1. March 15, 2010

2. The Dynamic Marketing Environment

3. Levels of External Forces Macro Level Micro Level Influences that affect all firms Influences that affect a particular firm

4. External Macroenvironment Forces

5. Demographics People Make Markets Characteristics of Populations Size Distribution Growth

6. Megatrends Shaping the Consumer Landscape Delayed retirement Changing nature of work Greater educational attainment Skill Labor shortages Increased migration Shifting birth trends Widening geographic differences Changing age structure

7. Economic Factors People with Money to Spend and Willing to Spend it Stage of the Business Cycle Interest Rates Inflation

8. Types of Industrial Structures Industrial economies Industrializing economies Subsistence economies Raw-material- exporting economies

9. India – An Industrializing Economy

10. Saudi Arabia – A Raw-Material Exporting Economy

11. Competition Brand Competition Rivals for Customers’ Limited Buying Power Substitute Products Every Company Differential Advantage

12. Social and Cultural Forces Lifestyles Values People Make Markets Socio-cultural Patterns Changing Quickly Beliefs

13. Social and Cultural Changes Concern for Natural Environment Quality not Quantity Changing Gender Roles Two Incomes and Balance Premium on Time Convenience Physical Fitness and Health Exercise and Diet

14. Schwab’s Chinese-language Web site

15. Political and Legal Forces Monetary and Fiscal Policies Social Legislation and Regulation Governmental Relationship with Industries Legislation Related to Marketing

16. Legislation Affecting Marketing Regulate Competition Competition Act Sales of Goods Act Unfair Trade Practices Acts Trademark and Merchandise Act Various deregulation laws pertaining to specific industries

17. Legislation Affecting Marketing Protect Consumers Food and Drug Act Packaging and Labeling Act Cigarette Labeling and Advertising Acts Consumer Protection Act Media related regulations

18. Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

19. Technology Starting New Industries Stimulates Markets and Other Industries Affects How Marketing is Carried Out Impacts lifestyles, consumption patterns, economic well-being Altering Existing Industries

20. External Microenvironment

21. Internal Environment

22. Operating Environment