Importance of Environment Analysis in Marketing

Abstract

The main objective of this article is to describe the importance of relationship of various components of marketing environment for attaining competitive advantage in market. The term ‘market’ originates from the Latin noun "Marcatus" which means "a place where the buyers and sellers personally interact and finalise deals. However, it is not merely a place of exchange but an arrangement that provides an opportunity of exchanging goods and services for money." In this context, Philip Kotler has defined the term market as "an area for potential exchanges." Most of the successful companies have now realised that marketing presents a never ending series of opportunities and threats. The responsibility for identifying significant changes in the macro-environment falls on company’s marketers. The marketing manger’s major task is that of trend trackers and opportunity seekers.