principles of marketing Flashcards
What is Marketing?
A management tool that focuses on identifying the needs, wants, and demands of customers and developing products to meet those needs and wants. (Hudson, 2008)
The activity of facilitating exchange of a commodity for money/goods/service
Science of choosing target markets through:
Market analysis
Understanding consumer buying behavior
Providing superior customer value.
“A tool that strives to meet the needs, wants, and demands of customers to obtain products and service of quality and value” (Pukett).
views of the market place Product Perspectives (4)
The consumer will favour products that has the most value desirable features, or best performing
Product Perspective
Selling perspective
Marketing Perspective
Societal Marketing Perspective
Selling perspective
Direct promotion to consumers to introduce them to a product that was not being sought
view of the market place based on getting customers to purchase foods; promotion- method used to attract customers
Marketing Perspective
Determining the wants and needs of the target market and developing products to satisfy these needs
considers products, sales and promotion in lifght of the consumers needs, wants, and demand
4-Ps of Marketing-product, place, price, promotion- the thing that is unique about marketing perspective is that focus on more than one of these factors, and importantly how each contribute to the marketing mix.
Societal Marketing Perspective
Balancing the consumers needs for satisfaction with the organizational goal of marketing a profit while acting on the best interest of society
. Breer manufactiered- are promoting concepts of designated drivers and responsible drinking in their advertiselemt
Product Perspective
The consumer will favour products that has the most value desirable features, or best performing
in health care in the 1990, focus on developing products speciality foods to be used by clients such as dysphasia
New products and cooking techniques developed over the years-pureed, thickened liquids, new cokking techniques, etc
What are some of the ways that marketing occurs in: Food and Nutrition (e.g., private practice, institutional food service, food retail, restaurants) ?
Instagram and facebook – media, taste tests, depends on the aurdiences, how much money they have
Health care providers should be familiar with three key marketing concepts
Services marketing
Health care is part of the service sector
Markets and Segmentation
Divide market into manageable segment and identify target(s)
Marketing mix
Elements over which an operation has control to influence salability
Why Services Matter
Services dominate U.S. Canada, and worldwide economies
Services are growing dramatically
Service leads to customer retention and loyalty
Service leads to profits
Services help manufacturing companies differentiate themselves
What is Service? The Old View
Service is a technical after-sale function that is provided by the service department.
What is Service? The New View
Service includes every interaction between any customer and anyone representing the company, including:
dealers, salesperson, receptionist, service employee, billing and accounting
web services
Service Can Mean all of These
Service as a product
Customer service
Services as value add for goods
Service embedded in a tangible product
Why study Services Marketing?
Service-based economies
Service as a business imperative in manufacturing and IT
Deregulated industries and professional service needs
Services marketing is different
Service equals profits
Services marketing
Health care is part of the service sector
In this service industry patient satisfaction should be the only Moto and this can be achieved by providing good quality patient care, cost reduction and proper manpower utilization
Markets and Segmentation
Divide market into manageable segment and identify target(s)
Marketing mix
Elements over which an operation has control to influence salability
Goods vs. Services
Goods: objects, devices or things
When goods are purchased, something tangible changes hands
Food products
In health care: diagnostic equipment, foodservice equipment, supplies
Services: activity performed for the benefit of the purchaser
When services are purchased, there typically is no possession of a tangible item involved
Philip Kotler and Kevin Lane Keller, “ A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything and its production may or may not be tied to a physical product
Characteristics of Services
Intangible product Simultaneously produced and consumed Less uniform/standard than goods No inventory maintained Healthcare Marketing:
Healthcare Marketing: Why services is Important for Your Practice?
Health care is evolving, changing customer values
Issues influencing consumer values
Meeting Changing values
Begin with a marketing strategy, be flexible
Challenges for Services
Defining and improving quality
Ensuring the delivery of consistent quality
Designing and testing new services
Communicating and maintaining a consistent image
Accommodating fluctuating demand
Motivating and sustaining employee commitment (if they feel like they are valued- they will do well)
Coordinating marketing, operations, and human resource efforts
Setting prices
Finding a balance between standardization versus customization
Generational segmentation is one one effective marketing startegie
Dividing consumers according to their birth years provides insight into their common experiences and underlying values, and ultimately into their preferences and buying behaviour. Superficially similar to lifestage marketing, it takes an evolutionary rather than static view, incorporating the impact of changing societal conditions and individual experiences over time
for example baby boomers
Segmentation Characteristics
Geographical: where customers live; service area
Demographical: age, gender, diagnosis, income, culture
Psychographic: social class, lifestyle
Behavioral: knowledge, attitudes, use of services, response to services
GEN Y:
The children of the Baby Boomers, they are considered important not only as tomorrow’s consumers but also because they already exercise considerable clout in the marketplace, through pocket money, earned income and purchasing influence.
Market Segmentation: Benefit Approach
What benefits do consumers gain from selecting fast food options?
Good choice of food options (for all ages), Tasty and easy to eat food,
Comfortable, clean facilities, fast service, easy ordering and perhaps even a playground. good value
Target Markets
General wisdom: to market to everyone is to market to no one
Choose a few market segments and focus on those (target market)
Marketing cycle: identifies customers who make up the target market
Complete when customer’s behavior is changed to purchase intended product and feedback collected
What to review for a better understanding of target markets
How they are selected and evaluated?
How done, integral part of the marketing strategy
Marketing Cycle
Identify customer needs/wants
Develop products, pricing, distribution
Customer purchases product
Assess whether product met need/want
Elements of Marketing Mix
Product Public Image price promotion place
Your marketing plan should include the following:
Summary and Introduction marketing objectives situation analysis target markets strategies tracking and evaluation
Summary and Introduction
The summary and introduction is a quick overview of the main points of the plan. It should be a synopsis of what you have done, what you plan to do, and how you are going to get there.
Marketing Objectives
This section will define your marketing objectives. These objectives should be based on understanding your strengths and weaknesses, and the business environment in which you operate in. They should also be linked to your overall business strategy. It’s not uncommon and is often beneficial to focus on specific target segments that you will be marketing to.
Situation Analysis
Your situation analysis details the context for your marketing efforts. In this section you will take a close look at the internal and external factors that will influence your marketing strategy, this is called a SWOT analysis. A SWOT analysis combines the external and internal analysis to summarize your Strengths, Weaknesses, Opportunities and Threats.
Target Markets
The concept of target markets is one of the most basic, yet most important aspects of marketing. There is no such thing as the “one message” fits all marketing message. It is unrealistic to think that you can attract everyone. Defining your target market or segmenting your market helps you decide where to commit resources and what kinds of promotional methods and messages to use.
Strategies
Strategies are action steps that detail how the marketing variables of product, price, place, and promotion are used to attain the marketing plan’s objectives and overall strategies.
Tracking and Evaluation
This section of your plan should include plans and procedures for tracking each type of marketing activity you are using. Tracking helps monitor the effectiveness of each marketing activity and is especially helpful with your overall program evaluation. If you are not tracking, you are not marketing.
Elements of Marketing Mix:Product
Quality is key in foodservice
Labeling (naming cafeteria, products), packaging (how things are combined), and accommodation (changing usual practices to suit special needs/target markets) are important to consider
Elements of Marketing Mix:Place
Location and method of distribution should be convenient, attractive for customers
Meet needs of patients, visitors, employees
Multiple locations
Take-out, dine in
Various table sizes, layouts
Elements of Marketing Mix:Promotion
Methods by which an operation makes potential customers aware of its products
Focus on building sales for a short period of time
Coupons
Samples
Table tents
Distribute menus and foodservice information through newsletters, announcement boards
Develop special events or celebrate national health- and food-related
Create meal deals or discount programs
Use self-branding and create merchandise
Catering
Specialized service, typically for one-time events
Opportunity to enhance foodservice image and increase revenue
Require additional cost inputs, space
Probably will require a business plan and justification to establish
Catering: Pricing
Raw food/beverage cost per person * number of guests
Total labor costs per person * number of hours summed over all employees
Rental costs
Markup, gratuity
30-100% depending on overhead
18% gratuity typical
Successful Catering
Meet with client to discuss needs, budget
Visit site, assess facilities
Create menu, contract
Manage food production, staff, purchasing, transport, clean-up
Elements of Marketing Mix:Price
Establish a price that reconciles value of product to customers with value of exchange to foodservice operation
An indicator of quality
Consider product cost, demand, competition
Profitability analysis
Elements of Marketing Mix:Public Image
The way customers evaluate views and perceptions of products and service, how service is presented Tied to overall organizational image Components: Employee, facility appearance Community engagement, charity Freshness, quality of food
Feedback
For promotion and advertising to be successful the foodservice director must seek feedback
Methods:
Interviews with customers
Informal and formal written surveys
5 step customer decision process
Need recognition:
The consumer recognizing that there is a difference between their ideal and actual situation
Creating a desire in the consumer to ‘need’ or ‘want’ a product
Information search
Consumer seeks information about their desired product from past experiences with the product, from family, friends, internet, etc
Evaluation of Alternatives
Consumer assesses the value of the product by creating a set of criteria for product (e.g. prestige, variety of use, longevity of use, brand, etc)
Purchase Decision Where to buy When to buy Do not buy (whether to buy) May depend on if product is on sale, salesperson, store atmosphere, return policy, etc.
Post Purchase
Consumer compares product to expectations of the product
Decides if satisfied or unsatisfied
Marketing Management
what is it
what is it driven by
Involves planning, organizing, implementing, and evaluation
Is a cyclical process as it is driven by:
Effectiveness:
The results of customer feedback
Sales
Attainment of organization’s objectives
Efficiency:
The resources invested compared to the results achieved
Cyclical Marketing Process
Analyze and design marketing strategy
Monitor consumer reactions
Adapt the marketing strategy
Reconsidering consumer reactions
