© Copyright 2011 by the National Restaurant Association Educational Foundation (NRAEF) and published by Pearson Education, Inc. All rights reserved. Chapter 7 Marketing

Marketing Overview  Marketing includes: 1.Deciding what __________and ___________ to offer 2._________________ them in the marketplace 3._______________ them to potential buyers 4._______________ them so people will buy them 5.______________ the goods to these buyers. 2 Market: a group of people who desire …………………………………………………………… Marketing is the process of …………………………………………………………………. 7.1 Chapter 7 | Marketing

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

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 ……………………………………………………………… Chapter 7 | Marketing

Marketing Plan  Every marketing plan has five main components: 1._____________ the market 2.Establish ______________ 3.Develop a __________strategy 4.Implement an _______ plan 5.___________/modify the action plan as needed 5 A marketing plan is a list of steps an operation must take to …………………………………………………………… Chapter 7 | Marketing

SWOT  ______________________: 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.) 6 SWOT analysis (also called a situation assessment) 7.1 Chapter 7 | Marketing

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, , cards at table)  _____________ involves testing a product with a specific, small group of people (focus group) Chapter 7 | Marketing

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 ……………………………………………………………… Chapter 7 | Marketing

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 rest.  Lifestyle segmentation: the ………………………………………………………………….. Lots of health conscious people = offer healthful menu Chapter 7 | Marketing

Creating a Market Identity  Positioning: creating a clear, specific identity for ……………………………………………… ………………………………………………  Positioning consists of two steps: 1.differentiate the operation within the market and create a ________ identity. 2.__________________ the chosen identity to a specific target market Chapter 7 | Marketing

Ways to Differentiate an 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 Chapter 7 | Marketing

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 ………………………………………………………………… Chapter 7 | Marketing

Types of Sales Promotions  Types of Sales Promotions:  1.  2.  3.  4.  5.  6.  Typical promotional materials:  1.  2.  3.  4.  5.  6.  7.  Chapter 7 | Marketing

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 …………………………………………………………… Chapter 7 | Marketing

Menu Overview 1.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 Chapter 7 | Marketing

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 ……………………………………………………… Chapter 7 | Marketing

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) Chapter 7 | Marketing

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 Chapter 7 | Marketing

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 Chapter 7 | Marketing

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 ……………………………………………………… Chapter 7 | Marketing

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 ………………………………………… Chapter 7 | Marketing

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

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 ………………………………………………………………… Chapter 7 | Marketing

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 Chapter 7 | Marketing

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 ………………………………