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CHAPTER THREE

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  1. CHAPTER THREE Environmental Forces in a e-commerce World: The Macroenvironment

  2. Objectives • Describe foreign and domestic environments • Understand effects of the physical environment • Understand key cultural forces • Identify effect of key demographic trends • Understand impact of technology • Explain influence of economic conditions • Appreciate influence of the legal environment • Detail interactions of the above environmental factors

  3. The 21st Century • Emergence of the “Global Village” • New opportunities • New global challenges www.census.gov/ipc/www/wp98.html

  4. The 21st Century • Macroenvironment (Chapter 3) • Broad societal forces that influence every business and nonprofit marketer • Microenvironment (Chapter 4) • Consists of its customers and the economic institutions that shape its marketing practices

  5. Physical environ. Science & Tech. Economic & Competition Socio- cultural Demo- graphic Political & Legal Macroenvironmental Influences on the Marketing Mix Marketing Mix

  6. Ecological systems Natural resources Climate Geography Pollution levels Water & Air Macroenvironment:Physical Environment

  7. Social values Macroenvironment:Sociocultural Forces Beliefs Values

  8. Key American Values • Freedom • Achievement & success • Work ethic • Equality • Patriotism/nationalism • Individual responsibility & self-fulfillment

  9. Macroenvironment:Demography “..the study of the size, composition, and distribution of the human population in relation to social factors such As geographic boundaries.” See: www.census.gov

  10. The changing US population Migration Urbanization Sunbelt growth Age & Generations Aging “boomers” Generation “X” Generation “Y” Macroenvironment:Key Trends D • Changing household • Family & household income • Multicultural population

  11. Y ? X Generation Y 1979-1994 Generation X 1965-1976 Baby Boomers 1946-1965 Seniors Pre-1946 Demographics: Age Segments in the U.S.

  12. Macroenvironment: Changing World Populations • Europe • Pacific Rim • South and Central America • Asia

  13. World Population Growth 1987 5 billion Billions of people 1820 1 billion 1930 2 billion

  14. Macroenvironment: Science and Technology • Digital technology and the Internet • Will change the face of marketing around the world! • Health technology • Space technology • Communications technology

  15. Macroenvironment: Economic & Competitive Forces • Competitive Structure • Pure competition • Monopolistic competition • Oligopoly • Monopoly

  16. Macroenvironment: Economic & Competitive Forces • Economic conditions • Business cycle • Economic health

  17. Macroenvironment: Politics and Laws Limit Actions Require Actions Prohibit Actions

  18. Macroenvironment: Politics and Laws • Three levels of U.S. law • Federal • State • Local • International laws • Individual countries • Multinational bodies (e.g., European Union)

  19. Macroenvironment: Environmental Interactions

  20. Review • Describe foreign and domestic environments • Understand effects of the physical environment • Understand key cultural forces • Identify effect of key demographic trends • Understand impact of technology • Explain influence of economic conditions • Appreciate influence of the legal environment • Detail interactions of the above environmental factors