Marketing environment consists of forces that directly or indirectly influence the firm's marketing activities. Marketing receives various inputs from the environment in the form of personnel, finance, raw materials and information. Marketing provides various outputs to the environment in the form goods, services, ideas, product images and communication. Marketing environment forces influence this process of exchange of inputs and outputs.Marketing environment can be classified into two groups; micro environment and macro environment.
The micro environment is made up of forces close to the company. These forces affect the company's ability to serve its customers. The micro environment consists of the company, suppliers, marketing channels, customers, competitors, and public.
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The macro environment operates at a broader level and affects the marketing operation as a whole. External environment variables are located outside the organization and include such macro-environmental forces as demography, economy, politics, law and natural forces.
