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Chapter 4 Marketing Environment
1.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Chapter 4Chapter 4 The MarketingThe Marketing EnvironmentEnvironment Dr. John V. PaduaDr. John V. Padua
2.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Chapter ObjectivesChapter Objectives • List and discuss the importance of theList and discuss the importance of the elements of the company’s microenvironmentelements of the company’s microenvironment • Describe the macroenvironmental forces thatDescribe the macroenvironmental forces that affect the company’s ability to serve itsaffect the company’s ability to serve its customerscustomers • Explain how changes in demographic andExplain how changes in demographic and economic environments affect marketing andeconomic environments affect marketing and describe the levels of competitiondescribe the levels of competition ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
3.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Chapter ObjectivesChapter Objectives • Identify the major trends in the firm’s naturalIdentify the major trends in the firm’s natural and technological environmentsand technological environments • Explain the key changes that occur in theExplain the key changes that occur in the political and cultural environmentspolitical and cultural environments • Discuss how companies can be proactiveDiscuss how companies can be proactive rather than reactive when responding torather than reactive when responding to environmental trendsenvironmental trends ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
4.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens The Company’s MicroenvironmentThe Company’s Microenvironment • The CompanyThe Company • SuppliersSuppliers • Marketing IntermediariesMarketing Intermediaries ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
5.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens The Company’s MicroenvironmentThe Company’s Microenvironment ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
6.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens The CompanyThe Company • Marketing managers must work with allMarketing managers must work with all departments of a companydepartments of a company • All Departments have an impact on theAll Departments have an impact on the marketing department’s plans andmarketing department’s plans and actionsactions • ““Think Consumer”Think Consumer” ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
7.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens SuppliersSuppliers • Suppliers are firms and individuals thatSuppliers are firms and individuals that provide the resources needed by theprovide the resources needed by the company to produce its goods andcompany to produce its goods and servicesservices • Suppliers can seriously affect marketingSuppliers can seriously affect marketing plansplans ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
8.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Marketing IntermediariesMarketing Intermediaries • Marketing intermediaries help theMarketing intermediaries help the company promote, sell, and distributecompany promote, sell, and distribute its goods to the final buyersits goods to the final buyers • Marketing service agencies helpMarketing service agencies help formulate and implement marketingformulate and implement marketing strategiesstrategies • Financial intermediaries help hospitalityFinancial intermediaries help hospitality companies finance their transactionscompanies finance their transactions ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
9.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens The Company’s MacroenvironmentThe Company’s Macroenvironment (Adapted from Analysis for Market Planning, Donald R. Lehmann and Russell S. Winer, p. 22, 1994 by Richard D. Irwin.) ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
10.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens CompetitorsCompetitors • To be successful, a company must satisfyTo be successful, a company must satisfy needs and wants of consumers betterneeds and wants of consumers better than competitorsthan competitors • A company should monitor three variablesA company should monitor three variables when analyzing each of its competitorswhen analyzing each of its competitors – Share of MarketShare of Market – Share of MindShare of Mind – Share of HeartShare of Heart ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
11.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Demographic EnvironmentDemographic Environment • Demography is the study of humanDemography is the study of human populations in terms of size, density,populations in terms of size, density, location, age, gender, race, occupation,location, age, gender, race, occupation, and other statisticsand other statistics • Demographics change over time andDemographics change over time and companies must keep up with themcompanies must keep up with them ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
12.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Demographic EnvironmentDemographic Environment • Baby boomersBaby boomers – 77 Million post-World War II babies born between 1946-1964 • Generation XGeneration X – 45 million born between 1965-1976, the “birth dearth” • Generation YGeneration Y (echo boomers) – 72 million born between 1977-1994 • GenerationGeneration ZZ (techno boomers) – born after -1996 ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
13.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Economic EnvironmentEconomic Environment • The economic environment consists ofThe economic environment consists of factors that affect consumer purchasingfactors that affect consumer purchasing power and spending patternspower and spending patterns • It is not enough to have people, theIt is not enough to have people, the people must have buying powerpeople must have buying power ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
14.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens The Global EconomyThe Global Economy Global economic dealings, such asGlobal economic dealings, such as currency exchange rates, have acurrency exchange rates, have a large impact on travel and tourismlarge impact on travel and tourism across the worldacross the world ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
15.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Natural EnvironmentNatural Environment • The natural environment consists ofThe natural environment consists of natural resources required by marketersnatural resources required by marketers or affected by marketing activitiesor affected by marketing activities • Anyone involved in tourism isAnyone involved in tourism is responsible for protecting theresponsible for protecting the environment and ensuring sustainabilityenvironment and ensuring sustainability ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
16.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Technological EnvironmentTechnological Environment • The hospitality industry is greatlyThe hospitality industry is greatly affected by changes in technologyaffected by changes in technology – The Internet, computerized systems, keyThe Internet, computerized systems, key cards, etc.cards, etc. • Faces opposition by those who believeFaces opposition by those who believe it threatens privacy, simplicity, and evenit threatens privacy, simplicity, and even the human racethe human race • The most dramatic force affectingThe most dramatic force affecting tourismtourism ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
17.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Political EnvironmentPolitical Environment The political environment is madeThe political environment is made up of laws, government agencies,up of laws, government agencies, and pressure groups that influenceand pressure groups that influence and limit the activities of variousand limit the activities of various organizations and individuals inorganizations and individuals in societysociety ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
18.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Political TrendsPolitical Trends • Increased legislation and regulationIncreased legislation and regulation affecting businessaffecting business • Changing government AgencyChanging government Agency EnforcementEnforcement • Increased emphasis on sociallyIncreased emphasis on socially responsible actions and ethicsresponsible actions and ethics ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
19.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Cultural EnvironmentCultural Environment • The cultural environment includesThe cultural environment includes institutions and other forces thatinstitutions and other forces that affect society’s basic values,affect society’s basic values, perceptions, preferences, andperceptions, preferences, and behaviorsbehaviors – Persistence of cultural valuesPersistence of cultural values – SubculturesSubcultures ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
20.
©2006 Pearson Education,
Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Environmental ScanningEnvironmental Scanning 1.1. Determine environmental areasDetermine environmental areas that require monitoringthat require monitoring 2.2. Determine how the informationDetermine how the information will be collectedwill be collected 3.3. Implement data collection planImplement data collection plan 4.4. Analyze data and use in marketAnalyze data and use in market planning processplanning process ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
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