chap 14, marketing foodservice

environmental forces

marketing environment surrounds the buyer and the marketing mix; political, legal, regulatory, societal, economic, competitive, technological; influences preferences and needs for products

political forces

influence the country's economic and political stability and decision making which in turn affects domestic matters, negotiation of trade agreements, and determination of foreign policy; political trends

bottom-up approach

information from employees is used to establish objectives, budgets, forecasts, timetables, and marketing mixes

systems approach to marketing management

integral component of management functions that transform inputs into output; emphasis on consumer and customer satisfaction

critical incident studies

interviews in which customer provide verbatim stories about experiences

economic forces

major influence on competition, which is affected by the number of industries controlling the supply of a product, ease by which a new operation can enter the industry, and the demand for the product relative to the supply

evaluation

sales analysis and market share

lost customer research

seeking out former customers and discussing in detail their reasons for leaving

integration of plans

1. clear organizational mission 2. stability over time 3. coordination of marketing mix 4. coordination among SBUs 5. compatible short, medium, and long range plans 6. precisely defined target markets 7. long-term competitive advantages

Research techniques include

1. complaint solicitation 2. critical incident studies 3. requirements research 4. relationship and service quality surveys 5. trailer calls or post transaction surveys 6. service expectation meetings 7. process checkpoint evaluations 8. market oriented ethnography 9. mystery shopping 10. customer panels 11. lost customer research

7 steps to marketing

1. define the organizational mission 2. establish strategic business units 3. set marketing objectives 4. perform a situation analysis 5. develop a marketing strategy 6. implement tactical plans 7. monitor results

components of VALS

1. ideals-make choices based on knowledge and principles 2. achievement-make choices based on what they perceive and show success to peers 3. self expression-make choices based on desire for social or physical activity, variety, or risk

criteria for effective services marketing research program

1. includes both quantitative and qualitative research 2. includes both expectations and perceptions of customers 3. balances the cost of the research and value of the information 4. includes statistical validity 5. measures priorities or importance of attributes 6. occurs with appropriate frequency 7. includes measurement of loyalty, behavioral intentions, or actual behavior

Groups defined by Strategic Business Insights

1. innovators-change leaders, active consumers, receptive to new ideas 2. thinkers-mature, reflective, well informed individuals who are motivated by ideals, value order and knowledge 3. achievers-motivated by achievement, work oriented, conservative 4. experiencers-motivated by self expression, seek variety, excitement, new and risky activities 5. believers-motivated by ideals, conservative, routines, organize around home, family, and social or religious organizations 6. strivers-motivated by achievement, impressive possessions, lack financial resources 7. makers-motivated by self expression, practical, self sufficient, traditional 8. survivors-lowest motivation, cautious consumers, loyal to favorite brands

when conducting research

1. objectivity-unbiased, openminded, manner 2. accuracy-use of research tools that are carefully constructed and implemented 3. thoroughness-sample represents the population

5 steps for logically solving a problem

1. problem definition 2. data collection 3. data analysis 4. recommendations 5. preparation of the report

trailer calls or post transaction surveys

customer assessments of service encounter immediately after encounter

types of plans

categorized by duration, scope, and method development; typically developed for 1 year and are considered short range medium range-2-5 years long range-over 5 years bottom-up approach and top-down approach -->best if used in combination

societal forces

cause marketers to be responsible for decisions; environmental issues, pesticides on fruits and vegetables, food labeling

geographic variables

climate, terrain, natural resources, population density, and subcultural values that influence customers' product needs; size of the region, city, county, or state and whether the area is urban, suburban, or rural; population in the areas, customer preferences, spending patterns ned to be considered

monitoring results

comparison of performance standards against actual performance over a definite time; budgets, timetables, sales, cost analyses

development of a plan

define the target market and marketing mix variables; identify resources needed and objectives to be achieved; real, workable, and easy to execute; specific responsibilities with times and dates for accomplishment; constantly reviewed and evaluated

local, state, and federal regulatory forces

develop and enforce regulations that can affect marketing decisions; encourage industries to develop guidelines to stop questionable practices

market segmentation

division of total market into groups of customers who have similar needs, wants, values, and buying behavior; market is not a place but rather a group of people; mixture of individuals, groups, or organizations that share one or more characteristics, which causes them to have similar product needs; includes geographic, demographic, psychographic, and behavioristic variables

legal foces

responsible for legislation and interpretation of laws; controlled by laws designed to preserve competition and protect the consumer

marketing strategy

encompasses selecting and analyzing a target market and creating and maintaining an appropriate marketing mix that will satisfy that market; as specific as possible

sales analysis

evaluating the actual performance of marketing strategies; detailed study of sales data either volume or market share

psychographic variables

factors that can be used for segmenting the market, most common are motives and lifestyles motive (recognizes the reason a customer makes a purchase) lifestyle (categorizes people according to what is important to them and their mode of living)

SWOT analysis

focuses on identifying strengths, weaknesses, opportunities, and threats to an organization; focus typically on factors related to market share, customer loyalty, customer satisfaction, and previous marketing success

marketing research

function that links the consumer, customer, and public to the marketer through information that is used to identity and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; improve understanding of marketing as a process

complaint solicitation

gatheiring complaints from consumers

process checkpoint evaluations

gathering customer feedback during service process to allow corrective action before encounter is completed

mystery shopping

hiring an outside firm to experience the service as a customer and evaluate the encounter using a pre-established questionnaire

situation analysis

identification of marketing opportunities and potential problems confronting an organization

technological forces

impact on everyday living, influencing consumers' desires for products and the stability of the marketing mix; technologies of communication, transportation, computers, and packaging influence the types of products being produced

behavioristic variables

include variables suc as purchase volume, purchase readiness, loyalty, and shopping behavior

service expectation meetings

meetings with customers to determine expectations

market oriented ethnography

observing consumption behavior in natural settings

marketing

organizational function and a set of processes for creating communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

market share

percentage of industry sales for a product; industry sales decrease when restaurant sales decrease and market share remains constant; contains uncontrollable factors such as differing objectives among companies

control

performance standards for activities based on goals; internal standards generally expressed as profits, sales, or costs; external individuals or organizations such as consultants or marketing research firms

demographic variables

population characteristics that might influence product selection, such as age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class and price sensitivity

marketing products

producers, sellers, and buyers are involved; competition; exchange (each willing to give up something of value for something of value-->buyer has money, seller has product)

Values and Life-styles (VALS)

research program seeks to predict customer behavior by defining segments, based on resources and primary motivation

strategic marketing

selection and analysis of a target market and creation and maintenance of an appropriate marketing mix; begins with mission statement and objectives and ends with marketing plan

strategic business units (SBUs)

separate component of the organization and has a specific market focus and manager with responsibility for placing all functions into a strategy

tactics

specific action towards a marketing strategy

marketing objective

statement of what is to be accomplished through marketing activities

relationship and service quality surveys

structured surveys that collect on routine basis to evaluate a customer's relationship with company and identify aspects needing performance improvement

mission statement

summation of the organizations' purpose, competition, target market, product, and service and of the recipients of the service, including consumers, employees, owners, and the community

requirements research

surveys, brainstorm, and literature reviews to determine benefits and attributes

marketing planning

systematic process involving the assessment of marketing opportunities and resources, the determination of marketing objectives, the development of a marketing strategy, and planning for implementation and control

top-down approach

top management directs and controls planning activities

customer panels

using groups of current customers to provide attitudes and perceptions about a service over time

marketing plan

written document or blueprint governing an organization's marketing activities