The Marketing Environment · The Marketing Environment •The marketing environment: a set of...

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HMGT 2405 Hospitality Marketing Chapter 4 1 Marketing for Hospitality and Tourism CHAPTER The Marketing Environment 4 Learning Objectives 1. Describe the environmental forces that affect the company's ability to serve its customers. 2. Explain how changes in the demographic and economic environments affect marketing. 3. Discuss how companies can be proactive rather than reactive when responding to environmental trends.

Transcript of The Marketing Environment · The Marketing Environment •The marketing environment: a set of...

Page 1: The Marketing Environment · The Marketing Environment •The marketing environment: a set of outside actors and forces that affect a company’s marketing management ability. –the

HMGT 2405 Hospitality MarketingChapter 4

1

Marketing for Hospitality and Tourism

CHAPTER

Seventh Edition

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The Marketing Environment

4

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Learning Objectives

1. Describe the environmental forces that affect the company's ability to serve its customers.

2. Explain how changes in the demographic and economic environments affect marketing.

3. Discuss how companies can be proactive rather than reactive when responding to environmental trends.

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The Marketing Environment

The microenvironment

The macroenvironment

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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The Marketing Environment

• The marketing environment: a set of outside actors and forces that affect a company’s marketing management ability.– the microenvironment – the macroenvironment

• Marketing environment should be examined and monitored on an ongoing basis.

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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Microenvironment

ManagementOrientations

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Levels of Competitors

Budget competition

General competition

Product category

competition

Product form

competitionHamburgers

Fast food restaurants

Prepared food

Food and entertainmentMovie

theaters

Full service restaurants

Frozen meals

Video rentals

Grocery stores

Grocery store delicatessens

KFC

Taco Bell

Wendy’sBurger King

McDonald’s

Subway

Companies that offer similar services to the same customers at a

similar price

Companies that compete for the same

consumer dollars

Companies that supply the same

service

Companies that make the same

product or class of products

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Intermediaries

Marketing Services

Agencies

Financial IntermediariesIntermediaries

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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HotelTonight.com

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OpenTable.com

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Types of Publics

Financial Publics

Media Publics

Government Publics

Citizen-Action Publics

Local Publics

General Public

Internal Publics

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Macroenvironments

ManagementOrientations

• Larger forces that influence the company’s operations.

• Cannot be controlled.

• Often totally unpredictable.

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Demographic Trends in the US

A Better Educated,

More Professional Population

Geographic Shifts in

Population

Changing Age Structure of

the Population

Increasing Diversity

The Changing American

Family

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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Generations in the US

Baby Boomers

GenerationX

MIllenials

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Changing Family Structure

• Increasing age of those marrying • Delayed child bearing • Increasing two income families• Non-family households

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Economic Trends in the US

ChangesIn Income

ChangesIn Consumer

Spending Patterns

The Super Rich

The Global Economy

EconomicTrends

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Natural Environment

Growing Shortagesof Raw Materials

IncreasedPollution

IncreasedGovernmentIntervention

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The Natural Environment

• The natural environment consists of natural resources required by marketers or affected by marketing activities

• Additional trends in the natural environment to be aware of: – Natural phenomena that

affects their markets – Greenhouse effect– Solid waste problem

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Trends in the Political Environment

Increased Legislation

and Regulation

Changing Government

Agency Enforcement

International Politics

andLegislation

■ Fire codes, taxation, food handling practices, employment and employee practices, sales of liquor, hotel taxes

■ Government intervention in natural resource mgt.■ Growth of public-interest groups■ Increased emphasis on ethics and socially responsible actions■ Hotel taxes and restaurant taxes have become popular

sources of revenue for local governments

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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Cultural Environment

Cultural Values

Socially Responsible

Behavior

CulturalEnvironment

ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Environmental Scanning

Analyze Data and Use in Planning

Process

Implement Data Collection Plan

Determine How Information will

be Collected

Determine Environmental

Areas to be Monitored

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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu

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Responding to The Marketing Environment

• Many companies feel the marketing environment is uncontrollable

• An environmental management perspective takes action to sway the marketing environment

• Take a proactive rather than a reactive approach


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