Is The Process Of Collecting Information About Forces In The Marketing Environment.

To be successful, companies must adapt to ongoing trends and developments in their macro and micro environments. Therefore, it is in the interest of organisations to scan their marketing environment to deal with any possible threats from the market and to capitalise on any available opportunities. This chapter explains the external environmental factors, including; political, economic, social and technological influences. It also considers the internal environmental factors, including; capital structures, resources, capabilities and marketing intermediaries; as it identifies competitive forces from differentiated or low-cost service providers.

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The Marketing Environment

Mark Anthony Camilleri, University of Malta1, Malta and

University of Edinburgh2, Scotland.

This is a pre-publication version of an academic chapter that was published by Springer.

How to cite: Camilleri, M. A. (2018). The Marketing Environment. In Travel Marketing,

Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham, Switzerland.

Abstract

To be successful, companies must adapt to ongoing trends and developments in their macro

and micro environments. Therefore, it is in the interest of organisations to scan their

marketing environment to deal with any possible threats from the market and to capitalise on

any available opportunities. This chapter explains the external environmental factors,

including; political, economic, social and technological influences. It also considers the

internal environmental factors, including; capital structures, resources, capabilities and

marketing intermediaries; as it identifies competitive forces from differentiated or low-cost

service providers.

3.1 Introduction

A sound knowledge of the customer requirements is an essential ingredient for a successful

business. For this reason, companies should consistently monitor their marketing

environment. The marketing environment is continuously changing, as it consists of a number

of unpredictable forces which surround the company.

As well as conducting a thorough analysis of the actual marketing environment, the

businesses must investigate the conditions in which they operate. The regulatory and

competitive conditions as well as other market forces, including; political, economic, social

and technological forces, could affect the organisational performance of the tourism

businesses. Hence, this chapter will look into some of these issues. The tourism industry is

highly influenced by economic factors, including; strong exchange rate fluctuations, the price

of oil and other commodities, among other matters. Moreover, social factors including global

1 Department of Corporate Communication, Faculty of Media and Knowledge Sciences,

University of Malta, Msida, Malta. Email: mark.a.camilleri@um.edu.mt

The Business School, University of Edinburgh, Edinburgh, UK.

concerns about safety and security could influence tourist behaviours. Notwithstanding, the

regulatory environments will also have an impact on tourism and airline businesses

(Belobaba, Odoni & Barnhart, 2015). For instance, the airline industry's deregulation and

liberalisation has created numerous opportunities for many airlines, including low-cost

carriers. At the same time, it has threatened inefficient airlines who have been protected by

regulation.

Undoubtedly, competition is a vitally important element in the marketing environment and it

should not be under-estimated. The businesses competitors comprise suppliers of substitute

products. They may be new entrants in the marketplace. Alternatively, they may include

customers and suppliers who were stakeholders of the business. In this light, tourism

marketers should be knowledgeable of different business models as competition can take

different forms, like for example, differentiated, full-service companies or low-cost service

providers. For these reasons, organisations should have effective mechanisms to monitor the

latest developments in the marketing environment.

3.2 Environmental Scanning

Environmental scanning entails the collection of information relating to the various forces

within the marketing environment. This involves the observation and examination of primary

and secondary sources of information, including online content from business, trade, media

and the government, among others. The environmental analysis is the process of assessing

and interpreting the information gathered. An ongoing analysis of the gathered data may be

carried out by marketing managers or by researchers who have been commissioned to

conduct market research (as explained in the previous chapter). Through analysis, marketing

managers can attempt to identify extant environmental patterns and could even predict future

trends. By evaluating trends and tendencies, the marketing managers should be able to

determine possible threats and opportunities that are associated with environmental

fluctuations. When discussing the 'marketing environment' we must consider both the

external environment (i.e. the macro-environment) as well as the internal environment (i.e.

the micro-environment) (Kotler, Armstrong, Frank & Bunn, 1990).

3.3 The Macro Environment

The tourism businesses must constantly assess the marketing environment. It is crucial for

their survival and achievement of their long-term economic goals. Therefore, marketing

managers must engage in environmental scanning and analysis. Most firms are comfortable

assessing the political climates in their home countries. However, the evaluation of political

climates in foreign territories is far more problematic for them. Experienced international

businesses engage in political risk assessment, as they need to carry out ongoing systematic

analyses of the political risks they face in foreign countries. Political risks are any changes in

the political environment that may adversely affect the value of any firm's business activities.

Most political risks may result from governmental actions, such as; the passage of laws that

expropriate private property, an increase in operating costs, the devaluation of the currency or

constraints in the repatriation of funds, among others. Political risks may also arise from non-

governmental actions when there is criminality (for example: kidnappings, extortion and acts

of terrorism, et cetera). Political risks may equally affect all firms or may have an impact on

particular sectors, as featured in Table 3.1. Non-governmental political risks should also be

considered. For example, Disneyland Paris and McDonalds have been the target of numerous

symbolic protests by French farmers, who view them as a convenient target for venting their

unhappiness with US international agricultural policies. In some instances, protests could turn

violent, and may even force firms to shut down their operations, in particular contexts.

Table 3.1: Typical Examples of Political Risks

Type Impact on Firms

Expropriation Loss of future profits.

Confiscation Loss of assets, loss of profits.

Campaigns against businesses Loss of sales; increased costs of public

relation; efforts to improve public image.

Mandatory labour benefits legislation Increased operating costs.

Kidnappings, terrorist threats and other

forms of violence

Increased security costs; increased

managerial costs; lower productivity.

Civil wars Destruction of property; lost sales; increased

security costs.

Inflation Higher operating costs.

Repatriation Inability to transfer funds freely.

Currency devaluations Reduced value of repatriated earnings.

Increased taxation Lower after-tax profits.

International corporations who intend investing in different markets should consider asking

these simple questions: Is the host country business-friendly? Is its government a democracy

or a dictatorship? Is the authoritative power concentrated in the hands of one person or on one

political party? Does the country rely on the free market or on governmental controls to

allocate resources? How much of a contribution is the private sector expected to make in

helping the government achieve its overall economic objectives? Does the government view

foreign firms as a means of promoting or hindering its economic goals? When making

changes in its policies, does the government act arbitrarily, or does it rely on the rule of law?

How stable is the existing government? If it leaves office, are there going to be any drastic

changes in the economic policies of the new government? Firms should always contemplate

(research) these issues before entering into a new market. They should be knowledgeable

about the host country's political and economic structures, in order to minimise uncertainty

and unnecessary risks. Appendix A. provides a good background on the aviation industry's

regulatory environment.

A PEST analysis (political, economic, social and technological) provides a useful framework

to analyse macro-environmental factors. The businesses should carefully analyse these issues

before considering their expansion in a different country through foreign direct investment.

3.3.1 Political, Legal and Regulatory Issues

The political analysis relates to how governments influence the companies' strategy and

operations. The political environment encompasses laws, government agencies and pressure

groups which could have an effect on tourism organisations and entrepreneurs. Such factors

include; national politics on financial matters, including; foreign debt, and the rates of

inflation (i.e. increase in prices), recession; policies and regulatory legislation on reciprocal

trade and foreign investment; travel restrictions, the governments' tourism policies; as well as

ecological considerations, among other issues.

Political, legal and regulatory issues can affect the viability of tourism firms. Therefore, any

prospective changes in the governments' priorities (for example; public spending) or a change

in government can lead to the opening-up or the closing of markets. The business activity

tends to grow and thrive when a nation is politically stable. National governments and their

legal systems could could facilitate or hinder businesses, in many areas. Therefore, any

political changes are closely related with the legal and economic matters (for example:

employment laws, minimum wage laws, health and safety laws, zoning regulations,

environmental protection laws, consumer protection laws, tax laws, et cetera). For instance,

new European Union regulations have led to greater levels of competition in European

aviation. However, many stakeholders are concerned about the environmental impact from

airlines.

Many nations are increasingly encouraging free trade by inviting firms to invest in their

country, whilst allowing their domestic firms to engage in overseas business. These nations

may decide not to impose conditions on imports, or they would not discriminate against

foreign-based firms. On the other hand, there are other governments who may oppose free

trade. The most common form of trade restrictions is the tariff, ( i.e. a tax that is placed on

imported goods). Tariffs or levies are usually established to protect domestic manufacturers

against competitors by raising the prices of imported goods. Multinational firms may face the

risk of expropriation. This happens when the government will take ownership of land,

buildings and / or other fixed assets; sometimes, without compensating the rightful owners

for their loss. When there is the risk of expropriation, multinational firms will be at the mercy

of foreign administrations. Unstable governments may have the authority to change their laws

and regulations at any point in time, to meet their needs.

Very often, the best sources of information are their own employees. Whether they are

citizens of the business' home country or of their host country, employees possess first-hand

knowledge of the local issues, and are a valuable source of risk information. The views of

local staff should be supplemented with the views from outsiders. The government, embassy

officials and the international chamber of commerces are often rich sources of information.

Many governments will usually signal their economic and political agendas during their

political campaigns before being elected in parliament. Once in office, several governments

continue to provide useful information about their current and future plans. Moreover,

numerous consulting firms specialise in political risk assessment. Their role is to assist those

firms who are considering foreign direct investment, those who would like to penetrate into a

particular market. To reduce the risk of foreign operations, many developed countries have

created government-owned or government-sponsored organisations which insure firms

against political risks. For instance, the Overseas Private Investment Corporation (OPIC)

insures US overseas investments against nationalisation. The Multilateral Investment

Guarantee Agency (MIGA), a subsidiary of the World Bank provides similar insurance

against political risks. Private insurance firms such as Lloyds' of London also underwrite

political risk insurance.

3.3.2 The Economic Issues

The economic analysis will involve an examination of the foreign countries' monetary, fiscal

and economic policies. The factors affecting consumer purchasing and spending patterns,

include; wealth per capita; discretionary income; industrial development; currency

restrictions; balance of payments; leave of imports / exports; fluctuations in interest and

foreign exchange rates, among other issues. The exchange rate of a country's currency

represents its value in relation to that of another country's currency. Currency rates fluctuate

on a daily basis, thus creating high risks for many industries, including the travel and

hospitality sectors. Tourism businesses will be more encouraged to expand and to take

calculated risks when economic conditions are right. For example, when there are low

interest rates, and when they are experiencing rising demand. Rising incomes and higher

standards of living have often translated to more disposable money on luxuries like; long-

haul travel and other hedonic behaviours.

3.3.3 Social Issues

A social analysis delves into societal behaviours, customs, values, norms, lifestyles and

preferences. Demographic factors, including the age structure of the population may also

change, over time (for example, there are many developed countries that are already having

an ageing population). Moreover, social issues could also comprise the cultural environment,

which is influenced by the individual populations' size, race, religious beliefs, gender, family,

education, occupation, and the individuals' position in the social stata, among other variables.

Institutions could influence society's basic values, perceptions and preferences. For instance,

there may be changes in consumer behaviours which could be attributed to trending fashions

and styles. Climate and seasonal variations could also affect consumer behaviours, and their

travelling propensity. Of course, there may be other factors that could affect the consumers'

inclination to travel, including; credit facilities and attitudes, competition from other spending

behaviours, et cetera. In addition, social issues may also relate to distances to be travelled;

urban versus rural lifestyles and attitudes to travel; emigration, school vacation periods,

perceptions on international commuting, et cetera.

Tourism marketers ought to be sensitive to different social issues. A good understanding of

societal changes could help them position their business, and to anticipate market demands.

For the time being, many countries are experiencing a surge in popularity, particularly in

short-break itineraries. This has inevitably led to a boom in demand for tourism products in

the off-peak and low seasons. At the same time, airports and airlines are striving in their

endeavours to improve their levels of security, in the wake of the latest terrorist attacks.

Currently, there is also the possibility that the U.S. government could ban laptops from

aircraft. Other social factors that must be taken into consideration, include; civil wars,

assassinations or kidnappings of foreign people. These contingent matters are equally

dangerous for the viability of the tourism firms' operations.

3.3.4 Technological Issues

A technological analysis is required as marketers need to keep themselves up-to-date with the

latest innovations in the tourism industry. Like any other business, the tourism firms,

including airlines are effected by new technologies, which could create new products and

market opportunities (Tussyadiah, & Inversini, 2015). For example, larger and faster aircraft

which are more pleasing to the customer, as well as airport developments and their facilities,

including; efficient check-in desks; lounges, shuttles and online travel booking sites, among

other things, have surely improved the customer experience. Moreover, recently there have

been a number of interesting developments in the field of airport security. The need for

quicker, seamless processing and baggage checks has led the Transportation Security

Administration (TSA) to explore the possibility of new security lanes. There have also been

significant efforts to improve the accuracy of threat detection. New emerging technologies

are providing better security, but can also help to enhance the passenger experience. Recently,

many airlines are also considering the introduction of facial recognition devices that may be

used for the boarding of passengers.

The rapid pace of technological change has been forcing travel and tourism businesses to

spend heavily to remain on the cutting edge. This way they could better serve their customers.

In the 90s, many full-service, legacy airlines have introduced elaborate reservation systems

which enabled them to improve their services to passengers. Subsequently, they introduced

big data, analytics and customer relationship management systems that have improved their

customer-centric approaches. In addition, many airlines, particularly, the full-service carriers

have established sophisticated frequent flyer programmes, as they forged industry

partnerships and / or code-sharing agreements with other carriers.

Recently, the uses of digital media, electronic databases and interactive communications have

enabled vast quantities of information to be shared and distributed online, in an efficient

manner. Tourism marketers are increasingly using technology to improve the standards of

service. Several innovative destination management organisations (DMOs) are utilising a

range of smart technologies to improve their customer service levels. For instance, KTO

Tourist Information Centre (TIC) of Seoul, in South Korea, has adopted a mix of information,

communication technologies (ICTs), including a visitor website with an interactive map

featuring pre-arrival information. Facebook, Twitter, Instagram and Snapchat are being used

by marketing and public relations executives for customer engagement and wide array of

mobile application are being used by many travellers. For instance, the city of Montreal

Tourist Office promotes its attractions through an interactive video that provides virtual

experiences to tourists; while, Las Vegas Tourism Office provides personalised itineraries and

Tourism New Zealand have come up with an interactive trip planner with customisable maps,

price ranges and activities. Tourism businesses are increasingly expected to be

knowledgeable and proficient in the use of internet (Buhalis & Law, 2008). The ongoing

developments in technology and the proliferation of ubiquitous media and mobile

communications have affected tourism businesses, in many ways. Many customers and

prospects are using interactive media to engage with the business in two-way

communications. They may also get involved in electronic word-of-mouth publicity (which

can be either positive or negative) in social media, and by using review and rating sites like

TripAdvisor or Yelp.

3.4 Micro Environment

Many travel and tourism businesses are continuously monitoring the countries' political,

economic, social and technological changes to reduce their risks. However, the external

environmental forces will also affect the organisations' micro environment. The micro

environment consists of forces which are close to the companies themselves, forces which

will affect their ability to serve customers. These forces include the organisations' capital

structure, resources, capabilities of management and staff, companies' aims and objectives,

the companies' marketing intermediaries, customer markets, competitors and all other

stakeholders that may have an interest or an impact on the organisations' ability to achieve

their objectives (for example, financial, media and government stakeholders, among others).

3.4.1 Capital Structure

The organisations' capital structure and how finance is allocated across departments and units

will have an effect on the companies' marketing programmes.

3.4.2 Resources

The firms' specific assets are useful for creating a cost or differentiation advantage over other

competitors. The organisations' resources may include; patents and trademarks, intellectual

capital, installed customer bases, reputation and brand equity, among others. For example, the

size and type of fleet of aircraft that are owned and controlled by airlines will determine the

type of service which they can offer to the market.

3.4.3 Capabilities

The firms' ability to utilise resources is one of their capabilities. When organisations

introduce a product to the market before their rivals, they will achieve a competitive

advantage. Such capabilities may be embedded in organisational routines and may not be

documented as strategic procedures. Moreover, the organisations' structures and the

leadership of their various departments, and the relationship between management and staff

may not be easily replicated by other businesses. The competitors may not always be in a

position to mimic the capabilities of successful businesses.

The firms' resources and capabilities together form their distinctive competences. These

competences enable innovation, efficiency, quality and customer responsiveness; all of which

can be leveraged to create cost or differentiation advantages.

3.4.4 Company Aims and Objectives

When companies decide which market segments to target, they must carefully evaluate their

internal strengths and weaknesses, and communicate their value propositions to their chosen

markets.

3.4.5 Marketing Intermediaries

Marketing intermediaries are firms which help companies to promote, sell and distribute their

goods or services to customers. When discussing about the tourism industry, tour operators

and travel agents will usually act as intermediaries. Therefore, travel and hospitality

businesses, including airlines and hotels, need to develop a sound relationship, loyalty and a

strong bargaining power with tour operators, travel agents to sell their products. Moreover,

the tourism industry and its distribution network are exposed to a number of changing

internal and external environmental forces (these have been mentioned in the previous

sections). With technological developments, there may be variations in economies and

consumers could become more sophisticated and demanding. For example, today's customers

have access to price comparison web sites, like; Google Flights, Kayak, Momondo,

TravelSupermarket.com, Expedia, et cetera.

3.5 Identifying Competition

An adequate knowledge and understanding of competitive trends in the market place is

necessary, as competition is a vitally important element in the marketing environment (Kotler

et al. 1990). The competitive forces determine whether there is profit potential for a specific

industry. The starting point of the competitive analysis is the identification of competitors.

Porter (1979) identified five forces that govern industry competition: the threat of new

entrants; the bargaining power of suppliers; current competitors; the bargaining power of

customers; and the threat of substitute products or services. According to Porter (1979), the

key to growth and survival, is to use one's knowledge of these five forces to "stake out a

position that is less vulnerable to attack from head-to-head opponents, whether established or

new, and less vulnerable to erosion from the direction of buyers, suppliers, and substitute

goods." Such a position, he argues, can be gained by solidifying relationships with profitable

customers, by integrating operations, or by gaining technical leadership.

In the tourism industry, the suppliers of tourism amenities can exert pressures over other

businesses. For instance, these suppliers may refuse to work with the firm or they may charge

excessively, high prices for their services. In this day and age, digital media has facilitated

offline and online sales as it has provided a platform for interactive communications between

businesses and their customers. Moreover, the competition from new entrants has also posed

significant threats to businesses (Schegg & Stangl, 2017). The profitable markets that yield

high returns will obviously attract new firms. The arrival of new competitors could eventually

decrease the profitability for all other incumbent firms within the industry.

For example, the airline industry is a growing one, and extant carriers who fail to enhance

their route network may be bypassed by competing airlines (Belobaba et al, 2015). There may

be a number of national or low-cost carriers who may be competing for the same customers,

on the same route. Furthermore, the bargaining power of customers could also exert pressure

on businesses. If a large number of customers ask for lower prices from companies, they will

have no other choice but to succumb to their requests. On the other hand, the buyer power is

low when the customers act independently. The buyer power is high if the customers have a

wide selection of service providers to choose from. When customers are buying in large

quantities from a supplier; a temptation exits for the customers to move back along the chain,

to become direct competitors with the supplier, rather than to remain their customers. This

may be the case for those established tour operators who frequently block pre-negotiated

carrier seats or hotel rooms. These travel organisations have grown to a point where it would

be more viable and secure for them to set up their own airline or hotel properties.

Consequently, they will find themselves competing with the travel and tourism business that

originally supplied them.

3.5.1 Analysing Competition

A competitor analysis involves an assessment of the strengths and weaknesses of current and

potential competitors. This analysis provides an offensive and defensive strategic context to

identify opportunities and threats in the marketplace. Travel and tourism business could

profile their competitors into one framework. They need to identify who their competitors are

and to determine their strengths and key success factors (for example, the provision of high

quality services, low-cost operations, route networks, convenient timings, good onward

connections, et cetera). They should also acquire knowledge on their customers' needs and

wants (for example, business or leisure passengers), including the value propositions that they

may offer them (as discussed in Chapter 2).

The generic competitive strategies of cost leadership, differentiation and focus are

conspicuous in the airline industry. The legacy carriers usually provide higher quality

services as they typically offer first class and business class seating, frequent-flyer

programmes, and are usually characterised by their exclusive airport lounges. Also, legacy

carriers generally have better cabin services, including; meal services and inflight

entertainment. Whereas, the low-cost carriers (LCCs), which are also known as no-frills,

discount or budget carriers may usually offer lower fares and fewer comforts. To make up for

the revenue lost in decreased ticket prices, the LCCs will probably charge for extras such as

food, priority boarding, seat allocating, and baggage.

Several legacy carriers are also members of established airline networks and alliances that

include; Star, Oneworld or SkyTeam alliances. During the last twenty years, there were some

major mergers and acquisitions among traditional airlines. For instance, in 2015, American

Airlines' has merged with US Airways; AirTran merged with Southwest a year before, United

joined Continental in 2010; and Northwest become part of Delta, back in 2008. These airline

mergers have resulted in the consolidation of resources, improved efficiencies, in terms of

economies of scale and scope, thereby reducing costs for the new conglomerates. For

instance, American Airlines' merger with US Airways has yielded an annual savings of up to

$1.5 billion. Yet, these mergers have often led to reduced competition, higher fares, crowded

planes and added baggage fees, at the detriment of customers.

3.5.1.1 Legacy Versus Low-cost Carriers

Even with their rich history, the legacy airlines had to evolve over time to adapt to the

changing regulatory, economic and technological forces that have shaped the aviation

industry. The legacy carriers had to compete in turbulent marketplaces, as LCCs have shaken

up many markets. The arrival of the low-cost airlines has resulted in a reduction in air fares as

these 'no-frills' airlines have cut on-board perks and introduced inclusive extras for their

passengers. For example, their passengers are charged for check-in baggage, limited weight

allowance for checked luggage, early boarding, seat allocation and the like.

Very often these developments have affected the quality of airline services. In fact, many

national airlines are increasingly mimicking low-cost models. For example, KLM and British

Airways have introduced checked-baggage fees on their European routes. Such fees were

associated with budget airlines like EasyJet and AirAsia. Moreover, several traditional

airlines have discontinued the provision of complimentary, inflight meals on short-haul

flights. Several European flag carriers, including Aer Lingus and Iberia, sell food and

beverage on board. Some of the legacy airlines are even charging their passengers for seat

reservations and seat allocations. According to KPMG, these initiatives have reduced the

legacy carriers' cost disadvantages against low-cost airlines by more than a third. Apparently,

legacy airlines are abandoning old differentiators like free baggage and inflight catering,

particularly in their short-haul flights. The service that is being offered by both low-cost and

legacy carriers is becoming more or less the same.

Legacy carriers are frequently outsourcing short-haul traffic to specialised regional airlines.

They may only offer multiple classes of service including business and first class in medium

and long-haul flights. However, there are more travellers using airline services, year after

year. This may be due to the fact that the travellers are increasingly availing themselves of the

low fares that are being provided by different airlines (including legacy carriers). At the same

time, the business travellers are increasingly becoming price-sensitive. In fact, many of them

are also travelling on LCCs. Yet, the airlines' low prices are negatively affecting their bottom

lines.

3.6 Questions

•An airline marketing manager must have a sound knowledge of the airline marketing

environment. Why?

•Explain environmental scanning. Outline its importance to travel and tourism

marketers.

•Identify the forms of competition faced by the airlines industry today, as outlined in

this chapter.

3.7 Summary

The tourism marketing environment is made up of a number of unpredictable forces which

surround the company. Examples of such forces include; political and regulatory issues,

economic factors, social and technological developments. By closely monitoring the

changing environment, the businesses could be in a position to anticipate certain threats and

may possibly capitalise on any available opportunities in the market. They may only do this if

they are consistently scanning and analysing their marketing environment. Briefly,

environmental scanning involves the collection, observation and examination of information

relating to the various forces in the macro (external) and micro (internal) environments.

Environmental analysis is the process of assessing and interpreting the gathered information.

The marketing managers must be aware of the latest trends and developments. They should

continuously monitor their competitors, as they may take different forms. They may be

suppliers of substitute products. They can be new entrants. Alternatively, competition may

even come from customers and suppliers. Equally, marketers should be knowledgeable of

different business models, as competition is coming from differentiated and low-cost service

providers, among others.

... The macroenvironment includes factors of economic, political, technical, sociocultural, legal, and environmental considerations. The scope of these factors is outside the scope of this paper; however, the goal of the paper is to find a solution that adapts CMMI implementation to reduce dynamic environment issues; therefore, an organization gets resilience to such factors [12] [13]. ...

Maruthi Rohit Ayyagari

The innovation of new technologies and dynamic marketing environments led software organizations to adopt standards and best practices. The main objectives of these organization are to improve engineering and development, management of service delivery, and supplier management processes. The Capability Maturity Model Integration (CMMI) provides models for acquiring products (CMMI-ACQ), models for quality services (CMMI-SRV), and models for development (CMMI-DEV). The CMMI follows a set of stages known as the CMMI levels from one to five that determine an organization maturity level. Therefore, as the organization raises its maturity level to a higher level, it increases productivity, Return on Investments (ROI), and resource utilization. However, as a reference model, CMMI does not provide tools with the dynamic behavior of a competitive environment; therefore, organizations strive to enhance their market shares. This paper proposes to integrate the dynamic capability model with the CMMI; accordingly, the proposed model adapts and empowers the organization's resources competitively. This paper intends to add dynamic capability components as part of the CMMI levels four and five. The proposed framework was validated using the System Usability Scale (SUS) model. Results showed that the model is applicable and useful to enhance organization competence. General Terms Software Engineering, process improvement, development

The perception of costs and benefits allows residents to carry out an assessment that determines their attitude towards tourism. This study seeks to determine the effect of the perceived benefits and costs (economic, sociocultural and environmental) on the support to the arrival of more tourists, both directly and mediated by overall attitude towards tourism, in the case of Punta del Este. Punta del Este forms part of the Department of Maldonado and is the main sun and beach tourism destination in the Oriental Republic of Uruguay. The questionnaire contained items with five-point Likert scales and sociodemographic questions. The data used (obtained between March and August 2016) are made up of a sample of 420 residents from Maldonado and Punta del Este. The analysis of the data has been carried out through partial least squares (PLS) regression, specifically SmartPLS. Among the results, it should be noted that benefits and costs perceived have no direct effect on the support to the arrival of more tourists; only economic benefits (positive) and sociocultural costs (negative) have a significant effect on the overall attitude towards tourism; the support to the arrival of more tourists depends exclusively on the overall attitude.

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