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Chapter 7
Marketing
© Copyright 2011 by the National Restaurant Association Educational Foundation (NRAEF)
and published by Pearson Education, Inc. All rights reserved.
Marketing Overview
Market: a group of people who desire
……………………………………………………………
Marketing is the process of
………………………………………………………………….
 Marketing includes:
1. Deciding what __________and ___________ to offer
2. _________________ them in the marketplace
3. _______________ them to potential buyers
4. _______________ them so people will buy them
5. ______________ the goods to these buyers.
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Marketing Concept
 In the business environment, _____________________
drives the operation.
 This means that an operation has to do the following:
• Determine customer ______ and
____________ 1st
• Determine the __________,
_____________, and ___________
of products and services
 This approach is called the marketing
concept.
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Basic Marketing Concepts
 marketing mix: the combination of
…………………………………………………………….
 A new model is called the contemporary marketing mix,
which consists of three primary elements:
 product-service mix: __________and
_______________ offered to customers.
 presentation mix: elements that make the operation
_____________unique.
 communication mix: ways an operation actively tries
to _____________________ with its desired customers.
 A successful operation needs to keep up with
……………………………………………………………….
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Marketing Plan
A marketing plan is a list of steps an operation must take
to ……………………………………………………………..
 Every marketing plan has five
main components:
1. _____________ the market
2. Establish ______________
3. Develop a
__________strategy
4. Implement an _______ plan
5. ___________/modify the
action plan as needed
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SWOT
SWOT analysis (also called a situation assessment)
 ______________________: List all of the areas where it
excels.
 _______________: Identify the operation’s
shortcomings.
 _____________________: areas where the operation
could either increase revenues or decrease costs.
 _____________: These are the factors outside the
operation that could decrease revenues or increase
costs (road construction, etc.)
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Market Research Methods
 _________________ method, an operation tries out
a product for a limited time or with a limited group of
people.
 The __________________method involves observing
how customers react in a natural setting toward a
product (have wait staff present daily specials in
several ways to determine which way works the best)
 With the ________ method, a marketer gathers
information using questionnaires (phone, email, cards
at table)
 _____________ involves testing a product with a
specific, small group of people (focus group)
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Market Segmentation
 target market: the people an operation intends
………………………………………………………….
 Every operation should be_____________driven by
satisfying the wants and needs of the customer.
 Mass marketing: treats everyone in the market as
having the …………………………………………
 target marketing: makes a focused appeal to a
…………………………………………………….
 Market segmentation is when marketers break down a
large market
………………………………………………………………
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Ways to Segment a Market
 Demographic segmentation: looks at the personal makeup
of ……………………………………………………………….
• Lots of young families = kids menus
 Geographic segmentation: where consumers
……………………………………………………………..
• Suburban restaurants close for lunch and city restaurants
close for dinner
 Product usage: can also shed light on how best to serve a
community
• Community loves football, host a football night @ rest.
 Lifestyle segmentation: the
…………………………………………………………………..
• Lots of health conscious people = offer healthful menu
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Creating a Market Identity
 Positioning: creating a clear, specific
identity for
………………………………………………
………………………………………………
 Positioning consists of two steps:
1. differentiate the operation within the
market and create a ________
identity.
2. __________________ the chosen
identity to a specific target market.
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Ways to Differentiate
an Operation
 To differentiate an operation from its competitors and
create a unique identity, managers can look at the
following:
 Product: The first and most obvious way to position
an operation in the market is through
………………………………………………
 Physical appearance/aesthetics: Use the actual
…………………………………….to create an image.
 ________________: plays a big part in creating an
identity.
 Image: Finally, image is yet another way to
differentiate an operation.
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Market Communications
 The ways an operation communicates with its market is called
the ______________________ mix:
 _________________: Paying to present or promote an
operation’s products, services, or identity.
 Sales promotions: Limited, or short-term, incentives to
…………………………………………………………….
 Personal selling: well-trained service staff can also go a
long …………………………………………………………..
 _______________________: an operation interacts with
the community at large (sponsoring local baseball team)
 Direct marketing: Making a effort to connect directly with
…………………………………………………………………
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Types of Sales Promotions
 Types of Sales Promotions:




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1.
2.
3.
4.
5.
6.


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3.
4.
5.
6.
7.
8.
 Typical promotional
materials:
 1.
 2.
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Public Relations:
Engaging the Community
 ___________________ is the attention an operation receives.
 ___________________ relations involve interacting with the
people in the local area to create awareness of and trust for
an operation.
 Media relations are the relationships that marketers maintain
with _____________ outlets
1. _____________: brief presentation of promotional info.
written to sound like a news article
2. press kit: packet of info. given to media
…………………………………………………………….
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Menu Overview
1. There may be no stronger marketing tool for a restaurant
than its ________________.
2. functions in two ways: ________ and ______________
3. It can greatly influence what customers ________________.
4. The menu also helps create the ___________________of an
operation. The items listed on a menu say a lot about an
operation, but so does the way the menu is laid out.
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Types of Menus
 À la carte menu: This menu prices
………………………………………….
 Du jour menu: Du jour is a French term that means
___________________so it simply lists the menu
items that are available on a particular day.
 Cyclical menu: chefs or managers change menu
items ……………………………………
 Limited menu: There are typically only a
……………………………………………………….
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More Menus
 ___________menu: offers the
same items every day.
 _____________menu: lists all
meals available at any time of day.
 _____________menu: the opposite
of an à la carte menu in that it offers
multiple courses at one price.
 ______________menu: similar to a
prix fixe menu in that it bundles
various elements of the menu into
one package (value meal)
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Organizing a Menu
 Most menus organize foods according to
………………………………………………………….
 Prepare foods using a __________of cooking methods.
 Chefs or managers can divide entrées by
_________________ (fish, chicken, pork)
 Maintain balance in the choice of
…………………………………………………………..
 The number of ______________on the menu depends on
customers’ tastes and past sales.
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Designing a Menu
 Well-designed menus are pleasing to read, easy to
understand, and clearly express the identity and
character of the operation as a whole:
 __________: How the menu is categorized and
sequenced also adds to the identity of an operation.
 Color: The colors chosen by an operation help create
its ___________.
 __________: can highlight certain elements on the
menu, drawing customers’ attention.
 __________: The art selected for a menu can say a
lot about an operation.
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Pricing the Menu
 Management needs to make sure that
________aligns with the __________ of the
operation and the skill level of the staff.
 Price also determines __________________,
which is the amount of money remaining for an
operation after expenses, or costs, are paid.
This difference is also called the _________.
 The price of a menu item must account for all
………………………………………………………
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Menu Pricing Methods
 Contribution margin method: There are two steps to the
formula:
 Straight markup pricing: With this method, managers mark
up the costs according …………………………………………
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More Menu Pricing Methods
 Average check method:
The result is an average check amount, which gives
managers an idea
……………………………………………………………
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Analyzing Menu Sales
 It is crucial to the success of an operation that managers
analyze …………………………………………………….
 __________ volume: the number of times the item is
sold in a time period.
 _______________analysis: an analysis of the
popularity and the profitability of a group of menu items
(at least 4 times a year)
 Menu engineering is systematically breaking down a
…………………………………………………………………
.
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Using Menu Item Classifications
 Stars: are both __________and _____________.
*stars should be ……………………...
 Plow Horses: are ___________ but ______ profitable.
 These items are reason for a restaurant’s ________.
 Because they are less profitable, one solution may
be to ____________ their price.
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Menu Item Classifications
Puzzles: _______ but very ___________
One of the best solutions is to _________its
price.
Dogs: ________ and ___________
________ all dog items from menu if possible.
Replace them with ………………………………