Explain the types of business regulation
Types of Business Regulation: Business self-regulation may be divided into two types: (1) Voluntary Regulation and (2) Statutory Regulation.
Areas of Business Self-Regulation:
The important areas of business self-regulation can be stated as under:
1. Consumer expectation and satisfaction: Consumer satisfaction should be the prime objective while fixing the plans and policies of the business.
The expectations of the consumers should be taken into consideration such as: (i) Guarantee about standard of the product, price, durability (ii) Standardization and grading of goods, (iii) Fair price, (iv) Attractive safe packing, (v) Protection from deceptive and false advertisements.
2. Broader and more realistic view: Business should take a broader and more realistic view at the total needs, desires, feelings, attitudes of the consumers.
3. Reasonable protection to consumers: In all the areas of marketing management, such as production planning and development, branding, labelling, packaging, pricing, advertising, promotion, choice of channels of distribution, management policies and decisions should ensure reasonable protection to the consumers. This is one of the important aspects of business self-regulation.
4. Decisions about consumers should be based on Marketing Research : Marketing research should be an integral aspect of the 1 marketing process to acquire accurate, adequate. and UpToDate knowledge of the nature, direction and trend of consumer demand and the marketing decisions should be based on such information about consumers and dealers.
5. Consumer-oriented marketing management: Business should reorganize, the nature and objectives of marketing management and should be consumer oriented and not the product/industry oriented.
6. Consumer should become the center of marketing universe: the center of marketing universe and management should be conscious of Business should be organized in such a manner that the consumer becomes consumer interests in all its marketing activities.
7. Norms of ethical advertising: The business concerns should adopt norms of ethical advertising while making advertisement of goods, informative advertising, guarantees and warranties should not be false and deceptive.
8. After sale service: Business concerns should provide an improved and efficient after sales services particularly in the case of costly consumer goods and all types of machinery and electrical appliances.
9. Hire Purchase and Instalment: Business enterprises can adopt hire purchase and instalment schemes in the case of costly and durable items.
10. Guidance Bureau: Business enterprises should start a guidance bureau and should provide necessary guidance to the consumer. Redressal of the consumer complaints should be done quickly. Businessman should try to remove all the causes of consumer dissatisfaction. Business interest should be integrated with consumer needs and interest.
The business can survive and prosper and the consumer can be assured of equity and justice when the marketing policies and practices are integrated with consumer interest.
Consumer-Oriented Marketing Policy : Consumer Movement' is a golden opportunity for business enterprises and consumer organisations to know expectations, preferences of the consumers. The marketing programmed of the business enterprises these days, are consumer oriented. The following factors are considered in 'Consumer-oriented Marketing Policy.
1. Awareness to supply standard goods.
2. Provision of
after-sales service.
3. Redressal of complaints of Consumer Department.
4. Guarantee
regarding standard and durability of the products
5. Labelling-providing necessary instructions regarding use of the product (Printed instructions)
6. Printing of
the price of the product.
7. Providing all necessary information and providing guidance to the consumers so that they can, take a decision to buy.
8. Supplying useful information to the consumers through advertisement, e.g. Nature of the product, utility, price, manufacturer, distributor, etc.