The political environment consists of factors related to management of public
affairs and their impact on the business of an organization.
The legal environment consists of laws, courts, attorneys and legal customs
India is a democratic country having a stable political system where the
government plays an active role.
A political systems serves as primary factor for economic development;
ensures political participation of people ; and assures security to citizens and
Marketing environment must be operated under the rules and regulations of
different laws of India. The Central Government, State Government and Local
bodies affect business operations.
They pass legislations. These law affects the day-to-day operation of
Marketing decisions are strongly affected by developments in the
political and legal environment.
Increase in Business Legislation:
Business legislation has three main purposes:
1. To protect companies from unfair competition;
2. To protect consumers from unfair business practices; and
3. To protect the interest of society from unbridled business behavior.
Consumer-protection legislation has made it mandatory that
packaged food product carry a “green dot” signifying vegetarian
ingredients, and “red dot” signifying no vegetarian ingredients
Protecting the Welfare of Consumers:
In order to protect the interest of consumers , the Government
of India passed a legislation under the Consumer Protection
Act, 1986. Under this Act, the following six rights of the
consumers are recorded: