1. Chapter 4 The Marketing Environment
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

2. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Environment - HOA380 - Chapter 5 3

3. Major Forces in the Company’s Macroenvironment
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

4. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

5. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

6. Age Distribution of the U.S. Population
Baby Boomer Generation
(78 million people born ) One of the most powerful forces shaping the marketing environment, 30% of population
Generation X
(45 million people born ) More skeptical, cynical of frivolous marketing pitches promising easy success
Echo Boomer Generation
(72 million people born ) Fluent and comfortable with computer, digital, and Internet technology (Net-Gens)
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

7. Economic Environment Key Economic Concerns for Marketers
Global Economic
Development
Changes in Income
Changing Consumer
Spending Patterns
Key
Economic
Concerns for
Marketers
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

8. Natural Environment Conservation Of Resources Factors Affecting the
Ecotourism
Recycle and
Reduce Waste
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

9. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

10. Political Environment
Includes Laws, Government Agencies, Etc. that Influence
& Limit Organizations/ Individuals in a Given Society
Increasing
Legislation
Changing
Government
Agency
Enforcement
Increased
Emphasis on
Ethics &
Socially
Responsible
Actions
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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

12. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

13. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

14. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Environment - HOA380 - Chapter 5 10

15. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Environment - HOA380 - Chapter 5 11

16. 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.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Environment - HOA380 - Chapter 5 12