The document discusses the major elements that make up the global marketing environment: social, economic, political, legal, technological, and competitive. It states that an organization's marketing strategies and decisions depend on uncontrollable external factors in these areas. It provides examples of how changes in demographic trends, economic conditions, laws and regulations can create opportunities or threats for different markets. Finally, it emphasizes the importance of continuously scanning the external environment for influences on consumers and competition.

2. THE MAJOR ELEMENTS
SOCIAL
ECONOMIC
POLITICAL
LEGAL
TECHNOLOGICAL
COMPETITIVE

3. GLOBAL ENVIRONMENT AFFECTS
decisions about
• the marketing strategies
• activities
• Positions
• institutions employed by your organization
The decisions you can control depend upon the
uncontrollable factors in the market.
• Identify strengths, weakness, opportunity and threat.

4. MARKET OPPORTUNITY AND
THREATS
Changes in the marketing environment can directly
affect specific markets.
Market opportunities typically arise when markets
increase in size or new markets are created.
population growth, increases in income, and lower
interest rates should present market opportunities.

5. OPPORTUNITY CONTD…
Social changes, such as more women in the workforce
and as heads of households, can affect who makes the
car buying decision, thus creating market
opportunities.

6. THREATS
• slow population growth, reduced incomes, and higher
interest rates would present threats.
• E.G. for the car market, there would be fewer people
with the financial ability to purchase cars given the
above factors.
• E.G. Legislation requiring automakers to improve gas
mileage is an example of political decision and threat.

7. OPPORTUNITY
• The legislation, however, might also be viewed as an
opportunity to create new markets for cars with
extremely good gas mileage or those that use
alternative fuels, such as the electric car.
• Changes in the technological environment
provide opportunities to produce these high-mileage or
alternative-fuel cars.

8. SCANNING THE
ENVIRONMENT

9. THE SOCIAL ENVIRONMENT
Includes all factors and trends related to groups of
people, including their number, characteristics,
behavior, and growth projections.
Consists of: Demographic and cultural environment.

10. DEMOGRAPHIC ENVIRONMENT
• The 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
arrangement often exhibit different purchasing
behaviors.

11. GLOBAL PERSPECTIVE
Marketers have to be familiar with the demographics
of different countries.
Population size and growth rate
Must consider developing countries as well.
Urban and rural population.
Population age
Family trends- married people with children

12. CULTURAL ENVIRONMENT
• factors and trends related to how people live
and behave.
• values, ideas, attitudes, beliefs, and
activities of specific population subgroups, greatly affect
consumers’ purchasing
behavior.

13. ISLAMIC COUNTRIES
United in Faith.
Islam -submission to the will of God.
Islam consumer practices fast (ramzan), prayers,
zakat (charity), pilgrimage (hajj).
Source of Law: Quran.
Properly slaughtered meat can be consumed.
Swine, dead meat etc prohibited.

14. ISLAMIC COUNTRIES CONTD…
Women should guard their beauty.
Should not display beauty to strangers.

15. NIKE AD

16. CULTURAL DIVERSITY
A cultural group’s characteristics affect the types of
products it desires and how it purchases and uses
those products.
E.G. Canned food will have a bigger market in U.S.A.
than in India.

17. CHANGING ROLES
More women enter the workforce and household
compositions change, typical household roles are
altered.
Women also support financially.
Therefore, household activities will be equally shared.
Shopping will be done by both men and women.

18. EMPHASIS ON HEALTH AND
FITNESS • Eating nutritious food.
• Diet conscious customers.- E.G. Diet drinks.
DESIRE FOR CONVINIENCE
• More working women.
• Increase in purchasing power.
• Save time.
• Increase in products that provide convenience such as
vacuum cleaner, microwave, etc.

19. CONSUMERISM
• Protect the rights of consumers.
• Consumer awareness and education.
• Legal rights of the consumers.
• Demand for higher quality and service.
• Increase in environmentalism.

20. ECONOMIC ENVIRONMENT
factors and trends related to income levels
and the production of goods and services.
affect the purchasing power of the markets.
E.G. Tax free U.A.E. is a trade hub.
E.G. Currency fluctuations.
E.G. India has low per capita income, but potential
market for MNCs such as KFC, Coca Cola, Pepsi. Sub
groups have power .

21. POLITICAL / LEGAL ENVIRONMENT
factors and trends related to governmental activities
and specific laws and regulations that affect
marketing practice.
closely tied to the social and economic environments.
international, state, and local levels.

22. KEY US LAWS AFFECTING
MARKETING
A. Promoting competition
Act Purpose
• Sherman Act (1890) Prohibits monopolistic practices
• Clayton Act (1914) Prohibits anticompetitive activities
• Federal Trade Commission Act (1914) Establishes regulatory
agency to enforce laws against unfair competition
• Robinson–Patman Act (1936) Prohibits price
discrimination
• Lanham Trademark Act (1946) Protects trademarks &
brand names
• Magnusson–Moss Act (1975) Regulates warranties
• US–Canada Trade Act (1988) Allows free trade between US
& Canada

23. KEY US LAWS AFFECTING
MARKETING B. Protecting consumers & society
Act Purpose
• Food, Drug, and Cosmetics Act (1938) Regulates food, drug &
cosmetic industries
• Fair Packaging and Labeling Act (1966) Regulates packaging &
labeling
• Child Protection and Toy Safety Act (1969) Prevents marketing of
dangerous products to children
• Consumer Credit Protection Act (1968) Requires full disclosure of
financial charges for loans
• Fair Credit Report Act (1970) Regulates reporting & use of credit
information
• Fair Debt Collections Practice Act (1970) Regulates methods for
collecting debts
• Child Protection Act (1990) Regulates advertising on children’s
television programs
• Americans with Disabilities Act (1990) Prohibits discrimination
against consumers with disabilities

24. IMPORTANT INDIAN REGULATORY
AGENCIES AND ACTS
• Food Corporation of India Act, 1964
• Essential Commodities Act, 1955
• Bureau of Indian Standards Act, 1986
• Standards of Weights and Measures Act, 1976
• The Consumer Protection Act, 1986
• The Monopolies & Restrictive Trade Practices Act,
1969
• Competition Commission of India (CCI)
• Monopolies and Restrictive Trade Practices
Commission (MRTPC).

25. TECHNOLOGICAL ENVIRONMENT
factors and trends related to innovations
that affect the development of new products or the
marketing process.
new-product development, affect how marketing
activities are performed, or both.
Technology changes the way in which companies
function.
E.G. Television, radio, internet, fax machine.

26. COMPETITION
Brand Competition- E.G. Nike, Reebok, Adidas all
provide the same products under different brand
name.
Product Competition- E.G. Food Chains, Dominos,
KFC, Pizza Hut, McDonalds.
Expand product offerings.
Competitive advertising.