Marketing Mix (4P

1
Marketing Mix (4Ps)

• Product
• Price
• Place Time
• Promotion
• Politics (Cem Boyner)
• ? Marketing Mix is a STRATEGY to be applied to
  different CUSTOMER TARGETS, TO DIFFERENT SEGMENTS

2
Maslows Hierarchy of Needs
3
Concept Development
Less Convenient 30 minutes
Very Convenient - 30 minutes
Very Fast service
High street fast Food store
Takeaway service
Carveries
Pizza restaurants
Home delivery
Destination restaurants
Slow service
Local ethnic restaurants
4
Idea-Screening Process

• Does the ides meet customersneeds?
• Is the group of customers with these needs large
  enough to make the idea worthwhile
• Does the food and beverage operator or potential
  operator have the necessary resources available
  to deliver the idea?
• Will the idea generate customer satisfaction?
• Will the idea generate a benefit to the
  operation? ?

5
Meal Experience Concept

• Food and beverage
• Level of service
• Cleanliness
• Hygiene
• Price
• Atmosphere ?

6
Level of Service

• If there are different type of service, service
  is mainly the human interface, the personal
  interaction between the product and the consumer
• Service can deliver benefits to the customer such
  as feeling valued and should therefore be part of
  the concept
• There are 2 factors affecting service. 1. how
  timely consistent and organised the service is 2.
  friendliness and attitude of the staff.

7
Cleanliness

• Tidy prenises, smart, clean and ironed uniforms
  and the use of protective gloves have positive
  cleanliness perception
• Holding equipment badly, fiddling with hair, bad
  smell, poorly presented food, poor standards of
  personal hygiene give a negative impression

8
Atmosphere

• Sight furniture, texture, colour, employee,
  shape, space and customers
• Acoustic music, speech, material
• Touch Quality of air, quality of equipment with
  which customers come into contact
• Taste Recipes, wines...
• Smell used by FB operators to attract
  customers, such as coffee, bread
• Focal Point

to be continued
9
Atmosphere

• Policies for
• Customers dress requirement
• Smoking/non-smoking
• Mobile phone usage
• Maximum group size
• Accepting children
• Guest behaviour ?

10
Pricing

• Cost plus
• Prime costing methods
• Backward pricing
• Rate of return pricing
• Profit per customer pricing
• Elasticity pricing ?

11
Demand Oriented Price
PRICING DESIGNING THE MENU

• Market Skimming (Selective Market Penetration)
  In the market skimming approach to pricing,
  operators use a relatively high price to attract
  a small segment of the market, who can and will
  pay the higher prices, where the competition is
  probably to undercut the prices set for similar
  products, and where the customers perceive that
  the value given in the form of the restaurant
  experience is greater than the prices charged.
• Market Penetration market penetration on the
  other hand, involves setting prices as low as
  possible, while still contributing to profits. In
  general, lower prices generates greater sales
  volume and long term profitability. This
  philosophy works best when demand is price
  elastic, that is, when changes in price result in
  a greater change in demand. ?

12
Demand Oriented Price
PRICING DESIGNING THE MENU

• Market Skimming (Selective Market Penetration)
  In the market skimming approach to pricing,
  operators use a relatively high price to attract
  a small segment of the market, who can and will
  pay the higher prices, where the competition is
  probably to undercut the prices set for similar
  products, and where the customers perceive that
  the value given in the form of the restaurant
  experience is greater than the prices charged.
• Market Penetration market penetration on the
  other hand, involves setting prices as low as
  possible, while still contributing to profits. In
  general, lower prices generates greater sales
  volume and long term profitability. This
  philosophy works best when demand is price
  elastic, that is, when changes in price result in
  a greater change in demand. ?

13
Competition Pricing
PRICING DESIGNING THE MENU

• Competitive pricing establishes prices according
  to those set by the competition. Prices are
  typically slightly below or above those of the
  competition.
• It is not advisable to compete principally on the
  basis of price, because price is a factor that
  can be easily be met by a strong competitor.
• It is also not advisable to offer the same
  product as the competition but at a higher price.
  An increasing value-conscious and educated
  consuming public will by from the competition. ?

14
Menu Price Rounding Strategy
PRICING DESIGNING THE MENU

• When a restaurant sets menu prices by only
  applying a formula, you see strange prices such
  as YTL7.32 or YTL 19.68
• Value perception pricing dictates that for mid
  and expensive items, the guest does not recognize
  price points other than 0.50.
• When the guest subconscious read one cheap
  price, they only see the 2 in YTL 2.95. As a
  general rule, menu items with price points set as
  level of .25, .50, .75 and .95 seem to be
  friendly. In other words, if you can charge
  YTL1.15 for a menu, you can probably charge
  YTL1.25 without any resistance. Once a restaurant
  operator just apply this simple pricing
  philosophy, the profit will increase by at least
  2-3. ?

15
Page Positioning
PRICING DESIGNING THE MENU

• There are two theories regarding the placement of
  items on a menu Menu Sequence Focal Points.
• Menu Sequence Some believe that sequence of
  dishes on the menu should follow the progression
  of a meal. Others believe that focal points
  should be used on a menu. Customers eyes are
  naturally drawn to specific points, focal points,
  when presented with a menu. The restaurateur
  should place menu items that he/she wants to push
  in the focal points of a menu.

16
Food Drink

• FB items are a list of items to meet the guest
  need
• How ? ?