2. Learning Objectives
1. List and discuss the importance of the elements of
the companyâs microenvironment, including the
company, suppliers, marketing intermediaries,
customers, and public.
2. Describe the macroenvironmental forces that
affect the companyâs ability to serve its customers.
3. Explain how changes in the demographic and
economic environments affect marketing, and
describe the levels of competition.
3. Learning Objectives
4. Identify the major trends in the firmâs natural and
technological environments.
5. Explain the key changes that occur in the political
and cultural environments.
6. Discuss how companies can be proactive rather
than reactive when responding to environmental
trends.
4. 4
Environments
âą Internal: various
departments
âą Micro: the company
(internal), suppliers,
marketing intermediaries,
customers
âą Macro: competitive,
demographic, economic,
natural, technological,
political, and cultural
9. Demographic Environment
ïĄ Age Structure
ïĄ Diversity
ïĄ Family Structure
ïĄ Geographic Shifts
ïĄ Education
ïĄ What else?
9
10. 10
Age Distribution of the U.S. Population-Demographic
Environment
(78
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
(72
million people born 1977-1994) Fluent
and comfortable with computer, digital,
and Internet technology (Net-Gens)
12. 12
Natural EnvironmentNatural Environment
Growing shortage
of resources/raw
materials
Growing shortage
of resources/raw
materials
Increased pollution
(recycle/reduce waste,
ecotourism)
Increased pollution
(recycle/reduce waste,
ecotourism)
Increased
government
intervention
Increased
government
intervention
Factors Affecting
the
Natural
Environment
Factors Affecting
the
Natural
Environment
13. 13
Technological Environment
ïĄ The most dramatic force affecting
tourism and hospitality
ïŹ Robots and machines
ïŹ Computerized video checkout services
ïŹ Electronic guest room locking systems
ïŹ The development of the Internet
15. 15
Cultural Environment
ïĄ Cultural Values impact marketing
ïŹ give some examples of how globalization
has had a cultural impact on chain
restaurants (feng shui)
ïĄ Subcultures
ïŹ the U.S. is becoming more heterogeneous as
can be seen in the growth of the Hispanic
and Asian populations
ïŹ Teenagers, working women, etc.
16. Overlapping environments
ïĄ Most environments do not operate
independently from other
environments
ïĄ Example: What environments
affect your ability to eat out? Go to
a theme park? Fly? Stay somewhere
over night? Travel abroad? In what
ways do they affect you? Be
specific.
17. Environmental Scanning
Analyze Data
and Use in
Planning
Process
Analyze Data
and Use in
Planning
Process
Implement
Data
Collection
Plan
Implement
Data
Collection
Plan
Determine
How
Information
will be
Collected
Determine
How
Information
will be
Collected
Determine
Environment
al Areas to
be Monitored
Determine
Environment
al Areas to
be Monitored
18. 18
How will you get information for your
environmental scan?
ïĄ Simple data collection is not
sufficient
ïĄ Get reliable, timely, useful
information
ïĄ What kind of information is
available on the Internet?
ïŹ Ex. AHLA, NRA, TTRA, TIA, UNWTO
websites
ïĄ Collect and analyze your own data
19. Conclusion and Advice
ïĄ Always be aware of all
environments and how they overlap
ïĄ Be involved in community to help
drive decisions
ïĄ Analyze how environments are
affecting your company and your
competition
ïĄ Keep evolving
19
20. Review
1. Microenvironment
2. Macroenvironmental forces
3. Demographic, economic environments,
and competition
4. Natural and technological environments
5. Political and cultural environments.
6. Be proactive rather than reactive when
responding to environmental trends.
Hinweis der Redaktion
The success of marketing plans requires working closely with the companyâs microenvironment
The Company
Marketing decisions must be made within the strategies and plans made by top management
Existing Competitors
Existing customers are part of the microenvironment because we can identify and observe them closely
Companies must gain strategic advantage by strongly positioning their product in the minds of consumers (See Slides 5-6)
Suppliers
Suppliers are firms and individuals that provide the resources needed by the company to produce its goods and services
Marketing Intermediaries
Marketing intermediaries help the company promote, sell, and distribute its goods to the final buyers (See Slide 7)
Customers
Consumer markets consist of individuals and households that purchase hospitality services for leisure activities, medical needs, and gatherings such as reunions, weddings, or funerals. Business markets buy hospitality services to facilitate their business.
Publics
Public is any group that has an actual or potential interest in or impact on an organizationâs ability to achieve its objectives (Financial public: banks and investment houses, media publics: newspapers, magazines) also include government public, local public and
Every company faces four levels of competitors:
A company can view its competitors as other companies that offer similar products and services to the same customers at a similar price
A company can see its competitors as all companies making the same product or class of products
A company can see its competitors more broadly as all companies supplying the same service
A company can see its competition even more broadly as all companies that compete for the same consumer dollars
In general a company should monitor three variables when analyzing each of its competitors:
Share of market
The competitorâs share of the target market.
Share of mind
The percentage of customers who named the competitor in responding to the statement, âName the first company that comes to mind in this industry.â
Share of heart
The percentage of customers who named the competitor in responding to the statement, âName the company from whom you would prefer to buy the product.â
The demographic environment is of major interest to marketers because it involves people, and people make up markets the most important demographic trends in the United States
Changing Age Structure of the Population
Increasing Diversity
The United States seems to have become more of a âsalad bowlâ in which various groups have mixed together but have maintained their diversity by retaining and valuing important ethnic and cultural differences
The Changing American Family
In the United States today, married couples with children make up only 22 percent of the nationâs 117 million households, married couples without children make up 29 percent, and single parents comprise another 11 percent
A full 38 percent are nonfamily householdsâ single live-alones or adult live-togethers of one or both sexes
Geographic Shifts in Population
Americans, for example, are a mobile people, with about 15 percent of all U.S. residents moving each year
Over the past two decades, the U.S. population has shifted toward the Sunbelt states
The West and South have grown, whereas the Midwest and Northeast have lost population
A Better Educated, More White-Collar, More Professional Population
The U.S. population is becoming better educated
The rising number of educated people will increase the demand for quality products including luxury hotels, travel, wine, and dining at restaurants that have interesting menus
Other demographics are what?
The single most important demographic trend in the United States is the changing age structure of the population (See Slide 11)
The Baby Boomers: Post World War II, 78 million baby boomers, born between 1946 and 1964, Most powerful forces shaping the marketing environment. Todayâs baby boomers account for nearly 25 percent of the population, spend about $2 trillion annually, and hold three quarters of the nationâs financial assets.
Generation X: another generation of 45 million people born between 1965 and 1976, Having grown up during times of recession and corporate downsizing, they developed a more cautious economic outlook. They care about the environment and respond favorably to socially responsible companies
Millennials: 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
With total purchasing power of more than $733 billion, Gen Y represents a huge and attractive market. One thing all of the Millennials have in common is their utter fluency and comfort with computer, digital, and Internet technology
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
Includes economics that effect hospitality including:
recession
Inflation
employment levels
personal discretionary income
foreign exchange rates
Global economic dealings, such as currency exchange rates, have a large impact on travel and tourism across the world
Includes issues related to our natural environment
Ecotourism
Disposal
Recycling
Pollution
Anyone involved in tourism is responsible for protecting the environment and ensuring sustainability
The hospitality industry is greatly affected by changes in technology
The Internet, computerized systems, key cards, etc.
The most dramatic force affecting tourism
Consideration of technology impact from both a consumer and business perspective
Potentially a source of competitive advantage
Instrumental in hospitality and tourism
Have potential to increase customer satisfaction
Interactive Customer Experience (ICE) that can be accessed from a number of web-enabled platforms, including SmartPhones and Tablets.
Guest services from the hotel such as room service, valet parking, dining room reservations, and spa services can be accessed from the tablet.
The leading supplier of video checkout services is Spectradyne Inc. of Dallas, which has installations in 133 hotels. Guests review their charges on the television screen and press a one-digit approval button on the television key pad on top of the set. A front-desk printer produces a copy of the bill, which the guest can either pick up or have mailed.
The cultural environment includes institutions and other forces that affect societyâs basic values, perceptions, preferences, and behaviors
Persistence of cultural values
Subcultures
cultural values, consumerism
Many companies view the marketing environment as an âuncontrollableâ element to which they must adapt
Other companies take an environmental management perspective
Rather than simply watching and reacting, these firms take aggressive action to affect the publics and forces in their marketing environment
Smart marketing managers take a proactive rather than a reactive approach to the publics and forces in their marketing environment.
Environmental Scanning
Determine the environmental areas that need to be monitored
Determine how the information will be collected, including information sources, the information frequency, and who will be responsible
Implement the data collection plan
Analyze the data and use them in the market planning process
