Impact of Environment on Marketing Strategies

This assignment examines the influence of both macro and micro environmental factors on the development and implementation of effective marketing strategies. It encourages students to analyze real-world examples and case studies to illustrate how businesses adapt their marketing mix (product, price, place, promotion) in response to changing environmental pressures.

Marketing in hospitality

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1 Marketing process and concepts of marketing, including customer focus marketing.....1
1.2 Macro and micro environmental environments that influence the marketing decisions..3
1.3 Relevance of consumer market in the hospitality sector..................................................4
1.4 Appropriate market segments to target.............................................................................5
TASK 2............................................................................................................................................5
2.1 Marketing mix variables applicable within the hospitality and its importance................5
2.2 Role of various pricing policies and strategies used by businesses..................................6
TASK 3............................................................................................................................................7
3.1 Promotional mix and its role............................................................................................7
3.2 Advertising campaign for Saba hotel with effective promotional objectives..................8
3.3 Role of sales promotion and public relation in carrying out advertisement campaign....8
TASK 4............................................................................................................................................9
4.1 relevance and importance of undertaking a marketing research in Saba hotel................9
4.2 Market research for an appropriate product or service.....................................................9
4.3Different media for marketing of Saba hotel...................................................................10
4.4 Evaluation of Implementation the proposed marketing plan in Saba hotel....................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is considered as significant process that is used management of organisation to
understand the requirements and demands of particular popular population or consumers and
they make efforts to provide them satisfaction through delegation quality products and services
(Kandampully, Zhang and Bilgihan, 2015). Marketing is a analysed as concept which is wide
one and has no boundaries as it does not start from anywhere and it is continuous because
company needs to continuously analyse the market. They need to make plans and strategies to
achieve marketing objectives set by organisation. Present report is based on analysis of Saba
hotel, which is five hotels based in London. Issues faced by hotel in marketing has been
discussed along with the changes in strategies needs to be implemented. Macro and micro
environmental factors are analysed that influence the marketing decisions of Hotel along with the
relevance of consumers market. Also, strategies to meet the changing needs of customers are
discussed in the report.
1.1 Marketing process and concepts of marketing, including customer focus marketing
Marketing process is the structural framework that involves some important terms that
needs to be accomplished by marketing department of Saba hotel in order to improve their public
image and meeting customers objectives (Brotherton, 2012). Below give is marketing process
which is used to promote business in hospitality sector such as:
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Illustration 1: Marketing mix process

 Situational analysis: A thorough analysis of the relevant condition in which the Saba
hotel identifies themselves serving as basis to identify the chances to provide satisfaction
to unfulfilled customers demands. It aims to analyse internal and external factors that
affects the marketing decision with the help of PESTLE, SWOT and 5C analysis. Marketing Strategy: Most effective opportunity used to find out unfulfilled customers
requirements is a strategic plan used for pursuing the opportunity will be developed.
Marketing strategies of Saba hotel will involve the segmentation, targeting, positioning of
products and services as well as value prepositions (Bharwani and Jauhari, 2013). Marketing mix decisions: These are detailed tactical decisions which are made for the
controllable parameters of the important marketing mix. It involves product development,
pricing decisions, contracts of distribution and promotional campaign development etc. Implementation and control:At this, marketing plan will be developed by Saba Hotel and
their suites and luxuries rooms as well as services will launch in order to satisfy
customers demands. Moreover, results of marketing efforts needs to be monitored closely
by organisation.
Concept of marketing Product concept: As per marketing orientation, If company makes a quality product and
fix a reasonable price, then it has to put less marketing efforts. For example: Saba hotel
provides luxurious quality rooms and services at premium prices but for increasing sale
they need to reduce the prices (Zervas, Proserpio and Byers, 2017). Selling concept: It determines that the consumers will not buy their products and services
unless it is promoted to them with aggression. Marketing concept: Concepts of marketing explains the requirements of customers must
will be analysed first as it will satisfy their requirements more effectively and efficiently.
 Societal concept: It concentrates on satisfying the requirement in a long run in order to
accomplish the objectives of Saba hotel and welfare of the society.
Thus, Saba being a five star hotel which has its global presence and regulates in hospitality and
leisure: thus it has to use integrated marketing concept. Along with innovation in marketing mix,
they also need to earn customers satisfaction and social respect So that Hotel will emerge as five
star hotels in market.
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1.2 Macro and micro environmental environments that influence the marketing decisions.
Environment of marketing is analysed as crucial player used for deciding the success or
the failure of marketing demand. Saba hotel, London operates their business in micro and macro
environment which always keeps on changing at increasing rate. Moreover, it is identified that
these changes either creates opportunity or threats for business enterprise (Ong, 2012). However,
it is essential for marketing team of Saba Hotel to analyse the micro and macro environmental
factors before development of their strategies of marketing. Below are some
Micro environment: It involves the persons or parties which are directly connected with the
business and needs to be considered while making marketing decisions. Suppliers: They are also responsible for controlling the success of business when they
posses bargaining power. In This context, Suppliers of Sab hotel will be tour operators,
local agents and other tourist agencies etc. and they have strong bargaining power.
However, it is essential for enterprise to consider their interest while making decisions of
marketing (The Impact Of Micro and Macro Environment Factors on Marketing, 2017). Customer: Who will be the customers of organization (B2B or B2C, local or international
customers etc. Customers expectations and reasons behind purchasing products and
service will play an important role in how the Hotel will approach the marketing of their
products and services to their clients. Competition: Marketing decisions of Hotel are also affected by their competitors who
also provide similar products and services in hospitality industry at nominal prices. In
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Illustration 2: Macro and micro environments

order to sustain market share, Saba hotel should analyse strategies their rivals and make
some differentiation in their prices, products and services.
Macro environment: Involves the factors that indirectly affects the marketing decisions in
external environment such as: Demographic forces: There are various market segments which are continuous influenced
by the common demographic factors such as size, age, structure, population, income and
education level etc. It is important for Hotel to analyse influence of these factors on their
operations. Economic factors: Focusing on these factors involves analysis of interest rates, disposable
income, GDP as well as pattern of consumption which affects the operations of Saba
Hotel (Verma, Stock and McCarthy, 2012). Technological factors: These factors involves elements such as new product,
applications, software upgrades should be check in a regular interval of time. Political and legal forces: It includes factors such as tax policies, patents, government
stability that should be considered by Hotel as it needs to operate as per laws and
regulation that may be a complex activity for them.
 Social and cultural forces: It states that life style of people, population, buying power and
awareness of brand among the people on which marketing department needs to focus for
development of effective marketing strategy for Saba hotel.
1.3 Relevance of consumer market in the hospitality sector
As per the above given scenario, the aim of marketing for the Saba Hotel is estimate,
meet and satisfy the requirements of customers, thus it is essential for the marketers in hospitality
in enterprise to find out their target clients or population. Personnel or people who tends to
purchase the products for their consumption are considered as end users and group of end user is
termed as consumer market (Pechlaner and Volgger, 2012). There are various important factors
that provide an effect on buying decisions of consumers. Sometimes companies also fails in
analysing these major factors and their impact on decisions of purchasing products of the
consumer market. The important factors that affects the marketing decisions of the enterprise are
as follows. The major factors that influence the consumers as their perceptions which they have
developed after using previous products and services. Moreover, marketing group of the saba
hotel can also analyse the Case of Starbucks enterprise who has faced the issue while
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development of their food chain in china because the population of china have not liked the
organisation. They have though that existence of these type of organisation is considered as sign
of rising impact of western culture in their country. Thus, if the organization will keep a proper
analysis of their present and future requirements of their end users, then these type of situations
will be avoided easily. As determines in case study, Saba hotel is also facing an issue of decline
in rating of their company. Through analysis of consumers expectation and fulfilment of their
requirements company will be able to achieve its objectives.
1.4 Appropriate market segments to target.
Study of literatures have provided an understanding that companies needs to segment
their market first, before entering in to any services and hospitality industry. Segmentation of
market have been considered as dividing of the overall business market in to small segments or
groups which usually involves the consumers those who similar products preferences
(Mohammed and Rashid, 2012). Through analysis of the requirements of these small segments,
Saba Hotel will be able to formulate and design their marketing strategies while identifying the
requirements of each group. Further, this segmentation will assist the enterprise in recognition of
the group which have desire to buy their services and products so that their policies of marketing
will be interlinked towards the specific segment and should work effectively and efficiently. In
this context, Saba Hotel can make segmentation of their overall market on the basis
demographics in which they will select their consumers by considering their age, gender family
size, income and occupation etc Geographical segmentation involves bifurcation of market on
the basis of nationality, states, regions and localities etc. In behavioural, segmentation can be
done by marketer on the basis of their attitude, response, use and knowledge etc. Thus, it can be
said that market segment is important to analyse for Marketers of Hotel to analyse the structure
of market condition.
TASK 2
2.1 Marketing mix variables applicable within the hospitality and its importance.
Marketing mix variable are the set of actions or important tactics that is used by company to
promote its products and services. It involves variable which are mentioned below:
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 Product: It implies the luxurious rooms, food and other services offered by the Hotel to
attract premium customers. In this, Saba Hotel needs to provide quality products and
services at low cost so that they will be able to sustain their market share.
 Price: Companies pricing strategies influence its sales and other business functions
therefore it is essential for marketers and company to set appropriate pricing policy to
influence the target customers after analysing their capabilities to pay for their premium
quality products and services (Line and Runyan, 2012).
 Place: In Hotel industry, place refers to ways through which the services actually gets to
consumers which can be understood by company through use of effective channel of
distribution in order to provides service on proper time duration and right amount to
review the customer's satisfaction and service availability.
 Promotion: Technology plays an important role in increasing promotion of business in
hospitality sector, Nowadays, organisation like Saba Hotel can promote their products
and services by using the social media, internet marketing, e commerce websites and e
mail etc.
 People: Qualified employees in enterprise will help in achieve of growth and
development. It is essential for Saba hotel to hire and retain potential employees at
workplace so that direct contact with customers can be maintained (Mok, Sparks and
Kadampully, 2013).
 Physical evidence: Environment and structure of Hotel also used to influence the clients.
In Saba Hotel, management have provided more focus on providing leisure to their
clients excellent atmosphere and luxurious infrastructure etc.
 Process: It implies to ways of providing services to customers. In this, employees should
use proper ways to delivery of services to the customers.
Thus, it can be said marketing mix has its importance because it helps the enterprise to
achieve their marketing objectives.
2.2 Role of various pricing policies and strategies used by businesses
As per the theory of pricing, company's prices of products can based on cost, demand or
competition. It helps to set the financial goals for getting high market share. Saba hotel has been
utilizing the pricing policies oriented towards demands and competitive strategies of pricing. If
the firms faced competition in market from rivals then they should apply the same principle.
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Further, if there is an area wise deduction in cost then should implement the similar concepts
(Law and et.al., 2013). Policies of pricing within accommodation or hotels is depended upon
circumstances of demand and supply. Moreover, competitive business environment also
promotes the organisation to adopt the challenging pricing strategies to sustain their position in
market. Seasonal changes in market also influence the pricing policies of hotel and they have to
take tactical pricing decisions to earn profitability. In such as situation, Saba hotel needs to abide
ethical norms while charging the customers which helps in increasing customer's loyalty.
TASK 3
3.1 Promotional mix and its role
Promotional mix involves 4 elements which plays an important role in marketing of
products and services.
Personnel selling: It is also considered as part of promotional mix that involves the face to face
communication between the company and consumers. By using this, marketers of Hotel can
generates a direct relationship with their clients. It plays a important role increasing influence on
customers.
Advertising: Most important factor of promotion mix that always contributes towards
development branding in market and recognition of new products and services among customers.
In Saba Hotel, marketers also consider advertisement as major part of promotional mix because
it provides supports in delivery of message to large population in less time frame (Narteh and
et.al., 2013).
Direct marketing: Company can target a wide population, direct marketing used to target
customers. In this, company can use e mails, social media and e-commerce which are methods
for direct marketing. It plays important role in consumers awareness about new and innovation in
products and services offered by hotel.
Sales promotion: It is one of the most common type of promotional practice used to stimulate
the buying and sales. For example: Saba Hotel can provide coupons, special offers with
accommodation as sales promotion practices for their customers.
Public relations: It enables the hotel to influence their target segments and develop a positive
public image in hospitality sector. They also try to link with their customers through sharing
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important schemes and information. Public relation department of Saba Hotel needs to make 5
star hotels.
3.2 Advertising campaign for Saba hotel with effective promotional objectives.
Apart from this, mode of providing products and services to the consumers also plays an
important role in increasing the overall growth of the Saba Hotel. Moreover, marketing strategy
of the enterprise needs to be tested within the controlled business environment within autocratic
environment. After that branding along with the conceptualization needs to be analysed.
An appropriate advertisement campaign have been planned for enterprise which involves: Capturing transportation sector: Transportation sector should be well familiarize by the
hotel quickness so that advertisement in the transportation system will be most done
effectively which can be part of promotional campaign. Covering local area: It is also considered as important terminology in which Hotel will
use pamphlets to promote their products and services in localities (Prud’homme and
Raymond, 2013). Organising an charity events: by organisation a charity events, Hotel will promote their
business. They can invite some celebrity because people will follow them and take
interest in activities performed by them.
 Online Advertisement: Technology supported on the advertising is the compliance policy
of Saba hotel. It was estimated by the organisation that 83% of overall hotel booking has
made though online booking system. Therefore, company needs to give online
advertisement of their offers and new services to promote their business and achievement
of previous position.
3.3 Role of sales promotion and public relation in carrying out advertisement campaign
Sales promotion plays an important role in carrying out an advertisement campaign in
UK. It is one of the most common type of promotional practice used to stimulate the buying and
sales. For example: Saba Hotel can provide coupons, special offers with accommodation as sales
promotion practices for their customers. It is also considered as major terminology that is used
by company to promote their products (Wu and Lu, 2012). Through online selling of products
and services, company can influence their customers. They will offer different combination of
facilities along with the accommodation facilities. Extra benefits will be provided to customers
along with their bookings without charging any extra amount. Instead of this, public relationship
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will also play an important in advertisement campaign. In this, company can promote their
business by delegation responsibilities to their marketers to reach their previous customers like
corporates, families and individual for providing them information about new services and
decrease in prices.
TASK 4
4.1 relevance and importance of undertaking a marketing research in Saba hotel.
There is major relevance of market research in hospitality industry so that they can
promote the products and services. Effective and planned research is essential in identification of
services offered by rivals. In Hotel industry, this is carried out by marketers through
implementation of market information system which is based on collection of information about
the prices and important aspects (Zaibaf, Taherikia and Fakharian, 2013). It helps in analysing
current and future customers requirements. In this context, market research is relevant for
enterprise in formulation of business strategy as it entails the concept of managers to implement
the innovation and change in strategies. Various Hotel involving the Saba Hotel have analysed
this concept that has been performed by individuals at top level management through corporate
marketing services. Market research will support the enterprise to find out customers response
towards their products and service. Then they will analyse the problems faced by customer in
their service like High prices, lack proper facilities, untrained staff, ineffective staff
communication and unfulfilled requirements etc.
4.2 Market research for an appropriate product or service.
Research in the market have been considered as major requirements for company to
analyse the response of their customers. Towards the new luxurious rooms and services
introduced by SABA Hotel in order to attract consumers from all over the globe. The selection of
place for the hotel spread all over the UK. Primary methods are used by the hotel to coduct
research on the consumers by using the questionnaire or interview methods (Kim, Vogt and
Knutson, 2015). Further, company will be able to attain customers feedback which helps in
getting information about customers satisfaction and suggestions towards improvement of
services. On the other hand, secondary research can be carried out the business using the internal
records in the form of government publications, journals of industry as well other published
articles. Moreover, Marketers will analyse the data by using different charts and diagrams
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prepared from the outcomes of the research which are provided by the users. These outcomes are
evaluated to analyse changes in customers requirements and services.
4.3Different media for marketing of Saba hotel
There are various media and communication channels have been used by the Hotel fir marketing
of products and services such as: Advertisement: There are various modes of advertisement used by companies like
newspaper, Company Website and commercial magazines etc. These are suitable for the
company to increase their customers by spreading information (Verma, Stock and
McCarthy, 2012). Social media: Effective communication media as it links people with each other.
Through this, Saba Hotel can send information to large number of people at particular
point of time. It suitable as it requires less cost and time. E commerce: There are some commercial websites formed by individual or organisation
on which people usually make search to get information. For example: Websites like go
Ibbo, travel UK, make my trip etc. Company make direct connection with these websites
to get online bookings of rooms and other services. Digital marketing: It implies to selling of product and services online by using company
websites. In this, Hotel can send direct mails to their previous customers in order to
provide them information about special offers and new services.
 Telecommunication: Though development of call centres in premises or hiring externals
who directly communicate with customers, management will be able to promote their
sales (Pechlaner and Volgger, 2012).
Thus, it can be said that company will be able to achieve its position by using these media
channels for marketing.
4.4 Evaluation of Implementation the proposed marketing plan in Saba hotel.
From the above analysis, the marketing plan which is developed for organisation involves
the advertisement campaign that needs to be applied by organisation for promotion of their
products and services. Effective advertisement campaign will involve coverage of transportation
sector which is directly connects with the tourist and travellers who aims to use the
accommodation services (Wu and Lu, 2012). Hotel can put their advertisement travel agencies
and use posters and banners in their vehicles and premises. Effective method which aids in
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getting proper response from customers and enable the organisation to develop its public image.
Extra benefits will be provided to customers along with their bookings without charging any
extra amount. Instead of this, public relationship will also play an important in advertisement
campaign.
CONCLUSION
In this report, it is summarized that marketing plays an important role in improvement of
business operations and achieve of growth and development. Sales promotion plays an important
role in carrying out an advertisement campaign in UK. It is one of the most common type of
promotional practice used to stimulate the buying and sales. Further, If company makes a quality
product and fix a reasonable price, then it has to put less marketing efforts. It is also analysed
that Saba Hotel is able to achieve its previous position if they will use the new media and
advertisement campaign for promotion of products and services. Along with this, they needs to
set up an effective pricing policy that creates values of products and services among the
consumers and should meet their requirements.
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REFERENCES
Books and Journals
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Contemporary Hospitality Management. 27(3). pp.379-414.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
Zervas, G., Proserpio, D. and Byers, J.W., 2017. The rise of the sharing economy: Estimating the
impact of Airbnb on the hotel industry. Journal of Marketing Research. 54(5). pp.687-
705.
Ong, B.S., 2012. The perceived influence of user reviews in the hospitality industry. Journal of
Hospitality Marketing & Management. 21(5). pp.463-485.
Verma, R., Stock, D. and McCarthy, L., 2012. Customer preferences for online, social media,
and mobile innovations in the hospitality industry. Cornell Hospitality Quarterly. 53(3).
pp.183-186.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6). pp.925-
945.
Mohammed, A.A. and Rashid, B., 2012. Customer Relationship Management (CRM) in Hotel
Industry: A framework proposal on the relationship among CRM dimensions, Marketing
Capabilities, and Hotel performance. International Review of Management and
Marketing. 2(4). p.220.
Line, N.D. and Runyan, R.C., 2012. Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management. 31(2). pp.477-488.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
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Law, R., Leung, D., Au, N. and Lee, H.A., 2013. Progress and development of information
technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly.
Cornell Hospitality Quarterly. 54(1). pp.10-24.
Narteh, B., Agbemabiese, G.C., Kodua, P. and Braimah, M., 2013. Relationship marketing and
customer loyalty: Evidence from the Ghanaian luxury hotel industry. Journal of
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Prud’homme, B. and Raymond, L., 2013. Sustainable development practices in the hospitality
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Wu, S.I. and Lu, C.L., 2012. The relationship between CRM, RM, and business performance: A
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31(1). pp.276-285.
Zaibaf, M., Taherikia, F. and Fakharian, M., 2013. Effect of perceived service quality on
customer satisfaction in hospitality industry: Gronroos’ service quality model
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Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
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Online
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