NTR 105 - Chapter 18 - Marketing - Final Exam

Target Market

Target market: A segment of a population that, as individuals or organizations, have needs for products & possess the ability, willingness, and authority to make a purchase. How to identify target market: 1. Who are our current customers? Are we meeting their wants & needs? 2. Who and where are our potential customers? 3. What do we have or what can we create to attract new customers?

Branding - Why

- Branded concept - A marketing strategy that communicates a recognized brand to customers. - Branding and branded concepts can expand customer base & generate new revenue. - Branding refers to the use of nationally or locally labeled products for sale in an existing foodservice operation. In foodservice it is specifically used to increase sales through brand promotions that are designed to woo new customers & increase the average amount of individual transactions.

Marketing

- Marketing is a business strategy designed to attract customers and influence their purchasing behaviors. - Activities directed at satisfying the needs and wants of customers. - American Marketing Association's definition: An organizational function and a set of processes for creating, communicating and delivering value to customers &dor managing relationships in ways that benefit the organization and its stakeholders. - Marketing concept - a business philosophy whereby resources & activities are diligently directed towards satisfying the needs & wants of customers through an exchange process, with the obvious understanding that outcomes contribute to the bottom line. - Marketing cycle - A recurrent series of activities designed to meet the wants and needs of customers; the cycle is driven by customer feedback. Includes: 1. Identification of customers 2. Development of products, pricing, & distribution 3. Customer purchases 4. Generation of profits; and 5. Appropriate action based on profits and customer feedback Outside forces of marketing: Politics, the economy, government regulation, laws, social pressures, technology, local competition, industry needs, & customer attitudes & behavior. Internal influences: Organizational goals, budgetary constraints, & departmental policy.

Marketing Mix - Product/place/price/promotion

- The marketing mix represents the package of approaches that organization use to attract a target market. - A well-defined marketing program includes four elements: Product, place, price, and promotion. Product: - Includes the unique combination of goods & services that satisfies a want or need. - The product can be objects, services, ideas, places, or an organization. - It is what is produces based on knowledge of the market & what is ultimately sold. - Items of the menu, service options, such as cafeteria, vending machines, catering. - Can be atmosphere & convenient hours of service. Place: - Distribution & how products are sold. - Products must be available at the right time & palace, & convenient. - Large scale hospitals use mobile cafeterias or kiosks on nursing units during busy lunch periods for medical staff convenience. - Some have food courts like in malls. Price: - Amount of money charged for product - Strategic pricing encourages the customer to make a purchase, contributes to product image, allows products to compete in the market. - Example: cafeteria manager may offer coffee at a discounted price during slow periods knowing that the customer is likely to make an additional purchase such as a pastry. Promotion: - All communication with the customer - Introduces the customer to, or increases customer's awareness of, the available product. Sales promotion goals: 1. Present information to the customers 2. Reinforce desired purchasing behavior to stimulate repeated business 3. Stimulates first time business by arousing curiosity 4. enhance the image of an organization.

Training Staff

- Wait staff can be trained to anticipate customer wants & needs such as beverage refills or readiness with the check. - Each contact represents and opportunity for the foodservice to market not only the food product but the organizational image as well.

Manufacturers Branding

Also known as retail-item branding - The sale of nationally recognized item in existing foodservice operations. Example: Starbucks coffee used in a diner, or skippy peanut butter used in a school.

In-house or Signature Branding

Items prepared within a specific foodservice operation & identified as unique to that operation. For example, a hospital cafeteria may sell a line of sandwiches that customers identify with that cafeteria & recognize for their consistently high quality. The foodservice then can develop it as an in-house brand, and promote it using a logo and other item-specific promo materials. Designed to compete with national brands.

Market Segmentation - Demographic/Geographic

Market segmentation: - Is the process of placing customers into groups of like characteristics such as by demographics or geographic location. - Divides a total market into groups of people with unique wants & needs. - Divides the total market into smaller groups of people with similar product needs. Demographic Market segmentation: - Dividing or segmenting a market into groups based on statistical data of people based on variables such as age, sex, income, education, religion & race. Geographic Market segmentation: - Dividing a market into different units based on variables such as nation, state, region, city, or neighborhood. Psychographic segmentation: - Dividing or segmenting a market into groups based on variables such as social class, lifestyle, or personality traits. - Similar lifestyles, attitudes, and personalities.

Foodservice Marketing - Service/perishable/Tangible/Intangible

Service: - Each contact represents an opportunity for the food service to market not only the food but the organizational image as well. - One negative customer-employee interaction can generate lasting dissatisfaction that may result in the loss of business not only from the unhappy customers, but also from all potential customers that the dissatisfied customer influences through word of mouth. Perishable: - Food is one of the uniquely perishable products available to customers. - It is lost income if it goes unsold or to waste. Tangible: - Food itself is tangible because it is capable of being perceived by the buyer through smell, touch, and taste. Intangible: - Service is intangible because is cannot be seen, touched, or possessed, yet the customer is very much aware of its presence & certainly aware of its absence.

Share of Market/Share of Mind

Share of Market & Share of Mind = two categories of promotions Share of Market - Financial, volume based activities designed to increase patronage, sales or both. Share of Mind - Seek to influence the customer's preference or feelings about a particular facility or product. Noncommercial & retail foodservices.

Restaurant Branding

The inclusion of a national restaurant chain in an existing operation. Example: McDonald's in the lobby of a hospital. A pizza hut in a school.