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Marketing overview - ansConsists of individual & organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas
- American Marketing Association
- Efficient and fair system which directs an economy's flow of goods from producers to consumers and accomplishes the objectives of society
- Need to satisfy both the customer's needs and the company's objectives
- 40 - 60% of consumer $'s goes toward marketing activities 2 levels of marketing - ansMacro-Marketing and Micro-Marketing
- Macro looks at the economy's entire marketing system
- Micro looks at individual company Macro-marketing - ansObjective to create goods & services & make them available when & where they are needed
- Economy = Producers + Consumers
- Producers: concerned with their income & production
- Consumers: concerned with what you can buy with your $ Free market economy - ansMarket driven, "Capitalism", Price is a measure of value and fluctuates so both producers & consumers are happy
- Consumers decide what to purchase & therefore affect production
- What is someone willing to pay? Other economies? - ans- Russia has mixed economy
- China has a socialist market economy Law of Diminishing Demand - ansConsumer
- if the price of a commodity is raised; a smaller quantity will be demanded
- if the price of a commodity is lowered; a greater quantity will be demanded Late 1800s/Industrial Revolution - ans- Beginning of mass production & marketing
- Products made more economically
- Focus of distribution 1920s - ansAdvertising & Sales focus- differentiating products 1950s - ans- Marketing dept.
- Consumer research
- Advise mgmt of how to design, price, distribute & promote Marketing today - ans- Customer satisfaction: customer's positive, neutral, or negative feelings about the value received from a product
- Customer loyalty: refers to the frequency with which a customer consistently purchases a specific brand Ethics of marketing - ans- A Code of Ethics: Rules for standards of professional behavior, based on relationships within businesses and professional organizations
- Standards of Practice: Measure of what is expected to happen Ethical Conduct - ans- Priority of an organization
- Through proper planning, organizing, staffing, leading, and controlling ensure that ethical conduct is followed
- Academy of Nutrition and Dietetics Code of Ethics (AND Code of Ethics)
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- Sponsorship (Advertising and Sponsorship) Different marketing concepts - ansManagement philosophy of how a company views customers and the sale of their products (goods, services, ideas)
- Manufacturing/production concept: available & affordable; concentrate on production & distribution efficiency
- Product concept: customers prefer existing product, should focus on improvement (Kotler, Bowen, & Makens, 1999)
- Selling concept: need a large selling & promotion effort
- Societal marketing concept: organization determines needs and wants and co. needs to deliver these to improve consumer's & society's well-being (social marketing) Who's involved in marketing? - ans- Producers
- Sellers
- Buyers
- Due to โ costs in noncommercial foodservice, now marketing
- Must be competitive Social vs. Business marketing - ans- Social: marketing to advance a cause, change a behavior
- Business: fills customer needs or desires Need for marketing - ans- Just because have a good product does not mean that it will sell
- Marketing encourages this need
- Must look at both the product & the marketing system
- Sustainability, plant-based/vegan options, curbside and drive-thru, smart tech solutions, mobile ordering (employee shortages)
- Secret menus Top Seven - ans(1) (Super)-Size does matter (2) Fish and chicken don't always deserve their healthful rep (3) Download the (nutritional) lowdown (4) Go green (5) Skip the mocha-frappe-espresso-ccino-with-whipped-cream coffee drink (6) Think outside your go-to wrapper (7) Step away from the soda Portfolios - ans- Includes: resume, references, cover letter, examples of your work (review before an interview so you can talk about a few different things)
- Online or paper Market oriented business - ans- Think about the market system (market research, menu planning, service, promotion/advertising)
- Marketing concept - affects all activities and emphasizes satisfying the customers' needs
- Direction the company is going (planning, policies, and operations determined by the market/customer)
- Profitable because satisfying the customer's needs
- Coordinates all of the companies activities
- Need to make changes/look at trends Marketing plan/process - ans- Marketing strategy (plan)
- Implement plan (execution)
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- Measure the results (control)
- Feedback to alter plan/repeat process Expanded System Model - Open System - ansInput, transformation + memory, output, controls, feedback
- Look at chart!* Memory - ansthe historical record/past data used to predict the future for better planning (technology helps with this) Control - ansEnsure resources are in place to effectively and efficiently run your business (legal constraints, standards for evaluations)
- Control focuses on profit, sales, expenses/costs
- Evaluation focuses on sales analysis
- Plans include goals/objectives, contracts, policies/procedures, etc. Feedback - ansprocess by which a system continually receives info from its internal and external environment Development of a plan (overview) - ansStrategic plan, define target market & marketing mix, identify resources needed, objectives to be achieved
- First identify a need, assist potential clients in recognizing a need, filling the need, and then studying the competition Target market - ansfairly homogeneous group of customers whom a company wishes to appeal Marketing Mix - ans4 Ps of marketing
- Controlled variables that can be combined to satisfy the target group
- Must have clear focus โ market segmentation
- Define characteristics and needs
- Age, income, ethnicity, religious background, education
- Product: Developing the right product for the customer
- Price: Market price/worth
- Place: Where/when does the customer want the product?
- Promotion: Can only stimulate demand, can't create it (sales, gimmicks, social marketing, continually changing) Types of marketing plans - ansLook at duration, scope, and method of development
- Short range (1 yr), med range (2-5 yrs), long range (over 5 yrs) Bottom-up vs. Top-down approaches - ans- Bottom-up approach: information/input from employees; realistic
- Top-down approach: developed by top management
- Combo of these 2 works best Integrated marketing plan - ansMaking sure all aspects of marketing are unified, consistent, and coordinated
- Academy website Feedback is through _______? - ansPress Ganey (patient satisfaction surveys, foodservice, etc.) Strategic marketing - ansIs a long term, overall view of marketing in the organization (done after the market has been defined) SWOT analysis (situational analysis) - ansIdentifies marketing opportunities and potential problems
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- Strengths, Weaknesses, Opportunities, Threats Marketing Segmentation - ansDivision of total market into groups of customers who have similar needs, wants, values, and buying behaviors
- Geographic
- Demographic (age, gender, family size/lifestyle, income, occupation, religion, race, nationality)
- Psychographic (social class, lifestyle, personality)
- Behaviors (occasions, benefits, usage rate, readiness rate) Market research - ansSystematic assembly and analysis of facts relevant to marketing (need good facts to make decisions) 7 steps of market research - ans(1) Defining the problem (2) Secure internal data (3) Finding secondary data (4) Collecting primary data (observation, surveys, focus group, experiment) (5) Data analysis - Tabulate results (6) Interpret research and make recommendations (7) Report Stages of activities - ans(1) Pioneering stage: When beginning, extensive advertising-promotion (2) Competitive stage: Trying to increase your place in the market (know your niche) (3) Retentive stage: Have customers, but need to keep them happy Market Share - ansPercentage of industry sales for a product, to estimate sales changes due to marketing
- Assumption is that when restaurant sales decrease, industry sales decrease?
- Population increase over time, people spending more money on food
- Food away from home is increasing now (dipped during Covid), but food at home is also increasing
- Foodservice and drinking sales have increased over time Top contract food service companies? - ansCompass Group, Aramark, Sodexo, etc.
- Develop a contract with a facility, bring in management staff, menus in place, get food at lower cost because of large quantity (running day-to-day operations of a food service company) Environmental factors - ansPolitical forces, regulatory forces, competitive forces, economics, legal aspects, societal forces, technology Brand - ansname, term, design, symbol, or feature that identifies one seller's goods/services as different from another Brand equity - ansvalue of a brand Brand loyalty - ansrepeated customer purchase of a specific brand Customer loyalty - ansfrequency with which a customer consistently purchases a specific brand (reward programs) Social Media - ans- No longer a luxury, but a necessity/must-have!
- Fast communication, cheap, more efficient
- Can reach a large number of people at once, quick response
- Pay attention to: what other people are talking about/interested in, ask for feedback
- Find a niche
- Be smart/do your research
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Build your blog brand - ans- Know your target market, determine your voice and style (conversational vs. formal)
- Treat your brand as a business
- Choose and purchase your own domain name
- Develop a welcoming "About Me" page (always include contact info!) SSS Rule for blogs - ansshort and sweet, but saturated with valuable information Why is building an environmentally friendly foodservice important? - ans- Company's bottom line
- Social, economic, environment connection
- Aramark sustainability guide!* Triple bottom line - ansrecognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
- Environment, Economic, and Social impact Foodservice: key factors to consider - ans- Nutritional content
- Quality of food products
- Public health
- Environmental health
- Social & economic well being How might a foodservice go green? - ans- Healthy retail offerings
- Sustainable food
- Purchasing
- Green buildings
- Energy & water conservation
- Waste management Procurement - ans- Food
- Supporting products & equipment
- HEN opportunity (Academy student member for a farm internship) What is happening in foodservice? - ans- Organic foods (Not taking off, Costly)
- Cage free, hormone free (Eggs, Chicken) Fair trade - ans- Most common being cocoa, coffee, bananas, tea, and sugar
- Must be free of forced labor or poor working conditions for laborers
- Crops are raised through sustainable methods, and no genetically modified crops are allowed to be certified Fair Trade
- Fair trade products have a "floor" price
- Starbucks, Cadbury, McDonald's What does 'local' mean? - ans- 150 mile radius, state, region?
- Food-miles traveled
- Taste & flavor
- Support local farmers
- Convenient
- Community based food system
- Right thing to do! Challenges with food - ans- Seasonality
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- Volume
- Quality
- Specification & packaging consistency
- Competitive cost
- Eat Well Guide Disposable Products - ans- Avoid Polystyrene products (Manufactured from petroleum, Disposable cutlery, Styrofoam cups, plates, etc)
- Avoid waxed cardboard (usually produce boxes)
- Better to use products that contain recycled content (pre- and post-consumer content), contain renewable materials or are compostable
- FDA does limit use of recyclable in products carrying food Green buildings/kitchens - ans- http://www.usgbc.org/DisplayPage.aspx?CategoryID=
- LEED Building Certified: Leadership in Energy and Environmental Design
- Energy efficient equipment (dishwashers, ovens, refrigeration, holding units, steamers, hand dryers) Energy Star Appliances - ans- Program of US Environmental Protection Agency (EPA) and US Dept of Energy (DOE)
- Energy Star = international standard for consumer products (use up to 50 percent less energy than conventional appliances!)
- Programs for commercial fd service, small businesses, bldgs, lighting, HVAC
- Fryers, hot food holding cabinets, refrigerators, freezers, steam cookers, dishwashers, ice makers, griddles, ovens Water conservation - ans- Sinks
- Toilets
- Foot petal sinks
- High efficiency dishwashers
- Motion sensor sinks & lights
- High velocity, high-efficiency pre-rinse spray nozzles Water efficiency - ans- Undertaking a periodic leak inspection program
- Operating dishwashers only when full
- Hand scraping food scraps
- Using water-efficient sink aerators
- Using water-efficient dishwashers Waste management - ans- Buy in bulk
- Pulpers
- Garbage disposals
- Recycling program
- Composting programs Reusable ware - ansDishes & flatware with energy- and water-efficient dishwashers and environmentally preferable detergents Compostable flatware - ansMust go to commercial composting facility Recycling frying oil - ansReprocessed and used for biodiesel to generate on-site electricity (geographically dependent)
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Sustainability for the consumer - ans- Selling more responsibly manufactured water bottles and reusable bags and mugs
- Not pre-filling water glasses (Instead, fill upon request)
- Use mugs instead of cups and saucers
- Select tables that do not require linens, reducing the volume of washing required
- Potted plants vs cut flowers
- containers to facilitate recycling of plastic bottles Inexpensive changes you can make - ans- Purchase concentrated green cleaning products (Concentrated cleaning products are less expensive, require less packaging and take up less volume during transportation)
- Air bake foods, instead of frying. Air baking is healthier and requires less energy to prepare than fried foods
- Clean and replace filters on air conditioning units
- Insulate all accessible hot water pipes leading to and from the water heater Inexpensive changes you can make continued - ans- Replace incandescent lamps in the back of house and exterior fixtures with compact fluorescent lamps
- Properly set outdoor lighting controls using an on/off schedule
- Install "Turn Off Lights" reminders where appropriate
- Place napkins and flatware as close as possible to where they will be used. When napkins are placed at the tables within a cafeteria or after the checkout counter, people will more frequently take only what they need Inexpensive changes you can make continued... - ans- Provide to-go packing only upon request to reduce waste and cost.
- Use signs to remind and educate customers: "Take only what you need" for napkins or "What is local today" to encourage the selection of locally sourced foods, About portion control to reduce food waste
- Install occupancy sensors in areas of infrequent use. Install a time clock to control the ice machine and restrict hours of operation to off-peak hours Inexpensive changes (...) - ans- Use 100 percent biodegradable and compostable takeout boxes made of bamboo, sugar cane and grass reed instead of Styrofoam Eco Friendly Biodegradable Restaurant Supplies | Food Biz Supply EcoFriendly
- Waste can be compacted using trash compactors to reduce the volume that is to be transported to the landfill
- Provide separate bins for waste separation. Bins can be provided for recyclable materials (plastic, glass and aluminum), compostable items (organics, paper and compostable napkins) and waste
- Replace incandescent or neon lighting in channel signs with LEDs
- Install induction-type fluorescent lamps or LED lamps in walk-in freezers and refrigerated display cases
- Install a demand control ventilation system for the kitchen exhaust hood Trayless dining - ans- On average, food waste was reduced between 1.2 and 1.8 ounces (34 to 51 grams) per person per meal using trayless dining - a 25 to 30 percent reduction in food waste!
- About one-third to one-half gallon (1.1 to 1.9 liters) of water was saved per each unused tray
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Menu Psychology - ansDesign and layout of a menu should influence the sale of foods served
- Cover should project an accurate image of who you are/what food is being served
- Today Show - Gregg Rapp ('menu engineer') Eye Gaze on 3 Page Menu - ansmiddle โ upper right โ upper left โ down โ back to middle Important things to consider when menu planning: - ans- Primary & Recency (items people see first and last are best, things in the middle aren't usually noticed)
- Font size/color, make sure people can read it (make prices smaller/lighter)
- Spacing & grouping, borders to draw attention Types of Menus - ansMenu determines equipment, food, space, and personnel needed
- No choice, limited choice, choice, restaurant, commercial, non-commercial, static vs. cycle No choice - ansVery uncommon
- Allows for greater forecasting/control
- Used to be used in long-term care facilities
- Regulations by OBRA, Health Care Financing Administration with Dept. of Health and Human Services (more customer/service oriented now) Limited Choice - ansCan choose side dishes, dessert, beverages Choice - ans- Single Use: One day use only, monotony breakers (Thanksgiving dinner, Valentines Day meal, etc.)
- Usually non-commercial (on-site food service)
- Catered events Restaurant menus - ansIncreasing in food service Commercial menus - ansProfit centered Static menus - ans- Same menu items offered every day
- Usually restaurants but now institutional food services - restaurant-style menu
- Room service menus Cycle menus - ans- Series of menus offering different items daily (weekly, bi-weekly, or some other basis)
- Could have different seasonal cycles
- Seen in schools, long-term care, hospitals, B & I
- Simplifies purchasing, standardizes preparation, gives more constant and even workload distribution Degree of Choice matters: - ansLess choice = easier to forecast production needs, but less customer satisfaction Menu presentation - ans- Spoken menu (telling you specials, in hospitals they'll take menu orders in rooms)
- Room service
- Two-tier (upscale menu items made for those willing to pay extra for them)
- Table d'hote (several food items grouped together and sold for one price)
- A la carte (food items priced individually) Menu structure - ansMenu main means of attracting people, meet customer expectations
- Regional appeal (chain restaurants too)
- Balance of food cost and labor cost (can sometimes be equal)
- 3 meals/day is not as popular today
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- Grazing = flexibility + frequency + food
- Customers want: quality, convenience, and nutrition Breakfast - ans- โ
of total revenue for casual dining restaurants
- Not just bacon and eggs
- Grab & Go (convenience stores taking share of the market) Brunch - ansUsually not a set menu/changes regularly; usually on weekends
- Hotels, retirement communities, colleges & universities Lunch - ansBalance between trends and tradition; most frequently eaten away from home
- Catering increasing, onsite often largest meal served Dinner - ansEntree, potato or substitute, vegetable, salad (light far suppers as well) Sociocultural factors - ansFood habits and preferences of target market
- Demographics, age, sex, culture, race, etc.
- Different countries different preferences Southeast Asians - ansPork, few dairy products Kosher - ansNo meat and dairy at the same meal. No pork or shellfish Chinese - ansYin foods (raw, cold, fish, veggies/fruits), Yang foods (bright, hot, hot soup from chicken), Rice is neutral Seventh Day Adventist - ansOvo-lacto vegetarian, no caffeine or alcohol Central America/Hispanic/Latin - ansFruits, veggies, meat, poultry, fish Muslin - ansHalal dietary laws; no pork, alcohol gelatin, congealed salad, shrimp Roman Catholics - ansNo meat on Fridays during Lent Customer satifaction - ansMobility of population, Menu item popularity Popularity Index - ans(# servings of an item/total # of servings of all items in that category that day) X 100
- Can also be used for forecasting 4 core values for standards of food - ans- Taste is major determinant of consumer food choices
- Dietary recommendations should respect culinary traditions and support cultural and ethnic heritages
- Nutrition and health begin around the dinner table
- There are no good or bad foods โ overall diet Menu engineering - ansBased on popularity and profit (y-axis is popularity, x-axis is profitability)
- Star: promote this item (high sales/popularity and profitability)
- Plow horse: decrease portion size or increase price (popular but not profitable)
- Puzzle: question if you should continue to offer it (highly profitable but not popular)
- Dog: consider eliminating (nor popular or profitable) National Restaurant Menu Labeling Legislation - ans- HR 3590 Patient Protection and Affordable Care Act
- Federal oversight of menu calorie labeling
- Chains with 20 or more restaurants
- Compliance deadline May 7, 2018 Menu labeling - ansEffectiveness not yet understood, mixed results
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- Some populations notice the calorie postings more than others (health conscious, higher education, higher income, young adults)
- Restaurants have been offering more lower calorie options and changing their recipes of existing items to make them lower in calorie
- "Evidence suggests that menu labeling has a modest effect on calories purchased and consumed."* Nutrient Analysis - ansAssay of select nutrients by laboratory analysis
- Used when precise data is essential
- Done and then put into database
- Expensive
- Still an estimate because of # of samples and seasonality
- Most RDs use computerized databases Opportunities for RDs - ansNeed good background in cooking and culinary techniques; Academy Certificate in Restaurant Menu Labeling International Food Information Council (IFIC) - ans2023 Food and Health Survey (April 3-10,
- N = 1,022 (ages 18-80)
- Social media content can cause confusion/doubt
- Many Americans willing to pay for more sustainable products
- Gen Z knows more about MyPlate compared to older adults
- Mental status impacts food/bev choices
- Taste is always #1 factor in food choices (price is #2)
- 52% of ppl following a diet/eating pattern Natural products - ans- People claim they like to buy products that are labeled "natural"
- Not FDA regulated
- "Clean label" is not defined, but for most consumers it means free from artificial additives or preservatives