Transcript 04 Marketing En vironment

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
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Demography
Echo boomers (baby boomlet generation)
Economic environment
Environmental management perspective
Financial intermediaries
Generation X
Macroenvironment
Marketing environment
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
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Key Terms
• Marketing intermediaries
• Marketing services agencies
• Microenvironment
• Political environment
• Suppliers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
“It is useless to tell a river to stop running; the
best thing is to learn how to swim in the
direction it is flowing.”
-Anonymous
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
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, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
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Hospitality
Tourism,and
4thTourism,
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Kotler,
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Bowen,and
andMakens
Makens
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, Inc.
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The Company’s Microenvironment
• The Company
• Suppliers
• Marketing Intermediaries
©2006 Pearson Education, Inc.
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The Company’s Microenvironment
©2006 Pearson Education, Inc.
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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, Inc.
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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, Inc.
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Marketing Intermediaries
• Marketing intermediaries help the
company promote, sell, 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, Inc.
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The Company’s Macroenvironment
(Adapted from Analysis for Market Planning, Donald R. Lehmann and Russell S. Winer, p. 22, 1994 by Richard D. Irwin.)
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Competitors
• To be successful, 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, Inc.
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Demographic Environment
• Demography is the study of human
populations in terms of size, density,
location, age, gender, race, occupation,
and other statistics
• Demographics change over time and
companies must keep up with them
©2006 Pearson Education, Inc.
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Demographic Environment
• Baby boomers – 77 Million post-World War
II babies born between 1946-1964
• Generation X – 45 million born between
1965-1976, the “birth dearth”
• Generation Y (echo boomers) – 72 million
born between 1977-1994
• Generation Z (techno boomers) – born after
-1996
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Economic Environment
• The economic environment consists of
factors that affect consumer purchasing
power and spending patterns
• It is not enough to have people, the
people must have buying power
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The Global Economy
Global economic dealings, such as
currency exchange rates, have a
large impact on travel and tourism
across the world
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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
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Technological Environment
• The hospitality industry is greatly
affected by changes in technology
– The Internet, computerized systems, key
cards, etc.
• Faces opposition by those who believe
it threatens privacy, simplicity, and even
the human race
• The most dramatic force affecting
tourism
©2006 Pearson Education, Inc.
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Political Environment
The political environment is made
up of laws, government agencies,
and pressure groups that influence
and limit the activities of various
organizations and individuals in
society
©2006 Pearson Education, Inc.
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Political Trends
• Increased legislation and regulation
affecting business
• Changing government Agency
Enforcement
• Increased emphasis on socially
responsible actions and ethics
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Cultural Environment
• The cultural environment includes
institutions and other forces that
affect society’s basic values,
perceptions, preferences, and
behaviors
– Persistence of cultural values
– Subcultures
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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.
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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, Inc.
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Marketing for
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Environmental Scanning
1. Determine environmental areas
that require monitoring
2. Determine how the information
will be collected
3. Implement data collection plan
4. Analyze data and use in market
planning process
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
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forand
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Tourism,and
4thTourism,
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Kotler,Bowen,
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Using Marketing Information
• Simple data collection is not
sufficient
• Information must be:
– Reliable
– Timely
– Used in decision making
©2006 Pearson Education, Inc.
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Marketing for
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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, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
End of chapter
slides
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens