The environment is the set of factors that the company cannot control and that can nevertheless affect it in a positive or negative way. These factors can therefore be opportunities, i.e. factors of success or, on the contrary, threats, i.e. factors of failure. The environment can be technological, sociological, legal, political, demographic … For example, streaming platforms have made movie rentals in video stores obsolete.
We distinguish mainly :
- the micro-environment which refers to the factors in immediate contact with the company,
- the macro-environment, which encompasses the major trends in the evolution of society.
Today’s companies must be flexible and responsive to deal with a constantly changing and increasingly complex environment. They must constantly monitor their environment to anticipate the possible impacts of the globalization of trade and economies, the emergence of new technologies, the maturity and saturation of many markets, the growing power of mass distribution and consumers, ecological and ethical pressures … By carefully monitoring the business environment, marketers can effectively identify opportunities and threats and act accordingly.