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MARKETING
• Marketing has been defined as 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 STRATEGY
• A Marketing Strategy consists of selecting a segment of
the market as the company’s target market and designing
the proper “mix” of the product/service, price, promotion,
and distribution system to meet the wants and needs of the
consumers within the target market.
• Includes sales and merchandising.
• Determines who will patronize the restaurant & what they
want in it.
• It is an ongoing effort.
• Gets into psyche of present & potential patrons.
• Marketing is about solving guest problems.
• The company's marketing mix focuses on employees and
customers first. Employee service programs were
described in the previous topic. Customer service goals
will ensure top-notch service.
• Sales literature, coupons, a direct phone line, fax and
website orders, newspaper advertising, event sponsorships,
and multi-purchase punch cards.
 RESTAURANT MARKETING
• Restaurant marketing is based on a marketing philosophy.
• Marketing philosophy patterns the way management &
ownership have decided to relate to guests, employees, purveyors
& the general public in terms of fairness, honesty & moral
conduct.
• Marketing is finding out what guests want and providing it at a
fair price.
• Marketers ask themselves, “Who will be my guests? Why will
they choose my restaurant? Where will they come from and why
will they come back?”
 RESTAURANT MARKETING
DECISIONS
• What if you owned a restaurant located in a particular city?
• What would be your marketing strategy?
• How certain are you that you made the right decisions?
• What if the restaurant was located near a university in a
foreign country like China, Thailand, Italy, Iceland, or Peru?
• What would be your decisions?
• How certain are you that you made the right decisions now?
• So, what’s going on? Class comments?
 MARKET RESEARCH
• Analyzes the community, the potential guests, the competition &
helps to answer the all-important questions:
• Is there a need for a restaurant?
• Who will be the potential guests?
• Age
• Income
• Gender
• Ethnic origin and religion
• Wants and Needs
• Why would they choose us
• What they like and dislike about proposed restaurant
• What they like and dislike about existing restaurant
 MARKET DEMAND
• The demand for a restaurant is calculated using two factors:
 The population in the catchment area (the area around the
restaurant from which people would normally be drawn to the
restaurant).
 The demographic split of this population by nationality, race,
age, sex, religion, employment, education, and income.
 MARKET SEGMENTATIONS

• Geographic
 Country, state/province, county, city,
neighborhood.
• Demographic
 Age, sex, family life cycle, income,
occupation, education, religion, race.
• Behavior
 Occasions, benefits sought, user status,
usage rates, loyalty status, & buyer
readiness.
 MARKETING MIX

• Place
• Product
• Price
• Promotion
 PLACE
• One of the most crucial factors in a restaurant’s success.
• This includes the location of your restaurant, the
surrounding
• neighborhood, and its accessibility and visibility
• Ingredients for success:
• Easy access
• Curbside appeal
• Parking
• Convenience
• Visibility
 PRODUCT
• People will always seek out a restaurant offering
excellent food, especially when good service, value, &
ambiance accompany it.
• This includes your menu items and the other products
and services that you buy, prepare, and sell.
Core Product: Function part of the product for the
customer. E.g. Relaxing, memorable evening.
Formal Product: The tangible part of product. E.g.
Physical aspects, décor & a certain level of service
Augmented Product: other services. E.g. Valet
parking, table reservations.
• Product analysis
• Product development
• Product positioning
• Restaurant Differentiation
• Product Life Cycle
 PRICE
• Factors affecting price:
 The relationship of demand and supply
 Shrinking guest loyalty
 Sales mix
 The competition’s prices
 Overhead costs
 The psychological aspects of price setting
 The need for profit
• Cost-Based Pricing
• Competitive Pricing
• Price & Quality
 PROMOTION
• Goals of a promotional campaign:
• To increase consumer awareness of the restaurant.
• To improve consumer perceptions of the restaurant.
• To entice first-time buyers to try the restaurant.
• To gain a higher percentage of repeat customers.
• To create brand loyalty (regular customers).
• To increase the average check.
• To increase sales at a particular meal or time
• To introduce new menu items.
• Types of advertising are
 In-house
 Tie-Ins and Two-for-Ones
 Advertising Appeals
 Travel guides
 Yellow pages
 Mailing lists
• Sales tactics
 Tactic 1: Publicity stunts
 Tactic 2: Public relations -
 Tactic 3: Bounce-backs
 Tactic 4: Stop discounting –
 Tactic 5: Business socials
 Tactic 6: Sampling –
 Tactic 7: Host food events
 Tactic 8: Toss up Tuesdays –
 Tactic 9: Menu Bingo –
 Tactic 10: Birthday program -
 TARGET MARKET
Downtown workers:
The Sub Shop will target downtown workers through local
businesses, advertising, event sponsorship, and word of
mouth advertising.
Students:
Ashland has a seasonal student population of around 4,700.
The company expects to reach students through campus
activities and marketing, as well as by sponsoring student
events
Tourists:
The company will reach tourists at the time they visit Ashland.
Most tourists aren't thinking, "Where am I going to find good,
inexpensive lunches?" when they plan their trips because they
know fast food venues are abundant. The strategy will be to stand
out from the other venues available on the street, and letting
people know the food is relatively inexpensive, but without
degrading the experience of shopping.
Weekend Shoppers:
Weekend shoppers come from Medford to shop for clothes, gifts,
and crafts in downtown . Over 40,000 people live and work in
Medford, and we predict that at least 8% of those people will at
some point shop in Downtown.