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HMGT 2405 Hospitality MarketingChapter 4
1
Marketing for Hospitality and Tourism
CHAPTER
Seventh Edition
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Marketing Environment
4
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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Learning Objectives
1. Describe the environmental forces that affect the company's ability to serve its customers.
2. Explain how changes in the demographic and economic environments affect marketing.
3. Discuss how companies can be proactive rather than reactive when responding to environmental trends.
HMGT 2405 Hospitality MarketingChapter 4
2
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Marketing Environment
The microenvironment
The macroenvironment
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Marketing Environment
• The marketing environment: a set of outside actors and forces that affect a company’s marketing management ability.– the microenvironment – the macroenvironment
• Marketing environment should be examined and monitored on an ongoing basis.
HMGT 2405 Hospitality MarketingChapter 4
3
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Microenvironment
ManagementOrientations
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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Levels of Competitors
Budget competition
General competition
Product category
competition
Product form
competitionHamburgers
Fast food restaurants
Prepared food
Food and entertainmentMovie
theaters
Full service restaurants
Frozen meals
Video rentals
Grocery stores
Grocery store delicatessens
KFC
Taco Bell
Wendy’sBurger King
McDonald’s
Subway
Companies that offer similar services to the same customers at a
similar price
Companies that compete for the same
consumer dollars
Companies that supply the same
service
Companies that make the same
product or class of products
HMGT 2405 Hospitality MarketingChapter 4
4
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Intermediaries
Marketing Services
Agencies
Financial IntermediariesIntermediaries
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
HotelTonight.com
HMGT 2405 Hospitality MarketingChapter 4
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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
OpenTable.com
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Types of Publics
Financial Publics
Media Publics
Government Publics
Citizen-Action Publics
Local Publics
General Public
Internal Publics
HMGT 2405 Hospitality MarketingChapter 4
6
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Macroenvironments
ManagementOrientations
• Larger forces that influence the company’s operations.
• Cannot be controlled.
• Often totally unpredictable.
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Demographic Trends in the US
A Better Educated,
More Professional Population
Geographic Shifts in
Population
Changing Age Structure of
the Population
Increasing Diversity
The Changing American
Family
HMGT 2405 Hospitality MarketingChapter 4
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ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Generations in the US
Baby Boomers
GenerationX
MIllenials
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Changing Family Structure
• Increasing age of those marrying • Delayed child bearing • Increasing two income families• Non-family households
HMGT 2405 Hospitality MarketingChapter 4
8
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Economic Trends in the US
ChangesIn Income
ChangesIn Consumer
Spending Patterns
The Super Rich
The Global Economy
EconomicTrends
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Natural Environment
Growing Shortagesof Raw Materials
IncreasedPollution
IncreasedGovernmentIntervention
HMGT 2405 Hospitality MarketingChapter 4
9
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Natural Environment
• The natural environment consists of natural resources required by marketers or affected by marketing activities
• Additional trends in the natural environment to be aware of: – Natural phenomena that
affects their markets – Greenhouse effect– Solid waste problem
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Trends in the Political Environment
Increased Legislation
and Regulation
Changing Government
Agency Enforcement
International Politics
andLegislation
■ Fire codes, taxation, food handling practices, employment and employee practices, sales of liquor, hotel taxes
■ Government intervention in natural resource mgt.■ Growth of public-interest groups■ Increased emphasis on ethics and socially responsible actions■ Hotel taxes and restaurant taxes have become popular
sources of revenue for local governments
HMGT 2405 Hospitality MarketingChapter 4
10
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Cultural Environment
Cultural Values
Socially Responsible
Behavior
CulturalEnvironment
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Environmental Scanning
Analyze Data and Use in Planning
Process
Implement Data Collection Plan
Determine How Information will
be Collected
Determine Environmental
Areas to be Monitored
HMGT 2405 Hospitality MarketingChapter 4
11
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Responding to The Marketing Environment
• Many companies feel the marketing environment is uncontrollable
• An environmental management perspective takes action to sway the marketing environment
• Take a proactive rather than a reactive approach