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Marketing

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Marketing Chapter 7 Foundations of Restaurant Management and Culinary Arts DID YOU KNOW? Carbonated Soft Drinks are one of the most frequently ordered items in the US. – PowerPoint PPT presentation

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Title: Marketing


1
Marketing
  • Chapter 7
  • Foundations of Restaurant Management and Culinary
    Arts

2
7.1 Introduction to Marketing
3
Introduction to Marketing
  • Market A group of people who desire a product or
    service
  • Marketing The process of communicating a
    businesss message to its market

4
Advertising vs. Marketing
  • Advertising
  • Marketing
  • Just one component of a successful marketing
    strategy
  • Determining what products and services to offer
  • How to position them in the marketplace
  • How to promote them to buyers
  • How to price them
  • How to get these to the buyers

5
Marketing Functions
  • 1. determine what products and services to offer
  • 2. position them in the marketplace
  • 3. promote them to potential buyers
  • 4. price them so people will buy them
  • 5. get the goods to these buyers

6
Current Business Operations
  • Marketing drives the operation
  • An operation must
  • Determine customer needs and wants
  • Determine the costs, prices, and profitability of
    products and services before beginning to produce
    them
  • Organize all aspects to provide what customers
    want

7
Basic Marketing Concepts
  • Marketing Mix combination of all factors that go
    into creating, developing and selling a product
  • For years it was known as the 4 Ps
  • Place
  • Product
  • Price
  • Promotion

8
The NEW Model
  • Contemporary Marketing Mix
  • Product-service mix
  • Presentation mix
  • Communication mix

9
Product Service Mix
  • All of the food and services offered to customers
  • Restaurants can often gain a competitive edge by
    offering a greater variety of services with
    better efficiency
  • Delivery, Take-out Service, Curbside Take-out

10
Presentation Mix
  • All of the elements that make the operation look
    unique
  • Layout, furniture, decorations, color scheme,
    lighting, service uniforms
  • Aesthetic- the way it looks and feels to
    customers (dimmed lighting)

11
Communication Mix
  • All of the ways an operation actively tries to
    reach, or communicate with its desired
    customers.
  • Advertising through TV, radio, newspapers,
    FACEBOOK!
  • Also, the menu, customer survey requests, other
    customer feedback requests

12
Market Trends
  • Aspects of contemporary marketing mix are
    constantly changing
  • Operation must continually evolve with the times
  • Operations should be aware of whats going on in
    area and around
  • They must keep up with consumer trends (also
    known as Market Trends)

13
Marketing Plan
  • Marketing Plan A list of steps an operation must
    take to sell a product or service to a specific
    market.
  • All must have 5 components.
  • Research the Market
  • Establish Objectives
  • Develop a Market Strategy
  • Implement an Action Plan
  • Evaluate/modify the Action Plan as Needed

14
Marketing Plan
  • Step 1- Research the Market
  • Know the ins and outs of the market and what
    youre up against
  • Gather information
  • Know strengths and weaknesses of your own
    operation

15
Marketing Plan
  • Step 2- Establish Objectives
  • Establish objectives or goals
  • State goals and deadlines

16
Marketing Plan
  • Step 3- Develop a Marketing Strategy
  • Brainstorm ways to achieve objectives
  • Its helpful to come up with a variety of
    different strategies and then evaluate each

17
Marketing Plan
  • Step 4- Implement an Action Plan
  • The action plan is the way the market strategy is
    put into action

18
Marketing Plan
  • Step 5- Evaluate/Modify the Action Plan
  • This stage is an ongoing process of monitoring
    actions and gauging how successful they are
  • Is the plan working? Are there ways it is missing
    the mark? What can we be doing better? How can
    this be improved?

19
SWOT Analysis
  • SWOT Analysis- also called situation assessment
  • Identify Strengths, Weaknesses, Opportunities and
    Threats

20
SWOT Analysis
  • Strengths
  • List all strengths of the operation- areas where
    it excels
  • Well trained Staff
  • Good location
  • Well kept facilities
  • High food quality

21
SWOT Analysis
  • Weaknesses
  • Identify weaknesses so they can be eliminated or
    even turned into strengths
  • Boring Menu
  • Dirty facilities
  • Limited abilities or resources
  • Poor service
  • High staff turnover
  • Poor reputation

22
SWOT Analysis
  • Opportunities
  • Areas where the operation could increase revenues
    or decrease costs
  • Launching a delivery or take-out service
  • Recognizing weak competition
  • Gaining volume or discount from a supplier

23
SWOT Analysis
  • Threats
  • Factors outside the operation that could decrease
    revenues or increase costs
  • Identifying threats helps control them
  • Increased competition
  • Increased taxes
  • Increased costs of certain products
  • Road construction

24
7.2 Market Analysis, Identity and Communication
25
Market Research Methods
  • 4 Basic Methods Marketers Use to Gather Research
  • Experimental Method
  • Observational Method
  • Survey Method
  • Sampling Method

26
4 Methods to Gather Research
  • 1 Experimental Method
  • Try out a product for a limited time or with a
    limited group of people
  • If response is favorable, operation might think
    about using product on larger scale
  • If product is not well received, operation knows
    that more work will be required

27
4 Methods to Gather Research
  • 2 Observational Method
  • Observing how customers react in a natural
    setting toward a product
  • Example manager tells service staff to present
    daily special in 3 different ways and record
    which was most successful

28
4 Methods to Gather Research
  • 3 Survey Method
  • Marketer gathers information using questionnaires
  • Can administer by telephone, email or feedback
    cards presented tableside
  • Often they offer an incentive (coupon for free
    dessert)

29
4 Methods to Gather Research
  • 4 Sampling Method
  • Testing a product with a specific small group of
    people, sometimes called a focus group
  • REMEMBER- MARKETING STRATEGIES ARE GUIDED BY
    RESEARCH RESULTS

30
Market Segmentation
  • Target Market- People an operation intends to
    pursue as customers
  • Every operation should be customer driven.
  • Customer Driven- making sure that satisfying all
    needs and wants of the customer drives the market
    strategy

31
Market Segmentation
  • Mass Marketing- treats everyone in the market as
    having the same needs and wants
  • Target Marketing- treats people as different from
    each other and tries to make a focused appeal to
    a distinct group of customers
  • Identifying a target market enables an operation
    to avoid mass marketing and focus on a target
    market

32
Market Segmentation
  • Market Segmentation- when marketers break down a
    large market into smaller groups of similar
    individuals that make up the market
  • Like looking at the market through a microscope
    to see what parts make up the whole
  • Segmenting will help identify target demographics
    in any given location

33
Market Segmentation
  • Demographics- refers to the ways in which
    researchers categorize or group people and can be
    done in any number of ways

34
4 Basic Ways to Segment the Market
  • Demographic Segmentation
  • Gender, ethnicity, marital status, income, size
    of household
  • Geographic Segmentation
  • Where consumers live, work, and transportation
  • Product Usage Segmentation
  • Lots of coffee houses in area, add desserts that
    have coffee flavor
  • Lifestyle Segmentation
  • Activities, hobbies, interestes

35
Creating a Market Identity
  • Positioning- creating within the marketplace a
    clear, specific identity for both a product and
    the operation that offers that product.
  • Three steps to positioning
  • Identify ways to differentiate the operation
    within the market and create a unique identity
  • Select the right mix of differentiating aspects
  • Communicate the chosen identity to a specific
    target market

36
Differentiating an Operation
  • There are many ways to do this
  • Product
  • Unique items or traditional items in a unique way
  • Physical Appearance/aesthetics
  • Use the actual appearance to create an image
  • Service
  • How will the service staff be dressed? Delivery?
  • Location
  • Steakhouse in area with lots of vegetarians? Not
    good idea.
  • Image
  • Decide on image first, then create products and
    services to work toward that image

37
WAYS TO ATTRACT CUSTOMERS
  • Educational Promotions such as wine tastings
  • Specials, such as buy 1 get 1 free
  • Signature items, such as special desserts or
    secret recipes
  • Frequent shopper cards that offer discounts or
    other incentives
  • Themes, both as operation-wide celebrations or
    special events
  • Merchandising techniques at the table such as
    unique garnishing or flambe

38
Creating an Identity
  • Selecting the Right Mix
  • Decide the best route to take
  • Finding the right mix takes a lot of time and
    research
  • Communicating the Chosen Identity
  • The message needs to be clear

39
Market Communicators
  • Promotional Mix The way a company communicates
    with an operations market
  • It can consist of any or all of the following
  • Advertising
  • Sales Promotions
  • Personal Selling
  • Public Relations
  • Direct Marketing

40
Market Communicators
  • Advertising- paying to promote an operations
    products, services or identity
  • Can be conducted through TV, radio, newspapers,
    internet
  • Effective ads can be powerful tools
  • Sales Promotions- limited, or short-term
    incentives to entice customers to patronize an
    operation
  • Happy hour at Sonic, Kids Eat Free, Half price
    appetizers

41
Market Communicators
  • Personal Selling-well trained service staff.
  • Professionalism, politeness, efficiency
  • Public Relations- the process by which an
    operation interacts with the community at large
  • Sponsoring little league teams
  • Direct Marketing- making an effort to connect
    with a certain segment of the market
  • Direct mailing or emails, telephone calls,
    tableside feedback

42
Sales Promotions
  • Sales Promotions provide special incentives for
    customers to patronize an operation.
  • There are many types
  • All are designed to give customers the extra
    boost to get them into the operation or to get
    them to purchase certain items
  • They are the focus of advertising because they
    are only useful when customers know about them

43
Types of Sales Promotions
  • Special Pricing
  • Specials, deals, coupons
  • Frequent Shopper Program
  • Free food items or substantial discounts, Cafe
    Rio
  • Premiums
  • Free or reduced price merchandise, pen or cup
  • Special Events
  • One time or periodic occasions
  • Samples
  • Free tastes of food items, Sams Club
  • Contests and Sweepstakes
  • Games and other programs that involve customer
    and provide a prize

44
Typical Promotional Materials
  • Signage- menu boards, directional signs
  • Flyers- paper notices
  • Premiums- token gifts or giveaway items, pens,
    toys, mugs, t-shirts
  • Carryout and Door Hanger Menus- paper menus, door
    hanger menus for doorknobs

45
Typical Promotional Materials
  • Apparel and Branded Merchandise- name and/or logo
    on t-shirts, mugs, pencils, stuffed animals
  • Point-of-Purchase (POP) materials- display items
    near the point of purchase where customers make
    their decision about what to buy.

46
Typical Promotional Materials
  • Merchandising Materials- table tents and other
    items in the restaurant
  • Direct Mail- mass mailing of coupons, menus, etc.
  • Email- electronic mail targeted to a particular
    market
  • Complementary Promotions- 2 or more sponsors
    develop complementary promotional materials
    (restaurant gives free tickets to a sports event,
    and sports event gives free appetizer at
    restaurant)

47
Public Relations
  • Public Relations- purpose is to generate positive
    public publicity
  • Publicity- the attention the an operation
    receives
  • Community Relations- involve interacting with the
    people in the local area to create awareness of
    and trust for an operation

48
Benefits of Public Relations
  • Create a positive image within the community
  • Building credibility with the community
  • Building relationships with other community
    leaders
  • Generating positive publicity
  • Promoting the restaurant

49
Public Relations
  • Media Relations- relationships that marketers
    maintain with the media outlets
  • Newspapers, magazines, TV, and radio
  • Press Release- is a brief presentation of
    promotional info written to sound like a news
    article
  • A well written one presents marketing info as news

50
Public Relations
  • Press Kit- a packet of info given to media
    representatives to answer questions they might
    have about a business or organization
  • Folder containing the following
  • General info about the organization
  • Menus
  • News articles
  • Awards
  • Photos
  • Operations mission or goals
  • Contact info

51
7.3 The Menu As A Marketing Tool
52
Importance of a Menu
  • A menu serves two purposes
  • Planning
  • Communication
  • Planning- the menu gives an operation an end goal
    to work toward
  • Communication- informing customers, selling
    products, and creating identity

53
Menu Types
  • A la carte (AH le CART)
  • Du juor (doo-ZHEUR)
  • Cyclical
  • Limited
  • Fixed
  • California
  • Prix Fixe (PREE FIX)
  • Table dhote (tah-buhl DOHT)

54
Menu Types
  • A la Carte- menu prices each item separately,
    everything has its own price and is paid for
    separately
  • Du jour Menu- Du jour is a French term, it means
    of the day
  • A du jour menu lists items that are available on
    a particular day
  • In the USA, its often presented as a Daily
    Specials Menu

55
Menu Types
  • Cyclical Menu- chefs or managers change the menu
    after a period of time
  • Four menus for four seasons
  • Can change on a daily, weekly, or monthly basis
  • Limited Menu- limited menus are just that-
    limited
  • These menus make it easy to keep track of costs

56
Menu Types
  • Fixed Menu- offers the same items everyday
  • Customers know what to expect
  • Sometimes they supplement with a de jour menu to
    offer variety
  • California Menu- lists all meals available at any
    time of day
  • Diners that are open 24 hours often use
    california menu

57
Menu Types
  • Prix Fixe Menu- opposite of an a la carte menu,
    offers multiple menu items at one price
  • Choice of appetizer, full entree with sides, and
    dessert for one price
  • Table dhote menu- similar to prix fixe menu,
    bundles various menu items into one package
  • Often offered at banquets

58
Organizing a Menu
  • Often organized by the order of courses
  • Appetizers
  • Soups
  • Salads
  • Sandwiches (can be offered before or after
    salads)
  • Entrees
  • Vegetables
  • Desserts
  • Beverages
  • Variations depend on what an operation offers and
    the image it wants to promote
  • An Italian restaurant might offer a pasta course
    separate from the rest of the entrees

59
Creating a Menu
  • A menu should reflect the character and goals of
    the operation
  • Two steps in menu creation
  • Planning
  • Design

60
Creating a Menu
  • Planning
  • Managers must keep the following in mind
  • Physical Layout of the Facility
  • Size of storage, service and dining areas
  • Skill of Personnel
  • Operations personnel must fit the menu that
    planners create
  • Availability of Ingredients
  • How cost efficient are items to produce
  • Target Markets Wants and Needs
  • Management can never forget who the operation is
    supposed to be serving
  • Target Markets Expectations
  • Consistency is important
  • Profit Margin
  • Planners should create the menu with
    profitability in mind throughout the entire
    process

61
Creating a Menu
  • Designing
  • Designers must consider the following elements
    when laying out a menu
  • Medium
  • Paper, menu boards, spoken menu
  • Layout
  • How it is categorized and sequenced
  • It can help further an operations identity and
    work to sell menu items at the same time
  • Color
  • Designers need to think about the feeling they
    want customers to get when considering the
    operation
  • Font
  • Different fonts have different connotations
  • Art
  • Art can say a lot about an operation

62
Pricing the Menu
  • A critical process for any operation
  • Price serves two main purposes
  • Provides information to customers
  • Determines profitability
  • Price speaks to the market category in which the
    restaurant falls

63
Pricing the Menu
  • Profitability- amount of money remaining for an
    operation after expenses, or costs are paid
  • Target Margin- The difference between the amount
    of money left over from the sale of food or
    beverages (after preparation costs) and the
    amount needed to pay for other overhead, like
    rent or heat.

64
Analyzing the Menu
  • It is crucial to success of any operation that
    management have the knowledge and means to
    analyze how well items on the menu are
    performing.
  • One of the most popular methods is menu
    engineering
  • Menu engineering- systematically breaks down a
    menus components to analyze which items are
    making money and which items are selling

65
Menu Items According to Popularity
  • Stars
  • Menu items that are profitable and popular
  • Plow Horses
  • Menu items that are popular but less popular
  • Puzzles
  • Menu items that are unpopular but very profitable
  • Dogs
  • Menu Items that are unpopular and unprofitable

66
DID YOU KNOW?
  • Carbonated Soft Drinks are one of the most
    frequently ordered items in the US. Their low
    cost and high profitability makes them a STAR on
    any menu

67
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