Many external factors affect the marketing environment. Political and regulatory forces have greatly impacted many industries. Technological improvements also affect marketing in many ways. Better products, production methods, and even whole new industries rise from technological improvements. Marketers have to take both competition and the economy into consideration.
Lack of awareness can cripple a business or even destroy it.
Think again of the automobile industry. The U.S. automobile industry is still recovering from numerous environmental issues and concerns it failed to predict and react promptly to. We'll discuss these four components in detail in the next lesson, but these are the four areas that can be tailored to react to the marketing environment. In practice, price is the most often-changed variable. Businesses can quickly react to competitors or low sales through coupons, sales events, or other price-reduction methods.