Chapter 4

Food and Beverage

Marketing
Management of Food and Beverage Operations
Fifth Edition
(241TXT or 241CIN)

© 2009, Educational Institute

 Competencies for
Food and Beverage Marketing
1. Explain marketing in terms of delivering guest-pleasing
service.
2. Describe the steps involved in developing a feasibility
study, and list the three types of marketing research that
should follow such a study.
3. Describe the elements of a complete marketing plan,
focusing on the roles of sales, traditional and electronic
advertising, public relations, and publicity. Compare
public relations and publicity for hospitality operations.
4. Describe marketing tactics that a noncommercial food
service operation might use.
© 2009, Educational Institute 2
 Steps Toward Service Excellence
1. Recognize that service is important.
2. Develop guest-friendly procedures that meet
standards and goals.
3. Assess and respond to guests’ changing
preferences.

© 2009, Educational Institute 3

 Functions of Feasibility Study
• Identify market area characteristics.
• Evaluate proposed site.
• Analyze competitors.
• Estimate demand.
• Project operating results.

© 2009, Educational Institute 4

 Market Area Characteristics
• Demographic information
• Retail sales volume
• Number and types of businesses
• Impact of tourism
• Available transportation
• Economic stability

© 2009, Educational Institute 5

 Evaluating the Proposed Site
• Availability, convenience of parking
• Traffic flow
• Distances from exits
• Location of other attractions
• Site accessibility

© 2009, Educational Institute 6

 Analyzing the Competition
• Location
• Type of restaurant
• Source and volume of business
• Times of operation
• Menu prices
• Check average
• Type of service
• Number of seats
• Alcoholic beverage service
• Entertainment
• Promotional efforts
• Chain affiliation
• Other service distinctions
© 2009, Educational Institute 7
 Analyzing the Market

Guest Profile Research

• Age
• Gender
• Frequency of visits
• Employment

© 2009, Educational Institute (continued) 8

 Analyzing the Market
(continued)

Marketplace Factors/Trends
• Changes in demographics
• Events in community, region, state, nation
• Cost of energy
• Government regulations
• Cost of travel
• Nutrition concerns
© 2009, Educational Institute 9
 Steps in Typical Marketing Plan
• Select target markets.
• Determine objectives.
• Create action plans.
• Evaluate and revise as necessary.

© 2009, Educational Institute 10

 Special Promotions
• Couponing
• Product sampling
• Contests
• Packages
• Premiums
• Gift cards/certificates
• Discounting
• Bonus offers
• Frequent guest programs

© 2009, Educational Institute 11

 Outdoor Sign Advertising
Pros
• Low cost
• Long life span
• Broad reach
Cons
• Limited message length
• Wasted coverage
• Zoning laws

© 2009, Educational Institute 12

 Newspaper Advertising
Pros
• Widely available
• Flexible positioning
• Effective coverage
• Can be placed quickly
• Easy to cancel or repeat
Cons
• Skimmed quickly
• Quickly obsolete
• Poor reproduction quality
• Wasted coverage
© 2009, Educational Institute 13
 Magazine Advertising
Pros
• Long life span
• Possibly many readers per issue
• Can target specific audiences
• Excellent reproduction quality
Cons
• High cost
• Long preparation time needed

© 2009, Educational Institute 14

 Radio Advertising
Pros
• Saturate local area
• Can be inexpensive
• Can target specific markets
• High message repetition possible
Cons
• Short life span
• Audio only

© 2009, Educational Institute 15

 Television Advertising
Pros
• Combines sight and sound
• Extensive coverage
• Target markets
Cons
• High cost
• Long preparation time
• Wasted coverage

© 2009, Educational Institute 16

 Direct Mail Advertising
Pros
• Audience selectivity
• Flexibility
• Personalized message
• Easily stopped or started
• Easily evaluated for effectiveness
Cons
• High cost
• Junk mail image

© 2009, Educational Institute 17

 Electronic Advertising
• Websites
• E-commerce
• Banner or click-through ads
• Facebook
• Online dining guides
• Cell phone ads
• Twitter
• TiVo
• Corporate blogging
• Digital jukebox
© 2009, Educational Institute 18