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.
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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.
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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 ……………………………………………………………….
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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
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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.)
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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, , cards at table)
_____________ involves testing a product with a specific, small group of people (focus group)
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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 ………………………………………………………………
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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 rest.
Lifestyle segmentation: the …………………………………………………………………..
Lots of health conscious people = offer healthful menu
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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.
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11. 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.
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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 …………………………………………………………………
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13. Types of Sales Promotions1. 2. 3. 4. 5. 6.
Typical promotional materials: 3. 4. 5. 6. 7. 8.
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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
…………………………………………………………….
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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.
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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 ……………………………………………………….
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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)
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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.
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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.
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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 ………………………………………………………
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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 …………………………………………
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22. More Menu Pricing Methods
Average check method:
The result is an average check amount, which gives managers an idea ……………………………………………………………
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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 ………………………………………………………………….
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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.
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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 ………………………………