An Australian company sells educational toys for pre-school aged children - HSC - SSCE Business Studies - Question 22 - 2017 - Paper 1
Question 22
An Australian company sells educational toys for pre-school aged children. (a) Why is ethical behaviour important in the marketing of this business? (b) Explain th... show full transcript
Worked Solution & Example Answer:An Australian company sells educational toys for pre-school aged children - HSC - SSCE Business Studies - Question 22 - 2017 - Paper 1
Step 1
Why is ethical behaviour important in the marketing of this business?
Answer
Ethical behaviour is crucial in the marketing of this business primarily because it builds trust with the target market, which, in this case, consists of parents and caregivers of preschool-aged children. These consumers are especially sensitive to marketing practices due to their concern for their children's safety and wellbeing. Therefore, conducting marketing activities ethically can prevent consumer mistrust and potential backlash.
Additionally, ethical marketing ensures compliance with legal requirements, safeguarding the company's reputation. By adhering to ethical standards, the business portrays itself as responsible and caring, which enhances customer loyalty and can lead to increased sales. Ultimately, ethical behaviour in marketing not only helps in maintaining a positive image but also contributes to the long-term profitability of the business.
Step 2
Explain the influence of consumer laws on this company’s promotion strategies.
Answer
Consumer laws play a significant role in shaping this company’s promotion strategies. These laws protect consumers from misleading advertisements and ensure that all claims made in promotions are truthful and substantiated. For instance, if the company claims that their toys are safe and educational, they must adhere to standards that back up these assertions.
Furthermore, consumer laws enforce transparency in pricing, requiring the company to provide clear and accurate information about the costs associated with their products. This affects promotional strategies as the company must ensure that all promotional materials comply with these legal standards. Additionally, violations of such laws can lead to legal penalties, which could severely impact the business's financial stability and reputation in the market.