Rules and regulations relating to marketing channels.

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Offline rayhanul.bba

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Rules and regulations relating to marketing channels.
« on: March 30, 2019, 02:03:35 AM »
Anti Monopoly law (upper price) 
1.   No monopolistic mentality can be showed in case of import. Example: can‟t import sugar rice alone.
2.   Franchise can be brought by anyone, no restriction can be applicable by any one who brought the franchise first.
3.   No channel can be developed where there is no competition.
[Circuit breaker:
The automatic response, usually a halt or slowdown, in activity at an exchange in response to certain occurrences in trading. Circuit breakers are designed to reduce market volatility]
4.   Lower value and upper value is fixed.
5.   Product is a kind of product that no one can compete, example:  iron 
6.   If there is no competitor then government will fix the price
   Anti Dumping Law (lower Price)
Dumping is when a country's businesses lower the sales price of its exports to gain unfair market share. It usually drops the price below what it would sell for at home. It may even push it below its actual cost to produce. 
Anti dumping is A country prevents dumping through trade agreements.  If both partners stick to the agreement, they can compete fairly and avoid it.
1.   Lowest price is fixed 
2.   can‟t fix such a low price which can‟t be granted by other competitor
3.   WTO can imply rules and regulations upon such exporters countries govt. for revising price
4.   exporters can increase tax to avoid WTO rules
   Price discrimination
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets.
1.   Price discrimination is not applicable in different layer of same own channel.
2.   Deviation should be less
   When price discrimination is allowed
1.   If product is parishable then price can be low
2.   Promotional Law: if product is distributed for promotion, then price can be low
3.   But if customer is is buying from a retailer than price can‟t be low.
   Merit goods
Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.
Example:books, research data, consultancy
Don‟t need to be maintain any channel for distributing this goods.
   Country of origin
Country of origin (COO), is the country of manufacture, production, or growth where an article or product comes from.
Made in china- tag is not enough for proving origin of product. It should be determined that basically where the product is manufactured.
   Exclusive dealing
In competition law, exclusive dealing refers to an arrangement whereby a retailer or wholesaler is 'tied' to purchase from a supplier on the understanding that no other distributor will be appointed or receive supplies in a given area.
Its illegal in our country.
   Full line forcing
full- line forcing. a business practice whereby a supplier encourages distributors/ retailers to stock or provide not only his principal products or services but additionally other products or services from his range.
In that case distributor can complain to regional head and regional head can sue against full line forcing business practice company.
   Consortium
A consortium is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a common goal.
Can‟t  practice as syndicate group.
 Syndicate loan
A syndicated loan, also known as a syndicated bank facility, is a loan offered by a group of lenders – referred to as a syndicate – that work together to provide funds for a single borrower. The borrower could be a corporation, a large project or a sovereignty, such as a government
 Free riders
The free rider problem is a market failure that occurs when people take advantage of being able to use a common resource, or collective good, without paying for it, as is the case when citizens of a country utilize public goods without paying their fair share in taxes.
Example:  hawker sales a product at a low price than that of   Basundhara shopping complex   Price maintenance
Resale price maintenance (RPM) (US) or retail price maintenance (UK) is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling (maximum resale price maintenance). If a reseller refuses to maintain prices, either openly or covertly (see grey market), the manufacturer may stop doing business with it.
This maintenance is not applicable for retailers, this term is only for distributors. 
 Free trade law
 Free trade is a policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries. Free trade is exemplified by the European Economic Area and , which have established open markets.
No control over price also.
Md. Rayhanul Islam
Senior Lecturer
Department of Real Estate
Facuty of Business & Entrepreneurship
Daffodil International University