Impact of economic environment on marketing mix

Spending power is constantly shifting, and marketers are competitive as they seek traffic, conversions and return on their investments. In some cases, marketing campaign success is solely determined by the effectiveness of messaging and delivery on the campaign. In times of economic turmoil, however, uncontrollable economic factors can also influence marketing processes and success.

Impact of economic environment on marketing mix

This raises two interesting characteristics of international law. The first is that "law" belongs to individual nations and international law only exists to the degree that individual nations are willing to relinquish their rights.

The second is the lack of an adequate international judicial and administrative framework or a body of law which would form the basis of a truly comprehensive international legal system. The international business is also subject to political decrees made by governments both in "home" and "host" countries.

Home governments can apply pressure not to deal with disapproved parties. These measures may take the refusal to grant an export licence, or withdrawal of export guarantee cover. The host government may take measures like taxation, ownership controls, operating restrictions or expropriation.

Chapter Objectives The objectives of this chapter are: It then goes on to describe in detail the major elements of the legal environment and Terms of Access, including both tariff and non tariff barriers.

A major section of the chapter is devoted to the main provisions of the new GATT Round and an assessment of its impact on the global marketer. Laws, rules, and standards All agricultural exports operate within an institutional environment, which is made up of a set of political, social and legal ground rules.

Economic Factors

These ground rules form the laws of all production, exchange and distribution and give rise to certain expectations and assurances about the actions of others, and give order and stability to the means of doing business. The most important rules in any system are those defining, allocating and enforcing property rights, and rules and conventions defining allowable and non-allowable forms of cooperation and competition standards, rules of contract, fair trading etc.

Well defined and enforced systems regarding property rights are essential. Articulated ownership and rights to use, trade and alter assets is vital to market development, since this assigns to individuals the right to benefits and losses in production and marketing activities.

Rules and conventions specifying entry conditions and boundaries on cooperative and competitive policies also facilitate exchange and coordination. The establishment and enforcement of standards can reduce transaction costs by increasing the available information to buyers and consumers. Standards may include basic weights, measures, quality grades and contract forms.

Quality standards may be mandatory or voluntary and minimum or multiple grades. These standards help where trade is at a distance. The EU has a strict set of standards regarding horticultural products for example, including hygiene, quality and certificates of origin.

Licensing also facilitates marketing agencies and producers by reducing transaction costs. This occurs when the criteria for licensing revolves around asset holdings, financial solvency and so on. Performance standards are built in to maintain the licensing agreement.

Increasingly, consumer and trading bodies like the EU are enforcing the disclosure of more and more information. Particularly, these efforts revolve around packaging, labelling and information, for example, pesticides used on horticultural produce. As this trend to disclosure of information grows, along with the phenomenon of product liability, regulations regarding certain tests or inspection of products, handling and processing procedures may be enforced.

So may ingredient and nutrition information. This is becoming an increasingly important issue as food products become more complex and varied.

One of the problems with this noble effort to inform the consumer is that producers may lose their competitive differentiation advantage through divulging information to competitors. The EU has gone to extraordinary lengths to inform the consumer, issuing directives on product descriptions and pricing.

For example the EU directive on the pricing of cabbages runs to hundreds of pages and, what constitutes "chocolate" and a "sausage" to name but two products, is quite revealing. The following case proves the point2.

Impact of economic environment on marketing mix

It is particularly so for any substance which may have long term harmful effects. The EU produces "E numbers" standards for product additives and artificial colorants or flavourings.

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The GATT system is a set of norms and procedures which member governments have accepted to create order and predictability in international trade relations. Sometime this year the European Union will have to decide at what point chocolate stops being chocolate.

As defined by a European Commission directive, chocolate can only contain cocoa butter, cocoa solids, sugar and, in the case of milk chocolate, milk. But Britain, Ireland and Denmark as well as new EU members Austria Finland and Sweden are exempted from the directive and allow manufacturers to use cocoa-butter equivalents CBEs such as palm oil in making chocolate.

Now, as the EU brings its policies into line, it is considering whether to allow up to 5 percent CBEs in chocolate manufacturing. Chocolate producers stand to profit from relaxed standards, especially if the price of cocoa were to soar.Dec 11,  · Read about the economic impact of the modern data warehouse in this Total Economic Impact study conducted by Forrester Consulting.

Review . Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts. Equity Impacts. Transport Model Improvements tend to better identify the full impacts of transportation decisions, including external impacts such as traffic congestion, parking costs, accident risks and pollution emissions, and so can help reduce these impacts.

4 Acknowledgment The author wishes to extend special thanks to A. L. Winters for his suggestions and assistance throughout the development and completion of this document. The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized.

The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age. Marketing budgets ensure that your marketing plan or campaign is realistically costed. Some pre-budget research into your industry and market, your competitors and your business's historical marketing metrics helps marketing managers make a more informed calculation.

Economic environment: Inflation, interest rates, recession, and recovery-both in the U.S. and (to an increasing extent) abroad-have a dramatic influence on .

Impact of Political and Legal Environment on Marketing Mix of Mncs Essay Example | Graduateway