Ch 18 Marketing – Foodservice Management: Principles & Practices, 12th ed.

an activity directed at satisfying the needs and wants of customers
Marketing concept
management philosophy determining & satisfying the wants & needs of customer is the primary objective of an organization
Marketing cycle
A recurrent series of activities designed to meet the wants and needs of customers; the cycle is driven by customer feedback
Target market
segment identified by the seller as having specific wants or needs
Marketing Concept & Merchandising
Public Relations
The Marketing Mix
A well-defined marketing program includes four elements
Common Marketing mistakes
Lack of planning
Improper budgeting
Poorly defined goals & objectives
Lack of product development
Inadequate program evaluation
Wise development of a marketing program
relates to how & where products are displayed to trigger sales
Sales Promotion
function of influencing the customers purchase
Promotion Planning
1st establish clear, measurable objectives such as increasing beverage to food ratio in a hospital cafeteria or vending; increasing participation in the SLP; increase family participation in holiday meals in a long-term facility
7 interrelated steps in strategic planning
define the organizational mission
establish strategic business units
set marketing objectives
perform situation analysis
develop a marketing strategy
implement tactical plans
monitor results
Situation analysis
The identification of marketing opportunities & potential problems confronting an organization
(collection of methods used to analyze the organizations internal and external environment to understand the organizations capabilities, customers and business environments)
Mission statement
summation of the organizations purpose, competition, target market, product & service (and of the recipients of the service, including consumers, employees, owners & community
Strategic Business Units (SBU)
A separate component of the organization with a specific market focus & a manager with responsibility for placing all functions into a strategy & should be established after a mission statement
Marketing objective
a statement of what is to be accomplished through marketing activities (each SBU needs to set its own objectives for marketing performance
Objectives are generally described in
Quantitative terms ($ sales, % profit growth, market share)
Qualitative terms (image, uniqueness, customer service)
SWOT – Strengths, Weaknesses, Opportunity, Threats
A technique often used to determine the current condition of the organization & the direction it is going
Typical focus of a SWOT analysis
Factors related to market share, customer loyalty, customer satisfaction, & previous marketing success
the foundation of a successful marketing plan
Marketing research
the function that links the consumer, customer, & public to the marketer & is a key vehicle for understanding customer expectations & perceptions of service
Steps for marketing research
Data collections, recording, & analysis
5 steps for logically solving a problem
Problem definition, data collections, data analysis, recommendations, preparation of the report
Criteria for an effective services marketing research program
1. Quantitative & Qualitative research
2. Expectations & perceptions of customers
3. Balances the cost vs. value of acquiring 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
Variety of techniques used to gather data for services marketing research
1. Complaint solicitation
2. Critical incident studies
3. Requirements research
4. Relationship & 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
marketing plan
integrated & evaluated
strategic planning before developed
identify resources needed & objective to be achieved
be real, workable, & easy to execute
flexible but have stability
specific responsibilities with times & dates
constantly reviewed & evaluated to remain current
well integrated plan will include
clear organizational mission
stability over time
coordination of the marketing mix
coordination among SBUs
compatible short, medium, & long-term plans
precisely defined target market(s)
long-term competitive advantages
Sales analysis
used for evaluation actual performance of marketing strategies & is the study of sales data, either volume or market share; dollar volume frequently used
Market share analysis
should be interpreted with caution because it is based on uncontrollable factors, such as differing objectives among companies