CHAPTER THREE

1
CHAPTER THREE

• Environmental Forces in an 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

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
Macroenvironmental Influences on the Marketing Mix
Marketing Mix
6
MacroenvironmentPhysical Environment

• Ecological systems
• Natural resources
• Climate

• Geography
• Pollution levels
• Water Air

7
MacroenvironmentSociocultural Forces
Beliefs
Values
8
Key American Values

• Freedom
• Achievement success
• Work ethic
• Equality
• Patriotism/nationalism
• Individual responsibility self-fulfillment

9
MacroenvironmentDemography

• ..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
MacroenvironmentKey Trends
D

• The changing US population
• Migration
• Urbanization
• Sunbelt growth

• Age Generations
• Aging boomers
• Generation X
• Generation Y

• Changing household
• Family household income

• Multicultural population

11
Demographics Age Segments in the U.S.
12
Macroenvironment Changing World Populations

• Europe
• Pacific Rim
• South and Central America
• Asia

13
World Population Growth
2050 8.9 billion
2010 7 billion
Billions of people
1930 2 billion
1820 1 billion
1987 5 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
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