Micro and Macro Environment Analysis in Hospitality and Tourism Industry

This article discusses the impact of micro and macro environment on marketing decision making in hospitality and tourism industry. It explains the factors affecting marketing decisions and strategies, including suppliers, resellers, customers, employees, political, economic, socio-cultural, and environmental factors.

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Introduction
Macro and Micro environment comes under the category of environmental scanning. It
has been examined that scope of environmental scanning is related to the global environment
evaluation. Both micro and macro analysis plays an essential role in marketing decision making
within the hospitality and tourism industry. In this sector it is important for the company to focus
on these aspects so that growth can be achieved in an effective manner. In context to macro
environment it has been analyzed that it is linked with the industries, companies, customer and
micro environment can be related to suppliers and competitors.
Micro and macro marketing implies on the businesses consider about segments with a
marketing sense and how a business society makes its decision on an aggregate basis.
So micro marketing is a strategy used to target a small segment of consumers with
specific needs they see in the market.
In micro marketing, companies will put a strong marketing effort that strongly focused on
a small group of highly targeted customers.
A business should consider about special characteristics of each segment. Micro
marketing and macro marketing encompasses what businesses consider as marketing in popular
sense.
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Micro environment
In micro environment the focus is given on the suppliers where they can control the
overall growth of the business. In this it has been seen that the link with the supplier is low as the
services are provided by the company and also marketing is done by the company. The supplier
does not have any role in marketing. So, in this factor the company can easily take the decision
and conduct the activities in an effective manner. The company can do marketing with the help
of advertising technique which will help to grow in the competitive market (Testa, Gusmerottia,
Corsini, Passetti & Iraldo, 2016).
Next are the resellers which emphasizes on taking the product from the company and
then marketing of the product is done by the third party. For example : In case of the retailer
enjoying good position in the market then this reputation can be leveraged in product marketing
which can help the company to take correct decisions. Next are the customers in hospitality and
tourism sector. It has been analyzed that hospitality and tourism industry target the customers.
So, it has been seen that customers also affect the marketing decision as they have many choice
which make the company confuse. In context to employees it has been seen that in these industry
the availability of the employees who have desired skills are less. So, it affects the decisions
making as employees are required for marketing.
Micro economy is a firm that studies about individuals regarding to make decisions allocate
resources and the interactions among these individuals.
The Study of individuals, households, firms and government
 Choices they make
 Decisions they make
 Interactions in specific markets
Simply, this focuses on the individual rather than the whole.
As examples:
 How many marketing trainee jobs will open up for college graduates?
 How much Australian government put taxes on phone calls?
 How many school rugby players will select for the provincial teams?
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Macro environment
It consists of various factors that impact the marketing decision making in hospitality and
tourism industries. In political context, it has been examined that company focuses on following
the rules and regulations and also various laws like labor law and consumer protection act. So, in
this company has to think twice before taking marketing decisions. Examples are: planning
regulations, licensing laws and marketing communication law.
Next is economic factor which emphasizes on the wealth and income of the people. So, at
the time of making marketing decisions it is important for the company to focus on income
bracket of the customers (Fang, Ye & Law, 2016). Example: rate of inflation.
Socio cultural also influences the marketing decisions as company has to focus on the
taste and preferences of the customers. Change in demographic population also affects the
marketing decisions as it related to location. Environmental factor is one of the important that
affect the marketing decisions as with the change in the climate the demand also changes of the
customers (Smith, 2016).
Macro economy is the economy which concerns the behavior of economic aggregates or
economy as a whole.
As examples:
 Total revenue income for a nation
 General level of prizes and employment
 Total expenditures of a nation
 How much imports that a country makes for a year.
When a company makes a marketing decision in hospitality and tourism industry, the
company should consider about environment, social and economic factors. It’s all about
looking future of the company from living in the present. Sometimes the company will have
to follow the trends which are call macro environmental trends. This is defined as external
factors which the industry has no control that might be affect its performance and strategies.
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References
Fang, B., Ye, Q., & Law, R. (2016). Effect of sharing economy on tourism industry
employment. Annals of Tourism Research, 57(3), 264-267.
Smith, B. (2016). Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education(pp. 47-64). IGI Global.
Testa, F., Gusmerottia, N. M., Corsini, F., Passetti, E., & Iraldo, F. (2016). Factors affecting
environmental management by small and micro firms: The importance of entrepreneurs’
attitudes and environmental investment. Corporate Social Responsibility and
Environmental Management, 23(6), 373-385.
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