HBM 131 1st Edition Lecture 28 Outline of Last Lecture I World Street Food Presentation Outline of Current Lecture I Marketing Current Lecture I Marketing A Marketing Overview 1 Market A group of people who desire the product or service provided by a business 2 Marketing The process of communicating a business message to its market 3 Marketing determines What products and services to offer and how to position them in the marketplace How to promote them to potential buyers How to price them so that people will buy them How to deliver the goods to buyers B Marketing Functions C Marketing Concept 1 In the current business environment marketing drives the operation To successfully market Determine customer needs and wants before doing anything else Determine the costs prices and profitability of products and services before starting to produce them Organize all aspects of the operation to provide what the customers want and not other things D The P s of Marketing 1 Product what you are selling 2 Price how much you are charging for your product 3 Promotion how you tell people about your offer e g your product and price 4 Place how people can buy your product E More P s 1 People services are performed by people whose performance influences the quality of the experience thus influences the concept of value and satisfaction 2 Process it s not just the attitudes of the person that matters but the process they use to provide the service We discuss the concept of a service sequence in earlier chapters and they help guide the service experience 3 Physical evidence services are intangible so the customer looks for physical clues about the quality F Marketing Plan 1 Marketing plan A list of steps an operation must take to sell a product or service to a specific market 2 A marketing plan has five main components Research the market Establish objectives Develop a market strategy Implement an action plan Evaluate and modify the action plan as needed G SWOT 1 SWOT analysis also called a situation assessment is used to identify an operation s strengths weaknesses opportunities and threats 2 Strengths All of the strengths of the operation areas where it excels 3 Weaknesses The operation s shortcomings 4 Opportunities Areas where the operation could either increase revenues or decrease costs 5 Threats Factors outside the operation that could decrease revenues or increase costs H Market Segmentation 1 Target market The group of people an operation intends to pursue as customers 2 Identifying a target market enables organizations to Provide the products and services needed Avoid mass marketing in which everyone in the market is treated as having the same needs and wants Focus on target marketing which treats people as different from each other and tries to make a focused appeal to a distinct group of customers I Creating a Market Identity 1 Positioning creates a clear specific identity for both a product and the operation within the marketplace The goal is to stand out in the crowd 2 Positioning consists of three steps Identify possible ways to differentiate the operation within the market to create a unique identity Select the right mix of differentiating aspects Communicate the chosen identity to a specific target market J Ways to Differentiate an Operation 1 To differentiate an operation from its competitors and create a unique identity managers can look at the following 2 Product The first and most obvious way to position an operation in the market is through the product it offers 3 Physical appearance aesthetics Use the actual physical space of an operation to create an image 4 Location Location can play a big part in creating an identity 5 Image Another way to differentiate an operation is through its image K Ways to Attract Customers 1 Merchandising techniques at the table such as unique garnishing or flamb 2 Themes both as operation wide celebrations and special events 3 Frequent shopper cards that offer discounts or other incentives 4 Signature items such as special deserts or secret recipes 5 Specials such as buy one get one free nights 6 Educational promotions such as wine tastings L Market Communications 1 Promotional mix The ways an operation communicates with its market 2 Advertising Paying to present or promote an operation s products services or identity 3 Sales promotions Limited or short term incentives to entice customers to patronize an operation 4 Personal selling Always key to an operation s financial success but well trained service staff can also go a long way in communicating an operation s message 5 Public relations PR The process by which an operation interacts with the community 6 Direct marketing A concerted effort to connect directly with a certain segment of the market M Menu Overview 1 There may be no stronger marketing tool for a restaurant than its menu 2 It provides two functions planning and communication 3 It presents an opportunity to distinguish food items from those of the competition 4 The menu may be an operation s best sales tool as it can greatly influence what customers decide to order 5 It helps create the image or identity of an operation N Analyzing Menu Sales 1 Sales mix analysis measures the popularity and the profitability of a group of menu items Conducting a sales mix analysis helps managers maximize profits 2 Sales volume is the number of times a menu item is sold in a time period 3 Menu engineering systematically breaks down a menu s components to analyze which items are making money and which items are selling O Ways to Advertise 1 Print 2 Radio 3 TV 4 Social Media Facebook Web site Twitter Etc 5 Community involvement P Marketing Internal Vs External 1 Internal Loyalty programs Servers Bounce backs FishBowl Single Platform 2 External Radio Print Social Media Community Involvement Groupon Living Social Couponing