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Psychology of Service & Sales-Building

Psychology of Service & Sales-Building. HRT 382. Thanks to:. E. Jerome McCarthy, author of “Basic Marketing: A Managerial Approach” William B. Martin, author of “Quality Service: The Restaurant Manager’s Bible”

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Psychology of Service & Sales-Building

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  1. Psychology of Service& Sales-Building HRT 382

  2. Thanks to: • E. Jerome McCarthy, author of “Basic Marketing: A Managerial Approach” • William B. Martin, author of “Quality Service: The Restaurant Manager’s Bible” • Raymond J. Goodman, Jr., author of “The Management of Service for the Restaurant Manager”

  3. The Marketing of Service • Marketing Basics • Needs • Wants • Demands (a want backed-up with $) • Ability & Willingness • Product vs. Service

  4. Satisfaction • What is “perceived value”????? • Utility • The buyer’s estimate of the product’s capacity to satisfy their particular need • Value • What the product offers for the price • Satisfaction • The balance between utility and value • The most utility per dollar

  5. Meeting & Exceeding Expectations • Where do they come from? • E. Jerome McCarthy, in “Basic Marketing: A Managerial Approach” , popularized “The 4 Ps” • Product • Price • Place • Promotion

  6. Maslow’s Hierarchy of Needs(In reverse order & in F&B terms!) • Physiological Needs Food, warmth, health, cleanliness • Safety Needs Job security, safe working conditions, benefits • Social Needs Belonging, acceptance, friendship • Psychological Needs Self-esteem, responsibility, status, influence • Self-Actualization Interesting work, involvement, achievement

  7. Service Quality - Two Dimensions • Procedural • The mechanical or systems “stuff” • Convivial • Warm & caring service – emotional “stuff”

  8. Procedural Dimension • Accommodation • Anticipation • Timeliness • Organized Flow • Communication • Customer Feedback • Supervision

  9. Convivial Dimension • Attitude • Attentiveness • Tone of Voice • Body Language • Tact • Naming Names • Guidance • Suggestive Selling • Problem Solving

  10. “Hospitality Mentality” It is easy enough to be pleasant When life flows along like a song, But the person worthwhile Is the person who can smile When everything goes dead wrong. Anonymous

  11. Sales-Building • A focus on the “top line” of the financial statement • The ultimate goal, of course, is to drop profit dollars to the “bottom line,” but the initial focus is to increase revenue. • Building sales can happen in two BASIC ways -

  12. Sales-Building More Guests or More $ per Guest

  13. More Guests • To Increase the number of guests • Community Marketing (marketing outside the restaurant) • In-House Marketing (marketing inside the restaurant; get guests back another time) • Increase Hours of Operation (open earlier and/or close later) • Add Day Parts (a “day part” is a meal period) • Increase the Average “Table Turn” Time (more guests per hour) • Other…

  14. More $ per Guest • Increase the amount each guest spends • In-House Merchandising • Suggestive Selling • Up-selling (a style of suggestive selling) • Raise Prices • Menu Engineering • Other…

  15. In-House Marketing Possibilities • Promotions • Mailing or Email Lists • “Bounce Backs” • Table Tents • Banners • Check Presenter (message or inserts) • Flyers • Posters • Special Menus • Other…

  16. Suggestive Selling • Making a guest aware of an item they might be unaware of • Use “specifics” as you take orders • Would anyone care for a glass of Beringer Chardonnay or, perhaps, a bottle of Sierra Nevada Pale Ale? • Remember to save room for our homemade Fresh Apple Crisp!

  17. Up-Selling • Upgrading a guest’s order to a higher quality (and, yes, priced) item • For example: • If a guest orders a glass of white wine, the server mentions the Chardonnay selection • If a guest orders a burger, the server asks, “Would you like to top your burger with apple wood smoked bacon or a thick slice of sharp cheddar cheese?”

  18. Suggestive/Up-Selling • The Power of the… Personal Recommendation • Presenting your favorite • Doing so in a sincere, “heart-felt” manner • When you true personal favorite is also the most expensive, back your opinion up and/or offer other alternatives

  19. Raising Prices • This strategy has its’ challenges • Positive: it is quick • Negative: guests, especially frequent diners, notice • If you work for a large organization, you may not be able implement this strategy

  20. Menu Engineering • The layout and design of the menu • The use of bullets, flags, and boxes to draw attention to certain items. • The the location and placement of items or item categories • Branding

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