Marketing Management Report: Australia Hotel Macro Environment

This report provides an in-depth analysis of the macro-environmental factors impacting the marketing strategies of the Australia Hotel within the hospitality industry. It explores the influence of political, economic, social, technological, environmental, and legal (PESTEL) factors, as well as competitive forces. The report highlights how these factors shape the hotel's marketing plan and overall business performance. It examines specific aspects such as political stability, economic conditions, demographic shifts, technological advancements, and competitive pressures. The analysis includes the use of PESTEL and SWOT analysis to understand the internal and external factors affecting the hotel. The report concludes by emphasizing the importance of strategic planning and adaptation to navigate the dynamic environment and gain a competitive advantage. The report also highlights the importance of legal factors and strategic analysis for successful business operations. The report also covers the impact of the competitors and the environmental factors. The report also analyses the impact of technology on the marketing of the Australia Hotel.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
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Author note

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Executive Summary
The report helps in understanding the different macro environmental factors that will have huge
impact on the hospitality industry. The macro environmental factors has huge effect on the
hospitality industry as there are different legal, environmental and technological issues that has
to be resolved properly.
The main aim and purpose of the report is to analyze the different macro environmental factors
that creates and have huge impact on the marketing planning of the hotel. The hotel that has been
taken here is Australia hotel.
The conclusion will be based on the factors that will have huge impact on the hospitality industry
and understanding the effect of competition on the hotel industry as well.

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Table of Contents
Introduction......................................................................................................................................3
Hospitality Industry.........................................................................................................................3
External Macro environmental forces.............................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The report helps in understanding the concept of contemporary marketing in hospitality
industry in Australia. Contemporary marketing is defined as the businesses that are usually
associated with the profit making motive as well as to earn huge revenues. The contemporary
explanation of the hospitality industry helps in understanding the relationship between host as
well as the guest.
The main aim and purpose of the report is to understand the contemporary marketing
environment in the Australia hotel and proper analysis has to be done regarding the macro
environmental factors that can affect the business (Australiahotelfremantle.com.au, 2017). The
purpose of the report is to analyze the impact of the macro environmental factors on the
marketing plan of the business.
The structure of the report is to analyze the different macro environmental analysis that
includes PESTEL as well as SWOT analysis. These have to be properly analyzed as this will
help in providing recommendation that will help in reducing the impact of the macro
environmental factors.
Hospitality Industry
Hospitality industry is defined wherein the basic needs of the guests are properly taken
care that are mainly in relation with the food, accommodation as well as drink. The marketing
related to hospitality is unique in nature as this sector deals with different tangible products as
well as other intangible aspects as well.
Characteristics of the services

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From the diagram, it can be analyzed that the hospitality sector provides different kinds
of services that includes the perception of the customers while purchasing different kinds of
services in the hotels. Inseparability helps in understanding that the providers are the ones who
provide different kinds of services and this will help in the process of production as well.
Variability is the kind of service that will help in providing the customers the quality of services
that will vary from other hotels. Australia hotel helps in providing their customers quality
services as this will help them in attracting more customers in the future.
External Macro environmental forces
The Australian hotel can face huge impact on the marketing planning of their hotel. There
are different macro environmental factors that will include:
Political environment can have huge influence on the marketing environment of Australia hotel.
The government in Australia helps in increasing the number of the tourists’ in Australia for those
who will be visiting Australia. The political stability is important for the business to flourish and
if the political situation in Australia is uncontrollable then it will impact the profitability of the
hotel as well (Hill, Jones & Schilling, 2014).
PerishabilityVariability

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Economic factors as well as the conditions can affect the business of Australia hotel in Australia.
When there is increase in the luxury tax or the travelling tax is higher in nature, then only few
tourists will be visiting Australia (Kucukvar, Egilmez & Tatari, 2014). The demand for the stay
in the Australia hotel will decrease and this will decrease the profitability as well. The economic
factors can have great impact on the demand as well as costs and profits of the business of the
respective hotel. The other economic impacts that may affect Australia hotel are mergers as well
as the acquisitions of the hotel. The profit and the reputation of the Australia hotel is increasing
and is expected to be increasing in the future as well (Franzen & Vogl, 2013).
Social factors that include society as well as culture can affect the business of Australia hotel
and this can affect the business as well. The changes in the demographic factors such as gender,
age as well as the lifestyle of the individuals will have huge impact on the business. The
customers as well as the employees of the hotel play an essential role in the preparation of the
strategy (Frynas & Mellahi, 2015). There is a direct relation between the income of the
customers as well as the demand for the luxury brand of the respective hotel as well. If the
income of the customers falls, then there will be fall in the demand for the luxury hotel as well
(Niedzwiecki, Lima & Lunkes, 2016).
Technological factors are one of the major macro environmental factors that will affect the
business as well as the customers of the business. Australia hotel will use the proper
advancement of technologies that will attract the customers and they help in providing good
quality goods as well as services to their customers as well (Banahene, Ahudey & Mensah,
2016). Australia hotel uses different website bookings as well as providing information to the
customers through emails as well as messages in order to convey proper messages to them. The

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usage of internet as well as other technologies have and play a major role in the marketing of the
hotel.
Demographic factors can affect and impact the hotel business of Australia hotel. The
demographic changes that include sex, gender as well as age of the customers can greatly affect
the business of Australia hotel. The employees along with the customers have great impact on
the hotel business.
Competition is one of the factors that affect the business of Australia hotel. The competitors of
the Australia hotel are smart and they are famous as well and they are competing with Australia
hotel at par as well. The competitors of the Australia hotel are in regards to services, facilities as
well as the costs that are provided by them. The competitors are price sensitive as well as they
quickly respond to the changes in price when there is rise in the competition (Armstrong et al.,
2015).
Environmental factors play a major role in the hospitality industry as a whole. But there are
different emissions of the carbon dioxide as well as other gases emissions that can have huge
effect on the business of Australia hotel. These can create problems in the entire environment
and this will have environmental impact as well.
Legal factors play a major role in the marketing plan of the Australia hotel as this is essential for
the entire growth of the hotel. The possible impacts of the legal legislative law have affect on the
hotel as there can be different as well as serious changes in the hotel as well.

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Conclusion
Therefore, it can be concluded that the macro environmental factors has huge effect on
the entire hospitality industry. Proper formulation of the strategies and implementation of the
same will have huge impact on the Australia hotel. The legal factors are essential in nature for
the hotel industry as this will help them in gaining competitive advantage and attracting
customers in the industry as well. Lastly, strategic analysis is required as this will help in
implementation of the business operations in the future.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Australiahotelfremantle.com.au. (2017). Australia Hotel Fremantle | Excellent value, great
location. Available at: http://www.australiahotelfremantle.com.au/ [Accessed 10 Oct. 2017].
Banahene, S., Ahudey, E., & Mensah, C. (2016). Analysis of Macro Environment for Strategy
Implementation: What is important to Handicraft Export Organisations in Ghana?. International
Journal of Business Management & Economic Research, 7(3).
Franzen, A., & Vogl, D. (2013). Two decades of measuring environmental attitudes: A
comparative analysis of 33 countries. Global Environmental Change, 23(5), 1001-1008.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Kucukvar, M., Egilmez, G., & Tatari, O. (2014). Evaluating environmental impacts of alternative
construction waste management approaches using supply-chain-linked life-cycle analysis. Waste
Management & Research, 32(6), 500-508.
Niedzwiecki, T. R., Lima, A. D., & Lunkes, R. J. (2016). Analysis of organizational values in
the" hotel industry" in the states of Rio de Janeiro and São Paulo (Brazil). Turismo e
Sociedade, 9(1).