A company's marketing environment consists of the factors and forces that affect the company's ability to develop and maintain successful transactions and relationships with its target customers. Every business enterprise is confronted with a set of internal factors and a set of external factor.
The internal factors are generally regarded as controllable factors because the company has a fair amount of control over these factors, it can alter or modify such factors as its personnel, physical facilities, marketing-mix etc. to suit the environment.
The external factors are by and large, beyond the control of a company. The external environmental factors such as the economic factors, socio- cultural factors, government and legal factors, demographic factors, geo- physical factors etc.
As the environmental factors are beyond the control of a firm, its success will depend to a very large extent on its adaptability to the environment,
i.e. its ability to properly design and adjust internal variables to take advantages of the opportunities and to combat the threats in the environment.