By the end of this chapter, you will be able to:
These skills will help you understand the market better and make smart decisions that drive business success.
Compiled by: Bonface Ochieng
Evaluating the marketing environment is essential for catering and accommodation management professionals in Kenya to maintain competitiveness and respond effectively to changing market conditions. Understanding the external and internal factors that influence business operations enables managers to make informed strategic decisions. This chapter focuses on defining key environmental terms, examining methods for evaluating competitor strategies, and exploring the impact of environmental factors on hospitality businesses. It also highlights the importance of collecting consumer data to guide marketing efforts.
The marketing environment is made up of forces that shape how an establishment plans and carries out its marketing, grouped into the macro and micro environment, together with the data and trends used to read them.
The macro environment is the set of broad outside forces, such as the economy, politics, technology and society, that affect every establishment in the hospitality sector, whether or not any single establishment can control them.
The micro environment is the set of forces close to an establishment, such as its customers, competitors and suppliers, that it interacts with directly and can influence to some degree.
Consumer data is information gathered about guests, such as their preferences, spending and feedback, used to understand and respond to their needs.
Market trends are the general directions in which guest preferences and the hospitality market are moving, such as a growing interest in self catering stays.
Macro environmental factors are the broad forces outside an establishment's direct control that still shape its marketing decisions.
Political factors include government stability, policy and regulation affecting the hospitality sector, such as tourism promotion policy or licensing requirements.
Economic factors include income levels, inflation and exchange rates, which affect how much guests are willing and able to spend on accommodation, food and events.
Sociocultural factors include guests' values, lifestyles and cultural practices, which shape the type of food, décor and service guests expect.
Technological factors include developments such as online booking systems and payment technology, which change how guests find and pay for hospitality services.
Environmental factors include climate, weather patterns and sustainability concerns, which affect seasonal demand and guest expectations around resource use.
Legal factors include the laws and regulations governing health, safety, employment and licensing that an establishment must comply with.
Micro environment factors are the parties an establishment deals with directly in carrying out its marketing.
Customers are the guests who buy the establishment's accommodation, food and event services, and whose needs marketing activity aims to satisfy.
Competitors are other establishments offering similar services that guests may choose instead.
Suppliers are the businesses that provide the food, beverages, linen and other materials an establishment needs to operate.
Intermediaries are the travel agents, booking platforms and tour operators that connect guests to the establishment.
Employees are the staff who deliver the establishment's services, and whose skill and attitude directly affect guest experience.
The public is the wider group of people and organisations, such as local residents and the media, who are not direct customers but can still affect the establishment's reputation.
Create a free account to open more of this chapter.
Free: practical guides, quick cards, workplace scenarios and more.
Create a free accountThis chapter explored key concepts essential for understanding how to evaluate the marketing environment effectively. It began by defining macro environmental factors, which include broad external forces such as economic, political, and social conditions that influence businesses. The discussion then shifted to micro environment factors, focusing on elements closer to the company like customers, suppliers, and competitors. Methods for evaluating competitors' strategies were examined, highlighting ways businesses can analyze their rivals to gain a competitive edge. The chapter also considered the impact of both macro and micro environmental factors specifically within the hospitality industry, emphasizing their role in shaping business operations and decision-making. The importance of collecting consumer data was underscored as a critical step in understanding market needs and preferences. Finally, various types of market trends were identified, providing insight into how shifts in consumer behavior and industry patterns can affect marketing strategies. Together, these topics offer a comprehensive framework for assessing the dynamic marketing environment.
At the start of this chapter we promised you would be able to:
Tick each one you can genuinely do.
So, are you there yet?
You're competent when you can confidently do 50% or more of what this chapter promised.
Sign in to record how you're doing.