2. MARKETING
ENVIRONMENT
• A marketing environment is
a mix of those internal and
external factors which
influence the successful
sale of a product or service.
• Some factors are
controllable while others are
not.
• While internal factors are
usually controllable, the
external factors are
unpredictable.
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3. Microenvironment
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a. pertains to
organizational
setup, including
goals and
objectives,
structure,
managerial
composition,
philosophy,
vision, mission,
policies,
programs,
plans,
strategies
tactics etc.
MANAGEMENT
includes the
marketing program
of the company
covering the basic
marketing mix.
MARKETING
it includes the
company’s
resources.
FINANCE
The microenvironment
is also called internal
environment. Internal
environment consist of
( 5) equally powerful
forces, namely;
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This includes all the aspects of
manufacturing
( pertaining to industries) or
operations ( for commercial and
service enterprises).
PRODUCTION AND OPERATION
This deals with
increasing the
effectiveness of
human
performance.
HUMAN
RESOURCES
MICROENVIRONMENT
5. THE MACRO
ENVIRONMENT
The macroenvironment is
also called the external
environment. It includes
forces that are beyond a
company’s control.
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includes such
forces as balance
of payments,
foreign exchange,
import- export
situations,
competitive
situation, taxation,
energy and oil
prices,
employment, and
other measures of
economic
ECONOMIC
ENVIRONMENT
Includes al those
activities that
influence the
wealth and income
of the population.
a. State of the
economy
b. Structure of
employment
and the level of
unemployment
c. Rate inflation
d. Exchange rate.
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1. This pertains to people and their
culture.
Examples of forces under this type
of external environment are
education, customs, and traditions,
religious affiliations, perception,
cultural values, demography, ethnic
and racial diversity.
SOCIOCULTURAL
ENVIRONMENT
Politico pertains to the government
while legal pertains to the law. This
environment includes legislation
regulating business, legal restrictions,
elections, political stability, presidency,
peace and order situation, armed
forces, etc.
POLITICO –
LEGAL
ENVIRONMENT
THE MACRO ENVIRONMENT
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This includes typhoons, earthquakes, the El Nino and El Nina phenomena, pollution, ozone
depletion, deforestation, preservation and extinction of animal species, etc.
• Environmental factors have become more important in all parts of the world as people recognize
the impact tourists have on the planet. In particular, mass tourism has become much more
controversial . Tourism:
- Encourages new hotel and leisure developments
- Impinges on natural habitats
- Uses up scarce resources
- Generates air and noise pollution
- Creates waste disposal problems
NATURAL / ENVIRONMENTAL
ENVIRONMENT
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TECHNOLOGICAL ENVIRONMENT
Refers to the advancement of science and technology and includes new inventions or
discoveries, technological breakthroughs, research and development, information
technology, scientific experiments, etc.
• The technological environment in hospitality is closely associated with innovation and
developments in ICT.
a. Growing sophistication of computerized reservation services
b. Development of global distribution networks
c. Increasing consumer and commercial use of internet
Editor's Notes
A micro marketing environment, is an environment that directly impacts your organization. It's linked to a particular area of your business but can spread to all business processes. They can influence your daily proceedings and overall company performance.
The micro-environment refers to the forces that are close to the company and affect its ability to serve its customers. It influences the organization directly.
Management – marketing managers must work all departments of a company
All departments have an impact on the marketing departments plans and actions.
Marketing – marketing help the company to promote, sell and distribute its good to the final buyers
Finance – financial intermediaries help hospitality companies finance their transactions
Macro environment is also known as- general environment or remote environment. Macro environment refers to the general environment that originates outside the organization and affects the business operations indirectly and the businessman has no control over these forces.
the major uncontrollable, external forces which influence a firm's decision making and have an impact upon its performance.
The economic environment consists of factors that affect consumer purchasing power and spending patterns
Spending behavior is influenced by a variety of factors - including personal factors such as income, wealth, and financial goals, as well as external factors such as the economy, cultural norms, and marketing.
So as to be successful in the business, it is not adequate to attract new customers; hoteliers should focus on maintaining existing customers employing effective strategies of customer commitment, satisfaction and loyalty to maximize their lifetime value.
It is not enough to have people, the people must have buying power
Social Environment of a Business
What is the social environment of a business? The social environment comprises the beliefs, desires, values, and attitudes of consumers and public members. Other social environment examples are the consumption patterns, desires, and behaviors of the market. This social environment definition includes demographic factors of the market, such as:
Occupation
Age
Income
Consumption patterns
Gender
Ethnicity
The political-legal environment is a combination of a lot of factors such as the current political party in power, the degree of politicization of trade and industry, the efficiency of the current government, government policies, current legal framework, the public attitude towards the economy, etc.
