Y2.U7.2
Market Analysis
What
• Are the basic types of research methods used to gather
information?
• Is market segmentation?
• Can an operation do to create a unique market identity?
• Are various ways to communicate a message to the
market?
Market Research Methods- 4 basic Methods
• Experimental Method
• Try out a product for a limited time with a limited group
• Observational Method
• Observing how customers react in a natural setting toward
a product
• Survey Method
• Gathering information using questionnaires.
• Sampling Method
• Testing a product with a small group of people, sometimes
called a focus group
Market Segmentation
Target Market: the people an operation intends to pursue
as customers. Every operation needs to be customer
driven.
Mass Marketing treats everyone in the market as having
the same needs and wants. Wasteful and should be
avoided.
Target Marketing
• Treats people as different from each other, trying to
make a focused appeal to a distinct group
• Focuses resources toward the people who buy the
products
Market Segmentation
• Demographic Segmentation
• Looks at individuals in a given location
• Age, gender, ethnicity, marital status, income, size of
household, educational level- U.S. Census
• Geographic Segmentation
• Where customers live, work and what kind of
transportation they use
• Product Usage Segmentation
• Capitalizing on or reacting to brand affinity
Market Segmentation
• Lifestyle Segmentation
• Looks at the activities, hobbies, interests, hobbies of a given
target market
Segments are often used in conjunction with each other
Once a target market is established, need to work on a
value proposition
-a statement of value customers will experience
when they purchase the product or service. “Are the
benefits worth the cost?”
Market Segmentation
Target Marketing Steps
• Identify groups you want to serve
• Who are the customers you want to attract and why
• Identify groups you are actually serving
• Survey
• Perform a situation assessment (Customer Profile)
• Do your targets reflect reality?
• Continually work to refine message
Market Identity
Positioning
• 3 steps
• Identify possible ways to differentiate the operation within
the market
• Select the right mix of differentiating aspects
• Communicate the chosen identity to a specific chosen
market
• All about standing out from the crowd
• Offering a product no one else does, or in a way no one else
does
Market Identity
Ways to Differentiate an Operation: Product, Physical
appearance/aesthetics, Service, Location, Image
• Product
• …the food is a time-tested way, but, given how difficult it is
to produce something so unique, so much better than the
competition, more than just product is needed
• Physical Appearance/Aesthetics
• The look: modern, cozy, formal
Market Identity
Ways to Differentiate an Operation: Product, Physical
appearance/aesthetics, Service, Location, Image
• Service
• How will staff be dressed?, How will guests be greeted?
Delivery?, Take-out.
• Location
• Geographic and other segment considerations
• Image
• Image first, then make product and service decisions that work
toward achieving the image
Market Identity
Ways to Differentiate an Operation: Product, Physical
appearance/aesthetics, Service, Location, Image
Selecting the Right Mix
• One differentiation point? (maybe not enough), many
differentiation points? (could dilute the message)
Communicating Chosen Identity
• Are customers getting the message?
Market Communications
The process of communication is called the Promotional
Mix
Advertising
• Paying to present or promote an operation’s product,
services or identity (television, radio, newspaper,
storefront, internet)
Sales Promotion
• Limited, short term incentives to entice customers to
patronize an operation (2 for 1, Wednesday wing)
Market Communications
Personal Selling
• Always key to an operation’s financial success, welltrained staff goes a long way to communicating an
operation’s message
Public Relations (PR)
• Process by with an operation interacts with the
community at large (sponsorship, charity event)
Direct Marketing
• Connect directly with a segment of the market (mailing,
email, phone call, web site feedback, tableside feedback)
Sales Promotions
Special Pricing
• Limited time reduced prices
Frequent Shopper Program
• Benefit in exchange for continued patronage
Premiums
• Free or reduced price merchandise (pen, cup)
Special Event
• One time or periodic event
Sales Promotions
Samples
• Free small tastes of food items
Contests and sweepstakes
• Games/programs that involve customer and provide a
prize
Promotional Materials
Signage
• Menu boards, directional signs, other signs
Flyers
• Paper notices distributed in a specific location
Premiums
• Token gifts, giveaway items
Carry out and door hanger menus
• For use outside the restaurant
Promotional Materials
Apparel and Branded Merchandise
• T-shirts, etc.
Point of Purchase (POP) materials
• Menu boards, video, print pieces, other display items
near the point of purchase
Merchandising materials
• Table tents
Direct mail, Email
Cooperative Sales promotions
Public Relations
To engage the public, an operation should employ both
Community Relations and Media Relations
Community Relations create a positive image, build
credibility, build relationships, create a network, generate
positive publicity, promote the operation
• Offer discounts for good grades (limited time)
• Donate a percentage of sales to a charity
• Offer discount for bringing in a donation
• Sponsorship
• Offer facility for fundraiser
Public Relations
Media Relations include newspapers, magazines,
television and radio
Press Release a brief presentation of promotional
information written to sound like a news article
Press Kit (media kit) is a packet of information given to
media representatives to answer questions they might
have about a business or organization
Public Relations
Press Kit
• General information about the operation
• Menus
• Any recent articles or press releases
• Any recent awards
• Photos of the operation and its menu items
• Operation’s mission or goal statement
• Contact Information for spokesperson
• Other promotional materials
Public Relations
Evaluation of media types and vehicles
• Does it reach the target market or people who can
influence market? How much of market?
• How likely is it there is interest in the story?