Foodservice Systems Management Exam 2: Chapter 14

What is marketing?

An integral component of the management functions

What does marketing transform?

Inputs into outputs

What does marketing establish?

Performance standards for marketing activities as a control

What must marketing do?

It must pervade all aspects of a foodservice operation

What are the aspects of a foodservice operation that marketing must pervade?

-Menu

-Theme

-Ambiance

-Uniform

-Products

-Service

-Aesthetics

-People

What is marketing mix?

The specific combination of marketing elements

What is marketing mix used to do?

-Achieve an organization's objectives

-Satisfy the target market

What is the definition of target market?

A group of people for whom an organization creates a marketing mix

What are the 4 P's of marketing mix?

-Product

-Price

-Promotion

-Place

What is a product in marketing mix?

Goods, services, or ideas

What is considered with products in marketing mix?

Which products to develop, promote, or discontinue

What is included in products for marketing mix in dietetics?

-Nutrition education

-Diet prescriptions

-In-services

What is included in products for marketing mix in hospitality?

-Lunch menu

-Services

-Ambiance

-Room

-Banquets

What is a new product in a marketing mix?

A genuine innovation

What is a price in marketing mix?

The amount of money charged for a product that produces revenue

What does the price in a marketing mix help?

Help to establish a product's image

What is the price in a marketing mix influenced by?

-Competition

-Government regulations

-Economy

What is included in price for marketing mix in dietetics?

-Fees

-changing dietary habits

-Learning new habits

-Thinking before eating

What is included in price for marketing mix in hospitality?

-Money

-Wait time

-Effort to get to the operation

What is promotion in a marketing mix used to do?

To increase public awareness about a new product or brand

-Renew interest in a product to gain popularity

What is included in promotion for marketing mix in dietetics?

-help hospital executives know our value

-get doctors to see you as health professionals

-get the patient to follow the diet

-Make nutrition a reimbursable service

What is included in promotion for marketing mix in foodservice?

-Advertising, UGCs, menu

-Promo displays (posters, social media)

-Suggestive selling, spoken menu

What is included overall with promotion in marketing mix?

It includes display windows and even aroma in the air

What is place in marketing mix?

The place where food or services are offered

What is included in place for marketing mix in dietetics?

-Hospital room

-Cafeteria

-Outpatient clinic

-Off-site ed

-Websites

-Social media

What is included in place for marketing mix in hospitality?

-Dining room, In-room service, food delivery

-Take-out, drive-through, drive-in

-Shipping, catering, banquets, Retail products

-Online mobile app, Kiosk

What is market segmentation?

The process of dividing a total market into groups of people

What is market segmentation based on?

Similar needs, wants, values, and buying behaviors

-Share one or more characteristics

What are aspects of market segmentation?

-Demographics

-Behavioristic

-Geographics

-Psychographic

What are demographics in market segmentation?

Population characteristics that might influence product selection

What are examples of demographics in market segmentation?

-Age

-Education

-Income

-Family size

-Religion

-Race

-Nationality

-Gender

-Occupation

What is behavioristic market segmentation?

Some feature of consumer behavior toward and use of a product

What are some examples of behavioristic market segmentation?

-Purchase volume, readiness, loyalty, and shopping behavior

-Some people buy a truck for work use

-Some people buy a truck because it's big and tough looking

What is considered with behavioristic market segmentation?

-Readiness to buy

-Expected benefits

-Usage rate

-Attitude about the product

What is geographic market segmentation?

How the location impacts customer's needs

What are examples of geographic market segmentation?

-Region

-City size

-Natural resources

-Local population density

-Climate

-Ex) Cajun food in Louisiana

What is psychographic market segmentation?

Social class, lifestyles, motives, personality

How does values and lifestyles research categorize consumers?

-Ideals

-Achievement

-Self-expression

What are ideals as a part of psychographic market segmentation?

Knowledge and principles

What is achievement as a part of psychographic market segmentation?

What they perceive will show their success to their peers

What is self-expression as a part of psychographic market segmentation?

A desire for social or physical activity, variety or risk

What are the different categories of consumers?

-Achievers

-Believers

-Thinkers

What are achievers as a category of consumers?

-High resources and status orientation

-Work-oriented, conservative, value-conscious consumers

-Favor established, prestige products

What are believers as a category of consumers?

-Conservative, follow established routines

-American products and established brands (once they find what they like, they are very loyal

What are thinkers as a category of consumers?

-Mature, reflective, well-informed individuals

-Look for durability and value in products

-Care less about the brand, more about quality

What are characteristics of service products?

-Intangibility

-Inseparability

-Perishability

-Heterogeneity

What is intangibility as a characteristic of service products?

-Cant touch it

-Smile

-Music

-Decor

-Friendliness

-Speed of service

What is service as intangibility?

Service is performance

What is a large aspect of intangibility as a characteristic of service products?

Atmospherics/ambiance

What is atmospherics/ambiance as an intangible characteristic of service products

-Feelings about an operation's design

-Appeal to customers' emotions and encourage them to buy

-Exterior, interior, odor, color

What is inseparability as a characteristic of service products?

Services are normally produced at the time they are consumed

What is inseparability as a characteristic of service products related to?

Intangibility

Because of inseparability, what can't you do in regards to service products?

You can't remove friendliness and atmospherics from the evaluation of the product

Why can't friendliness and atmospherics be removed from the evaluation of the product?

The guest experiences everything together, so can't separate feelings about any one part

What are examples of inseparability as a characteristic of service products?

-The efficiency of the human server and robot server to service the food

-The customers concern of the service quality of a potential hotel

What is perishability as a characteristic of service products?

Food doesn't last long at optimal quality, so it is at least somewhat perishable

What must be done because of perishability as a characteristic of service products?

-Service must be used or lost

-It can't be stored or double used (overstaffing or understaffing)

What is heterogeneity as a characteristic of service products?

Service is never provided the same nor received he same by various people

What impacts heterogeneity as a characteristic of service products>

-The skills, mood, energy and motivation of the employee

-The expectation, mood, interest, and acceptance of the customer

Where does marketing research gather information from?

-The organization itself (customers and employees)

-Impartial marketing research company

-Research specialists working for the organization

-Survey, focus group, competitive analysis, etc

What do some organizations do with marketing research?

Some organizations provide trend and consumer data in the food service industry

What are some organizations that provide trend and consumer data?

-National Restaurant Association

-The Association for Healthcare Foodservice

-The Institute of Child Nutrition

What is marketing planning?

-A written document governing an organization's marketing activities

-The implementation and control of those activities

What needs to be defined for marketing planning?

The target market and marketing mix variables

What needs to be identified for marketing planning?

Identify resources needed and your objectives

What should marketing planning be?

Real and workable

How can a marketing plan be real and workable?

-Easy to execute

-Flexible with a certain amount of stability

-Constantly reviewed and evaluated

What are the different durations of market planning?

-Short-range

-Medium-range

-Long-range

How long is short-range marketing planning?

1 year

How long is medium-range marketing planning?

2-5 years

How long is long-range marketing planning?

>5 years

What duration of marketing planning is seldom used?

Long-range

What does it mean to have a scope of marketing planning?

Use separate marketing plans for individual menu items and special services

What are the two methods of development for marketing planning?

-Bottom-up approach

-Top-down approach

What is the bottom-up approach method of development for marketing planning?

-Use employees' information to establish objectives, budgets, forecasts, and timetables

Whys is the bottom-up approach method of development for marketing planning good?

Realistic and good for morale

What is the top-down approach method of development for marketing planning? Why is this good?

-Top management controls planning activities

-Provides better direction for marketing efforts

What does a well-integrated marketing plan have?

-Stability over time

-Coordination of the marketing mix

-Compatible time range

-Precisely defined target market(s)

-Long term competitive advantages

What does marketing planning develop and devise?

Develop products, devise structure

What is developing products and devising structure in marketing planning based on?

Customer expectations and perceptions of service

What is developing products and devising structure in marketing planning align?

It aligns structure and products to be mutually supportive and have a competitive advantage

What else does developing products and devising structure in marketing planning do?

Monitors your marketing plan

What can employing your marketing knowledge do?

Help you achieve the mission of the business