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THE INTERNET MACROENVIRONMENT

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

ECONOMIC
FORCES

SOCIAL
FORCES

TECHNOLOG
ICAL
FORCES

LEGAL
FORCES

ENVIRONME
NTAL
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

World Wide Web


==========
Medium for
publish
information

Internet
==========
Physical
network that
links computer
across the globe

Web Browser
==========
Provide easy
method of
access info
store as HTML
web

Web Server
==========
Store the web
pages access by
web browser

Information exchange between a web browser and a web server

Diffusionadoption 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?

Property who owns it and


how can ownership be
transferred?

Accessibility who is
allowed to access this
information, and under
which conditions?

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

ECONOMIC
DISRUPTION

Globalization refer to the move


towards international trading in a
single global market place and the
blurring of social and cultural
differences between countries.

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 countrys
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

Law on taxation are


rapidly evolving and
vary dramatically
between countries

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)

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

Social exclusion
Cultural diversity
among digital
communities which
influences use of the
internet and the
services business
provided online.

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