Business Degree Certification Practice Test

What is the term for the process of collecting information about the external marketing environment?

1. Environmental management

2. Marketing research

3. Marketing management

4. Environmental scanning

The correct answer is: Environmental scanning

The term that refers to the process of collecting information about the external marketing environment is environmental scanning. This process involves systematically observing and analyzing external factors, such as economic conditions, competitive dynamics, technological advancements, and regulatory changes, that can impact an organization’s marketing strategies and decisions. Environmental scanning is crucial for businesses as it helps them identify opportunities and threats within their external environment, enabling better strategic planning and adaptation to market changes. It provides insights that inform marketing decisions and helps businesses stay ahead of trends or challenges in the marketplace. While marketing research is focused on gathering data specifically related to consumer needs and preferences, environmental scanning encompasses a broader scope that includes various external factors influencing the marketing environment. Environmental management and marketing management, on the other hand, relate more to the internal processes of managing resources and strategies rather than the collection of external data about the marketing environment.