Abstract
Marketers need to constantly scan the environment for changes in the marketplace. There are a number of ways of doing this. PEST involves examining the Political, Economic, Socio-Cultural and Technological factors that influence a company in its operations. It is essentially a macro study of the environment. Porters five forces examines the competitive structure of an industry. This will be looked at separately as a topic in its own right. In this section of the course, we will review the micro/macro approach to environmental analysis. The marketing environment is composed of the forces and actors that affect a company's ability to operate effectively in providing products and services to its customers. The micro-environment consists of the actors in the firm's immediate environment that affects its capabilities to operate effectively in its chosen markets. The key forces are suppliers, distributors, customers, competitors, the public and the company itself.
