ABSTRACT
The marketing environment comprises those elements, organizations, and individuals that have an influence, large or small, on the firm’s business. For example, the state of the economy, the behaviour of customers, the actions of competitors, imposition of government regulations, the rate of technological development, power of suppliers and distributors, and the attitudes of the general public (see Figure 3.1).
Even the most resourceful of companies would find it difficult to pinpoint the exact nature of these influencing factors, especially as they constantly undergo change. However, a failure to understand, or take heed of, such change will generally result in the firm having constantly to react to change some time after the event; often with difficulty and, occasionally, failing to recover altogether.
For the small business, understanding these forces and anticipating environmental change may command what appears to be an unnecessarily high degree of effort and a diversion of scarce resources. However, it should not be beyond the firm to recognize and pay attention to the more influential and sensitive factors, given a reasonable grasp of the basic principles involved.
