Business Studies – 3.4.1 Legal controls related to marketing | e-Consult
3.4.1 Legal controls related to marketing (1 questions)
Legal controls significantly restrict how alcohol companies can market their products. The primary aim of these controls is to protect vulnerable groups, particularly young people, from the potential harms associated with alcohol consumption. The industry is heavily regulated to prevent irresponsible promotion.
Examples of legislation and their impact include:
- Advertising Standards Authority (ASA) Codes of Practice: These codes restrict advertising to avoid appealing to children, making unsubstantiated health claims, or promoting excessive consumption. Companies must ensure their advertising complies with these codes, which can limit creative freedom and require careful wording.
- Restrictions on Advertising Times: There are often restrictions on advertising alcohol during times when children are likely to be watching television or online, such as during children's programming. This limits the reach of marketing campaigns.
- Restrictions on Sponsorship: Sponsorship of sporting events or cultural activities may be restricted or prohibited, particularly if the event is popular with young people. This reduces opportunities for brand association and exposure.
- Duty of Care Advertising: Companies are often required to include health warnings in their advertising, reminding consumers of the risks associated with alcohol consumption. This can negatively impact the overall appeal of the advertisement.
- Online Advertising Restrictions: Regulations are increasingly focusing on online advertising, including restrictions on targeted advertising to young people and requirements for age verification.
The impact on marketing strategies is significant. Companies must be more cautious in their messaging, focusing on responsible drinking and avoiding any imagery or language that could encourage excessive consumption. Marketing budgets may be diverted to alternative channels that are less regulated, such as public relations or events targeting adults. The overall effect is a more restrained and responsible approach to marketing alcohol.