Chapter 4 The Marketing Environment Marketing for Hospitality

Chapter 4 The Marketing Environment Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 1

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

Major Forces in the Company’s Macroenvironment Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 3

Levels of Competition (Adapted from Analysis for Market Planning), Donald R. Lehmann and Russell S. Winer, p. 22, © 1994 by Richard D. Irwin Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 4

Key U. S. Demographic Trends Changing Age Structure Population is getting older Changing Family Structure Marrying later, fewer children, working women, and nonfamily households Geographic Shifts Moving to the Sunbelt and suburbs (MSA’s) Increased Education Increased college attendance and white-collar workers Growing Ethnic and Racial Diversity 72% Caucasian, 13% African-American, 11% Hispanic & 3% Asian Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 5

Age Distribution of the U. S. Population 8 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 2 million people born 1977 -1994) Fluent and comfortable with computer, digital, and Internet technology (Net-Gens) Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 6

Economic Environment Global Economic Develop ment Changes in Income Changin g Consum er Spendin g Marketing Patterns for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens Key Economic Concerns for Marketers © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 7

Natural Environment Conser vation Of Resour ces Ecotou rism Factors Affecting the Natural Environment Recycl e and Reduce Waste Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 8

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 Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 9

Political Environment Includes Laws, Government Agencies, Etc. that Influence & Limit Organizations/ Individuals in a Given Society Increasing Legislation Changing Government Agency Enforcement Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens Increased Emphasis on Ethics & Socially Responsible Actions © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 10

Cultural Environment • Persistence of Cultural Values • Subcultures Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 11

Responding to the Marketing Environment • Environmental management perspective • Environmental Scanning • Using information about the marketing environment Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 12

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 Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 13

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 Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 14

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 Mc. Donald’s Mc. Lean were flops 8. Small indulgences–week-end trips, Haagen-Dazs ice cream 9. 99 lives–child-care Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 15

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 Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 16