1. CHAPTER 7 MARKETING

2. A group of people, also known as customers is called what? (434)
Market

3. What is marketing? (434)
The process of communicating a businesses message to its market.

4. What are the 4 “P’s” in the marketing concept? (436)
Place
Product
Price
Promotion

5. What are the 3 primary elements of the contemporary marketing mix
Product service mix
Presentation mix
Communication mix

6. Customer trends are also known as what? (437)
Market trends

7. What is the way in which an operation tells its customers about its products and services? (437)
Communication mix

8. Which contemporary marketing mix consists of all the elements that make the operation look unique? (437)
Presentation mix

9. What are the 5 steps to a successful marketing plan? (438)
Research the market
Establish objectives
Develop a market strategy
Implement an action plan
Evaluate/modify the action plan as needed

10. A SWOT analysis looks at what 4 things? (442)
Strengths
Weaknesses
Opportunities
Threats

11. What is the experimental method of marketing? (448)
An operation might try out a product for a limited time or with a limited group of people

12. What is the observational method of marketing? (448)
This involves observing how customers react in a natural setting towards a product

13. Explain the survey method of marketing. (448)
In this method, a marketer gathers information using questionnaires.

14. Please explain sampling. (449)
This involves testing a product with a specific, small group, sometimes called a focus group.

15. What does mass marketing do? (450)
Treats everyone in the market as having the same wants and needs.

16. What does target marketing do? (450)
Treats people as different from each other and tries to make a focused appeal to a distinct group of customers.

17. What is breaking down a large market into smaller groups of similar individuals called? (450-453)
Market segmentation

18. What are demographics? (450)
This refers to the ways in which researchers categorize or group people.

19. What are the 4 ways an operation can segment the market? (451-452)
Demographic segmentation
Geographic segmentation
Product usage segmentation
Lifestyle segmentation

20. The main goal of target marketing is to… (452)
Target marketing helps you to focus your promotion and advertising efforts on specific groups.

21. A promotional mix may include some of these 5 components: (457)
Advertising
Sales promotion
Personal selling
Public relations
Direct marketing

22. What is it called when an operation pays to present or promote its products, services or identity? (457)
Advertising

23. Radio commercials are what form of market communication? (457)
Advertising

24. Our white bread normally sells for $2. 50 a loaf
Our white bread normally sells for $2.50 a loaf. By selling it to people who use other services in the building, we are using what type of market communication? (457)
Sales promotion

25. What is a premium? (459)
Free or reduced price merchandise, such as a pen or cup that shows the name and location of the restaurant, usually given away or sold for a reduced price with the purchase of a food item.

26. What is it called when 2 or more sponsors develop complementary promotions or offer complementary promotional Materials? (461)
Cooperative sales promotion

27. What is interacting with the people in the local area to create awareness of and trust for an operation? (461)
Community relations

28. What is a packet of information given to media representatives to answer potential questions about a business or organization called? (462)
Press release

29. What is the primary sales tool in most restaurants? (468)
Menu

30. What are some examples of promotional materials
What are some examples of promotional materials? You DO NOT need to give definitions. (460)
Signage
Flyers
Premiums
Carryout and door hanger menus
Appeal and brand name merchandise
Point of Purchase materials
Merchandising materials
Direct mail

31. Daily Specials is an example of what type of menu? (472)
Du jour menu

32. What type of menu offers breakfast, lunch and dinner at any time of day? (473)
California menu

33. How are most menus organized? (475)
In the order in which they are actually eaten
Appetizers
Soup
Salad
Sandwiches
Entrees
Vegetables
Desserts

34. When planning a menu, what 6 things do managers and chefs need to keep in mind? (476)
Physical layout of the facility
Skills of personnel
Availability of ingredients
Target market’s wants and needs
Target market’s expectations
Profit margin

35. What are the 2 steps in menu creation? (476-480)
Planning
Design

36. What 2 purposes does menu pricing serve (482-485)
To provide information to customers
To determine profitability

37. How do you calculate the cost of an item using the food percentage method? (483)
Item food cost / Food cost percentage = Menu price

38. What are the 4 classifications that come from menu engineering? (490)
Star
Plow horse
Puzzle
Dog

39. What does it mean when a menu item is called a star? (490)
These items are both popular and profitable

40. What does it mean when a menu item is called a puzzle? (490)
These items are unpopular but very profitable.

41. What does it mean when a menu item is called a dog? (491)
These items are unpopular and unprofitable.

42. What is it when a menu item is referred to as a plow horse? (490)
These items are popular but less profitable.