This chapter introduces the key elements of environmental analysis that are relevant to financial services providers. It defines the elements that comprise the marketing environment. The chapter reviews the process of analysing the external environment and then explore the analysis of the internal environment focusing particularly on resources and capabilities. There are a number of components in the overall marketing environment. Understanding all aspects of the marketing environment and understanding the potential implications for future strategy lie at the heart of effective marketing. Technology essentially refers to our level of knowledge about 'how things are done'. That is to say, understanding this aspect of the marketing environment is much more than simply being familiar with the latest hi-tech innovations, although it is fair to say that this has been one of the areas in which there has been particularly rapid and significant change.