marketing mix 4ps.ppt

ProductPricePlace TimePromotionPolitics CemBoyner MarketingMixisaSTRATEGYtobeappliedtodifferentCUSTOMERTARGETS TODIFFERENTSEGMENTS MarketingMix 4P s Maslow sHierarchyofNeeds ConceptDevelopment LessConvenient 30minutes VeryConvenient 30minutes VeryFastservice Slowservice HighstreetfastFoodstore Takeawayservice Carveries Pizzarestaurants Homedelivery Localethnicrestaurants Destinationrestaurants Idea ScreeningProcess Doestheidesmeetcustomers needs IsthegroupofcustomerswiththeseneedslargeenoughtomaketheideaworthwhileDoesthefoodandbeverageoperatororpotentialoperatorhavethenecessaryresourcesavailabletodelivertheidea Willtheideageneratecustomersatisfaction Willtheideagenerateabenefittotheoperation MealExperienceConcept FoodandbeverageLevelofserviceCleanlinessHygienePriceAtmosphere LevelofService Iftherearedifferenttypeofservice serviceismainlythehumaninterface thepersonalinteractionbetweentheproductandtheconsumerServicecandeliverbenefitstothecustomersuchasfeelingvaluedandshouldthereforebepartoftheconceptThereare2factorsaffectingservice 1 howtimelyconsistentandorganisedtheserviceis2 friendlinessandattitudeofthestaff Cleanliness Tidyprenises smart cleanandironeduniformsandtheuseofprotectivegloveshavepositivecleanlinessperceptionHoldingequipmentbadly fiddlingwithhair badsmell poorlypresentedfood poorstandardsofpersonalhygienegiveanegativeimpression Atmosphere Sight furniture texture colour employee shape spaceandcustomersAcoustic music speech materialTouch Qualityofair qualityofequipmentwithwhichcustomerscomeintocontactTaste Recipes wines Smell usedbyF Boperatorstoattractcustomers suchascoffee bread FocalPoint tobecontinued Atmosphere Policiesfor CustomersdressrequirementSmoking non smokingMobilephoneusageMaximumgroupsizeAcceptingchildrenGuestbehaviour Pricing CostplusPrimecostingmethodsBackwardpricingRateofreturnpricingProfitpercustomerpricingElasticitypricing DemandOrientedPrice PRICING DESIGNINGTHEMENU MarketSkimming SelectiveMarketPenetration Inthemarketskimmingapproachtopricing operatorsusearelativelyhighpricetoattractasmallsegmentofthemarket whocanandwillpaythehigherprices wherethecompetitionisprobablytoundercutthepricessetforsimilarproducts andwherethecustomersperceivethatthevaluegivenintheformoftherestaurantexperienceisgreaterthanthepricescharged MarketPenetration marketpenetrationontheotherhand involvessettingpricesaslowaspossible whilestillcontributingtoprofits Ingeneral lowerpricesgeneratesgreatersalesvolumeandlongtermprofitability Thisphilosophyworksbestwhendemandispriceelastic thatis whenchangesinpriceresultinagreaterchangeindemand DemandOrientedPrice PRICING DESIGNINGTHEMENU MarketSkimming SelectiveMarketPenetration Inthemarketskimmingapproachtopricing operatorsusearelativelyhighpricetoattractasmallsegmentofthemarket whocanandwillpaythehigherprices wherethecompetitionisprobablytoundercutthepricessetforsimilarproducts andwherethecustomersperceivethatthevaluegivenintheformoftherestaurantexperienceisgreaterthanthepricescharged MarketPenetration marketpenetrationontheotherhand involvessettingpricesaslowaspossible whilestillcontributingtoprofits Ingeneral lowerpricesgeneratesgreatersalesvolumeandlongtermprofitability Thisphilosophyworksbestwhendemandispriceelastic thatis whenchangesinpriceresultinagreaterchangeindemand CompetitionPricing PRICING DESIGNINGTHEMENU Competitivepricingestablishespricesaccordingtothosesetbythecompetition Pricesaretypicallyslightlybeloworabovethoseofthecompetition Itisnotadvisabletocompeteprincipallyonthebasisofprice becausepriceisafactorthatcanbeeasilybemetbyastrongcompetitor Itisalsonotadvisabletoofferthesameproductasthecompetitionbutatahigherprice Anincreasingvalue consciousandeducatedconsumingpublicwillbyfromthecompetition MenuPriceRoundingStrategy PRICING DESIGNINGTHEMENU Whenarestaurantsetsmenupricesbyonlyapplyingaformula youseestrangepricessuchasYTL7 32orYTL19 68Valueperceptionpricingdictatesthatformidandexpensiveitems theguestdoesnotrecognizepricepointsotherthan 0 50 Whentheguestsubconscious read onecheapprice theyonlyseethe2inYTL2 95 Asageneralrule menuitemswithpricepointssetaslevelof 25 50 75and 95seemtobefriendly Inotherwords ifyoucanchargeYTL1 15foramenu youcanprobablychargeYTL1 25withoutanyresistance Oncearestaurantoperatorjustapplythissimplepricingphilosophy theprofitwillincreasebyatleast2 3 PagePositioning PRICING DESIGNINGTHEMENU Therearetwotheoriesregardingtheplacementofitemsonamenu MenuSequence FocalPoints MenuSequence Somebelievethatsequenceofdishesonthemenushouldfollowtheprogressionofameal Othersbelievethatfocalpoint