CHAPTER THREE
Environmental Forces in a e-commerce
World:
The Macroenvironment
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
The 21st Century
Emergence of the
“Global Village”
New opportunities
New global challenges
www.census.gov/ipc/www/wp98.html
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
Macroenvironmental
Influences on the Marketing
Mix
Science
&
Tech.
Physical
environ.
Marketing
Mix
Sociocultural
Demographic
Economic
&
Competition
Political
&
Legal
Macroenvironment:
Physical Environment
Ecological systems
Natural resources
Climate
Geography
Pollution levels
Water & Air
Macroenvironment:
Sociocultural Forces
Beliefs
Values
Social values
Key American Values
Freedom
Achievement & success
Work ethic
Equality
Patriotism/nationalism
Individual responsibility & self-fulfillment
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
Macroenvironment:
Key Trends
The changing US
population
Migration
Urbanization
Sunbelt growth
Multicultural
population
Age & Generations
Aging “boomers”
Generation “X”
Generation “Y”
Changing household
Family & household
income
Demographics: Age
Segments in the U.S.
X
Generation X
1965-1976
Seniors
Pre-1946
Baby Boomers
1946-1965
Y
Generation Y
1979-1994
Macroenvironment: Changing
World Populations
Europe
Pacific Rim
South and Central
America
Asia
World Population Growth
Billions of people
7
6
5
4
3
2
1
1820
1 billion
1987
5 billion
1930
2 billion
0
1650 1700 1750 1800 1850 1900 1950 2000
Macroenvironment: Science
and Technology
Digital technology and the
Internet
Will change the face of
marketing around the world!
 Health technology
Space technology
Communications
technology
Macroenvironment:
Economic & Competitive
Forces
Competitive
Structure
Pure competition
Monopolistic
competition
Oligopoly
Monopoly
Macroenvironment:
Economic & Competitive
Forces
Economic conditions
Business cycle
Economic health
Macroenvironment: Politics
and Laws
Limit Actions
Require Actions
Prohibit Actions
Macroenvironment: Politics
and Laws
Three levels of U.S. law
Federal
State
Local
International laws
Individual countries
Multinational bodies (e.g.,
European Union)
Macroenvironment:
Environmental Interactions
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