Hospitality Management:
External Environment
& The Planning and Development Process
Week 5
, Introduction
Definition:
The Company’s environment consists of
"the actors and forces outside
marketing that affect marketing
management's ability to develop and
maintain successful transactions with
its target customers"
Kotler et al, 1994
, Introduction (cont’d)
Companies must evaluate both micro and
macro-environment to identify
any trends that may affect their marketing
strategies, and
opportunities that can be developed into
competitive advantages
Porter's Five Forces model analyses market
structures to determine market
attractiveness taking into consideration the
micro and macro environments in its
construction
, Company’s Microenvironment
Relates to the internal forces or forces close
to the company over which some control is
possible
Top management
Other functions e.g. finance and
accounting, R& D, manufacturing and
purchasing
Suppliers
Marketing intermediaries (channel
partners)
Customers
Competitors
Public
External Environment
& The Planning and Development Process
Week 5
, Introduction
Definition:
The Company’s environment consists of
"the actors and forces outside
marketing that affect marketing
management's ability to develop and
maintain successful transactions with
its target customers"
Kotler et al, 1994
, Introduction (cont’d)
Companies must evaluate both micro and
macro-environment to identify
any trends that may affect their marketing
strategies, and
opportunities that can be developed into
competitive advantages
Porter's Five Forces model analyses market
structures to determine market
attractiveness taking into consideration the
micro and macro environments in its
construction
, Company’s Microenvironment
Relates to the internal forces or forces close
to the company over which some control is
possible
Top management
Other functions e.g. finance and
accounting, R& D, manufacturing and
purchasing
Suppliers
Marketing intermediaries (channel
partners)
Customers
Competitors
Public
