Week 4

Hospitality Marketing
Nur Agustinus
A Guide To Restaurant Marketing Mix
Understanding the restaurant marketing mix and
having a model optimized for your restaurant is critical
to an effective marketing system and the key to success
when it comes to restaurant profits and staying
competitive.

A “marketing mix” is the right tool to employ to base

the decisions on where to put the focus and resources,
irrespective of whether the business is smooth sailing
or going through a rough patch.
 E. Jerome McCarthy
The original marketing mix, or
4 Ps, as originally proposed by
marketer and academic
Jerome McCarthy, provides a
framework for marketing
decision-making. McCarthy's
marketing mix has since
become one of the most
enduring and widely accepted
frameworks in marketing.
 What is a Marketing Mix?
• The marketing mix is the focus and outline of
your marketing plan that is in alignment with
the goals of your business. This relates to your
menu offerings (products), menu item pricing
(price), location and competitive positioning
(place), and deals, specials and promotions
(promotion) – the 4P’s.
 How to Develop an Ideal Marketing
Mix?
To develop the right marketing mix for the restaurant, start by getting
clarity on the following:
• Market segment – Get a clear understanding of the market
segment your business is positioned in. You are in one or more of
the following segments – dining, carryout & delivery and catering.
• Target customer – Know who you are selling to and who needs or
wants what you offer is rule number one in marketing. Know your
customer, their age, gender, their income, where they live, etc.
• Competition – Identify your competitors in your market segments.
You may have different competitors in each of your market
segments. Analyze their menu, pricing, promotions and online
presence to understand your relative positioning compared to
theirs.
 Determine The Marketing Objective
Here are some possible marketing objectives for the restaurant:
• generate awareness – Be visible locally and let people recognize
your brand.
• increase repeat visits – Get some regulars coming in the doors.
• increase average check – The better relationships you establish with
customers the more they will spend.
• competitive differentiation – Letting people know what makes
your business special.
• building the brand – Making sure people know what your business
represents.
• be top of mind – If you can be the first on your customers’ mind
you will always succeed.
• improve value perceptions – Letting people know what your
business is about.
 4 Ps
PRODUCT PRICE
Variety, Quality List price, Discounts
Design, Features Allowances, Payment
Brand name, Packaging period, Credit terms
Services TARGET
CUSTOMERS
INTENDED POSITIONING

PROMOTION PLACE
Advertising Channels, Coverage
Personal selling Assortments, Locations
Sales promotion Inventory, Transportation
Public Relations Logistics
 Product- Consumer
• The product part of the Four Ps model is
replaced by consumer or consumer models,
shifting the focus to satisfying the consumer.
Product
1. Core Benefit : It is the service
or benefit the product is
offering.
2. Basic product : The core benefit
triggers the basic product.
3. Expected product : These are
attributes expected by the
consumer from the product.
4. Augmented product : It is a
differentiated product that is
made to exceed a consumer's
expectations.
5. Potential product : This is
where the company looks for
innovate ways to satiate the
consumer.
 Product lifecycle
The product lifecycle looks at the sales of a
product over time
 Co-creation
• Co-creation is a
management
initiative, or form of
economic strategy,
that brings different
parties together (for
instance, a company
and a group of
customers), in order
to jointly produce a
mutually valued
outcome.
 FACTORS AFFECTING PRICING DECISIONS
Kotler-Amstrong,--

INTERNAL EXTERNAL
FACTORS P FACTORS
Marketing objectives R Nature of the market
Marketing mix strategy I and demand
Costs C Competition
Organisational I Other environmental
considerations N factors ( economy,
G resellers, government
PRICING PERCPECTIVES – Lancecter-Reynolds -

• ECONOMIST’s approach
The price is the means through which supply and demand
is brought into equilibrium

• ACCOUNTANTS’s approach
The price covers the costs and make profits

• MARKETER’s approach
Effect of price on the organisation’s competitive
market position
 Price leaders and takers
Price leader – businesses that dominate the
market can often dictate the price charged for
a product. Other businesses follow this lead.

Price taker – businesses have to charge the

market price. This is often the case where
there are many small firms competing against
each other.
 Pricing strategies & tactics
Skimming Launching with a high price when there is little
competition, then reducing the price later. Often
used with technology.
Penetration Low price charged initially to penetrate the
market and build brand loyalty; prrice is then
increased e.g. introductory offers on magazines.
Competitive A similar price is charged to that of competitors’
products.
Loss leader Products may be sold at a price lower than the
cost to produce it. Often used by supermarkets
to encourage people into the store where it is
hoped they will buy other products.
Psychological A price is set which customers perceive as lower
than it is e.g. £39.99 instead of £40.
 Promotion- Communication
• Communications represents a broader focus
than simply promotions.
• Communications can include advertising,
public relations, personal selling, viral
advertising, and any form of communication
between the firm and the consumer.
PLACE
 Place- Convenience
• Placement is replaced by the convenience
function.
• With the rise of internet and hybrid models of
purchasing, place is no longer as relevant as
before.
• Convenience takes into account the ease to
buy a product, find a product, find information
about a product, and several other
considerations.
 Next Week: Competitor Analysis
Identifying your competitors and evaluating their strategies to determine their strengths
and weaknesses relative to those of your own product or service. A competitive analysis
is a critical part of your company marketing plan.
 Group WA
Hospitality Marketing Kelas A

• Join link: https://goo.gl/kzotqx (via smartphone)

• atau
https://chat.whatsapp.com/DFTOmUtGhfy5mfKY
4mROu4