The firm and its markets

The marketing concept discussed in the last chapter emphasises the close, but often changing, relationship between the firm and the markets it seeks to serve. This applies to both the private and public sectors. The nature of the relationship depends on various market (or environmental) factors. Consideration must be given to the market economy, the society comprising the markets, the laws and ethics of society, the competitive situation, the social responsibilities of the business, human resources available, inflation and unemployment. The rates of change occurring in all these affect the volatile nature of the relationship. Further, when economic times are hard, attitudes change often unpredictably. Political factors accentuate the change in these relationships. The effects may range from local changes due perhaps to new buildings or motorway construction to changes taking place on international scales. Developments in the EEC, in Russia and Eastern Europe, and the North American and Latin American Free Trade Areas will all have international effects. The key aspects are discussed in this chapter.