The document discusses the dynamic marketing environment and the external forces that affect firms at both the macro and micro levels. At the macro level, key influences include demographics, megatrends, the economy, industrial structures, competition, social/cultural changes, and political/legal factors. Some examples given are the aging population, concern for the environment, deregulation laws, and technology impacts. The micro level refers to forces that affect individual firms like competitors, customers, and channels.

1. January 12, 2009

2. The Dynamic Marketing Environment

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

4. External Macroenvironment Forces

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

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

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

9. India – An Industrializing Economy

10. Saudi Arabia – A Raw-Material Exporting Economy

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

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

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

14. Schwab’s Chinese-language Web site

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

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

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

20. External Microenvironment

21. Internal Environment

22. Operating Environment