Chapter 7 Marketing

1. Chapter 7 Marketing

2. Marketing Overview Market: a group of people who desire …………………………………………………………… Marketing is the process of …………………………………………………………………. • Marketing includes: • Deciding what __________and ___________ to offer • _________________ them in the marketplace • _______________ them to potential buyers • _______________ them so people will buy them • ______________ the goods to these buyers. 7.1 Chapter 7 | Marketing

3. Marketing Concept • In the business environment, _____________________ drives the operation. • This means that an operation has to do the following: • Determine customer ______ and ____________ 1st • Determine the __________, _____________, and ___________ of products and services • This approach is called the marketing concept. 7.1 Chapter 7 | Marketing

4. Basic Marketing Concepts • marketing mix: the combination of ……………………………………………………………. • A new model is called the contemporary marketing mix, which consists of three primary elements: • product-service mix: __________and _______________ offered to customers. • presentation mix: elements that make the operation _____________unique. • communication mix: ways an operation actively tries to _____________________ with its desired customers. • A successful operation needs to keep up with ………………………………………………………………. 7.1 Chapter 7 | Marketing

5. Marketing Plan A marketing plan is a list of steps an operation must take to …………………………………………………………….. • Every marketing plan has five main components: • _____________ the market • Establish ______________ • Develop a __________strategy • Implement an _______ plan • ___________/modify the action plan as needed 7.1 Chapter 7 | Marketing

6. SWOT SWOT analysis (also called a situation assessment) • ______________________: List all of the areas where it excels. • _______________: Identify the operation’s shortcomings. • _____________________: areas where the operation could either increase revenues or decrease costs. • _____________: These are the factors outside the operation that could decrease revenues or increase costs (road construction, etc.) 7.1 Chapter 7 | Marketing

7. Market Research Methods • _________________ method, an operation tries out a product for a limited time or with a limited group of people. • The __________________method involves observing how customers react in a natural setting toward a product (have wait staff present daily specials in several ways to determine which way works the best) • With the ________ method, a marketer gathers information using questionnaires (phone, email, cards at table) • _____________ involves testing a product with a specific, small group of people (focus group) 7.2 Chapter 7 | Marketing

8. Market Segmentation • target market: the people an operation intends …………………………………………………………. • Every operation should be_____________driven by satisfying the wants and needs of the customer. • Mass marketing: treats everyone in the market as having the ………………………………………… • target marketing: makes a focused appeal to a ……………………………………………………. • Market segmentation is when marketers break down a large market ……………………………………………………………… 7.2 Chapter 7 | Marketing

9. Ways to Segment a Market • Demographic segmentation: looks at the personal makeup of ………………………………………………………………. • Lots of young families = kids menus • Geographic segmentation: where consumers …………………………………………………………….. • Suburban restaurants close for lunch and city restaurants close for dinner • Product usage: can also shed light on how best to serve a community • Community loves football, host a football night @ rest. • Lifestyle segmentation: the ………………………………………………………………….. • Lots of health conscious people = offer healthful menu 7.2 Chapter 7 | Marketing

10. Creating a Market Identity • Positioning: creating a clear, specific identity for ……………………………………………………………………………………………… • Positioning consists of two steps: • differentiate the operation within the market and create a ________ identity. • __________________ the chosen identity to a specific target market. 7.2 Chapter 7 | Marketing

11. Ways to Differentiatean Operation • To differentiate an operation from its competitors and create a unique identity, managers can look at the following: • Product: The first and most obvious way to position an operation in the market is through ……………………………………………… • Physical appearance/aesthetics: Use the actual …………………………………….to create an image. • ________________: plays a big part in creating an identity. • Image: Finally, image is yet another way to differentiate an operation. 7.2 Chapter 7 | Marketing

12. Market Communications • The ways an operation communicates with its market is called the ______________________ mix: • _________________: Paying to present or promote an operation’s products, services, or identity. • Sales promotions: Limited, or short-term, incentives to ……………………………………………………………. • Personal selling: well-trained service staff can also go a long ………………………………………………………….. • _______________________: an operation interacts with the community at large (sponsoring local baseball team) • Direct marketing: Making a effort to connect directly with ………………………………………………………………… 7.2 Chapter 7 | Marketing

13. Types of Sales Promotions • Types of Sales Promotions: • 1. • 2. • 3. • 4. • 5. • 6. • Typical promotional materials: • 1. • 2. • 3. • 4. • 5. • 6. • 7. • 8. 7.2 Chapter 7 | Marketing

14. Public Relations:Engaging the Community • ___________________ is the attention an operation receives. • ___________________ relations involve interacting with the people in the local area to create awareness of and trust for an operation. • Media relations are the relationships that marketers maintain with _____________ outlets 1. _____________: brief presentation of promotional info. written to sound like a news article 2. press kit: packet of info. given to media ……………………………………………………………. 7.2 Chapter 7 | Marketing

15. Menu Overview • There may be no stronger marketing tool for a restaurant than its ________________. 2. functions in two ways: ________ and ______________ 3. It can greatly influence what customers ________________. 4. The menu also helps create the ___________________of an operation. The items listed on a menu say a lot about an operation, but so does the way the menu is laid out. 7.3 Chapter 7 | Marketing

16. Types of Menus • À la carte menu: This menu prices …………………………………………. • Du jour menu:Du jour is a French term that means ___________________so it simply lists the menu items that are available on a particular day. • Cyclical menu: chefs or managers change menu items …………………………………… • Limited menu: There are typically only a ………………………………………………………. 7.3 Chapter 7 | Marketing

17. More Menus • ___________menu: offers the same items every day. • _____________menu: lists all meals available at any time of day. • _____________menu: the opposite of an à la carte menu in that it offers multiple courses at one price. • ______________menu: similar to a prix fixe menu in that it bundles various elements of the menu into one package (value meal) 7.3 Chapter 7 | Marketing

18. Organizing a Menu • Most menus organize foods according to …………………………………………………………. • Prepare foods using a __________of cooking methods. • Chefs or managers can divide entrées by _________________ (fish, chicken, pork) • Maintain balance in the choice of ………………………………………………………….. • The number of ______________on the menu depends on customers’ tastes and past sales. 7.3 Chapter 7 | Marketing

19. Designing a Menu • Well-designed menus are pleasing to read, easy to understand, and clearly express the identity and character of the operation as a whole: • __________: How the menu is categorized and sequenced also adds to the identity of an operation. • Color: The colors chosen by an operation help create its ___________. • __________: can highlight certain elements on the menu, drawing customers’ attention. • __________: The art selected for a menu can say a lot about an operation. 7.3 Chapter 7 | Marketing

20. Pricing the Menu • Management needs to make sure that ________aligns with the __________ of the operation and the skill level of the staff. • Price also determines __________________, which is the amount of money remaining for an operation after expenses, or costs, are paid. This difference is also called the _________. • The price of a menu item must account for all ……………………………………………………… 7.3 Chapter 7 | Marketing

21. Menu Pricing Methods • Contribution margin method: There are two steps to the formula: • Straight markup pricing: With this method, managers mark up the costs according ………………………………………… 7.3 Chapter 7 | Marketing

22. More Menu Pricing Methods • Average check method: The result is an average check amount, which gives managers an idea …………………………………………………………… 7.3 Chapter 7 | Marketing

23. Analyzing Menu Sales • It is crucial to the success of an operation that managers analyze ……………………………………………………. • __________ volume: the number of times the item is sold in a time period. • _______________analysis: an analysis of the popularity and the profitability of a group of menu items (at least 4 times a year) • Menu engineering is systematically breaking down a …………………………………………………………………. 7.3 Chapter 7 | Marketing

24. Using Menu Item Classifications • Stars: are both __________and _____________. *stars should be ……………………... • Plow Horses:are ___________ but ______ profitable. • These items are reason for a restaurant’s ________. • Because they are less profitable, one solution may be to ____________ their price. 7.3 Chapter 7 | Marketing

25. Menu Item Classifications Puzzles:_______ but very ___________ One of the best solutions is to _________its price. Dogs:________ and ___________ ________ all dog items from menu if possible. Replace them with ………………………………