HAT203 Lecture 7 – Chapter 14 Gregoire Hospitality & Tourism ManagementCOMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice.Marketing Foodservice Chapter 14 Gregoire Foodservice Organizations14.1 14.2 14.3 Define core marketing terms such as marketing mix, target market, market segmentation, and promotion. Develop a marketing plan for a foodservice operation. Describe ways a market may be segmented, based on demographic, geographic, or psychographic characteristics. Learning ObjectivesMarketing Philosophies Selling Concept Marketing Concept Societal Marketing Concept Manufacturing/ Production Concept Product Concept Marketing PhilosophiesMarketing Mix Product Price Promotion PlaceEnvironmental ForcesMarket Segmentation Psychographic Behavioristic Geographic Demographic Segmentation VariablesCharacteristics of Services Service CharacteristicsMarketing ResearchThe Marketing Plan Types of Plans Integration of Plans Control & EvaluationAtmospherics Physical elements in an operation’s design that appeal to customers’ emotions. Brand Name, term, design, symbol, or feature that identifies one seller’s good or service as different from another’s. Brand equity Value of a brand. Brand loyalty Repeated customer purchase of a specific brand. Customer loyalty Frequency with which a customer consistently purchases a specific brand. Customer satisfaction Positive, neutral, or negative feelings about the value received from a product. Demographic variables Population characteristics that might influence product selection, such as age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class, and price sensitivity. Geographic variables Include climate, terrain, natural resources, population density, and subcultural values that influence customers’ product needs. Key TermsHeterogeneity of service Variation and lack of uniformity in the performance by different service employees. Inseparability Inability to separate production and service. Intangibility of services Inability of services to be seen, touched, tasted, smelled, or possessed before buying. Market segmentation Division of total market into groups of customers who have similar needs, wants, values, and buying behavior. Market share Percentage of industry sales for a product. Marketing An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing mix Combination of product, price, place, and promotion to satisfy target market. Marketing objective A statement of what is to be accomplished through marketing activities. Marketing plan Written document or blueprint governing an organization’s marketing activities. Key TermsMarketing research The function that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing strategy The selection and analysis of a group of people, identified as a target market, which the organization wants to reach; includes the creation and maintenance of an appropriate marketing mix that will satisfy those people. Micromarketing Marketing to the single customer, the smallest niche. Mission statement A summation of the organization’s purpose, competition, target market, product, and service and of the recipients of the service, including consumers, employees, owners, and the community. Niche marketing Focuses on identifying small but profitable segments of the market and making products specifically for this segment. Perishability of services Services cannot be stored for future sale. Key TermsPromotion Use of communication to inform and influence consumers. Psychographic variables Motives and lifestyle characteristics. Situation analysis Identification of marketing opportunities and challenges. Social media marketing A form of Internet marketing that focuses on marketing through social media networks. Strategic business units (SBUs) Each SBU is a separate component of the organization and has a specific market focus and a manager with responsibility for placing all functions into a strategy. SWOT analysis Focuses on identifying the Strengths, Weaknesses, Opportunities, and Threats to an organization. Tactic Specific action. Target market Customer with common characteristics for which an organization creates products/services. Key Terms