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Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

The Marketing Environment


Chapter 4

Learning Objectives
1. List and discuss the importance of the elements of the
companys microenvironment, including the company,
suppliers, marketing intermediaries, customers, and
public.
2. Describe the macroenvironmental forces that affect
the companys ability to serve its customers.
3. Explain how changes in the demographic and
economic environments affect marketing, and
describe the levels of competition.

Marketing for Hospitality and Tourism, 6e


Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc


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Learning Objectives (cont.)


4. Identify the major trends in the firms 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.

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2014 by Pearson Higher Education, Inc


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Microenvironment

Pu
bli
c

Management
Intermediaries
Orientations

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2014 by Pearson Higher Education, Inc


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Analyzing Competitors

Share of
Market

Share of
Heart

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Share of
Mind

2014 by Pearson Higher Education, Inc


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Levels of Competitors
Companies that
offer similar
services to the
same customers
at a similar price

Companies that
make the same
product or class
of products

Companies that
supply the same
service

Companies that
compete for the
same consumer
dollars

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2014 by Pearson Higher Education, Inc


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Intermediaries

Marketing
Services
Agencies

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Intermediar
ies

Financial
Intermediari
es

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Types of Publics
Financial Publics
Media Publics
Government Publics
Citizen-Action Publics
Local Publics
General Public
Internal Publics
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2014 by Pearson Higher Education, Inc


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al

Macroenvironments

Cul
tur

Management
Technological
Orientations

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2014 by Pearson Higher Education, Inc


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Demographic Trends in the US


Changing
Changing Age
Age
Structure
Structure of
of
the
the
Population
Population

Geographic
Geographic
Shifts
Shifts in
in
Population
Population

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Increasing
Increasing
Diversity
Diversity

The
The Changing
Changing
American
American
Family
Family

A
A Better
Better
Educated,
Educated,
More
More
Professional
Professional
Population
Population

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Generations in the US

Baby Boomers

MIllenials

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Generation
X

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Economic Trends in the US

Changes
In Income

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Economic
Trends

The Global
Economy

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Natural Environment

Growing Shortages
of Raw Materials

Increased
Government
Intervention

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Increased
Pollution

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Trends in the Political Environment


Increased Legislation and Regulation

Changing Government Agency Enforcement

Increased Emphasis on Social Responsibility

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2014 by Pearson Higher Education, Inc


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Cultural Environment

Cultural
Values

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Cultural
Environmen
t

Subcultures

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Environmental Scanning
Determine
Determine
Environmental
Environmental
Areas
Areas to
to be
be
Monitored
Monitored

Implement
Implement Data
Data
Collection
Collection Plan
Plan

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Determine
Determine How
How
Information
Information will
will
be
be Collected
Collected

Analyze
Analyze Data
Data and
and
Use
Use in
in Planning
Planning
Process
Process

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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

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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

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Key Terms (cont.)


Financial intermediaries Banks,

Macroenvironment The larger

credit companies, insurance


companies, and other businesses that
help finance transactions or insure
against the risks associated with the
buying and selling of goods.

societal forces that affect the whole


microenvironment: competitive,
demographic, economic, natural,
technological, political, and cultural
forces.

Generation X A generation of 45
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
yiffiesyoung, individualistic,
freedom-minded few.

Marketing environment The actors


and forces outside marketing that affect
marketing managements ability to
develop and maintain successful
transactions with its target customers.

Generation Y See Millennials

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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

2014 by Pearson Higher Education, Inc


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Key Terms (cont.)


Marketing services agencies

Millennials (also called Generation

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.

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).

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.

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Political environment Laws,


government agencies, and pressure
groups that influence and limit the
activities of various organizations and
individuals in society

2014 by Pearson Higher Education, Inc


Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms (cont.)


Public Any group that has an actual
or potential interest in or impact on an
organizations 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.

Marketing for Hospitality and Tourism, 6e


Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc


Upper Saddle River, New Jersey 07458 All Rights Reserved