LO 3-1 Explain the purpose of environmental scanning.

Environmental scanning is the process of continually acquiring information on events occurring outside the organization to allow marketers to identify and interpret potential trends. Environmental trends typically arise from five sources: social, economic, technological, competitive, and regulatory forces. A firm conducting an environmental scan of the marketplace might uncover key trends such as the growing popularity of brand advocates, the increasing application of virtual reality and augmented reality, and the surging scrutiny regarding the collection and use of consumer data.