Marketing is a business strategy designed to attract customers and influence their purchasing behaviors. Marketing is a cyclical process driven by the results of market research and strategic planning. Market segmentation divides a total market into groups of people with unique wants and needs. Key Concepts The marking mix represents that package of approaches that organizations use to attract the attention of a target market. Foodservice operations have unique characteristics that influence the application of marketing principles. Successful marketing is based on careful planning, implementation, and evaluation of strategies. Key Concepts Promotions are specific and well-planned events to attract customers and influence perception or buying behaviors. Success of a promotion is based on the type of promotion and its objective. Successful promotions require careful planning to ensure desired outcomes. Branding and branded concepts can expand customer base and generate new revenue. Introduction In recent years, noncommercial (i.e., hospitals, long-term care facilities, schools, and universities) have recognized the value of marketing principles as a means to survive in a highly competitive industry. This chapter introduces the reader to the basic principles of marketing and offers suggestions on how to develop and implement a successful program. The Definition of Marketing Marketing: an activity directed at satisfying the needs and wants of customers. •Marketing concept •Merchandising Promotion Advertising Publicity Public Relations The Marketing Cycle The Marketing cycle begins by identifyingcustomers who make up the potential market. •Target market •Marketing segmentation •Demographic segmentation •Geographic segmentation •Psychographic segmentation
The Marketing Cycle The Marketing Mix A well-defined marketing program includes four elements: •Product •Place •Price •Promotion Marketing for Foodservice Operations Unique aspects of foodservice marketing •Service component Product •Tangible •Intangible Customer contact Marketing for Foodservice Operations Perishability •Food is unique in that it is highly perishable and difficult to store in inventory. Distribution •Without careful consideration of the conditions during holding and transport, food quality can deteriorate. Marketing for Foodservice Operations Common marketing mistakes include the following: •Lack of planning •Improper budgeting •Poorly defined goals and objectives •Lack of product development •Inadequate program evaluation Marketing for Foodservice Operations Planning •A goal must be defined before planning can begin. Implementation Evaluation •In the evaluation, results of the marketing program can be compared against projected results. Merchandising and Sales Promotion in Foodservice Operations Merchandising •In foodservice, it often relates to how and where products are displayed to trigger sales. Sales Promotion
•This is the function of influencing the customer's purchase. Promotion Planning Promotion Objectives Examples Branding Branded concept •A complete marketing package that communicates a recognized and consistent brand identity to the customer. •Retail item branding •Restaurant branding •In-house or signature branding Summary Foodservice managers today must have a sound knowledge base of marketing terminology, the marketing cycle, the marketing concept, and the unique aspects of marketing in a foodservice operation. Merchandising and promotions are very important activities related to a marketing program.
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