The Marketing Environment

(Chapter 4)

The Company’s Microenvironment

The
Marketing
Company:
Inter- P
How does Suppliers:
mediaries: U
each Resources
Existing Help the B
department supplied by
Competitors: company Customers: L
in a hotel them are as
Page 110, promote, Consumer I
play their crucial as
four levels of sell and markets. C
role to be any other
competitors. distribute S
successful. business
its goods (Page
Commitment component!
to the final 114)
and
buyers.
engagement.

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 The Company’s Macro environment (page 115)

1) Future Competitors
Barriers to entry: High building costs, scarcity of
good locations, Start up operational capital.

In general, competitive environment is difficult

to predict in the hospitality business. That is
why this is even included in as macro
environment.

Read from page 115/116 as well.

We have done similar topics before!

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 2) Demographics: (The study of human populations) Summary of “Generations”

The Baby Boomers 1946 - 1964 Estimated The youngest BB’s

population is are now in their
approximately 78 40’s. Quite wealthy
million group. They do not
feel old, love to
travel
Generation X 1965 - 1976 30 million Grew up during
periods of recession
and downsizing of
companies, tend to
be a difficult group
to market products.
Less materialistic.
Prefer food
services.

Don’t
memorize
figures!

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 Generation “Y” or the Echo boomers

Also called
1977 - 2000
the
Millennials

Children of
BB’s. 83 million

Includes
several age
cohorts.
Teens 8-12 Computer,
Teens 13-18 digital and
Young adults internet
20+ generation

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 Other demographical information

Ethnic &
cultural

Increasing
Diversity
Better
educated, Changing
white collar, Demographics families (Size
more and life styles)
professional
population
Geographic shift in
population

National as well as
international

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 3) Economic Environment

Economic Environment consists of

factors that affect consumer
purchasing power and spending
patterns.

Consider changing of income and

the global economical trends; Can
these open a door or close a door?

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 4) Natural Environment

• By 2030, a shortage of water

Shortages
of raw • None renewable resources such as oil,
material coal and various minerals

• Disposal of garbage and sewage by

resorts
Increased • Air, water
Pollution • Tourist attractions like forests, clean
beaches, streams, wildlife, El Niño

A warm ocean current that flows along the

equator from the date line and south off the
coast of Ecuador at Christmas time
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 The other macro environmental factors

5) Technological Environment.
6) Political Environment:
Increased legislation and regulation affecting
business
Changing government agency enforcement
Increased emphasis on socially responsible
actions and ethics
7) Cultural Environment:
Persistence of cultural values
Subcultures: (based on religious beliefs,
preferences and behavior styles of different age
groups or gender)
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 Responding to the marketing Environment

MARKETING ENVIRONMENT

Environmental
Uncontrollable?
Management Perspective

Passively accept the

Be active and try and influence the
marketing
legislation or the government by
environment. Do not
using “lobbyists'”. Might even end
even try to change or
up in a “people’s referendum”
influence it. Hoping
may be just to react to
a “situation”!
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 Recommended reading

Read the
chapter!

marketing

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