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Environmental factors can be political, social, ecological, cultural, technological and ethical in nature. Any
organization that develops a product or service that they want to market domestically or globally must consider what
the impact each of these factors may have for them. Not considering these factors can result in the failed attempt to
market a product, which may be successful domestically, in other countries where there is a significant market
potential.
PepsiCo is a large company which conducts both domestic and global marketing and is very well known. One of the
main products and one that I use everyday is Pepsi. PepsiCo also produces Quaker Oats, Lays chips, Gatorade, and
Tropicana orange juice.
With the world so focused on ecological factors in today's environment it is only wise for PepsiCo to align itself
with the majority. 2005 has seen PepsiCo immersed in ecological environmental factors. Domestically PepsiCo has
pledged themselves to the Greenhouse Gas Cuts, hoping to reduce gas emissions enough to equal the use of 5
million automobiles (PepsiCo.com). In June 2005 PepsiCo opened a new state-of-the-art Frito-Lay plant in Texas
which is environmentally friendly and will serve as a model of resource conservation through innovations in
renewable energy, alternative lighting, energy efficiency standards and environmentally intelligent choices
(PepsiCo.com). Internationally PepsiCo's beverage and snack has implemented a number of water projects such as
the one used in Europe, India and Latin America where rainwater is harvested to help replenish aquifer supplies
(PepsiCo.com).
Without complete market research a company can encounter humorous and often embarrassing disappointments
when it comes to cultural environmental factors. In 1960, Pepsi's marketing managers learned a tough lesson about
the language differences and how a successful English based product slogan can become lost in translation. The
Taiwanese consumers were reported to be taken aback by the Pepsi slogan "Come alive with the Pepsi Generation",
which translated into Taiwanese reads "Pepsi will bring back your ancestors from the dead" (Feingold, 2000). This
marketing mistake caused obvious embarrassment among Pepsi's top marketing managers, though this would not be
the last time that they were too hasty in their pursuit of the international marketplace.
Technology can influence domestic and global marketing decisions and marketing and public relations common
sense, especially when it opens any number of doors to being able to tap into a vast global marketplace. Information
technology is increasingly becoming important as an enabler to being able to operate efficiently, interfacing with
consumers and maintaining financial accuracy and effectively managing resources. PepsiCo has embarked on a
multiyear business process transformation initiative that includes the delivery of a SAP (a computer system that will
link all of PepsiCo's systems and processes) enterprise resource planning application (PepsiCo.com). This
application will help to divert the possibility of PepsiCo not being able to process transactions accurately and
effectively or remain in step with the changing needs of the trade, which could result in the loss of customers.
Failing to deliver this application on time or anticipate the necessary readiness and training needs could lead to
business disruption (PepsiCo.com).
Minority populations are growing faster then the population overall. Each year, racial and ethnic minorities
constitute a greater share of potential consumers, employees and retail customers. Because of this PepsiCo
employees receive human rights training, in which they explore the human rights intrinsic to all and the importance
of sustaining an inclusive nature (PepsiCo.com). PepsiCo's code of conduct requires all employees to follow local
employment laws and regulations, including labor laws and treatment of employees. This type of thinking and
training helps to show itself in the marketing practices of the company. In being able to achieve a high standard for
ethical, social and environmental views PepsiCo has helped to ensure that their reputation will take no damage
which could result in a rejection of their products by consumers and a loss of brand equity (PepsiCo.com).
Environmental factors can significantly influence domestic and global marketing decisions. As such, it is an
organizations marketing managers responsibility to research legal, social, ecological, cultural, technological and
ethical factors that may negatively impact the success of a product marketed. Past, present of future, it pays to invest
in market research in the hope of revealing the potential of all environmental factors before launching a product or
service either domestically or globally.

Reference:
Feingold, J. (2000). That's the game of the name. New Hampshire Business Review
Retrieved 11 February 2006 from UoP Library EBSCO.
http://www.pepsico.com/PEP_Citizenship/EnvironmentalNews/news/index.cfm
Retrieved on 11 February 2006.