Taken Home Exam 1
Marketing concepts entail the philosophies that companies needs to evaluate the needs of their clients and then make resolutions to that will impact positive changes in those needs and a proper manner than the competition (Wu, & Liang 2012). There are numerous kinds of marketing concepts. However, this paper only looks at 20 of the marketing concepts that are found in chapter 1.
In the course of studying marketing, the term market is used to denote the group of consumers or firms that are interested in either goods or services. For the organizations or the group of consumers to quality and be termed as a market, they have to have resources for purchasing the goods or services. Moreover, the resources should be allowed by the law for acquiring the products (Greene, Walls, & Schrest 2014).
Deducing from the definition of the market, it can be concluded that the market is at times responsible for the prices of goods. The rice of meat in restaurants can be high not necessarily because the restaurant as a business institution has decided to raise the prices but because the markets prices have inflated. In many instances, inflation in markets results in price changes in restaurants.
- Market Coverage
Market coverage in marketing entails the number of retails or wholesale outlets that are active in selling a particular business’ brand in a certain market. To attain market coverage, businesses have to apply concentrated marketing and differentiated marketing. In other occasions, they have to use undifferentiated marketing plans (Solomon et al. 2015).
In the context of a restaurant market, the percentage of saturation degree, the number of active restaurants specialized in selling particular products have to apply concentrated marketing, differentiated marketing and undifferentiated marketing strategies for them to attain their desired market coverage within their markets that they offer services.
Marketing is another concept under the study of marketing. Marketing is the done activities by a firm that is involved in the selling of goods and services. Marketing entails advertising, selling and distribution of products and services to the consumers (Greene, Walls, & Schrest 2014).
Restaurants employ the use of slogans, attractive packaging designs, the use of celebrity figures in their advertisements to attract their clients. The application of proper advertising mechanisms enables them to convince their customers that they are the best services offers and thus should be considered when one wants to visit a restaurant. Failure to proper marketing administration leads to restaurants receiving low numbers of customers that the desired numbers.
- Marketing Orientation
When it comes to marketing, marketing orientation is the firm’s philosophy that is targeted on finding and achieving the needs and desires of their clients through their product mix. Majorly, marketing orientation is more focused on the creation of products that satisfy the demand of the customers (Solomon et al. 2015).
For a restaurant business to grow well in the market that they operate, they have to apply market orientation. Applying market orientation is usually done through modifying their products in the best way possible so that they meet the demands of their customers. In many instances, restaurants work towards offering the best kinds of services than any other within their surroundings. Marketing orientation can also be done by lowering the prices of goods in the restaurants so that they are affordable to their target customers.
- Marketing Mix
The marketing mix is a term used in marketing to refer to the grouping of elements that can be regulated by a firm for influencing clients to buy their products or services. Some of these features comprise of product, distribution and promotion, placement and price (Greene, Walls, & Schrest 2014).
A restaurant marketing manager may decide to regulate their products to attract more customers to their restaurant. As it is known, the aim and objective of each and every restaurant business are attracting more customers and attaining the greatest returns on the variety of products and services that they offer. Therefore, regulating their prices can be a good thing to do if they are to win more customers.
- Market Share
Market share regards the rate of an industry or business sector’s aggregate deals that is earned by a specific organization over a predefined duration. Market share is figured by taking the organization’s sales over the period and partitioning it by the aggregate offers of the business over the same time frame. This metric is utilized to give a general thought of the span of an organization in connection with its business sector and its rivals (Solomon et al. 2015).
A business’s market share is a segment of total sales as it relates to the market that the firm operates. For example, if restaurant sales $50 million cash from beef a year domestically and the total number of beef sold in the United States is $100 million, the company’s United States of America’s market share for beef would be 50%.
- Marketing Channel
It can include wholesalers, retailers, at times distributors and even the internet itself. Channels are divided into either direct or can be categorized as indirect forms, with a “direct” channel and thus allowing the consumer to purchase the good from the manufacturer, and an “indirect” channel allowing the consumer to purchase the good from a wholesaler or retailer’ (Greene, Walls, & Schrest 2014).
Restaurants act as their manufacturers through the foods they produce. They then apply marketing channel through the foods and drinks that they sell to their customers. In their case, they have to ensure that their channels are well constructed so that the clients can find it efficient buying from them. There are two kinds of marketing channel; direct and indirect channels. Restaurants apply direct channels since consumers buy directly from them.
- Marketing Strategies
Marketing strategies involve the combination of marketing goals into one comprehensive plan. To attain maximum profits and sustain the business, a good marketing strategy should be drawn from market research and the right product mix (Wu, & Liang 2012).
Restaurants should undertake good market research so as to understand the kind of market they are dealing with. With the right information of the type of market they are dealing with, the restaurants can know the kind of products that will work best for them regarding profits and sustain the business. Once a restaurant has an understating of its target market, then it can set effective marketing strategies.
- Market Penetration Strategy
A marketing penetration strategy refers to selling your existing services or products into your existing markets so as to gain a higher market share (Solomon et al. 2015).
Restaurants should continue to offer the same products to the same customers. However, this should be done with the assurance that the product remains of high quality. With quality services, the restaurant can develop a relationship with the customers. The relationship in place makes the customer go back to the same restaurant when wanting the same product. This way the restaurant gets a higher market.
- Market Forecast
A market forecast projects the characteristics of your market, its future numbers and the trends in your target market. A standard analysis of the market will show the expected number of potential customers but in divided segments (Greene, Walls, & Schrest 2014).
With a market forecast, restaurants will be able to manage the rate at which they go at loss. A market forecast will give them an approximate number of customers to expect. With this information, the manager can decide what amount of stock to buy for a particular duration of time. For a restaurant, the stocks are mostly foods. Therefore, it is important to buy just enough to avoid going at a loss.
- Marketing Communication
Market communicating refers to all the media and messages one comes up with to communicate with the market. Marketing communication is an important part of a company’s marketing efforts (Solomon et al. 2015).
Restaurants should ensure that their workforce communicates to their customers in a welcoming manner. In most cases when a client is given quality services and is made to feel important and appreciated in a restaurant, the customer is likely to go back there. Empirical data were collected by a questionnaire distributed to luxury hotel restaurant