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Its present and future existence, profits, image, and positioning depend on its internal and external environment.The business environment is one of the most dynamic aspects of the business.The external environment is further divided into two components: micro & macro.The micro or the task environment is also specific to the business but external.In order to operate and stay in the market for long, one has to understand and analyze the marketing environment and its components properly.An understanding of the external and internal environment is essential for planning for the future.These include suppliers, market intermediaries, customers, partners, competitors and the public The macro component of the marketing environment is also known as the broad environment.It constitutes the external factors and forces which affect the industry as a whole but don’t have a direct effect on the business. The demographic environment is made up of the people who constitute the market.
Nevertheless, the internal marketing environment is as important for the business as the external marketing environment.
These external and internal factors group together to form a marketing environment in which the business operates.
Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customers.
It is characterised as the factual investigation and segregation of the population according to their size, density, location, age, gender, race, and occupation.
The economic environment constitutes factors which influence customers’ purchasing power and spending patterns.