Chapter 7 level 2

Press release

A brief presentation of promotional information written to sound like a news article

market

A group of people who desire a particular product or service; also known as customers.

Marketing plan

A list of steps an operation must take to sell a product or service to a specific market.

Target marketing

A marketing strategy that makes a focused appeal to a distinct group of customers

Mass marketing

A marketing strategy that treats everyone in the market as having the same wants and needs

Star

A menu item that is both popular and profitable

Dog

A menu item that is both unpopular and unprofitable

Plow horse

A menu item that is popular, but less profitable than a star

Puzzle

A menu item that is unpopular but very profitable

Menu Board

A menu presented on blackboards, whiteboards, or directly on the walls or fixtures of an operation

Spoken Menu

A menu that is verbally presented to guests by staff members

contemporary marketing mix

A model of business operations that relies on the product-service mix, the presentation mix, and the communication mix.

Press kit/Media kit

A packet of information given to media representatives to answer questions that might have about a business or organization.

Media vehicle

A particular media outlet.

Focus group

A small, specific group of people on whom a particular product is tested.

value proposition

A statement of the value and operation's target market will experience when they purchase its products and services.

Presentation mix

All the elements that make a restaurant appears to be unique.

Product-service mix

All the food and services offered to costumers.

Communication mix

All the ways an operation actively tries to communicate with its desired customers.

Sales mix analysis

An analysis of the popularity and profitability of a group of menu items

opportunity

An area in which an operation could either increase revenues or decrease costs.

Strength

An area in which an operation excels.

Weakness

An area in which an operation performs poorly.

SWOT analysis

An assessment of an operation's strengths, weaknesses, opportunities, and threats; also known as a situation assessment.

Threat

An external factor that could either decrease revenues or increase costs.

Survey method

An operation gathers information using questionnaires.

Observational method

An operation observes how customers react toward a product in a natural setting

experiments method

An operation offers a product or promotion for a limited time or with a limited group of people

Customer driven

An operation's market strategy is determined by its customers' wants and needs.

Cooperative sales promotions

An opportunity in which tow or more sponsors develop complementary promotion or offer complementarity promotional materials.

Market trends

Changing consumer habit

positioning

Creating within the marketplace a clear, specific identity for both a product and the operation that offers that product.

personal selling

Face-to-face interactions between staff members and guests

Premiums

Free or reduced-price merchandises.

Special pricing

Limited-time reduced prices offered through specials, deals, coupons, or other programs

Direct marketing

Making a concerted effort to connect directly with a certain segment of the market.

lifestyle segmentation

Market segmentation based on the activities, bobbies, interests, and opinions of ta given target market.

product usage segmentation

Market segmentation based on what products and services are popular in a particular area.

Geographic segmentation

Market segmentation based on where customers are located at particular times of day as well as how they arrived at those locations.

Demographic segmentation

Marketing segmentation based on the personal makeup of individuals in a given location

Special events

One-time or periodic occasions that provide a special incentive for customers to patronize an operation.

Samples

Small, free tastes of food items.

Profitability

The amount of money remaining for an operation after expenses have been paid

publicity

The attention an operation receives

Average contribution margin

The average amount that each menu item contributes to gross profit

Margin

The difference between the amount of revenue remaining after the cost of food and beverage sales and overhead has been subtracted; another way of indicating "profitablity"

Sales volume percentage

The expression of each item's sales as a percentage of total sales

Mix percent rate

The menu mix percentage multiplied by 70 percent

Menu mix percentage

The number of the menu items sold divided by the total number of purchases

Sales volume

The number of times a given item is sold during a particular time period

Sampling

The operation tests a product with a small, specific group of people.

Target market

The people an op3eration intents to pursue as customers

Public relations (PR)

The process by which an operation interacts with the community at large.

Market segmentation

The process of breaking down a large market into smaller groups of similar individuals

marketing

The process of communicating a business's message to its market.

media relations

The relationships that marketers maintain with media outlets.

Menu engineering

The systematic breakdown of a menu's components to analyze which items are making money and which are selling well

aesthetic

The way a particular operation looks and feels to customers

Community relation

The way in which an operation interacts with the people in the local area to create awareness of the trust in an operation.s

Demographics

The ways in which researchers categorize or group people.

Set dollar amount markup

This pricing method adds a fixed dollar amount to the food cost of an item to determine menu prices

Average check method

This pricing method divides the operation's total revenue by the number of seats, average seat turnover, and number of days open each year; this yields the average check amount, which is then used with approximate food cost amount to determine menu prices

Set percentage increase method

This pricing method enables managers to add a fixed percentage to the food cost of each item to determine menu prices

Straight markup pricing method

This pricing method multiplies raw food cost by a predetermined fraction to determine the dollar amount to be added to each food item

Food percentage method

This pricing method sets the percentage of menu price that the food cost must be and then divideds the item's food cost by the percentage to develop the menu price

Du jour menu

a menu listing the menu items that are available on a particular day

Table d'hote menu

a menu offering multiple courses, with multiple choices within each course, for a set price

Cyclical menu

a menu that is changed after a certain period of time

California menu

a menu that lists all meals and items available at all times of day

Prix fixe menu

a menu that offers multiple items at one price

Limited menu

a menu that offers only a few items

Fixed menu

a menu that offers the same items every day

A la carte menu

a menu that prices each item separately

contests and sweepstakes

games and other programs that involve that customer and provide prizes.

Sales promotions

limited or short-term incentives to entice customers to patronize an operation.

Advertising

paying to present or promote an operation's products, services, or identity.

Frequent shopper program

provided a benefit in exchange for continuing patronage

Marketing mix

the combination of all the factors that go into creating, developing, and selling a product.

promotional mix

the ways in which an operation communicates with it market