Summary Overview The economic and technological environment affects the way firms and the whole economy use resources. The economic environment is affected by the way all the elements of the macro-economic system interact. The technological environment is singled-out to underscore the ever-increasing importance of technology on how business is conducted. The Technological Environment Technology is the application of science to convert an economy’s resources to output. Technology affects marketing in two basic ways: with new products and with new processes. In modern economies, the rate of technological change is very rapid. Discussion Note: It would be hard to over-estimate the importance of the Internet here. Ask students to identify Internet-related topics, from sky-high stock prices to better customer service via web site connections and company intranets based on HTML. Of increasing importance in the technological environment is the role of intellectual capital, such as a software programmer’s skill, in developing successful new products.