chapter 3 digital marketing
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CHAPTER 3THE INTERNET MACRO-
ENVIRONMENT
NUR AQILAH BINTI ZAINUDIN2014416824BM240 3B
LEARNING OBJECTIVES
• Identify how the macro-environment might affect an organization's digital marketing strategy, planning, implementation and performance
• Consider legal, moral and ethical constraints of digital marketing
• Evaluate the wider significance of macro-environmental-forces
• Identify aspects of each of the macro-environmental forces that are particularly relevant to digital marketing
INTRODUCTION
focusing on potential relevance of each digital marketing
strategy
main reason for keeping track of changes in the macro-environment is to be aware of how changes in social behaviour, new laws, technological
innovation can create opportunities or threats.
can create differentiation and competitive advantages which enable the business to survive
and prosper.
KEY MICRO-ENVIRONMENT FACTORS
POLITICAL FORCES
TECHNOLOGICAL
FORCES
LEGALFORCES
ECONOMIC FORCES
ENVIRONMENTAL
FORCES
SOCIAL FORCES
TECHNOLOGICAL FORCES
Technological forces change in the technological which influence marketing opportunities like create new product development opportunities, introduce new ways to access target markets through channel integration, create new form of access platforms and applications.
INTRODUCTION TO INTERNET TECHNOLOGY
Internet==========
Physical network that
links computer across the globe
World Wide Web
==========Medium for
publish information
Web Server==========Store the web
pages access by web browser
Web Browser==========Provide easy
method of access info
store as HTML web
Information exchange between a web browser and a web server
Diffusion–adoption curve
Ethical issues
concerned with personal information ownership have
been usefully summarized by Mason (1986)
Privacy – what information is held about the individual
Accuracy – is it correct?
Accessibility – who is allowed to access this
information, and under which conditions?
Property – who owns it and how can ownership be
transferred?
ECONOMIC FORCES
Cause variation in economic conditions affect trading opportunities influence
consumer spending and business performance, have significant
implications for digital marketing planning.
EMPLOYMENT AND WORKING PATTERNS
An emerging economic trend relating to employment is that there are more women working across Europe.
INCOME AND EXPENDITURE
The majority of consumer in developed societies in Europe and the USA have been increase in the level of personal disposable income during the last 50 years.
INTERNATIONAL MARKET GROWTH AND EMERGING ECONOMIES
Globalization refer to the move towards international trading in a single global market place and the blurring of social and cultural differences between countries.
ECONOMIC DISRUPTION
Throughout history there have been periods of strong economic growth followed by economic downturn and recession.
POLITICAL FORCES
National governments and transnational have an
important role in determining the future adoption and control of
the internet and the rules by which it is governed
IMPORTANT
Promoting the benefits of adopting the internet for consumers and business to improve a country’s
economic prosperity
Sponsor research leading to dissemination of best practice among companies
Enacting legislation to regulate environment. Example : protect privacy
Involvement in setting up international bodies to coordinate the internet
POLITICAL CONTROL AND DEMOCRACY
Depends on the regulation in a given country and individual
market
UK as example
Financial services authority –
control current account, saving,
loan
Ofgem = control provision of
energy such as elactrivcity and
gas
Ofcom- control providers of
mobile phone and broadband
services
TAX JURISDICTION
Which country gets tax
income from transaction
Right to tax is divided between country where the enterprise that receives the
income is resident (residence country) and that
form which enterprise derives that income (source
county)
Law on taxation are rapidly evolving and
vary dramatically between countries
LEGAL FORCES
Determine the methods by which products can be promoted and sold online laws and ethical guidelines that seek to safeguard individual right to privacy and business to free trade.
DIGITAL MARKETING ACTIVITIES AFFECTED
TYPES INFORMATION COLLECTED ONLINE
SOCIAL FORCES
Cultural diversity among digital
communities which influences use of the
internet and the services business provided online.
Social exclusion
Access divide (early digital divide)
Usage divide (primary digital divide)
Divide stemming (secondary digital divice)
CULTURAL FORCES
The local language and culture of a
country or region can dramatically
affect of users of a web service Environmental and
green issues related to internet
usage.
SUMMARY
• Technological forces are arguably the most likely and most important for digital marketers to watch and access.
• Economic forces considered include classic economic factors like employment
• Political forces involve role of government in promoting e-commerce
• Legal forces considered by e-commerce managers include privacy and data protection
• Social forces include variation in usage of internet
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