Marketing - PowerPoint PPT Presentation

1 / 67
About This Presentation



Marketing Chapter 7 Foundations of Restaurant Management and Culinary Arts DID YOU KNOW? Carbonated Soft Drinks are one of the most frequently ordered items in the US. – PowerPoint PPT presentation

Number of Views:1346
Avg rating:3.0/5.0
Slides: 68
Provided by: Nev91
Learn more at:


Transcript and Presenter's Notes

Title: Marketing

  • Chapter 7
  • Foundations of Restaurant Management and Culinary

7.1 Introduction to Marketing
Introduction to Marketing
  • Market A group of people who desire a product or
  • Marketing The process of communicating a
    businesss message to its market

Advertising vs. Marketing
  • Advertising
  • Marketing
  • Just one component of a successful marketing
  • Determining what products and services to offer
  • How to position them in the marketplace
  • How to promote them to buyers
  • How to price them
  • How to get these to the buyers

Marketing Functions
  • 1. determine what products and services to offer
  • 2. position them in the marketplace
  • 3. promote them to potential buyers
  • 4. price them so people will buy them
  • 5. get the goods to these buyers

Current Business Operations
  • Marketing drives the operation
  • An operation must
  • Determine customer needs and wants
  • Determine the costs, prices, and profitability of
    products and services before beginning to produce
  • Organize all aspects to provide what customers

Basic Marketing Concepts
  • Marketing Mix combination of all factors that go
    into creating, developing and selling a product
  • For years it was known as the 4 Ps
  • Place
  • Product
  • Price
  • Promotion

The NEW Model
  • Contemporary Marketing Mix
  • Product-service mix
  • Presentation mix
  • Communication mix

Product Service Mix
  • All of the food and services offered to customers
  • Restaurants can often gain a competitive edge by
    offering a greater variety of services with
    better efficiency
  • Delivery, Take-out Service, Curbside Take-out

Presentation Mix
  • All of the elements that make the operation look
  • Layout, furniture, decorations, color scheme,
    lighting, service uniforms
  • Aesthetic- the way it looks and feels to
    customers (dimmed lighting)

Communication Mix
  • All of the ways an operation actively tries to
    reach, or communicate with its desired
  • Advertising through TV, radio, newspapers,
  • Also, the menu, customer survey requests, other
    customer feedback requests

Market Trends
  • Aspects of contemporary marketing mix are
    constantly changing
  • Operation must continually evolve with the times
  • Operations should be aware of whats going on in
    area and around
  • They must keep up with consumer trends (also
    known as Market Trends)

Marketing Plan
  • Marketing Plan A list of steps an operation must
    take to sell a product or service to a specific
  • All must have 5 components.
  • Research the Market
  • Establish Objectives
  • Develop a Market Strategy
  • Implement an Action Plan
  • Evaluate/modify the Action Plan as Needed

Marketing Plan
  • Step 1- Research the Market
  • Know the ins and outs of the market and what
    youre up against
  • Gather information
  • Know strengths and weaknesses of your own

Marketing Plan
  • Step 2- Establish Objectives
  • Establish objectives or goals
  • State goals and deadlines

Marketing Plan
  • Step 3- Develop a Marketing Strategy
  • Brainstorm ways to achieve objectives
  • Its helpful to come up with a variety of
    different strategies and then evaluate each

Marketing Plan
  • Step 4- Implement an Action Plan
  • The action plan is the way the market strategy is
    put into action

Marketing Plan
  • Step 5- Evaluate/Modify the Action Plan
  • This stage is an ongoing process of monitoring
    actions and gauging how successful they are
  • Is the plan working? Are there ways it is missing
    the mark? What can we be doing better? How can
    this be improved?

SWOT Analysis
  • SWOT Analysis- also called situation assessment
  • Identify Strengths, Weaknesses, Opportunities and

SWOT Analysis
  • Strengths
  • List all strengths of the operation- areas where
    it excels
  • Well trained Staff
  • Good location
  • Well kept facilities
  • High food quality

SWOT Analysis
  • Weaknesses
  • Identify weaknesses so they can be eliminated or
    even turned into strengths
  • Boring Menu
  • Dirty facilities
  • Limited abilities or resources
  • Poor service
  • High staff turnover
  • Poor reputation

SWOT Analysis
  • Opportunities
  • Areas where the operation could increase revenues
    or decrease costs
  • Launching a delivery or take-out service
  • Recognizing weak competition
  • Gaining volume or discount from a supplier

SWOT Analysis
  • Threats
  • Factors outside the operation that could decrease
    revenues or increase costs
  • Identifying threats helps control them
  • Increased competition
  • Increased taxes
  • Increased costs of certain products
  • Road construction

7.2 Market Analysis, Identity and Communication
Market Research Methods
  • 4 Basic Methods Marketers Use to Gather Research
  • Experimental Method
  • Observational Method
  • Survey Method
  • Sampling Method

4 Methods to Gather Research
  • 1 Experimental Method
  • Try out a product for a limited time or with a
    limited group of people
  • If response is favorable, operation might think
    about using product on larger scale
  • If product is not well received, operation knows
    that more work will be required

4 Methods to Gather Research
  • 2 Observational Method
  • Observing how customers react in a natural
    setting toward a product
  • Example manager tells service staff to present
    daily special in 3 different ways and record
    which was most successful

4 Methods to Gather Research
  • 3 Survey Method
  • Marketer gathers information using questionnaires
  • Can administer by telephone, email or feedback
    cards presented tableside
  • Often they offer an incentive (coupon for free

4 Methods to Gather Research
  • 4 Sampling Method
  • Testing a product with a specific small group of
    people, sometimes called a focus group

Market Segmentation
  • Target Market- People an operation intends to
    pursue as customers
  • Every operation should be customer driven.
  • Customer Driven- making sure that satisfying all
    needs and wants of the customer drives the market

Market Segmentation
  • Mass Marketing- treats everyone in the market as
    having the same needs and wants
  • Target Marketing- treats people as different from
    each other and tries to make a focused appeal to
    a distinct group of customers
  • Identifying a target market enables an operation
    to avoid mass marketing and focus on a target

Market Segmentation
  • Market Segmentation- when marketers break down a
    large market into smaller groups of similar
    individuals that make up the market
  • Like looking at the market through a microscope
    to see what parts make up the whole
  • Segmenting will help identify target demographics
    in any given location

Market Segmentation
  • Demographics- refers to the ways in which
    researchers categorize or group people and can be
    done in any number of ways

4 Basic Ways to Segment the Market
  • Demographic Segmentation
  • Gender, ethnicity, marital status, income, size
    of household
  • Geographic Segmentation
  • Where consumers live, work, and transportation
  • Product Usage Segmentation
  • Lots of coffee houses in area, add desserts that
    have coffee flavor
  • Lifestyle Segmentation
  • Activities, hobbies, interestes

Creating a Market Identity
  • Positioning- creating within the marketplace a
    clear, specific identity for both a product and
    the operation that offers that product.
  • Three steps to positioning
  • Identify ways to differentiate the operation
    within the market and create a unique identity
  • Select the right mix of differentiating aspects
  • Communicate the chosen identity to a specific
    target market

Differentiating an Operation
  • There are many ways to do this
  • Product
  • Unique items or traditional items in a unique way
  • Physical Appearance/aesthetics
  • Use the actual appearance to create an image
  • Service
  • How will the service staff be dressed? Delivery?
  • Location
  • Steakhouse in area with lots of vegetarians? Not
    good idea.
  • Image
  • Decide on image first, then create products and
    services to work toward that image

  • Educational Promotions such as wine tastings
  • Specials, such as buy 1 get 1 free
  • Signature items, such as special desserts or
    secret recipes
  • Frequent shopper cards that offer discounts or
    other incentives
  • Themes, both as operation-wide celebrations or
    special events
  • Merchandising techniques at the table such as
    unique garnishing or flambe

Creating an Identity
  • Selecting the Right Mix
  • Decide the best route to take
  • Finding the right mix takes a lot of time and
  • Communicating the Chosen Identity
  • The message needs to be clear

Market Communicators
  • Promotional Mix The way a company communicates
    with an operations market
  • It can consist of any or all of the following
  • Advertising
  • Sales Promotions
  • Personal Selling
  • Public Relations
  • Direct Marketing

Market Communicators
  • Advertising- paying to promote an operations
    products, services or identity
  • Can be conducted through TV, radio, newspapers,
  • Effective ads can be powerful tools
  • Sales Promotions- limited, or short-term
    incentives to entice customers to patronize an
  • Happy hour at Sonic, Kids Eat Free, Half price

Market Communicators
  • Personal Selling-well trained service staff.
  • Professionalism, politeness, efficiency
  • Public Relations- the process by which an
    operation interacts with the community at large
  • Sponsoring little league teams
  • Direct Marketing- making an effort to connect
    with a certain segment of the market
  • Direct mailing or emails, telephone calls,
    tableside feedback

Sales Promotions
  • Sales Promotions provide special incentives for
    customers to patronize an operation.
  • There are many types
  • All are designed to give customers the extra
    boost to get them into the operation or to get
    them to purchase certain items
  • They are the focus of advertising because they
    are only useful when customers know about them

Types of Sales Promotions
  • Special Pricing
  • Specials, deals, coupons
  • Frequent Shopper Program
  • Free food items or substantial discounts, Cafe
  • Premiums
  • Free or reduced price merchandise, pen or cup
  • Special Events
  • One time or periodic occasions
  • Samples
  • Free tastes of food items, Sams Club
  • Contests and Sweepstakes
  • Games and other programs that involve customer
    and provide a prize

Typical Promotional Materials
  • Signage- menu boards, directional signs
  • Flyers- paper notices
  • Premiums- token gifts or giveaway items, pens,
    toys, mugs, t-shirts
  • Carryout and Door Hanger Menus- paper menus, door
    hanger menus for doorknobs

Typical Promotional Materials
  • Apparel and Branded Merchandise- name and/or logo
    on t-shirts, mugs, pencils, stuffed animals
  • Point-of-Purchase (POP) materials- display items
    near the point of purchase where customers make
    their decision about what to buy.

Typical Promotional Materials
  • Merchandising Materials- table tents and other
    items in the restaurant
  • Direct Mail- mass mailing of coupons, menus, etc.
  • Email- electronic mail targeted to a particular
  • Complementary Promotions- 2 or more sponsors
    develop complementary promotional materials
    (restaurant gives free tickets to a sports event,
    and sports event gives free appetizer at

Public Relations
  • Public Relations- purpose is to generate positive
    public publicity
  • Publicity- the attention the an operation
  • Community Relations- involve interacting with the
    people in the local area to create awareness of
    and trust for an operation

Benefits of Public Relations
  • Create a positive image within the community
  • Building credibility with the community
  • Building relationships with other community
  • Generating positive publicity
  • Promoting the restaurant

Public Relations
  • Media Relations- relationships that marketers
    maintain with the media outlets
  • Newspapers, magazines, TV, and radio
  • Press Release- is a brief presentation of
    promotional info written to sound like a news
  • A well written one presents marketing info as news

Public Relations
  • Press Kit- a packet of info given to media
    representatives to answer questions they might
    have about a business or organization
  • Folder containing the following
  • General info about the organization
  • Menus
  • News articles
  • Awards
  • Photos
  • Operations mission or goals
  • Contact info

7.3 The Menu As A Marketing Tool
Importance of a Menu
  • A menu serves two purposes
  • Planning
  • Communication
  • Planning- the menu gives an operation an end goal
    to work toward
  • Communication- informing customers, selling
    products, and creating identity

Menu Types
  • A la carte (AH le CART)
  • Du juor (doo-ZHEUR)
  • Cyclical
  • Limited
  • Fixed
  • California
  • Prix Fixe (PREE FIX)
  • Table dhote (tah-buhl DOHT)

Menu Types
  • A la Carte- menu prices each item separately,
    everything has its own price and is paid for
  • Du jour Menu- Du jour is a French term, it means
    of the day
  • A du jour menu lists items that are available on
    a particular day
  • In the USA, its often presented as a Daily
    Specials Menu

Menu Types
  • Cyclical Menu- chefs or managers change the menu
    after a period of time
  • Four menus for four seasons
  • Can change on a daily, weekly, or monthly basis
  • Limited Menu- limited menus are just that-
  • These menus make it easy to keep track of costs

Menu Types
  • Fixed Menu- offers the same items everyday
  • Customers know what to expect
  • Sometimes they supplement with a de jour menu to
    offer variety
  • California Menu- lists all meals available at any
    time of day
  • Diners that are open 24 hours often use
    california menu

Menu Types
  • Prix Fixe Menu- opposite of an a la carte menu,
    offers multiple menu items at one price
  • Choice of appetizer, full entree with sides, and
    dessert for one price
  • Table dhote menu- similar to prix fixe menu,
    bundles various menu items into one package
  • Often offered at banquets

Organizing a Menu
  • Often organized by the order of courses
  • Appetizers
  • Soups
  • Salads
  • Sandwiches (can be offered before or after
  • Entrees
  • Vegetables
  • Desserts
  • Beverages
  • Variations depend on what an operation offers and
    the image it wants to promote
  • An Italian restaurant might offer a pasta course
    separate from the rest of the entrees

Creating a Menu
  • A menu should reflect the character and goals of
    the operation
  • Two steps in menu creation
  • Planning
  • Design

Creating a Menu
  • Planning
  • Managers must keep the following in mind
  • Physical Layout of the Facility
  • Size of storage, service and dining areas
  • Skill of Personnel
  • Operations personnel must fit the menu that
    planners create
  • Availability of Ingredients
  • How cost efficient are items to produce
  • Target Markets Wants and Needs
  • Management can never forget who the operation is
    supposed to be serving
  • Target Markets Expectations
  • Consistency is important
  • Profit Margin
  • Planners should create the menu with
    profitability in mind throughout the entire

Creating a Menu
  • Designing
  • Designers must consider the following elements
    when laying out a menu
  • Medium
  • Paper, menu boards, spoken menu
  • Layout
  • How it is categorized and sequenced
  • It can help further an operations identity and
    work to sell menu items at the same time
  • Color
  • Designers need to think about the feeling they
    want customers to get when considering the
  • Font
  • Different fonts have different connotations
  • Art
  • Art can say a lot about an operation

Pricing the Menu
  • A critical process for any operation
  • Price serves two main purposes
  • Provides information to customers
  • Determines profitability
  • Price speaks to the market category in which the
    restaurant falls

Pricing the Menu
  • Profitability- amount of money remaining for an
    operation after expenses, or costs are paid
  • Target Margin- The difference between the amount
    of money left over from the sale of food or
    beverages (after preparation costs) and the
    amount needed to pay for other overhead, like
    rent or heat.

Analyzing the Menu
  • It is crucial to success of any operation that
    management have the knowledge and means to
    analyze how well items on the menu are
  • One of the most popular methods is menu
  • Menu engineering- systematically breaks down a
    menus components to analyze which items are
    making money and which items are selling

Menu Items According to Popularity
  • Stars
  • Menu items that are profitable and popular
  • Plow Horses
  • Menu items that are popular but less popular
  • Puzzles
  • Menu items that are unpopular but very profitable
  • Dogs
  • Menu Items that are unpopular and unprofitable

  • Carbonated Soft Drinks are one of the most
    frequently ordered items in the US. Their low
    cost and high profitability makes them a STAR on
    any menu

Any Questions?
Write a Comment
User Comments (0)