The intent of this paper is to examine the environmental factors that affect global and domestic marketing decisions at PepsiCo and any company that operates in both domestic and global environments. Environmental factors such as economic interdependence, demographics, infrastructure, cultural conflicts, technology, social responsibility, political systems, and laws, such as The Foreign Corrupt Practices Act influence marketing strategy. The intent of this paper is to show how PepsiCo adapts its marketing strategy for global operations at its company.
Global economic interdependence creates partnerships among businesses and is an ...view middle of the document...
Gathering this information for global business pursuits presents complications because of differences in cultures, language barriers, and laws that restrict some common market research practices. This information is necessary to avoid costly mistakes when identifying and marketing a product to an incompatible segment.
A country or nations infrastructure impacts the channels of distribution. It includes communications, transportation, facilities, and technology. An important environmental factor, physical infrastructure must undergo evaluation for feasibility of facilitating trade and marketing opportunities for economic growth.
“Companies that ignore cultural norms and differences can make some very expensive and embarrassing mistakes” (Marketing: An Introduction, p. 487). PepsiCo has adapted successfully to the local cultural values in the global economy without compromising its brand and image.
Businesses sometimes ignore an adverse effect of globalization that weakens some cultures. In an attempt to market American products, some cultures are inadvertently Americanized. Many people may believe that globalization causes some countries to lose its uniqueness and distinctiveness because of the marketing production and sale of the same products and services worldwide (Hitt, Miller & Colella, 2006, p. 87), but globalization provides worldwide economic growth.
Culture does play an important part in advertising. In addition, a lack of knowledge about a target country's language can cause problems also. Advertising slogans when not tested for transliteration can sometimes affect the outcome of an advertising campaign. Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave," in Chinese (Huggins, 2001). This is an example of how cultural differences cause barriers in advertising in the foreign market.
PepsiCo has made a promise to its consumers to be socially responsible by producing healthier products and becoming more environmentally conscience. New product lines are in development to encourage individuals to make smarter health and lifestyle choices. In addition to its vision for creating healthier products, PepsiCo deals with issues of business ethics and diversity at many levels. Understanding diversity is important to PepsiCo because they realize how employing people of various races, catering toward the needs and wants of diverse groups as well as doing business with vendors with multiple ethnicities gives them a competitive advantage.
Laws and Ethics
A good marketing strategy is socially conscience, ethical, and incorporates the laws of the domestic and foreign country where business is being conducted. While some unethical practices are completely legal, it is up to the operating company to make an effort to participate in ethical decision making while conducting business. For example, it is legal for under age children to...