JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY

ASSIGNMENT: MACRO AND MICRO ENVIRONMENT FOR MARKETING

GROUP 4

MEMBERS

Emmanuel Lemashon

Wanjera Milka

Martha Mutua

Geoffrey Juma

Introduction
The marketing environment is considered as part of the marketing planning process and
explores various internal and external forces that might affect a business and its capacity to
operate. These can be anything from technological and cultural forces to influences such as;
suppliers, customers and competitors. There are two types of marketing environment namely
micro environment and macro environment. The micro environment consists of factors close to
the company that affects its ability to serve its customers ,The company itself, marketing
channel firms, customer markets and abroad range of publics. The macro enviroment consists
of the large societal forces that affect the entire micro environment that is;
demographic ,economic, natural, technologal, political, competitor and cultural forces.

THE MICRO ENVIRONMENT

It comprises of the company, the supply,the market intermediaries, customers and publics.
The company

The company comprises of;; the finance department which is concerned with finding and using
the funds required to carry out the marketing plans.

The accounting department - has to ensure revenue and cost to help marketing know how well
it is achieving its objectives.

Housekeeping - it is responsible for developing cleaning rooms sold by sales department.

They top management - it sets the company's mission, objectives, broad strategies and
policies. Marketing decision must be made within the strategies and plans made by the top
management.

Existing Competitors

Existing customers are part of the micro environment because we can identify and observe
them closely. Markets must do more than adapt to the needs of target customers. They must
also adapt to the strategies of other companies serving the same targeted market. Marketing
strategies that give them specific advantage of competitors operating in the market. The
company should monitor three variables when analyzing each competitors ; share of market,
share of mind and share of heart.

Suppliers

Supplies are fims and individuals that provide the resources needed by the company to produce
its goods and services. Suppliers are another important aspect of the micro environment
organization depend on many suppliers for equipment and raw materials to entertain their
production. Suppliers can influence the cost structure of the industry and are hence a major
force.

Market intermediaries

Market intermediaries help the company promote sale and distribute it's goods to the final
buyers. Intermediaries are businesses firms that help hospitality companies find customers or
make sales. They include travel agencies, wholesale tour operators and hotel representative,
and online travel agencies (OTA's). Disintermediation is the elimination of intermediaries e.g
hotels have created their own reservations system refered to as brand.com where the name of
the company replaces the brand. The brands are now less dependent on the intermediaries but
still uses them to provide extra demand. Marketing service agencies are suppliers that help the
firm formulate and implement its marketing strategies and tactics. The supplier include public
relations agencies, advertising agencies and direct mailhouses. Financial intermediaries include;
credit companies,banks insurance companies, and other firms that help the hospitality
companies finance their transaction or insure the risk associated with buying and selling of
goods and services.

Customers

Customer markets consist of individuals and households that purchases hospitality services for
leisure activities,medical needs and gathering such as reunions,weddings and funerals.
Business market by hospitality services to facilitate their business. Resellers purchase a product
and then resells it. Government markets are made up of government agencies that are like
businesses purchase hospitality services for individual travelers and meetings. Finally
international market consists of those buyers in the country including consumers businesses
resellers and government.

Publics

Publics is any group that has an action or potential interest or impact in an organization ability
to achieve its objectives. There are seven types of Publics identified in a company marketing
environment which include:

Financial publics - influences the company ability to obtain funds. Bank Investment houses and
stakeholders are the major financial publics.

Media Publics - carry news feature and editorial opinions. They include newspapers magazines
radios and financial publics.
Government Publics - management must take government development into account.
Marketers must consult the company's lawyer on issues of product safety , truth in advertising
and other matters .

Citizen- action publics - a company's marketing decision maybe questioned by a consumer

organizations, environmental groups , minority group and others. It is public relations
department that can help stay in touch with consumers and citizen group.

Local Publics - include neighborhood residence and community organization. Large companies
usually appoint a community relations officer to deal with the community attending meeting,
answering questions and contribute to worthwhile cases.

General Publics - a company needs to be concerned about the general public's attitude towards
its product and activities who stop the public's image of the company affects its buying.

Internal Publics - include workers, manager volunteers and the board of directors. Large
companies uses newsletters and other means to inform and motivate their internal publics.

THE MACRO ENVIRONMENT

These are large forces that affected the company operation. This comprise of competitors,
demographic environment, economic environment, natural environment, technology
environment, and political environment.

Competitors
It is considered that the future competitors are the part of macro environment.

The forces that affect the competition at the ability of the company to enter and exit market.
Entry barriers prevent firms from getting into business and the barriers to exit prevent them
from leaving. The competition in the hospitality industry is unpredictable this is why we include
it as part of the macro environment.

Demographic environment

Demography is the study of human population in terms of size, density, location, age, gender,
race, occupation and other statistics. Demographic environment is a major interest to
marketers because it involves people. Marketers keep close track off demographic trends and
developments in their market both at home and abroad. They track changing age and family
structures,geographic population shift and educational characteristics in the population
diversity.

Economic environment

It consists of factors that affect consumer purchasing power and spending patterns. Nations
vary greatly in their level of income. They consume most of their own agricultural industrial
output. This countries offer few market opportunities. At the other extreme are industrial
economies which constitute rich markets for many different kinds of goods. Marketers must
pay close attention to major trends and consumer spending patterns both across and within
their world markets.

Natural environment

The natural environment involves the natural resources that are needed as inputs by marketers
or that are affected by marketing activities. Marketers should be aware of several trends in the
natural environment. The first involves growing shortage of raw materials,air pollution which
chokes many world cities and also water shortage which is becoming a problem in most part of
USA. Renewable resources such as forest and food must be used to wisely. Consider the
disposal of garbage and sewage by resort. Concern for the natural environment has spawned
the so-called green movement. Today enlightened companies go beyond what the government
regulation dictates. They are developing environmental sustainable strategies and practices in
an effort to create a world economy that the planet can support indefinitely. They are
responding to consumer demand with more environmental responsible products.

Technological environment

The most dramatic force shaping our destiny is technology which has given us wireless access to
the internet. These has made individuals to interact with others involving both audio and visual
connection. The end results, is that speed at which business is occurring has increased
dramatically. Social media like; LinkedIn Facebook and Instagram allows us to keep track of
both our business and personal networks. Technology has affected the hospitality industry in
many ways for example application of Interactive Customer Experience (ICE) that can be
accessed through smartphones and tablets. Guest service in the hotel like; room services,
dining room reservation, and spa services can be accessed from a tablet. The smartphone is a
versatile tool for travelers since they can book and check reservation, they use it as a boarding
pass for airline, registering at hotel and use it as key access to hotel rooms. Social media is
changing how we market to customers creating a powerful media for customers to interact
with other customers and with organizations.

Political environment

Marketing decisions are strongly affected by development in the political environment. The
political environment is made up of; laws, government agencies and pressure groups that
influence and limit the activities of various organizations and individuals in their society.
Increased legislation and regulation affect businesses. As product become more complex, public
concern about their safety increases. Government agencies have become involved in the
investigation and regulation of everything from firecodes to food handling practices.