MKT Ch 4 Review Questions
6. If we have little control over the macroenvironment, why should we be concerned with it?
Although we have little control over the macroenvironment we should be concerned with it because it affects every aspect of a business's microenvironment. The macroenvironment includes competitive, demographic, economic, natural, technological, political, and cultural forces. The macroenvironment shapes opportunities and poses threats. If you react to the macroenvironment quickly enough you can prevent serious loses for your business. It affects consumer purchasing power and consumer trends, which in turn affect sales, profits, and customer loyalty. These are vital to a business's survival and growth.
5. Mobile amrketing involves any type of marketing message-voice, text, image or video - delivered to a handheld device such as a cell phone, iPhone, or Blackberry. Although still in its infancy in the United States, mobile marketing has grown rapidly in other countries. Learn more about mobile marketing and discuss the current applications in the travel and hospitality industries.
Mobile marketing is pretty self explanatory and is marketing on your mobile device. It allows companies to send short SMS messages that include a short slide show of images, text, audio and visuals. This allows consumers to see the product or service on their phone before purchasing it. This phenomenon is huge in Europe and parts of Asia and is slowing making its way into the United States. This can be a huge advantage for not only the travel and hospitality industry, but every industry. By being able to see what you could receive or experience at the tip of your fingers at any moment can help influence decisions and help the market grow. Since buyers are even able to upload images with the particular product, you are able to see what others are experiencing as well, which again can help the company if the service is up to par. This is a genius advancement, but again at the same time it is not because it gives everyone another reason to keep their eyes and hands glued to their phones.
3. The 78 million members of the baby-boomer generation are aging, with the oldest members in their early sixties. List some marketing opportunities and threats associated with this demographic trend for the hospitality and travel industry.
Seventy percent of Americans between the ages of 45 and 74 are working on their retirement plans. As the baby boomer generation is getting older so is their impact on our economy. As they are providing opportunity for the hospitality and travel industry, there are new threats beginning to happen as well. As they start reaching their highest earnings the boomers are creating a lucrative market for travel and entertainment, eating out, spas, and other leisure activities. According to the Travel Industry Association of America, half of all adults took adventure vacation in the last five years. 56% of these people were apart of the baby boomers. More than ever before, older people are feeling much younger then they really are, spending more money on more vacations and adventurous activities. Their threat? As they move into the older stage past retirement, their involvement within the industry becomes limited, they stop taking up our "slow seasons" and snow bird peaks. They begin staying stationary, where travel is not a priority causing a decline in profit in our industry.
1. How was the McDonald's concept changed since the 1960s? What environmental forces were behind these changes? How will the McDonald's concept change in the next decade, given the new forces operating in the environment?
The McDonald's concept has changed very drastically since the 1960's. Originally the restaurant was all about quick casual service and not at all health conscious. Now because of the bigger focus on being healthy many people started to flock to more healthy and fresh fast-causal restaurants like Panera and Baja Fresh. In reaction to the changing consumer needs McDonald's launched a program in 2003 called "Plan to Win." In this plan the company halted rapid expansion and focused money and efforts to redoing current restaurants. The redesigned McDonald's are a cleaner more simple and modern atmosphere with live plants and flat screen televisions. The menu was redone by a former Four Seasons Chef who added healthier options. New add campaigns emphasized eating right and staying active. In the future McDonald's will become even healthier, cleaner, and more innovative using new technology that will help employees increase productivity and preparation time.
4. How have environmental trends affected the design of hotels?
There are 7 major environmental trends that affect the design of hotels around the world. The first is the competitive environment, a company must satisfy the needs and wants of consumers better than its competitors do in order to survive. The hotel must design them in a way that is more appealing than their competitors. Second is the demographic environment, this is the people environment. The main target of all hotels, designing your hotel in a way that is appealing to people is, in my opinion, the most important trend follow. Third, the economic environment; marketers must be aware of major economic trends in income and changing consumer patterns. Adjusting the prices of your hotel Is big in the design if you want to make profit. Adjust to the economy, even if that means lowering cost. Paying attention to the Natural Environment is extremely important as well, this includes natural resources. Fifth is to follow the technological trends, the most important in the 21st century. Pay attention to the trends; incorporate technology within the hotel to be used by the guest. The sixth is the political environment, follow the laws and regulations set by the government, make sure you are following all rules in the design process as far as warrants and inspections needed. The last environmental trend is cultural. Cultural trends affect society's basic values, perceptions, preferences, and behaviors. Be cautious of the present trends, adjust hotel accordingly to these trends.
2. What environmental trends will affect the success of a first-class hotel chain, such as Hyatt or Sofitel, over the next 10 years? If you were corporate director of marketing for this type of hotel, what plans would you make to deal with these trends?
There are many developing environmental trends that are affecting the market for first-class hotel chains such as Hyatt or Sofitel. With technology growing like wild fire this is influencing many hotels to change their systems and help accomodate with the speed and accessibility wanted by the population. With the echo boomers being so large and now becoming the base of the population hotels need to accommodate to their needs and for the echo boomers technology is the key. Having access to wifi, direct tv, laptop stations or a computer lab is almost a must for all hotels to even be considered by this generation. Now the baby boomers hold three-quarters of the nation's financial assets and are rediscovering the excitement of life. This means that many are looking to explore new places, enjoy eating out, going to spas or participating in other leisure activities. Booking a night or two in a Hyatt is becoming less likely with this generation because they are trying to explore outside of the norm so adopting to popular trends with this generation is also a must. Trends that would help benefit your hotel towards this crowd would be to go "green" which means reduce electricity cost, use recycled furniture, offer organic meals in your hotel restaurant and offer leisure and adventure activities at or near your hotel. Baby boomers have all the money so this generation is the most important to try and accomodate and with the echo boomers being the largest but not yet the wealthiest generation, adapting to them earlier would be better for our hotel in the long run. If I were a corporate director of marketing for the Hyatt or Sofitel I would try to adapt to these new trends as quick as possible. The first would be to go "green", to not only show that your company appreciates and cares for the environment, but if you are willing to put your arm out for the environment it makes guests think that you are willing to stick your arm out for them. Next would be to switch to the "healthy train" and offer organic or healthy meals if I had a restaurant, have a spa or fitness center and have lesisure activities that differ from other local or even every hotel. Last would be to upgrade the technology because the echo boomers don't have the money quite yet, however eventually they will and your hotel will need to satisfy their needs.
