business environment

Topics: Marketing, Marketing management, Marketing research Pages: 5 (1423 words) Published: November 8, 2013
As explains that a marketing orientation is a particular
form of business or corporate culture reflecting outward-looking management attitudes. Organized around a detailed knowledge
of existing and prospective customers, outward looking means being highly responsive and proactive to the constantly changing dynamics of the business environment within which any
organization operates. It is widely recognized at the start of the twenty-first century that the pace of change is accelerating around the world as the globalization of economies forces
businesses to respond. Figure 2.1, representing the systematic marketing process has, at the start of the process, an appreciation of the external business environment on which all strategy
and subsequent marketing decisions are based.
It is the business of marketing managers to understand and
seek to influence demand to the maximum extent possible, at the same time adapting their products and operations strategically to take advantage of the dynamics of continuous change. Most
marketing managers are not usually concerned directly to
measure all the overall factors that influence total market
movements, but they are invariably involved with interpreting such movements and deciding how best their organizations should respond. For the purposes of this article and the next it is convenient to separate what Burkart and Medlik (1981: 50) identified as ‘determinants and motivations’. Determinants are the economic, technological, social, cultural and political factors at work in any society that drive and set limits to the volume of a population’s demand for travel. Motivations, the subject of the next article, are the internal factors at work within individuals, expressed as the needs, wants and desires that influence tourism choices. This article commences with a short introduction to the reasons why more demanding consumers are now emerging in most developed

countries and notes the determinants influencing the total demand for travel and tourism that are common to all countries. Eight determinants are identified and discussed separately, and combined in Table 4.1. The article concludes with a brief note on the implications of the determinants for marketing managers.

The more demanding consumer for travel and tourism – a global development
In all developed countries, reflecting in part a more competitive business climate at the start of the twenty-first century, businesses in travel and tourism are having to respond to more demanding customers for their services. The reasons for this are summarized briefly below and developed in the article. Over the last two decades consumers have become, on average:

The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors. It also includes consumers, collaborators, and centers of influence. The macro-environment includes concepts such as demography, economy, natural forces, technology, politics, and culture. Proactive attention to the environment allows marketers to prosper by efficiently marketing in areas with the greatest customer potential. It is important to place equal emphasis on both the macro and micro-environment and to react accordingly to changes within them. Reactive attention to the environment by marketers can lead to a disconnect with potential customers and can allow competitors to gain advantages that will win them a higher market share. TERMS

marketing environment
The factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. micro-environment
Small forces that are close to the company that affect its ability to serve its customers. macro-environment
Larger societal forces that affect the micro-environment.
the study of human populations, and how they change

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