The report is based on understanding about the elements that form macro as well as micro environment and appreciating the impacts of environment on marketing activities. This report is for emphasizing the ways through which companies can become proactive rather than reactive while responding towards environmental trends. This study helps in knowing the strength, weakness, opportunity as well as threat related to business.
Everything that surrounds or cover and has an impact on systems like tourist, travel agency, events, hospitality organization, restaurant or caf, forms a marketing environment. A good organization must be able to adapt, react as well as anticipate. In an organizations marketing environment, some of the element shows direct as well as immediate impacts while rest of the elements being far away from operations, shows difficulties for assessment in terms of impact on an organization.
For getting a deep understanding and analyzing the likely impacts, organizational environment is divided into two different levels
Macro EnvironmentIt consists of factors that are similar in almost every firm in industries (Business to Business Marketing Management, 2017). Macro environment is known to be a general environment in an economy where performance of working, decision and strategy making in an organization or groups of business gets influenced at the same time. This type of environment is dynamic in nature and so it keeps changing. It comprises forces from outside that are not under firms control but it serves with powerful impact on the functioning of the particular firm.
Claessens (2015) explains about the 6 different forces in a macro environment that helps in shaping opportunities but besides also pose threats for a company, and they are:
The trends of macro environment which are economical, political, social or environmental by nature can have many impacts on directions of hospitality and tourism organizations ( Hendricks, n.d.).
Vytautas et. al (2015) conducted researches based on the factors that impact on the growth and development of Lithunia. The analysis was based on scientific literature, statistical data as well as mathematical statistical analysis.
Snieska, Barkauskiene and Barkauskas (2014) explains that economic factors are highly responsible for the growth and development of rural tourism.
With the results from statistical department, about one tenth of the tourist of Lithuana were foreigners but in 2014 8 of tourist were foreigners.
Social factors and its analysis consist of demographic changes in the country and their region, family as well as community relationships (Sinkiene, 2008).
Apart from this macro environment has also effected on composing domestic tourism as this involves multi-ethnic and multicultural groups of migrants (Gayathri and Mervyn, 2005).
The type of environment which comes in direct contact with organization is referred to as micro environment. Such type of environment can straight away put impacts on daily activities of its business. It is generally accompanied with small area where functions take place in a firm (Nordmeyer, 2017). Micro environment of an organization comprises those elements that can be controlled by management. Normally, micro environment do not make any impact in the same way like macro environment have on organizations of an industry. This is because of their different sizes, capacity and different strategies.
Some general micro environmental factors are:
IBISWorld (2018) conducted a research that was based on Australian Market research says that Tourism industry is increasingly becoming significant for the economy of Australia. The revenue of industry had an annual growth of 3.5 with 134.3 billion. Revenue was calculated on the basis of total expenditure of tourism services and their products. This included both local as well as international tourists. The revenue collected by domestic tourism was over 70 of its industry revenue.
It can be concluded from the report that both micro as well as macro environment can bring positive as well as negative impacts based on the type of industry and their working.
Claessens, M. (2018). The macro environment - Six forces (DESTEP). Marketing, Retrived from https//marketing-insider.eu/macro-environment/Hendricks, B. (n.d.). Study.com, Retrieved from https//study.com/academy/lesson/macro-environment-trends-in-hospitality-tourism.htmlIBISWorld. (2018). Tourism - Australia Market Research Report, Retrieved from https//www.ibisworld.com.au/industry-trends/market-research-reports/thematic-reports/tourism.htmlKey Differences. (2018). Difference Between Micro and Macro Environment, Retrieved from https//keydifferences.com/difference-between-micro-internal-and-macro-external-environment.htmlNordmeyer, B. (2017). What Is Microenvironment in Marketing Small Business - Chron.com
Snieska, V., Barkauskiene, K., amp Barkauskas, V. (2014) The impact of economic factors on the development rural tourism Lithuanian Case. Procedia-Social and Behavioral Sciences,156, 280-285.
Sinkiene, J. (2008). Miesto konkurencingumo veiksniai. Vieoji politika ir administravimas, 25, 68-83.
The business market environment. (2017). Business to Business Marketing Management. Retrieved from https//uk.sagepub.com/sites/default/files/upm-binaries/58888_blythe_pandp_chapter_2_the_marketing_environment.pdfWijesinghe, Gayathri, W. amp Mervyn, L. (2005). The Australian tourism industry and cultural implications of global tourism. Tourism Culture amp Communication, 5(3), 139-147. Doi 10.3727/109830405774545099
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