DISCUSSION FOR SUMMATIVE 2 QUARTER 4

Recognize and understand the market in food and beverage services

Food and Beverage Marketing is seeing the business from the perspective of the guest. The
Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by
means of the product as a solution to the customer's problem (needs). It represents the
major change in today's industry of Food
and Beverage orientation that provides the foundation to achieve competitive advantage.
The Five-Market Concept are:
1. The Production Concept – The concept holds that the consumers will prefer products that
are widely available and inexpensive.
2. The Product Concept – This orientation holds that consumers will favor those products
that offer the most quality, performance, or innovative features.
3. The Selling Concept – A business orientation that holds consumers and businesses, if left
alone, will ordinarily not buy enough of the selling company’s products.
4. The Marketing Concept – It holds that the key to achieving its organizational goals (goals
of the selling company) consists of the company being more effective than competitors in
creating, delivering, and communicating customer value to its selected target customers.
The marketing concept rests on four pillars: target market, customer needs, integrated
marketing and profitability.
5. The Societal Marketing Concept – This concept holds that the organization’s task is to
determine the needs, wants, and interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than competitors are. Additionally, it holds that
this all must be done in a way that preserves or enhances the consumer’s and the society’s
well-being.
Players in the Market (Competitors)

 Direct competitors are competitors who are directly vying for your customers. When most
new business owners think about their competition, direct competitors are what come to
mind.

 Potential competitors are those competitors who do the same thing that you and target the
same kinds of customers but aren’t selling in your market area and aren’t likely to do so.
They could be your competition if they decided to enter, but either don’t have the
infrastructure or have chosen to ignore your area

 Indirect competitors are businesses that are in the same category, but sell different
products and services.

 Future competitors are like potential competitors, but they’re much more ready and likely
to enter your market.

 Replacement competitors are those who provide an alternative to the services that you
offer that solves the same pain points. If there is more than one way to solve the problems
you solve with your business, you may have a replacement competitor. Recognize the
Potential Customer/Market in Food and Beverage Services
To market your product or service, you must tailor your marketing and sales efforts so that
most likely buy your product or service. It is critical that you first determine or identify your
primary market. If you do not know who your customers are, how will you be able to assess
whether you are meeting their needs? You must know who your customers are, what they
want, where they live, and what they can afford.
The needs and wants of the people within an area should take into big consideration.
Everyone has his/her own needs and wants. However, each person has different concepts
of needs and wants. Needs in business are the important things that an individual cannot live
without in a society. These include: 1. Basic commodities for consumption, 2. Clothing and
other personal belongings, 3. Shelter, sanitation and health, and 4. Education.
A customer profile (sometimes referred to as consumer profile) is a document that lists pain
points, interests, buying patterns, and demographic characteristics of a company's
customers

 Geographic. Potential customers are in a local, state, regional or national marketplace

segment. If you are selling a product such as farm equipment, geographic location will
remain a major factor in segmenting your target markets since your customers are located in
particular rural areas. On the other hand, if you own a retail store, geographic location of the
store is one of the most important considerations.

 Demographic. Potential customers are identified by criteria such as age, race, religion,
gender, income level, family size, occupation, education level and marital status. Choose
those characteristics of your demographic target market that relates to the interest, need and
ability of the customer to purchase your product or service.
Consumer Analysis through:
1. Observations – it is less expensive and you will see people interact with your product in a
natural setting without influencing each other. The only downside is that you cannot get
inside their heads, so observation is no replacement for customer surveys and interviews
During a customer observation session, someone from the company takes notes while they
watch an ideal user engage with their product (or a similar product from a competitor).
2. Interviews – are one-on-one conversations with members of your target market. Nothing
beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-
person meeting is not possible, video conferencing is a solid second choice. Regardless of
how you conduct it, any type of in-depth interview will produce big benefits in understanding
your target market and customers. By speaking directly with an ideal customer, you will gain
greater empathy for their experience, and you can follow insightful threads that can produce
plenty of moments
3. Focus Group Discussion – it brings together a carefully selected group of people who fit a
company’s target market. A trained moderator leads a conversation surrounding the product,
user experience, and/or marketing message to gain deeper insights.
4. Survey – ask users a short series of open- or closed-ended questions, which can be
delivered as an on-screen questionnaire or via email. Surveys proved to be the most
commonly used market research technique. It is easy and inexpensive to conduct, and you
can do a lot of data collection quickly. The data
is straightforward to analyze, even when you have to analyze open-ended questions whose
answers might initially appear difficult to categorize