Which of the following statements best defines the marketing environment?

• A. The marketing environment refers only to the internal policies and procedures of a business.
• B. The marketing environment consists of external forces and factors that affect a firm's ability to develop and maintain successful transactions with its target customers.
• C. The marketing environment is limited to the economic conditions within a country.
• D. The marketing environment is the set of marketing strategies used by a firm to increase sales.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of the marketing environment. It refers to all external and internal factors that influence a company's marketing activities and its ability to serve customers effectively.
2. Step 2: Identify that the marketing environment is not limited to internal policies or procedures alone; these are part of the internal environment, but the marketing environment also includes external forces.
3. Step 3: Recognize that economic conditions are just one aspect of the external environment, but the marketing environment encompasses a broader range of external forces such as social, technological, competitive, and legal factors.
4. Step 4: Differentiate between the marketing environment and marketing strategies. The environment consists of factors affecting the firm, while strategies are the actions the firm takes in response to these factors.
5. Step 5: Conclude that the best definition of the marketing environment is that it consists of external forces and factors that affect a firm's ability to develop and maintain successful transactions with its target customers.