ABSTRACT
This chapter examines the underlying factors which affect market environment, distribution practice and competitive behavior. It deals with the methods of establishing a source of factual information flow from which marketing decisions can be taken. The dynamic of the market place would be instantly recognizable to social psychologists as a behavioral system. Within the framework of the industry, competitors interact upon each other in a similar way to people behaving in a group. Companies behave differently according to their environment and experience of trading in their particular market. In a fragmented market with many supplying companies, each firm operates according to its experience and resources. The company which is short of cash will tend to cut its advertising. Every firm is a behavioral system in itself, and the smaller firm shows it clearly. Each firm is similar to the family unit.
