Essay On Economic Environment

Economic Environment: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability.
Marketers must pay close attention to major trends in income and consumer-spending patterns. Marketers often distinguish countries with five different income-distribution patterns: (1) very low incomes; (2) mostly low incomes; (3) very low, very high incomes; (4) low, medium, high incomes; and (5) mostly medium incomes. Marketers must pay careful attention to major changes in incomes, cost of living, interest rates, savings, and borrowing patterns because they have a strong impact on business and PepsiCo is always aware of economic environment for Pepsi.
Natural Environment: In the natural environment, marketers need to be aware of raw materials shortages, increased energy costs and pollution levels, and the changing role

Business legislation has three main purposes: to protect companies from unfair competition, to protect consumers from unfair business practices and to protect the interests of society from unbridled business behavior. The laws are not always administered fairly; regulators and enforcers may be lax or overzealous. Marketers must have a good working knowledge of the major law protecting competition, consumers and society. As more business takes place in cyberspace marketers must establish new parameters for doing electronic business ethically. Many companies have established public affairs departments to deal with these groups and issues. An important force affecting business is the consumerist movement - an organized movement of citizens and government to strengthen the rights and powers of buyers in relation to sellers. The company monitors the political environment of the many foreign nations in which Pepsi is