CHAPTER 3THE INTERNET MACRO-

ENVIRONMENT

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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