Marketing Chapter 1

© Copyright 2017 by the National Restaurant Association Educational Foundation (NRAEF). All rights reserved.

MARKETING OVERVIEW

• Market

oGroup that desires product or service

oCan be customers or guests

• Marketing

oCommunicating message to market/guests

oCommunicates availability of product or service

oUses social media

oNot the same as advertising

BASIC MARKETING CONCEPTS

• Marketing mix

oCombination of creation, development, sale of products

oTraditional marketing plan

oFour Ps: product, price, promotion, place

• Contemporary marketing mix

oDeveloped to meet current marketing challenges

oThree elements: product-service mix, presentation mix,
communication mix

MARKETING MIX: FOUR PS

• Product: Good/service consumers want/need
• Price: Determined by competition, production, demand
• Promotion: Message that advances sale of products
• Place: Where to have product sold

Multiple Choice

What is Marketing?

• Marketing is only about advertising.
• Marketing is the process of manufacturing products.
• Marketing is solely focused on customer service.
• Marketing is the process of promoting and selling products or services.

BASIC MARKETING CONCEPTS: CONTEMPORARY MARKETING MIX

Product-service mix:
•

All food and services

•

Important to compete with similar operations

Presentation mix:
•How an operation looks

•Layout, size, furniture, decorations, lighting, uniforms

Communication mix:
•All communication with guests

•Includes advertising, menu, guest feedback, social networking

MARKETING PLAN

• List of steps to sell product or service
• Directed at specific market
• Different for each operation

MARKETING PLAN: STEPS

Research the market:
• First step
• Information from guests, employees, community, government

offices

• Shows strengths and weaknesses

Establish objective:
• Goals to accomplish
• Set time frame and deadlines

Develop marketing strategy:
• Ways to achieve objective
• Weigh pros and cons
• Collaborate to find best strategy

MARKETING PLAN: STEPS

Implement action plan:
• Put strategy into practice
• Make changes accordingly

Evaluate/modify action plan:
• Monitor actions
• Determine success of strategy
• Revise plan when necessary

MONITORING A PROMOTION SCHEME

• Develop promotional scheme
• Can work with public relations firm
• Plan the new promotion
• Track sales
• Discuss positive and negative effects of promotion

MARKET SEGMENTATION

Target marketing:
• Guest-driven
• Treats people as different
• Focuses marketing appeal to specific guests
• Helps operation target resources toward customers

MARKET SEGMENTATION

Mass marketing:
• Assumes everyone has same needs and wants
• Restaurants and foodservice operations should avoid
• Wastes time and resources

SWOT ANALYSIS

• Also called a situation assessment
• Stands for: strengths, weaknesses, opportunities, threats
• Determines success of operation’s strategy
• Used to make improvements

SWOT ANALYSIS

Strengths:
• Areas where operation excels
• Examples: clean facilities, high food quality, good service
• Exceeds guest expectations

SWOT ANALYSIS

Weaknesses:
• Operation should eliminate
• Examples: dirty facilities, high staff turnover, poor service

SWOT ANALYSIS

Opportunities:
• Areas where operation can improve
• Increase revenues or decrease costs
• Examples: creating delivery service, getting volume discount
• Identify as part of marketing plan

SWOT ANALYSIS

Threats:
• Outside factors that can decrease revenues or increase costs
• Identify to control
• Examples: increased competition, increased costs, road construction

SWOT ANALYSIS

After SWOT analysis:
• Evaluate different elements that need improvement
• Determine success of past efforts
• Invest money and time in benefits for guests and

employees

PROMOTIONAL MIX

• Advertising

oPaying to promote products or services

oUses multiple mediums

• Sales promotions

oShort-term incentives

oIdentity based on recurring promotions

• Personal selling

oFace-to-face interaction

oCommunication of operation’s message

PROMOTIONAL MIX

• Public relations (PR)

oOperation’s interaction with community

oEnhances image with favorable publicity

• Direct marketing

oConnect directly with specific market segment

oIncludes mail, email, telephone calls, website feedback

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TYPES OF SALES PROMOTIONS

• Special pricing

oLimited-time reduced price

oLow-risk opportunity

• Frequent shopper program

oBenefit of continuing patronage

oFree items or discounts

• Premiums

oFree or reduced-price merchandise

oReceived with purchase

TYPES OF SALES PROMOTIONS

• Special events

oOne-time or periodic incentives

• Samples

oFree, small item

oOpportunity for customer to try new item

• Contests and sweepstakes

oProgram for customer to win prize

PROMOTIONAL MATERIALS

• Signage
• Email promotions
• Premiums
• Carryout/door hanger menus
• Apparel/branded merchandise
• Point-of-purchase (POP) materials
• Merchandising materials
• Direct mail
• Cross-selling opportunities
• Social media giveaways

SALES PROMOTIONS

Cooperative sales promotions:
• Involves two or more sponsors
• Develops complementary promotions/promotional materials

oReciprocal coupons

PUBLIC RELATIONS

Important to generate positive publicity:
• Engage in community affairs
• Show local support
• Two types of relationships

PUBLIC RELATIONS: COMMUNITY RELATIONS

Interacting with local area:
• Includes hosting charity events, giving tours, sponsoring teams
• Ways to give back
• Builds credibility and positive relationships
Costs:
• Paying yearly dues/meeting fees
• Volunteering and donations
• Investment in community and business
Methods:
• Offering discounts
• Donating percentage of sales
• Offering facility or services

PUBLIC RELATIONS: MEDIA RELATIONS

Interacting through media outlets:
• Newspapers, magazines, television, radio
• Sending out press releases/media kits
• Press release: brief presentation written like news article
• Media kit (press kit): information given to media reps
• Trying to reach target markets

PUBLIC RELATIONS: MEDIA RELATIONS

Information given to media:
• General info
• Menus
• Articles/photos
• Recent awards
• Promotional materials