Building a Marketing Strategy: Tips for Success and Legal Compliance

“The most effective marketing strategies are those that not only meet customer needs but also comply with ethical standards.”

-Philip Kotler (Marketing author and consultant)

It is no surprise that designing effective marketing strategies is one of the major aspects of defining your brand, raising awareness, and connecting with your target audience.

When anyone talks of marketing strategies, most of us think of ways to just convert potential customers into buyers. But is “converting the potential customer into a buyer” the only thing you need to keep in mind while framing marketing strategies for your business? 

Well, no, there are also several legal considerations for marketing departments to remember, noncompliance with which can lead to legal issues. Navigating a regulatory environment is an often overlooked component of the marketing department. 

This article covers legal compliance that marketers should be aware of. So read till the end to be informed.  

Legal Compliance: What Marketers Should Know

Misguided marketing can lead you to legal trouble, and no company wants to be in the clutches of laws for any reason. Here are five major points to consider while working on marketing strategies. 

Regulations Concerning Consumer Privacy

In recent years, one of the biggest issues in online marketing has been consumer privacy. Simply put, today’s consumers are increasingly mindful of how their personal data is being collected, managed, used, and sold.

A number of regulations have been passed that seek to safeguard consumer privacy rights. Top examples include GDPR (General Data Protection Regulation) in the EU and CCPA (California Consumer Privacy Act) in the U.S. Marketers should familiarize themselves with these regulations, and be intentional in the ways they harvest and implement user data.

General rules of thumb: Always obtain consent before collecting data, and provide easy ways for consumers to control, revise, or delete any data you’ve collected from them.

Additionally, be mindful of laws that specifically relate to email and texting. For example, marketers in the U.S. need to adhere to the CAN-SPAM Act. This means providing clear opt-out options and honoring unsubscribe requests. For text marketing, it’s important not to send messages during certain hours of the day (for instance, during hours when most of your recipients would be asleep).

DO YOU KNOW? 

Consumers trust healthcare and financial services businesses the most to protect their privacy and data. 

Advertising Regulations

Marketers should also be aware of the regulatory bodies that dictate how they can and cannot advertise their products. In the U.S., that generally means the Federal Trade Commission or FTC.

FTC guidelines exist to ensure that advertising is generally truthful and not misleading. Review FTC guidelines to determine what kinds of claims you may and may not make about your product, and also take note of any disclosures (such as endorsements or sponsorships) that you’re required by law to make.

Intellectual Property Laws

Marketers are also bound by laws concerning intellectual property. Examples include laws surrounding copyrights, trademarks, and patents.

The main thing to be aware of here: You need to either stick to original content, including copy and images or ensure you’re using third-party materials according to the licensing agreement. Using someone else’s work without proper authorization can lead to major compliance headaches, which can include not only hefty legal fines but reputational damage, as well.

DO YOU KNOW?

Thefts and malicious attacks are the reason for 48% of intellectual property fraud.

Business Structure

Marketing companies should also be aware that the structure they choose for their business can have huge implications for basically all aspects of business ownership, ranging from taxes to payroll. There are major implications for legal compliance, as well.

For example, many small businesses, including marketing agencies, choose to register as a Limited Liability Company (LLC). Doing so is an effective way to separate your personal interests from your business interests, which can significantly limit your personal legal liability should your business be found non-compliant in any way. To put it more plainly, an LLC helps you protect your personal assets from lawsuits and litigation.

The steps for registering as an LLC can vary by state, so starting an LLC in Arizona may have different requirements from starting one in New York. Key considerations include finding a Registered Agent, filing Articles of Organization, creating an Operating Agreement, and paying any relevant state registration fees.

Platform-Specific and Industry-Specific Regulations

In addition to compliance with local, state, and federal laws, marketers are required to respect the rules set out by different digital platforms. This is an especially big deal on social media, where there are usually some clear stipulations with respect to working with influencers, disclosing sponsored content, and the like.

Along the same lines, specific industries may have their own regulations. Highly-regulated industries include financial planning and investment banking, health and wellness, and nutrition/supplements. With respect to healthcare marketing, be especially mindful of the HIPAA (Health Insurance Portability and Accountability Act), another important safeguard for consumer privacy.

PRO TIP 

Be open to feedback and constructive criticism, and regularly monitor your marketing strategies to ensure they remain compliant and effective.

Make Compliance a Key Consideration in Your Marketing

As you develop a marketing strategy, or even build out your own marketing company, legal compliance is something you should keep on the front burner. Simply put, there are a number of regulations to navigate as you pursue success.

Ensure awareness of these and other regulations that might shape your marketing efforts, and don’t forget to register as an LLC as a way to limit your personal risk exposure. With questions, don’t hesitate to contact an attorney in your community.