Chapter 4

The Marketing Environment

©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Key Terms
• • • • • • • • Demography Echo boomers (baby boomlet generation) Economic environment Environmental management perspective Financial intermediaries Generation X Macroenvironment Marketing environment
Marketing for Marketing Hospitality forand Hospitality Tourism, and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens

©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

and 4thTourism. Bowen. Inc.and andMakens Makens . NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen. edition 4th edition Kotler. Upper Saddle River.Key Terms • Marketing intermediaries • Marketing services agencies • Microenvironment • Political environment • Suppliers ©2006 Pearson Education. Kotler.

“It is useless to tell a river to stop running.and andMakens Makens . edition 4th edition Kotler. Upper Saddle River. the best thing is to learn how to swim in the direction it is flowing. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. and 4thTourism.Bowen. Bowen. Kotler.” -Anonymous ©2006 Pearson Education. Inc.

Chapter Objectives • List and discuss the importance of the elements of the company’s microenvironment • Describe the macroenvironmental forces that affect the company’s ability to serve its customers • Explain how changes in demographic and economic environments affect marketing and describe the levels of competition ©2006 Pearson Education. Upper Saddle River.Bowen. Bowen. and 4thTourism.and andMakens Makens . Inc. edition 4th edition Kotler. Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.

Chapter Objectives • Identify the major trends in the firm’s natural and technological environments • Explain the key changes that occur in the political and cultural environments • Discuss how companies can be proactive rather than reactive when responding to environmental trends ©2006 Pearson Education. edition 4th edition Kotler.Bowen. Upper Saddle River. Bowen. and 4thTourism. Kotler. Inc. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.and andMakens Makens .

Bowen.The Company’s Microenvironment • The Company • Suppliers • Marketing Intermediaries ©2006 Pearson Education.and andMakens Makens . Bowen. Upper Saddle River. and 4thTourism. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. edition 4th edition Kotler. Kotler. Inc.

and 4thTourism. Bowen.and andMakens Makens . Inc. edition 4th edition Kotler.The Company’s Microenvironment ©2006 Pearson Education. Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen. Upper Saddle River.

Inc.The Company • Marketing managers must work with all departments of a company • All Departments have an impact on the marketing department’s plans and actions • “Think Consumer” ©2006 Pearson Education. edition 4th edition Kotler. Kotler. Bowen. Upper Saddle River.and andMakens Makens . NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen. and 4thTourism.

Suppliers • Suppliers are firms and individuals that provide the resources needed by the company to produce its goods and services • Suppliers can seriously affect marketing plans ©2006 Pearson Education. Upper Saddle River. Bowen. Kotler. Inc.and andMakens Makens . and 4thTourism. edition 4th edition Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen.

Bowen. Inc. and distribute its goods to the final buyers • Marketing service agencies help formulate and implement marketing strategies • Financial intermediaries help hospitality companies finance their transactions ©2006 Pearson Education. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Marketing Intermediaries • Marketing intermediaries help the company promote. Upper Saddle River. sell. Bowen. edition 4th edition Kotler.and andMakens Makens . Kotler. and 4thTourism.

and andMakens Makens . Irwin. Bowen. Inc. Donald R. Winer. p. edition 4th edition Kotler. Kotler. 22. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen. Upper Saddle River.) ©2006 Pearson Education. 1994 by Richard D. and 4thTourism. Lehmann and Russell S.The Company’s Macroenvironment (Adapted from Analysis for Market Planning.

Bowen. Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. Bowen. Inc. edition 4th edition Kotler. a company must satisfy needs and wants of consumers better than competitors • A company should monitor three variables when analyzing each of its competitors – Share of Market – Share of Mind – Share of Heart ©2006 Pearson Education. Upper Saddle River. and 4thTourism.and andMakens Makens .Competitors • To be successful.

Inc. age. Upper Saddle River. and other statistics • Demographics change over time and companies must keep up with them ©2006 Pearson Education. and 4thTourism. density. Bowen. Kotler. occupation.Demographic Environment • Demography is the study of human populations in terms of size. gender. location.Bowen. edition 4th edition Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. race.and andMakens Makens .

Bowen. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. and 4thTourism.Bowen. Inc. the “birth dearth” • Generation Y (echo boomers) – 72 million born between 1977-1994 • Generation Z (techno boomers) – born after -1996 ©2006 Pearson Education. edition 4th edition Kotler.and andMakens Makens . Upper Saddle River. Kotler.Demographic Environment • Baby boomers – 77 Million post-World War II babies born between 1946-1964 • Generation X – 45 million born between 1965-1976.

and 4thTourism. the people must have buying power ©2006 Pearson Education.Bowen.Economic Environment • The economic environment consists of factors that affect consumer purchasing power and spending patterns • It is not enough to have people. Upper Saddle River. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.and andMakens Makens . Kotler. edition 4th edition Kotler. Inc. Bowen.

and andMakens Makens . Inc.Bowen. Upper Saddle River. Bowen. such as currency exchange rates. have a large impact on travel and tourism across the world ©2006 Pearson Education. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. Kotler.The Global Economy Global economic dealings. edition 4th edition Kotler. and 4thTourism.

Bowen. Kotler.and andMakens Makens . NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. and 4thTourism.Natural Environment • The natural environment consists of natural resources required by marketers or affected by marketing activities • Anyone involved in tourism is responsible for protecting the environment and ensuring sustainability ©2006 Pearson Education. Inc. edition 4th edition Kotler. Bowen. Upper Saddle River.

Technological Environment • The hospitality industry is greatly affected by changes in technology – The Internet.Bowen. • Faces opposition by those who believe it threatens privacy. Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. key cards. Upper Saddle River. computerized systems. Inc. edition 4th edition Kotler. Bowen. etc.and andMakens Makens . and even the human race • The most dramatic force affecting tourism ©2006 Pearson Education. and 4thTourism. simplicity.

Upper Saddle River. Kotler. Inc.Political Environment The political environment is made up of laws. Bowen. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. government agencies.and andMakens Makens . and pressure groups that influence and limit the activities of various organizations and individuals in society ©2006 Pearson Education. and 4thTourism.Bowen. edition 4th edition Kotler.

Bowen. edition 4th edition Kotler. Bowen.Political Trends • Increased legislation and regulation affecting business • Changing government Agency Enforcement • Increased emphasis on socially responsible actions and ethics ©2006 Pearson Education. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.and andMakens Makens . and 4thTourism. Upper Saddle River. Kotler. Inc.

Cultural Environment • The cultural environment includes institutions and other forces that affect society’s basic values.and andMakens Makens . perceptions. preferences. Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. Bowen. edition 4th edition Kotler. and 4thTourism. and behaviors – Persistence of cultural values – Subcultures ©2006 Pearson Education. Upper Saddle River.Bowen. Inc.

and andMakens Makens . Upper Saddle River.Bowen. edition 4th edition Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Linked Environmental Factors • Environmental factors can also work together to bring about change – Americans now eat more meals prepared outside than inside the home – Low-carb diets – Grocery stores competing with restaurants ©2006 Pearson Education. Inc. Bowen. and 4thTourism. Kotler.

and 4thTourism.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 ©2006 Pearson Education. Kotler. Inc. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.Bowen. Bowen. Upper Saddle River.and andMakens Makens . edition 4th edition Kotler.

Analyze data and use in market planning process ©2006 Pearson Education. Upper Saddle River.Bowen.Environmental Scanning 1. Bowen. and 4thTourism. Kotler. Implement data collection plan 4. Determine environmental areas that require monitoring 2. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism.and andMakens Makens . Inc. Determine how the information will be collected 3. edition 4th edition Kotler.

Kotler. Upper Saddle River.and andMakens Makens . edition 4th edition Kotler. Inc. Bowen.Bowen. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. and 4thTourism.Using Marketing Information • Simple data collection is not sufficient • Information must be: – Reliable – Timely – Used in decision making ©2006 Pearson Education.

and andMakens Makens .Bowen.Best Practices • 59 million Americans (28% of the population) restricting carbohydrate intake • Chipotle served burritos in bowls • Atkins friendly wraps by Subway • Is Low-carb dieting a passing fad? ©2006 Pearson Education. Upper Saddle River. Kotler. edition 4th edition Kotler. NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism. Inc. Bowen. and 4thTourism.

Bowen.End of chapter slides ©2006 Pearson Education. NJ 07458 Marketing for Hospitality and Tourism. Upper Saddle River. and Makens . Inc. 4th edition Kotler.

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