The Marketing Environment

     As the environment is always changing, companies have to constantly be watching and adapting to it. If they fail to do this, they will fall behind and be left behind. A great example of a company that had this problem is Xerox. Xerox dominated the photocopy industry which it created, so much to the point that "xerox" actually became the term used for copying ("Could you xerox that for me?"). However, within an 18 month period, Xerox lost $38 billion in market value. Why? Because Xerox failed to adapt to the changing environment. Technology was transforming everything into digital, but Xerox wasn't keeping up.
    Eventually Xerox made its way back up and is once again growing and profitable, after making many changes in the company. But the point is that no matter how profitable and successful your company may be currently, if you fail to adapt to the environment, your company will be lost.
      The marketing environment consists of everything that affects a company's ability to maintain profitable relationships with consumers. It is comprised of the microenvironment and macroenvironment.
Microenvironment- The company itself, suppliers, marketing intermediaries, competitors, publics, and customers. All of these groups of people directly affects a company's relationship with its customers one way or another.

Macroenvironment- The macroenvironment is comprised of many factors:

1. Demographic- These are factors of human population such as age, gender, density, location, race, and occupation. Knowing the details and demographic factors of your customers is more than beneficial to your company; it is crucial. 
2. Economic- The financial situation around your company.
3. Natural- The natural resources or natural environment.
4. Technological- The forces that create new technologies, also creating new products and markets.
5. Political- Laws that prevent or only allow certain things.
6. Cultural- The values, behaviors, and perceptions of a certain society.

Each of these forces impacts the way a company performs. Take technology for example: The United States is clearly a lot more technologically advanced than so many other countries, as the U.S spends an enormous amount of money on researching the latest technologies. In 2009, the total spent on Research and Development (R&D) by the U.S. reached $367 billion. This not only impacts business in America, but has an effect on any business doing business in America. They have to know that there are major technological differences than from what they may be used to, and have to understand how to adapt to them.