telecommunications companies are included
in the supplier group. Agents, brokers, manufacturer representatives, and others who
facilitate ﬁnding and selling to customers are included with distributors and dealers.
The broad environment consists of six components: demographic environment, economic environment, natural environment, technological environment, political-legal environment, and social-cultural environment. These environments contain forces that can have
a major impact on the actors in the task environment, which is why smart marketers
track environmental trends and changes closely.
Marketers use numerous tools to elicit the desired responses from their target markets.
These tools constitute a marketing mix:12 Marketing mix is the set of marketing tools
that the ﬁrm uses to pursue its marketing objectives in the target market. As shown in
Figure 1-3, McCarthy classiﬁed these tools into four broad groups that he called the four
Ps of marketing: product, price, place, and promotion.13
Marketing-mix decisions must be made to inﬂuence the trade channels as well as
the ﬁnal consumers. Typically, the ﬁrm can change its price, sales-force size, and advertising expenditures in the short run. However, it can develop new products and modify its distribution channels only in the long run. Thus, the ﬁrm typically makes fewer
CHAPTER 1 MARKETING IN THE TWENTY-FIRST CENTURY