Marketing for Hospitality and Tourism - 704027

CHAPTER 3:
THE MARKETING ENVIRONMENT
 Marketing for Hospitality and Tourism
(704027)

• Lecturer’s name

• Contact details
• Office hours … or by appointment

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 Learning objectives

• List and discuss the importance of the elements of the

company’s microenvironment, including the company,
suppliers, marketing intermediaries, customers & public.

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 Learning objectives

• Describe the macroenvironmental forces that affect

the company’s ability to serve its customers.
• Explain how changes in the demographic and
economic environments affect marketing, and describe
the levels of competition.

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 Learning 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.

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 3.1. Microenvironment

Management
Orientations

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 Analyzing Competitors

Share of
Market

Share of Share of
Heart Mind

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 Levels of Competitors

Companies that offer

similar services to the Companies that make
same customers at a the same product or
similar price class of products

Companies that Companies that compete

supply the same for the same consumer
service dollars

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 Intermediaries

Marketing
Financial
Services Intermediaries
Intermediaries
Agencies

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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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 3.2. Macroenvironments

Management
Orientations

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 Demographic Trends in the US

Changing Age The Changing

Increasing
Structure of the American
Diversity
Population Family

A Better
Geographic
Educated, More
Shifts in
Professional
Population
Population

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 Generations in the US

Baby Boomers

MIllenials Generation
X

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 Economic Trends in the US

Changes Economic The Global

In Income Trends Economy

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 Natural Environment

Growing Shortages
of Raw Materials

Increased Increased
Government Pollution
Intervention

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 Trends in the Political Environment

Increased Legislation and Regulation

Changing Government Agency Enforcement

Increased Emphasis on Social Responsibility

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 Cultural Environment

Cultural
Cultural Values Environment Subcultures

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 Environmental Scanning
Determine Determine How
Environmental Information will be
Areas to be Collected
Monitored

Analyze Data and

Implement Data
Use in Planning
Collection Plan
Process

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 Key Terms
Baby boomers The 78 million Economic environment The
people born between 1946 and 1964. economic environment consists of
factors that affect consumer purchasing
Demography The study of human power and spending patterns. Markets
populations in terms of size, density, require both power and people.
location, age, sex, race, occupation, Purchasing power depends on current
and other statistics. income, price, saving, and credit;
marketers must be aware of major
Disintermediation The elimination economic trends in income and
of intermediaries. changing consumer spending patterns.

Echo boomers See Millennials. Environmental management

Born between 1977 and 1994, these
children of the baby boomers now
number 72 million, dwarfing the Gen
Xers and almost equal in size to the
baby boomer segment. Also known as
Generation Y
perspective A management
perspective in which a firm takes
aggressive actions to affect the public
and forces in its marketing environment
rather than simply watching and
reacting to it

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 Key Terms (cont.)
Financial intermediaries Banks, Macroenvironment The larger
credit companies, insurance societal forces that affect the whole
companies, and other businesses that microenvironment: competitive,
help finance transactions or insure demographic, economic, natural,
against the risks associated with the technological, political, and cultural
buying and selling of goods. forces.

Generation X A generation of 45 Marketing environment The

million people born between 1965 and actors and forces outside marketing
1976; named Generation X because that affect marketing management’s
they lie in the shadow of the boomers ability to develop and maintain
and lack obvious distinguishing successful transactions with its target
characteristics; other names include customers.
“baby busters,” “shadow generation,” or
“yiffies”—young, individualistic, Marketing intermediaries Firms
freedom-minded few. that help the company to promote, sell,
and distribute its goods to final buyers;
Generation Y See Millennials they include middlemen, physical
distribution firms, marketing service
agencies, and financial intermediaries

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 Key Terms (cont.)
Marketing services agencies Millennials (also called Generation
Marketing research firms, advertising Y or the echo boomers). Born between
agencies, media firms, marketing 1977 and 2000, these children of the
consulting firms, and other service baby boomers number 83 million,
providers that help a company to target dwarfing the Gen Xers and larger even
and promote its products to the right than the baby boomer segment. This
markets. group includes several age cohorts:
tweens (ages 8 to 12), teens (13 to 18),
Microenvironment The forces and young adults (the
close to a company that affect its ability twentysomethings).
to serve its customers: the company,
market channel firms, customer Political environment Laws,
markets, competitors, and the public. government agencies, and pressure
groups that influence and limit the
activities of various organizations and
individuals in society

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 Key Terms (cont.)
Public Any group that has an actual
or potential interest in or impact on an
organization’s ability to achieve its
objectives.

Suppliers Firms and individuals that

provide the resources needed by a
company and its competitors to
produce goods and services.

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