D. Marketing and Public Relations

Question 1

The process of identifying a need, assisting potential clients in recognizing that need, and filling that need.

Answer 1

Marketing analysis

Question 2

The _____ ____ is the exchange of ownership: producer–>processor–>distributor–>supplier–>customer

Answer 2

Marketing channel

Question 3

**The FIRST STEP in the marketing process is identifying a need that is not being filled (______ ______).

Answer 3

FIRST STEP-Identify a MARKET NICHE, a need that is not being filled.

Question 4

Where a service will be offered.

Answer 4

Marketplace

Question 5

Division of a market into groups of individuals with similar product needs.

Demographic, geographic, psychographic, and behavioristic variables.

Answer 5

Market segmentation

Question 6

The need being filled by marketing product.

Answer 6

Market niche

Question 7

The way you would like the product to be viewed by the marketplace.

Answer 7

Positioning statement

Question 8

Group of people with similar wants/needs with the potential of purchasing the product.

Answer 8

Target market

Question 9

Quantifiable, attainable goals (ie. # of clients, sales volume)

Answer 9

Marketing objectives

Question 10

Route to reach goals.

Answer 10

Marketing strategy

Question 11

Group of items offered.

Answer 11

Product mix

Question 12

**______ ______ includes the 4 P’s of marketing.

Answer 12

**Marketing mix includes the 4 P’s of marketing.

Question 13

*The 4 P’s of marketing are:

________
________
________
________

Answer 13

*
Product
Place
Price
Promotion

Question 14

Long-term, overall view of marketing in the organization. Resources are allocated and objectives set after defining the target market.

Identify target market–>Creation and maintenance of an appropriate marketing mix.

Answer 14

Strategic marketing

Question 15

*Type of marketing used to ADVANCE A SOCIAL CAUSE, OR TRIES TO CHANGE AN IDEA OR BEHAVIOR
For social good.

ie. encourage people to avoid smoking in public areas

Answer 15

*SOCIAL marketing

Question 16

*Type of marketing used to FILL A NEED.

For financial good.

Answer 16

*BUSINESS marketing

Question 17

The point at which revenue EXACTLY covers fixed and variable costs.

Answer 17

Break-even point

Question 18

Break-even point in # of units sold

BE = FC / SP - VC

fixed costs, selling price, variable costs

Answer 18

Break-even point in sales volume ($)

BE = FC / 1 - (VC / sales)

Question 19

**When costs INCREASE, the break-even point ___________.

Answer 19

**When costs INCREASE, the break-even point INCREASES.

Question 20

Determining selling price-

This method is based on the raw cost of food and includes a mark-up factor.

(100)/(food cost %) = Mark-up factor
(Mark-up factor) X (Raw food cost) = Selling price

Answer 20

Mark-up method, or traditional method

Question 21

Determining selling price-

This method includes both raw food cost AND cost of labor.

(Food cost) + (Labor cost) = Prime cost
(Food cost %) + (Labor cost %) = Cost %
(100/Cost %) = Mark-up factor

(Prime cost) + (Mark-up factor) = Selling price

Answer 21

Prime cost method

Question 22

This type of pricing is used to increase sales during a slow period. A sale of special price is offered for a short time.

Answer 22

Promotions pricing

Question 23

This type of pricing prices certain items LOWER to draw people in in the hope that they will then purchase other regularly priced items.

Answer 23

Loss leaders

Question 24

Determining selling price-

This method includes the desired profit of an item. Price the item to ensure a predetermined % of profit-guarantees certain profit with each sale. Profit is established as a cost.

(Sum of all profits as percentages) = Total cost %
(100%) - (Total cost %) = Food cost %

(Food cost) / (Food cost %) = Selling price

Answer 24

Cost of profit pricing

Question 25

_______ can become a profit center for any foodservice operation. Complete and accurate records are ESSENTIAL for _________.

Answer 25

Catering, Forecasting