The Global Marketing EnvironmentLearning ObjectivesDellThe Marketing EnvironmentIdentifying Market Opportunities and ThreatsThe Social EnvironmentThe Demographic EnvironmentPopulation Estimate —Year 2025Demographic TrendsSlide 10The Cultural EnvironmentCultural DiversityChanging RolesEmphasis on Health & FitnessThe Desire for ConvenienceConsumerismThe Economic EnvironmentThe Political/Legal EnvironmentGlobal Political TrendsLegislationRegulations and Regulatory AgenciesThe Technological EnvironmentThe Competitive EnvironmentThe Institutional EnvironmentThe FutureSummaryC H A P T E RC H A P T E R© 2007 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinThe Global MarketingEnvironmentThe Global MarketingEnvironment22-2© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdLearning ObjectivesLearning ObjectivesLearning ObjectivesLearning ObjectivesAfter studying this chapter, you should be able to:Understand the nature of the marketing environment and why it is important to marketers.Describe the major components of the social environment and how trends in the social environment affect marketing.Understand how the economic environment affects marketing.See how the political/legal environment offers opportunities and threats to marketers.Appreciate the importance of the technological environment to marketers.Understand differences in the competitive environment.Know how changes in the institutional environment affect marketers.2-3© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdDellDellDellDellMichael Dell founded Dell Computer Corporation with $1,000 when he was a college student at the University of Texas at Austin in 1984. Today Dell is the world’s leading direct computer systems company with annual revenues in excess of $40 billion and over 34,000 employees.2-4© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Marketing EnvironmentThe Marketing EnvironmentThe Marketing EnvironmentThe Marketing EnvironmentThe marketing environment consists of all factors external to an organization that can affect the organization’s marketing activities.Exhibit 2-12-5© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdIdentifying Market Opportunities and ThreatsIdentifying Market Opportunities and ThreatsMany firms use environmental scanning to identify important trends and determine whether they represent present or future market opportunities or threats.Exhibit 2-22-6© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdSocialSocialEnvironmentEnvironmentNumber of Number of PeoplePeopleCharacteristicsCharacteristicsBehaviorBehaviorGrowthGrowthProjectionProjectionThe Social EnvironmentThe Social EnvironmentThe Social EnvironmentThe Social EnvironmentThe social environment includes all factors and trends related to groups of people, including their number, characteristics, behavior, and growth projections.2-7© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Demographic EnvironmentThe Demographic EnvironmentThe Demographic EnvironmentThe Demographic EnvironmentThe demographic environment refers to the size, distribution, and growth rate of groups of people with different characteristics. The demographic characteristics of interest to marketers relate in some way to purchasing behavior, because people from different countries, cultures, age groups, or household arrangements often exhibit different purchasing behaviors. A global perspective requires that marketers be familiar with important demographic trends around the world as well as within the United States.2-8© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdPopulation Estimate —Year 2025Population Estimate —Year 2025Exhibit 2-32-9© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdDemographic TrendsDemographic TrendsDemographic TrendsDemographic TrendsWorld and country population statistics are important, but most marketers target subgroups. Trends in population subgroups are typically the most useful to marketers, for example, the growth of the urban population.2-10© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdDemographic TrendsDemographic TrendsDemographic TrendsDemographic TrendsAnother interesting trend is the aging of the population. The aging of the population is especially evident in Italy, Japan, Britain, and the United States.2-11© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCulturalCulturalFactorsFactorsValuesValuesIdeasIdeasAttitudesAttitudesSubgroupSubgroupActivitiesActivitiesBeliefsBeliefsThe Cultural EnvironmentThe Cultural EnvironmentThe Cultural EnvironmentThe Cultural EnvironmentThe cultural environment refers to factors and trends related to how people live and behave.2-12© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCultural DiversityCultural DiversityCultural DiversityCultural DiversityCultural differences are important in both international and domestic markets.Much of the population and buying power growth in the United States is and will be from multicultural groups.Exhibit 2-62-13© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdChanging RolesChanging RolesChanging RolesChanging RolesAs more women enter the workforce and household compositions change, typical household roles are altered.Tremendous market opportunities exist for firms that can develop effective strategies for appealing to these changing roles.2-14© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdEmphasis on Health & FitnessEmphasis on Health & FitnessEmphasis on Health & FitnessEmphasis on Health & FitnessThe pursuit of a more healthful lifestyle includes:eating more nutritious foodsexercising regularlyparticipating in various sports activitiesfocusing on wellness. This translates into potential market opportunities for firms that provide products and services geared toward improving health and fitness.2-15© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Desire for ConvenienceThe Desire for ConvenienceThe Desire for ConvenienceThe Desire for