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Part 1  Introduction

Table 4.1 presents the main marketplace or  macro-  environmental factors and the  micro- 

 environmental factors that directly affect an organisation.

In Chapter 2 we introduced the importance of monitoring changes in the online market-

place or  micro-  environment and how they impact on an organisation. In this chapter we 

concentrate on the role of the  macro-  environmental forces using the widely used SLEPT 

framework. Often, these factors are known as the PEST factors, but we use SLEPT since it is 

useful to stress the importance of the law in influencing Internet marketing practices. The 

SLEPT factors are:

● 

Social factors – these include the influence of consumer perceptions in determining usage 

of the Internet for different activities.

● 

Legal and ethical factors – determine the method by which products can be promoted and 

sold online. Governments, on behalf of society, seek to safeguard individuals’ rights to 

privacy.

● 

Economic factors – variations in economic performance in different countries and regions 

affect spending patterns and international trade.

● 

Political – national governments and transnational organisations have an important role 

in determining the future adoption and control of the Internet and the rules by which it is 

governed.

● 

Technological factors – changes in technology offer new opportunities to the way prod-

ucts can be marketed.

For each factor we look at new issues raised for managers responsible for e-commerce 

 trading.

Now complete Activity 4.1 to reflect on the most important  macro-  environmental factors 

that have to be considered by the digital business manager. When completing a review it’s 

impor tant not to give all influences equal weighting, but instead focus on the ones that mat-

ter most in the current environment, such as legislation and technology innovation.

The issues identified in Activity 4.1 and others such as economic and competitive pres-

sures tend to change rapidly, particularly dynamic factors associated with advances in 

technology.

An indication of the challenge of assessing the  macro-  environment factors is presented in 

Figure 4.1. This figure of the ‘waves of change’ shows how fluctuations in the characteristics 

of different aspects of the environment vary at different rates through time. Managers have 

Introduction