5.6: Systematic Advertising is Important

Systematic Advertising is Important

Time

Advertising requires patience. While the concentration often centers on the operation, sales are equally important and marketing requires time to generate positive results. In order to be effective, advertising must normally be repeated. Frequent exposure to targeted markets will increase the impact of advertising. Advertising specialists cannot tell you specifically 'why' consistent advertising works, but they can definitely document the poor results stemming from no advertising.

Budget

There are numerous stated percentages and national averages available to determine how much an operation should spend on marketing. In truth, all of these figures represent other operations in various stage of their product cycle. The best marketing budget scheme for a new operation should come about based on a 'needs' analysis of the operation in consideration of the marketplace and competitive environment it intends to enter. One has to have both the gumption and the money to spend enough to produce successful results.

Study

Managers and owners must constantly analyze the operation to determine the advantages it offers versus those of the competition. Disadvantages also need to surface so that they can be minimized or eliminated completely through internal adjustments - and advertising. Consistent evaluation should occur so that any changes in the competitive situation are noted and management can apply quick action. Table 3.3 - illustrates different types of media forms as well as the advantages and disadvantages of each media form.

Table: 5.3 Collateral Material - Advantages and Disadvantages

Collateral Material	Advantages	Disadvantages
Brochures	Informative Ability to target High production quality	Outdated easily
Specialty Items	Relatively inexpensive High recall rate by consumers	Outdated easily
Outdoor media	Good reach Good frequency Relatively uncluttered	Brief message High waste
Direct mail	Ability to target Personalized mailing pieces Excellent coupon distribution vehicle Low minimum cost	High cost per mailing (CPM) Junk mail image

Analysis of market segments

Much changes in a marketplace during the course of a year. Many people change jobs and move, as they do their lifestyles change as well. No market segment remains constant because change is constant. For this reason, management must know the patrons of the operation. By knowing your customers, management can react more quickly, and intelligently, to changes consumer demands.

A plan

Advertising cannot be effective if it occurs in a haphazard manner. It is important to establish strong continuity among all forms of advertising so that it gains momentum. Continuity refers to the use of the restaurant operation's facilities, decor, menu, logos, distinctive type styles, and all creative touches to make the advertising stand out from other advertisements.

Media

Select Media very carefully to increase its overall effectiveness. Media used must match the intended targeted markets. Choosing the wrong media can be expensive and non-productive. Each type of media offers advantages and drawbacks.

For the purpose of discussion, types of media generally fall into three distinct areas beginning with internally generated marketing or collateral material, electronic media, and print media. Advertising programs come in all patterns and sizes, depending on the resources and needs of the individual restaurant organization. Generally, programs organize geographically on a national, regional, or local level. Each level will differ in sophistication and media - sometimes a combination of media forms.

Collateral media are excellent ways to tell the story and inform potential consumers in the initial stages of the restaurant's operation. Further, they are most useful in the later stages as a way to target current clientele, and equally to reinforce the electronic and print Collateral Material Advantages Disadvantages Brochures Specialty Items Outdoor media Direct mail Informative Ability to target High production quality Relatively inexpensive High recall rate by consumers Good reach Good frequency Relatively uncluttered Ability to target Personalized mailing pieces Excellent coupon distribution vehicle Low minimum cost Outdated easily Outdated easily Brief message High waste High cost per mailing (CPM) Junk mail image media efforts. Thus, a marketing planner might engage in more than one form of media effort in an attempt to secure recognition and acceptance in a marketplace.

Local media planners often feel that they are at a distinct disadvantage because they have smaller advertising budgets and less marketing expertise. This situation need not be a disadvantage; instead, it often quite the opposite. The use of local radio spots and local print and/or television advertising allows the advertiser to speak directly with the local clientele.

Table 5.4 Electronic Media - Advantages and Disadvantages

Electronic Media	Advantages	Disadvantages
Television	Excellent reach Combined sight, motion, and sound Ability to catch people's attention Ability to target with cable and satellites	High total cost Clutter High waste Channels can be switched
Radio	Ability to target Less costly than television Good reach of travelers	Sound only Less attention getting than TV. Clutter Constant update required
Internet	Relatively low cost Amount of information Ability to provide sight, motion, and sound Interactivity Flexibility Buyer seeking seller	Constant update required
Other electronic media	Excellent visual and audio of CD-ROM Ability to target Amount of space for info transfer Flexibility	Expensive to design

Often the local advertiser has a much clearer understanding of the target market and is able to achieve a competitive advantage over regional and national advertiser. However, one distinct disadvantage lies in the broad coverage larger market radio and television can create in terms of cost.

Said differently, if the goal is to reach your potential and current customers. What form(s) of marketing will best help you to accomplish those goals? As you read about and compare the different forms of advertising media at your disposal, begin to think about your marketplace and trading area. Where are your customers located? Do they exist in clusters, or dispersions through different neighborhoods or nearby towns or cities?

Table 5.5 Print Media - Advantages and Disadvantages

Print Media	Advantages	Disadvantages
Newspapers	Timeliness Broad-based readership Local audience	Poor production quality Clutter Inability to target
Newspaper inserts	Good campaign distribution vehicle Higher coupon redemption rate	More costly than newspapers
Magazines	Ability to target Prestige High-quality reproduction High secondary circulation	Long lead time More costly than newspapers

A restaurant operating in a smaller community adjacent to larger communities or cities, will pay for the broad coverage of the radio or television advertising when the intent was to reach a smaller audience in the local community.

The larger the city, the higher the cost for electronic media such as radio and television. This is another reason why a combination of media forms are more cost efficient and effective in the end. What becomes important when multiple types of media are used is that the message has unity. Further, it is important to maintain visual similarity when using both visual and aural forms of media. Above all, portray a consistent attitude and positioning message for continuity. If your message is worth hearing - tell it often and in different ways.

An Internet Presence

The age of electronic commerce is at hand and those that follow the evolution of electronic commerce agree that companies who have an Internet presence and conduct business online (at least in part), experience numerous important benefits.

First, the Internet creates value largely or exclusively through the gathering, synthesizing, and distribution of information. Organizations that engage in e-commerce activities can collect significant data about their customers. They can more easily determine consumers' likes, dislikes, and responses to various marketing messages. This wealth of data that is readily analyzable, allows marketing managers to make better-informed decisions.

Second, electronic commerce helps companies formulate strategies in ways that result in a need for 'dual' management in the sense that the electronic business requires management itself, and various types of technology need overseeing as well. The management of technology is not a separate function, but an additional core business competency in the twenty-first century. Similarly, the development of e-commerce applications is not a parallel activity, but also a part of the core set of activities within the restaurant organization.

Third, use of the Internet allows firms to compete in real time. In the past, businesses made operational changes on an intermittent basis, resulting from data that took a considerable time to gather regarding financial performance or guest response studies. With the increasing use of technology, the lag time for information gathering has virtually become a non-issue. For example, a restaurant can e-mail their clientele special discount coupons and immediate begin to track buyer behavior via the usage of the coupons in the organization's restaurants.

Fourth, Hospitality operations such as restaurants have high cost structures for buildings, equipment, fixtures and so forth. The use of Internet helps the restaurant operation to conserve valuable financial resources to help reduce the cost of advertising and extend the marketing effort over time.

Fifth, the Internet has proven to be useful in organizing operational resources around the 'demand' side of the business (demand for the firm's products and services). The operator should constantly monitor ‘demand’ from potential customers to determine the occurrence of changes in consumer demand. This allows organizations the ability to encourage demand by changing marketing tactics and variables such as price and availability.

Sixth, electronic commerce allows organizations to examine customer relationships through interfaces using technology to manage and customize customers' experiences. In order to increase relationship-building interactions and reduce labor costs in the process, technology is useful to transfer customized information to the customers via customizable e-mail and Web site information to match the interests and past behavior of individual consumers.

Seventh, the Internet allows the restaurant organization to use technology- driven methods to measure and track customer behavior and interaction patterns. This data is then usable to customize future transactions among individual customers and customer groups with similar buying behavior.

Preparing the Organization for the Internet

An organizational decision to enter the e-commerce space is a critical one that should be receive thorough research beforehand. Managers should full consider broad perspectives before making the decision to move forward. Reedy and Schullo (2004) suggest that you address the following questions prior to engaging in commercial activities on the Internet.

• What is the firm's purpose for engaging in online commerce and communications?
• What are the firm's goals and specific objectives? What outcome is the firm seeking to achieve.
• Why should the firm want to go online? Is it to introduce new products and services? Is cost reduction one of the goals? Are enhanced relations with current customers an objective?
• What online expectations does the firm have? Are there different objectives for different divisions of the firm, such as marketing, human resources or finance?
• How will we integrate electronic commerce efforts with other forms of communication? How will we maintain our consistency of branding and identity?
• Who will be in charge of the Web site creation, maintenance, and evaluation?

These questions address the necessary elements for serious consideration to create functional online presence that accomplishes the goals of the organization and better service and awareness for consumers.

In summary, the size of the organization is not the driving factor when deciding what role the Internet and electronic commerce might play in the organization's overall program. Large firms use the Internet in a variety of way to meet marketing and other important objectives. On the other hand, small restaurant startups use it as well. A small restaurant operation in a small community that establishes an interesting Web site can extend their brand internationally. Which can be of great importance if the city is an international destination.

The most important objectives of an online ‘organizational presence’ include:

• Creating or improving your organizations 'brand' awareness;
• Helping the organization sell products and services;
• Creating interest in and sales related to promotions;
• Providing information about the many products and service that the firm offers;
• Building loyalty through frequent guest programs;
• Promoting human resource needs and employment opportunities for the operation; and
• Providing positive information about the community service work that the restaurant supports