UNIT 2

THE MARKETING
ENVIRONMENT
Learning Outcomes
• Understand and differentiate the concept of the
company’s macro and microenvironment;

• Explain the various types of environments that affect

hospitality and tourism and relate it to the strategic
development; and

• To prepare a micro/macroenvironment analysis.

Do you agree?
• There are several internal and external factors affect
a business’s marketing activities.
Marketing Environment
“A company’s marketing environment consists of
the actors and forces outside of marketing that
affect marketing management ability to build and
maintain successful relationships with target
customers”.

– Philip Kotler
Internal Environment
• Includes all the forces and factors inside the
organisation which affect its marketing
operations.
• Grouped under the Five Ms of the business:
• Men
• Minutes
• Machinery
• Materials
• Money
External Environment
• Constitutes factors and forces which are external
to the business and on which the marketer has
little or no control.

• Has 2 types:
• Micro marketing environment
• Macro marketing environment
Micro Environment
Macro Environment
Micro vs. Macro Environment
Point of difference Macro-environment Micro-environment
Meaning External environment of an Inter environments of an organization.
organization.
Nature Very complex. Less complex to perceive.
The task of the Marketer interacts with, the elements The marketer interacts with other functional
marketer prevailing outside the organization. areas of the organization.
Extent of control Factors remain beyond the control of Factors may be controlled to a large extent
marketers. by a marketer.
Impact It creates a huge impact on shaping Remains comparatively independent are
marketing decisions. shaping marketing decisions.
Function Factors may create an opportunity or Factors reveal the capabilities of an
pose a threat to the marketing organization to exploit the opportunities or to
activities of an organization. combat the threat through its marketing
activities.
Creating a Micro/Macro Environment
Analysis
• PESTLE
• Political, Economic, Social/Cultural, Technological, Legal,
Environmental

• SWOT
• Strengths, Weaknesses, Opportunities, and Threats

• TOWS
• Threats, Opportunities, Weaknesses and Strengths
PESTLE
SWOT
SWOT Analysis
How do you use your SWOT Analysis?

Better understanding the factors affecting your initiative put

you in a better position for action. This understanding helps
as you:
• Identify the issues or problems you intend to change
• Set or reaffirm goals
• Create an action plan
TOWS
TOWS
TOWS Analysis
It’s important to remember that a TOWS analysis will
not point to which specific strategy to adopt, but it does
focus attention the areas where action is required, and
given some indication of the nature of that action.
Thought for the day: