The marketing environment consists of internal and external factors that affect a company's marketing decisions. The microenvironment includes internal factors like the company, suppliers, customers, and competitors. The macroenvironment includes external factors like demographic, economic, natural, technological, political, and sociocultural forces in the larger marketplace. These forces can influence demand, costs, and ultimately the company's ability to serve its customers. Marketers must monitor both micro and macroenvironmental trends to develop effective marketing strategies.