Markets and Marketing

1. Markets and Marketing Chapter Two

2. Market Summary • Market: past, present, & future • Continuously review changes in market share, leadership, trends, market shifts, costs, pricing & competition Midlevel Market Numberofcustomers Deep Market Shallow Market Number of Events

3. Catering Group Markets • (4) Main Categories • Convention • Association • Corporate • SMERF

4. Convention Market • Annual Expositions & National Meetings • Often include trade shows • Planned 2-5 years in advance • Can be in same location each time, or rotate • Convention Affiliate - ICW

5. Convention Market, (continued) • Main factors in choosing facility: • Availability of hotel and facilities • Ease of transportation • Climate • Recreation Opportunities

6. Association Market • Large National meetings • Monthly local meetings • Breakfast, Lunch or Dinner

7. Association Market, (continued) • Main factors in choosing a facility: • Price • Availability of “standing” functions • Quality of food & beverage • Desirability of location

8. Corporate Market • Types of Corporate Events: • Training • Planning • Incentive • Major Concern: • Accomplish objectives – training, goal setting, new product orientation

9. Corporate Market, (continued) • Main factors in choosing a facility • Quality of food & beverage • Meeting rooms; (size, look, location, etc.) • Image • Price

10. SMERF Market • Social • Military • Educational • Religious • Fraternal

11. SMERF Market, (continued) • Generally limited budget • Usually flexible • Good “filler” business during off peak times • Can require lots of “hand-holding”

12. SMERF Market, (continued) • Main factors in choosing a facility • Price • Facility amenities • Location • Recreation

13. Marketing • Key to successful growth & development • Recognizing industry trends • Identifying customer needs • Formalizing sales plans • Developing products, prices, advertising, promotions & sales • *Measurement of success in all above areas*

14. Principal Goals of Marketing • Recognize Trends in: • Cuisine • Entertainment • Customer Lifestyle • Other concepts that shape customer needs • Develop products and/or services in response to those needs

15. American Marketing Association Definition: • The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

16. Marketing Cycle 1) Identify customer needs • Shaped by demographic and social trends

17. Marketing Cycle 2) Create a product or service • Identification provides new opportunities • Must analyze perceived need before investing too much time or money

18. Phase 1 Phase 2 Phase 3 Jan Feb Mar Apr May Jun July Sep Oct Nov Dec Launch Strategies • Launch plan • If product is being announced • Promotion budget • Supply back up material with detailed budget information for review

19. Marketing Cycle 3) Develop customer interest • Done through combination of advertising and in-house promotions

20. Advertising • Strategy & execution • Overview of strategy • Media & timing • Ad spending • Website, Phone, In-house Promotion

21. Other Promotion • Direct marketing • Strategy, vehicles & timing • Response targets, goals & budget • Third-party marketing • Co-marketing arrangements with other companies • Marketing programs • Other promotional programs

22. Marketing Cycle 4) Measure success • Customer response • Financial success can be measured by sales volume following promotions

23. Marketing Records • Group History Files • Records all facets of business relationship • Correspondence • Decision Maker information • Record of events • General information on group

24. Marketing Records • Tracer Files • Used to follow up with clients • Keep track of deposit & contract due dates • Follow up on event information • Record of events • Use for rebooking event

25. Marketing Records • Lost Business Files • Used to follow up on lost business • Evaluate why business was lost • Follow patterns to make adjustments • Develop future marketing plans • Use for future booking of event

26. The 4 “P’s” of Marketing • Place • Product • Price • Promotion

27. Place • Number of people that can be accommodated • Potential to handle groups • Elevators • Restrooms • Parking • Availability of services

28. Product • Consistency • Quality • Good Price/Value Comparison • Knowledgeable/Experienced Staff

29. Price • Most Important and Troublesome Factor • Identifying a price that both reflects the profit and cost needs of the business and responds to the needs of the consumer as acceptable on a perceived value basis.

30. Price • Determine Pricing • Factor in Food Costs • Factor in Variable Costs; labor, benefits, etc. • Factor in allowance for overhead; rent • Factor in profit

31. Price • Things to consider: • Any additional revenue benefits to the property? • Any publicity factor involved? • Is it “off” or slow season? • How badly do you want/need business?

32. Promotion • Brochures • First contact with clients • Conveys image of organization • Catering policies

33. Promotion • Standardized Catering Menus • Offers suggestions • Pricing • Should include willingness to create special menus for client

34. Promotion • CDs, Video Tapes and Photos • Expensive but effective • Can be grouped with testimonial letters • No pictures are better than bad pictures

35. Promotion Proposals: • Direct response to client inquiry • First serious written understanding of a client’s event • Include one or more options for the client to consider • First major step to a signed contract • ALL DETAILS should be included