The Marketing Environment The Marketing Environment The Marketing Environment

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					The Marketing Environment

The Marketing Environment



Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   1
Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
                        Environments
• Internal:various
  departments
• Micro: suppliers,
  marketing
  intermediaries
• Macro: competitive,
  demographic,
  economic, natural,
  technological,
  political, and cultural
  Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   2
  Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
Major Forces in the Company’s Macroenvironment

 Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   3
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
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, 3e   ©2003 Pearson Education, Inc.   4
        Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
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, 3e       ©2003 Pearson Education, Inc.   5
   Philip Kotler, John Bowen, James Makens         Upper Saddle River, NJ 07458
     Age Distribution of the U.S.
             Population

           (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)
Marketing for Hospitality and Tourism, 3e      ©2003 Pearson Education, Inc.   6
Philip Kotler, John Bowen, James Makens        Upper Saddle River, NJ 07458
        Economic Environment
   Global Economic
    Development



                                                       Key
 Changes in Income                                  Economic
                                                   Concerns for
                                                    Marketers


Changing Consumer
 Spending Patterns


Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   7
Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
Natural Environment

           Conservation
           Of Resources



                                                  Factors Affecting
             Ecotourism                                 the
                                                       Natural
                                                    Environment


           Recycle and
          Reduce Waste


   Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   8
   Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
     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, 3e   ©2003 Pearson Education, Inc.   9
    Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
                 Political Environment
Includes Laws, Government Agencies, Etc. that Influence
  & Limit Organizations/ Individuals in a Given Society



                                                      Increased
                                      Changing       Emphasis on
     Increasing                      Government        Ethics &
     Legislation                       Agency          Socially
                                     Enforcement     Responsible
                                                       Actions

     Marketing for Hospitality and Tourism, 3e     ©2003 Pearson Education, Inc.   10
     Philip Kotler, John Bowen, James Makens       Upper Saddle River, NJ 07458
            Cultural Environment
• Persistence of Cultural Values
• Subcultures




 Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   11
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
      Responding to the
     Marketing Environment
• Environmental management
  perspective
• Environmental Scanning
• Using information about the
  marketing environment

 Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   12
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
          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, 3e   ©2003 Pearson Education, Inc.   13
    Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
                   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, 3e   ©2003 Pearson Education, Inc.   14
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
      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
   McDonald’s McLean were flops
8. Small indulgences–week-end trips,
   Haagen-Dazs ice cream
9. 99 lives–child-care


 Marketing for Hospitality and Tourism, 3e   ©2003 Pearson Education, Inc.   15
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458
      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, 3e   ©2003 Pearson Education, Inc.   16
 Philip Kotler, John Bowen, James Makens     Upper Saddle River, NJ 07458