Chapter 4

The Marketing Environment

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Environments
• Internal:various
departments
• Micro: suppliers,
marketing
intermediaries
• Macro: competitive,
demographic,
economic, natural,
technological,
political, and cultural
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 2
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Major Forces in the Company’s Macroenvironment

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Levels of
Competition
(Adapted from
Analysis for Market
Planning), Donald
R. Lehmann and
Russell S. Winer,
p.22, ©1994 by
Richard D. Irwin

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Key
Key U.S.
U.S. Demographic
Demographic
Changing Trends
Trends
ChangingAge
AgeStructure
Structure
Population
Populationis
isgetting
gettingolder
older

Changing
ChangingFamily
FamilyStructure
Structure
Marrying
Marryinglater,
later,fewer
fewerchildren,
children,
working
workingwomen,
women,and
andnonfamily
nonfamilyhouseholds
households

Geographic
GeographicShifts
Shifts
Moving
Movingto
tothe
theSunbelt
Sunbeltand
andsuburbs
suburbs(MSA’s)
(MSA’s)

Increased
IncreasedEducation
Education
Increased
Increasedcollege
collegeattendance
attendance
and
andwhite-collar
white-collarworkers
workers
Growing
GrowingEthnic
Ethnicand
andRacial
RacialDiversity
Diversity
72%
72%Caucasian,
Caucasian,13%
13%African-American,
African-American,
11%
11%Hispanic
Hispanic&&3%
3%Asian
Asian
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 5
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Age Distribution of the U.S.
Population

(78 million people born 1946-1964)

One of the most powerful forces shaping the
marketing environment, 30% of population

(45 million people born 1965-1976)

More skeptical, cynical of frivolous
marketing pitches promising easy success

(72 million people born 1977-1994)

Fluent and comfortable with computer,
digital, and Internet technology (Net-
Marketing for Hospitality and Tourism, 3e Gens) ©2003 Pearson Education, Inc. 6
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Economic Environment
Global
Global Economic
Economic
Development
Development

Key
Key
Changes
Changes in
in Income
Income Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers

Changing
Changing Consumer
Consumer
Spending
Spending Patterns
Patterns

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Natural
Natural
Environment
Environment
Conservation
Conservation
Of
Of Resources
Resources

Factors
Factors Affecting
Affecting
Ecotourism
Ecotourism the
the
Natural
Natural
Environment
Environment

Recycle
Recycle and
and
Reduce
Reduce Waste
Waste

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Technological Environment
• Robots and machines
• Computerized video checkout services
• Electronic guest room locking systems
• Locking fax machines receive orders at
restaurants
• The development of the Internet

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Political Environment
Includes
Includes Laws,
Laws, Government
Government Agencies,
Agencies, Etc.
Etc. that
that Influence
Influence
&& Limit
Limit Organizations/
Organizations/ Individuals
Individuals in
in aa Given
Given Society
Society

Increased
Increased
Changing
Changing Emphasis
Emphasis on on
Increasing
Increasing Government
Government Ethics
Ethics &&
Legislation
Legislation Agency
Agency Socially
Socially
Enforcement
Enforcement Responsible
Responsible
Actions
Actions

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Cultural Environment
• Persistence of Cultural Values
• Subcultures

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Responding to the
Marketing Environment
• Environmental management
perspective
• Environmental Scanning
• Using information about the
marketing environment

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Environmental Scanning

Determine Environmental Areas That Need

to Be Monitored
Determine How the Information Will Be Collected
Implement the Data Collection Plan
Anaylze and Use the Data in Planning

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Popcorn’s Trends
1. Cashing out–return to small town values
– Bed & breakfasts, non-chain operations
2. Cocooning–take-out, delivery
3. Clanning–Associating with groups
–neighborhood bars, AARP signaling,
coffee bars, cyber cafes
4. Down-aging–Hard Rock Café
5. Egonomics–unique products–boutique
resorts, name recognition

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Popcorn’s Trends (cont.)
6. Fantasy Adventure–Mega-resorts,
windjammer cruises, white water trips
7. Pleasure revenge–self-rewards, getting
away from fat-free foods and diet
foods–KFC’s skin free crispy chicken and
McDonald’s McLean were flops
8. Small indulgences–week-end trips,
Haagen-Dazs ice cream
9. 99 lives–child-care

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Popcorn’s Trends (cont.)
10. S.O.S. (Save our Society)–concern for the
environment
11. Being alive–she has now changed this
to “being alive”–Health-food, exercise
12. The vigilante consumer–We-they battle
New–additions from Clicking
13. Female think–transaction orientation -
relationship orientation–resists change -
seek change

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458