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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 because it builds trust with parents and caregivers, who are the primary customers for educational toys aimed at pre-school aged children. This target market requires assurance that products are safe, educational, and transparent in their claims. By adhering to ethical marketing practices, the company helps to protect its young customers from misleading advertising and potentially harmful products. Furthermore, ethical behaviour aligns with legal requirements that companies must meet, ensuring compliance with laws designed to prevent false claims and protect consumers. This not only enhances the company's reputation but can also lead to increased customer loyalty and higher sales, ultimately improving profitability.
Step 2
Explain the influence of consumer laws on this company’s promotion strategies.
Answer
Consumer laws significantly impact the company's promotion strategies by dictating how products can be advertised and ensuring that claims made in marketing materials are substantiated and truthful. For instance, the company must avoid misleading advertisements that could misrepresent the educational benefits of its toys. Violating these laws can lead to severe penalties, including loss of consumer trust and legal action. Thus, the company must design its promotions to comply with these regulations, providing clear information about the features and benefits of their products. Furthermore, they may choose to highlight their adherence to safety standards and ethical practices in their advertising to build credibility with consumers.