ABSTRACT
Appreciate the framework of regulation and the impact and implications of legislation
Syllabus reference: 3.5
KEY REV IS ION PO INTS
Alternative political frameworks and their influence on marketing
The significance of a change in government The role of legislation and assessment of
advantages/disadvantages of tight regulation Implications of the changing nature of the legal
environment
n Embraces the activities of the state in setting national objectives, legislating, policy-making and implementation
n Political change implies different policy outcomes for different interest groups
n Political stability is vital in improving welfare
l Significant overall impact in terms of jobs, spending and transfer payments between social groups
l Influence over key decisions: to work, save, invest
l Responsible for regulating social/business activity
l Legislate to shape standards of conduct/behavior
l Produce a positive and predictable business climate
n Elections provide authority for policy-making
n Periodic re-election opens government to accountability and external forces
n Day-to-day government relies on feedback and cooperation of interest groups, so is susceptible to influence
n Operate in an open global system with rules and institutions limiting freedom of action
n Pressure to conform: keep national performance in line with other countries
n Recognize the power of multinationals and the internet to circumvent political authority
l Alert the business to possible legislation
l Assess the impact of policy and implementation
l Recognize the influence of various public bodies
l Anticipate impacts of alternative political futures
l Trigger lobbying to represent business interests
Government exerts control over the macroeconomic framework, so impacts on marketers through its distribution of the tax burden as well as the size and composition of its spending
3 Many industries have been privatized
3 Many services contracted out to tender
3 Private sector partnership encouraged
3 Markets liberalized through deregulation
3 Targets underline a shift to customer focus
3 Regulators have promoted a marketing orientation
n Spectrum from popular democracy to autocracy
n Democracy is characterized by universal right to vote in regular and free elections. The majority rule but minorities are protected
n Autocracy puts power in the hands of a single ruling party and no real choice in elections. Any opposition is repressed/minorities persecuted
n Democracy spreads power throughout society with free speech and unbridled media
n Autocracy centralizes political power and control
Why Politics?
