Chapter 15: The Marketing Environment

economic forces

all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity, found in the external environment

environmental forces

(aka: natural forces)

elements of the climate, weather, or natural resources that affect production, purchasing, or other economic activity

environmental scanning

the process of gathering and interpreting data in the immediate and external environments to identify possible opportunities and threats and to develop strategic plans from them

external environment

(sometimes referred to as macroenvironment)

uncontrollable forces which affect the company and all actors in the immediate environment and establish the surrounding context in which business is conducted

immediate environment

(sometimes referred to as microenvironment)

actors (such as companies, people, groups, or organizations) that can directly influence a company’s ability to market successfully

legal forces

the regulatory systems that affect business at the local, regional, national, and international levels, including health and safety laws and regulations for business formation

marketing environment

all of the forces that affect a company’s ability to do business

political forces

cover the stability and general state of politics in the region

social forces

demographic characteristics and the culture of the population, including cultural values and personal values, found in the external environment

SWOT Analysis

a framework a marketer can use as a tool when environmental scanning

technological forces

anything that affects innovation, including technological advances, hardware and software capabilities, and the state of learning in general