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Marketing
Chapter 18
Value of Marketing
• Until recently, marketing was not recognized as
a valuable function in noncommercial settings
• Foodservice facilities can play a valuable role in
attracting and keeping customers
– Producing good quality food
– Offering excellent service
– Increasing customer awareness
Marketing Mix
Four elements of a well defined marketing program:
• 4 P’s of marketing
– Product
– Place
– Price
– Promotion
Marketing Mix
4 P’s - Seller
• Product
4 C’s – Customers
• Customer value
• Place
• Convenience
• Price
• Cost
• Promotion
• Communication
The Marketing Plan
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Step 1: Identify the Product Line and Target Market
Step 2: Conduct Market Research
Step 3: Set Goals and Objectives
Step 4: Determine Major Strategies
Step 5: Develop Action Plans and Assign Responsibilities
Step 6: Establish a Financial Reporting System
Step 7: Measure and Evaluate Results
Step 8: Enlist Support
Activity #1 – Inlet Isles Case Study
• Read the scenario for problem 5 on pg 32.
• Complete the following activities:
A. What marketing opportunities exist in this
operation?
B. Select a marketing opportunity and develop a
marketing plan?
Marketing Strategies
• Easier to sell to a satisfied customer than find
another customer
• 5 times more to attract new customers
• Stages to strengthen customer relationships
– Satisfy 1st time customers
– Build personal relationships
– Form partnerships
Marketing Strategies
• Concentrated Marketing
• Differentiated Marketing
• Undifferentiated Marketing
Social Marketing
• Attempts to influence the acceptability of social
ideas, attitudes and lifestyle changes for the
benefit of the person or the public.
Activity #2 – Select one advertisement
1.
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6.
Describe the ad.
Where was it located?
Who is the target audience?
Was the placement of the ad likely to reach the target
audience?
Describe any social marketing in this ad.
If there is no social marketing message, could one be
added?
1.
2.
If yes, what would it say?
If no, why not?
Marketing for Foodservice
• Unique aspects of foodservice
– Service industries such as foodservices differ from
most manufacturing industries in product, customer
contact, perishability of inventory, and distribution
• Product: tangle and intangible components
• Customer Contact
– Each contact represents an opportunity for the
foodservice not only to market the food product but
the organizational image as well
Marketing for Foodservice
• Perishability
– Food is highly perishable and difficult to store in
inventory
• Distribution
– Food must be prepared in advance, held either hot
or cold, and transported
– Maintaining food quality is important for customer
satisfaction
Branding
• Branding is a paradigm shift referred to as the
commercialization of noncommercial operations
• Noncommercial foodservice operations are now
viewed as a revenue center not a cost center
Types of Branding
• Retail-item branding (manufacturer’s branding):
– Sale of nationally recognized items in existing
foodservice operation
• Restaurant branding:
– The inclusion of a national restaurant chain in an
existing operation
• In-house or signature branding:
– Items prepared within a specific foodservice
operation and identified as unique to that operation
Branded Concept
• A complete marketing package that
communicates a recognized and consistent
brand identity to the customer
• Components:
– Point-of-Sale Environment
– Management Resources
• Purchasing assistance, production tools, service
suggestions
Branding
• The growth of branding has come due to the
psychological phenomenon that customers are
willing to pay for PERCEIVED quality and value
• Outcomes from Branding
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Increased volume of business
Increased per-capita spending
Increased revenue
Increased cross-over traffic to in-house brands
“Good Marketing Can Change your Life”
• “Having educational credentials, good products
or services and licensure will not make clients
flock to our doors.”
• Sell yourself
Activity #3 – Marketing a Product
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Evaluate potential target markets for your product.
Select a target market for your product. Explain
your rationale for the selection.
Determine the target market’s needs as related to
your product.
Tailor the product to the target market.
Describe how you would market the product to the
target market. Include the four components of the
marketing mix in your discussion.