MARKETING

ENVIRONMENT

Definition of marketing
environment
The marketing environment is a marketing term and
refers to factors and forces that affect a firms ability to
build and maintain successful relationships with
customers
The marketing environment includes the actors and
forces outside marketing that affect marketing
managements ability to build and maintain successful
relationships with target customers
Marketing environment refers to the controllable and

Main areas
1. Definition of marketing environment
2. Components of marketing environment
3. Marketing environmental analysis
4. SWOT analysis of Zanzibar destination
5. Benefits of marketing analysis

Components of the Marketing

Environment
Generally speaking, the marketing environment can be
divided into two areas: the external environment and the
internal environment.
The external environment is concerned with
everything that happens outside the organization
The internal environment is concerned with those
marketing factors that happen within the organization.

Components of the Marketing

Environment
Internal environment
The internal environment is made up of factors within the
firm itself. Examples include employees, company policy,
capital assets, the firm's structure and the firm's products
(materials). These factors can be controlled by the firm.
External environment
The external environment consists of two further
divisions: factors close to the organization (called the
micro-environment), and those factors common to
society as a whole (the macro-environment).

Micro environment/ task

environment.
The micro-environment affects the organization

directly. It
refers to the environment that most closely linked to the firm. This
environment is also not under the full control of business.
The micro environment consists of the forces close to the
company that affects its ability to serve its customers. The Micro
Environment consists of some forces. That are,
1. Companys Suppliers
2. Marketing Intermediaries
3. Customers
4. Competitors
5. Public

Micro environment
Customers are the actual buyer of our goods and services.
Suppliers are firms and individuals that provide the resources
needed by the company.
Competitor, A business rival of a firm supplying a particular
good or service which offers buyers an identical or similar
product.
Marketing intermediaries are firms that help the company to
promote, sell, and distribute its goods to final buyers.
Publics is a generic term encompassing all the groups that
have actual or potential impact on the company. The range of
publics can include financial publics, local publics, governmental
publics, media publics, citizen action publics and many others.

Macro Environment/ General

Environment
Macro Environment: Includes all factors that can influence an
organization but that are out of their direct control. It consists of
larger societal forces that affect the companies micro
environment. It is continuously changing and the company needs
to be flexible to adapt.
Tourism businesses need to take into consideration the fact that
they operate in a competitive national and international
environment.
The macro-environment includes political, economic, socio-cultural,
technological and environmental forces, and is therefore known as
the PESTE environment.

Economic environment
Some determinants as marketer can assess to know how
economic factors are affecting business
The inflation rate
The interest rate
Disposable income of buyers
Credit accessibility
Unemployment rates
The foreign exchange rate

Political legal environment

Some determinants as marketer can assess to know how
Political factors are affecting business
Government policies
Taxes laws and tariff
Stability of government
Entry mode regulations

Social- cultural environment

Some determinants as marketer can assess to know how
Social factors are affecting business
Distribution of Wealth and income
Population growth
The social lifestyles
Educational levels

Technological environment
Firms can use these factors for their benefit:
Increasing role of web & internet
Facilitates Online Booking
Providing customers with easy payment facility via
online and use of credit cards

Physical Environment
Some environmental factors marketer can study are:
Geographical location
The climate and weather
Waste disposal laws
Energy consumption regulation
Peoples attitude towards the environment

Marketing environmental scanning is the process of

collecting information about the forces present in the
marketing environment this can be done in different way
such as observation, review of secondary source of
information.
Environmental analysis is the process of assessing and
interpreting the information gathered under scanning.
NOTE: The tool used to analyze the macro environment is
PEST, and the tool used to analyze the micro
environment is Porter`s five forces analysis and SWOT
analysis

SWOT ANALYSIS
SWOT analysis: Is a framework for identifying and analyzing the internal
and external factors that can have an impact on the viability of a Firm,
project, product, place or person.
SWOT analysis: Is a tool that helps a firm to assess its environment to find
the opportunities and threats and identify its internal strengths and
weaknesses in a systematic manner.
A SWOT analysis examines 4 elements
1. Strengths
Internal attributes and resources that support a successful outcome.
2. Weaknesses
Internal attributes and resources that work against a successful outcome.
3. Opportunities
External factors that project use to its advantage.
4. Threats
External factors that could jeopardize the project.

Strengths

Opportunities

Zanzibar known name

Infrastructure improvements

Stone Town uniqueness and

Institutional strengthening and

cultural experience

funding

Paradise Islands- Pemba etc

Create hotel and tourism

Extensive white sandy beaches

association

Variety marine activities

Improvements to sea and airports

Friendliness of the Zanzibaris

Training staff improving service

Hotel stock variety Stone Town, beach and standard

eco resorts.

Product and activities improvements

Weaknesses

Threats

Infrastructure roads, utilities, garbage

Over taxation threatening viability

State of sea and airport facilities

Deteriorating product standard

Private sector lack representation

Health and hygiene risks

ZCT lacks funding and effective

Lack of funding and marketing

manpower resources

resources

High taxation and fees etc.

Negative image Papazi, drugs, Prostitution

Low occupancy levels affecting

Increase in rooms insufficient

viability

airlift

Ineffective security/policing

Terrorism and global economic slump

Benefits of marketing
environmental analysis
Marketer is able to know the need of the customers
Update /trendy products can be brought out in the
market
Competitor moves can be anticipated and countered
Marketing mix strategy can be properly formulated
Adopting uncontrollable environment become easy
Marketer is able to know strength weakness and
opportunities

MARKETING MIX

MARKETING MIX
Marketing mix is a combination of elements that require a
companys attention when bringing a product or service to
the market.
Marketing mix is a combination of elements/ tools used by
the firm to achieve marketing objectives in the target market.
Marketing mix is the set of marketing tools that the firm
uses to pursue its marketing objectives in the target market.
For marketing of products, the four elements of
marketing mix are product, price, distribution and
promotion. In the cases of services, there are three
additional elements. These elements are people, physical
evidence and process.

The Elements of the Marketing

Mix.
Traditional marketing mix comprised of the 4Ps of
product, price, place and promotion has enjoyed
tremendous popularity over the years
Extended marketing mix comprised of the 3Ps people,
process and physical environment / evidence.

Product, tourism product in marketing is referred to as any product or

service related to tourism like transportation, accommodation,
restaurants, attractions, shops, landscapes and etc
Price: in marketing mix price is the fee for a product or service to
account of any person or organization. Or the price is the sum of the
values that consumers lose in exchange for enjoys the benefits of
having a product item or a service.
Place or distribution refers to how an organization will distribute the
product or service to the end user or consumer. It refers to providing
the product at a place, which is convenient for consumers to access.
Thus tourism products distributed through tour operator travel agents
internet and other
Promotion; It encompasses all of the ways that the company markets
and advertises the business, or the process (set of means and actions)
designed to inform potential visitors about the tourism product offered,
including advertising, Sales promotions, personal selling.

The additional three Ps in tourism are people, process and physical

evidence that was originally devised by Booms and Bitner in the early
1980s.
People in tourism refers to all people and workers whom tourists interact during
their visit to particular destinations. Such as local community, employees and
tourist themselves.
Process
Refers to the systems used to assist the organization in delivering the service.
Important processes include booking, checking in and checking out, queuing
systems and service operations. Marketers need to ensure that the organizations
service delivery processes are efficient, customer friendly and competitive.
Physical environment
The physical environment (or physical evidence) consists of the tangible features of
the hospitality offer the external appearance of the premises (the landscaping,
lighting and signage) and the internal layout (appropriate decor, furniture and
furnishings). Intangible factors are intimately linked to physical evidence the
ambience or atmosphere and clearly the success of a hospitality product is
dependent upon the appeal of the physical environment to the customers.

THE THREE MARKETING MIXES

Pre-encounter marketing mix, it happens before the customer has

the encounter with the service provider. Marketing communications such
as advertising, selling, price lists and brochures influence expectations.
Marketers need to understand the product/service expectations of
customers, as they design offers for the customers. They also must
make products easy to buy by establishing appropriate distribution
channels.
The encounter marketing mix, is the second marketing mix occurs at
the point of sale and consumption. Customers come in to contact with
the people element of the marketing mix (employees and other
customers), processes, and physical evidence at locations where the
service is produced and consumed.
The post-encounter marketing mix, it is designed to influence
customers after the service experience, with a view to creating a longterm relationship, hospitality marketers will want to communicate with
customers to find out what they thought of the experience, to identify
and satisfy customer complaints, and to encourage the customer to
come back and give positive word-of-mouth.

Assignment
Select a company in the hospitality and tourism
industry: e.g. hotel, restaurant, tourist agency,
tourist destination, etc. Trace the company and
discuss the 7 Ps of the Marketing Mix used by this
company. You may have to use different sources,
company website, company annual report,
newspaper or other form of advertisement,
newspaper articles, etc. to piece the information
together.