Marketing for Hospitality and Tourism Kotler Bowen Makens
Marketing for Hospitality and Tourism Kotler, Bowen, Makens and Baloglu THE MARKETING ENVIRONMENT Chapter 4
Learning Objectives 1. 2. 3. List and discuss the importance of the elements of the company’s microenvironment, including the company, suppliers, marketing intermediaries, customers, and public. 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.
Learning Objectives (cont. ) 4. 5. 6. 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.
Microenvironment Management Orientations
Analyzing Competitors Share of Market Share of Heart Share of Mind
Levels of Competitors Companies that offer similar services to the same customers at a similar price Companies that supply the same service Companies that make the same product or class of products Companies that compete for the same consumer dollars
Intermediaries Marketing Services Agencies Intermediarie s Financial Intermediaries
Types of Publics Financial Publics Media Publics Government Publics Citizen-Action Publics Local Publics General Public Internal Publics
Macroenvironments Management Orientations
Demographic Trends in the US Changing Age Structure of the Population Geographic Shifts in Population Increasing Diversity A Better Educated, More Professional Population The Changing American Family
Generations in the US Baby Boomers Millennial Generation X
Economic Trends in the US Changes In Income Economic Trends The Global Economy The Super Rich
Natural Environment Growing Shortages of Raw Materials Increased Government Intervention Increased Pollution
Trends in the Political Environment Increased Legislation and Regulation Changing Government Agency Enforcement International Politics
Cultural Environment Cultural Values Cultural Environment Socially Responsible Behavior
Environmental Scanning Determine Environmental Areas to be Monitored Implement Data Collection Plan Determine How Information will be Collected Analyze Data and Use in Planning Process
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 power and spending patterns. Markets require both power and people. Purchasing power depends on current income, price, saving, and credit; marketers must be aware of major economic trends in income and changing consumer spending patterns. Demography the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. Disintermediation the elimination of intermediaries. Echo boomers see Millennials. 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 Environmental management 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
Key Terms (cont. ) Environmental sustainability a Generation X a generation of 45 management approach that involves developing strategies that both sustain the environment and produce profits for the company. million people born between 1965 and 1976; named Generation X because they lie in the shadow of the boomers and lack obvious distinguishing characteristics; other names include “baby busters, ” “shadow generation, ” or “yiffies”—young, individualistic, freedom -minded few. Financial intermediaries banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods. Generation Y see Millennials. Macroenvironment the larger societal forces that affect the whole microenvironment: competitive, demographic, economic, natural, technological, political, and cultural forces.
Key Terms (cont. ) Marketing environment the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers. Marketing intermediaries firms that help the company to promote, sell, and distribute its goods to final buyers; they include middlemen, physical distribution firms, marketing service agencies, and financial intermediaries Marketing services agencies marketing research firms, advertising agencies, media firms, marketing consulting firms, and other service providers that help a company to target and promote its products to the right markets. Microenvironment the forces close to a company that affect its ability to serve its customers: the company, market channel firms, customer markets, competitors, and the public. Millennials (also called Generation Y or the echo boomers). Born between 1977 and 2000, these children of the baby boomers number 83 million, dwarfing the Gen Xers and larger even than the baby boomer segment. This group includes several age cohorts: tweens (ages 8 to 12), teens (13 to 18), and young adults (the twentysomethings). Political environment laws, government agencies, and pressure groups that influence and limit the activities of various organizations and individuals in society
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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