DIGITAL MARKETING

1. CHAPTER 3
THE INTERNET MACRO-
ENVIRONMENT
NUR AQILAH BINTI ZAINUDIN
2014416824
BM240 3B

2. 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

3. 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.

4. KEY MICRO-ENVIRONMENT FACTORS
POLITICAL
FORCES
TECHNOLO
GICAL
FORCES
LEGAL
FORCES
ECONOMIC
FORCES
ENVIRONME
NTAL
FORCES
SOCIAL
FORCES

5. 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.

6. 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

7. Information exchange between a web browser and a web server

8. Diffusion–adoption curve

9. 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?

10. ECONOMIC FORCES
Cause variation in economic conditions
affect trading opportunities influence
consumer spending and business
performance, have significant
implications for digital marketing
planning.

11. 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.

12. 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.

13. 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

14. 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

15. 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

16. 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

17. 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.

18. DIGITAL MARKETING ACTIVITIES AFFECTED

19. TYPES INFORMATION COLLECTED ONLINE

20. 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)

21. 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.

22. 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