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CHAPTER THREECHAPTER THREE
Environmental Forces in an e-commerce World:
The Macroenvironment
ObjectivesObjectives
Describe foreign and domestic environmentsUnderstand effects of the physical
environmentUnderstand key cultural forcesIdentify effect of key demographic trendsUnderstand impact of technologyExplain influence of economic conditionsAppreciate influence of the legal environment
The 21st CenturyThe 21st Century
Emergence of the “Global Village”
New opportunitiesNew global
challenges
www.census.gov/ipc/www/wp98.html
The 21st CenturyThe 21st Century
Macroenvironment (Chapter 3)Broad societal forces that influence every
business and nonprofit marketerMicroenvironment (Chapter 4)
Consists of its customers and the economic institutions that shape its marketing practices
Macroenvironmental Macroenvironmental Influences on the Influences on the
Marketing MixMarketing Mix
MarketingMarketingMixMix
PhysicalPhysicalenviron.environ.
Socio-Socio-culturalcultural
Demo-Demo-graphicgraphic
PoliticalPolitical&&
LegalLegal
EconomicEconomic&&
CompetitionCompetition
ScienceScience&&
Tech.Tech.
Macroenvironment:Macroenvironment:Physical EnvironmentPhysical Environment
Ecological systemsNatural resourcesClimate
GeographyPollution levels
Water & Air
Macroenvironment:Macroenvironment:Sociocultural ForcesSociocultural Forces
Social values
Values Beliefs
Key American ValuesKey American Values
Freedom
Achievement & success
Work ethic
Equality
Patriotism/nationalism
Individual responsibility & self-fulfillment
Macroenvironment:Macroenvironment:DemographyDemography
“..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
Changing Changing householdhousehold
Family & Family & household incomehousehold income
Multicultural Multicultural populationpopulation
Macroenvironment:Macroenvironment:Key TrendsKey Trends
The changing US The changing US populationpopulationMigrationMigrationUrbanizationUrbanizationSunbelt growthSunbelt growth
Age & GenerationsAge & GenerationsAging “boomers”Aging “boomers”Generation “X”Generation “X”Generation “Y”Generation “Y”
Demographics: Age Demographics: Age Segments in the U.S.Segments in the U.S.
Baby BoomersBaby Boomers1946-19651946-1965
XX
Generation XGeneration X1965-19761965-1976SeniorsSeniors
Pre-1946Pre-1946
Generation YGeneration Y1979-19941979-1994
YY
Macroenvironment: Macroenvironment: Changing World Changing World
PopulationsPopulations
EuropePacific RimSouth and Central
AmericaAsia
World Population World Population GrowthGrowth
0123456789
10
1650
1700
1750
1650
1820
1930
1975
1987
1999
2010
2050
0123456789
10
1650
1700
1750
1650
1820
1930
1975
1987
1999
2010
2050
Bil
lio
ns
of
peo
ple
Bil
lio
ns
of
peo
ple
182018201 billion1 billion
193019302 billion2 billion
198719875 billion5 billion
201020107 billion7 billion
205020508.9 billion8.9 billion
Macroenvironment: Macroenvironment: Science and TechnologyScience and Technology
Digital technology and the InternetWill change the face of
marketing around the world!
Health technologySpace technologyCommunications
technology
Macroenvironment: Macroenvironment: Economic & Economic &
Competitive ForcesCompetitive Forces
Competitive StructurePure competitionMonopolistic
competitionOligopolyMonopoly
Macroenvironment: Macroenvironment: Economic & Economic &
Competitive ForcesCompetitive Forces
Economic conditions
Business cycleEconomic health
Macroenvironment: Macroenvironment: Politics and LawsPolitics and Laws
Limit ActionsLimit ActionsRequire ActionsRequire Actions
Prohibit ActionsProhibit Actions
Three levels of U.S. lawFederalStateLocal
International lawsIndividual countriesMultinational bodies
(e.g., European Union)
Macroenvironment: Macroenvironment: Politics and LawsPolitics and Laws
ReviewReview
Describe foreign and domestic environmentsUnderstand effects of the physical
environmentUnderstand key cultural forcesIdentify effect of key demographic trendsUnderstand impact of technologyExplain influence of economic conditionsAppreciate influence of the legal environment