Marketing is not Advertising
Posted by Ebook Author on February 9th, 2008Restaurateurs come from many backgrounds. Most never had formal training or experience with marketing. Commonly I see the term advertising used interchangeably with the word marketing. Advertising is just a small part of marketing.
One of the key errors I made in the early years of operating restaurants was that I thought media advertising was the way to get new business and keep old customers. I followed what I saw the competition doing. Newspapers, magazines and other publications were full of restaurant ads. I just thought you had to do that!
When business wasn’t growing as fast as it should, my old business skills reverted to basic marketing techniques to build a plan. We needed to find out why customers were coming in our doors for the first time. We found that very few were motivated by ads. Most came because of a referral from a neighbor, friend or family. Even more surprising was the extremely high cost to acquire new business through traditional advertising. One new customer may cost as much as $75 to obtain! We might as well have sent a $75 check to random people just to try our restaurant! Not very smart.
By applying techniques of basic marketing we determined;
- Who our potential customers were.
- Methods to communicate directly with them.
- What motivated them to act.
- What made them want to return.
It sounds like heavy business school stuff and typical “consultant” drivel you read every day. Really it was simple, just ask! Managers, owners and servers need to communicate with new customers as they come in the door. First time visitors like the interaction and are more than open about why they are there. You can create a little form used by employees to fill out after visiting with guests. Record their responses to the questions above. After a few days a pattern will emerge.
There are many aspects and components to the marketing function. The Restaurant Ebook details exactly how to go about creating a marketing plan and executing each step. The size of your operation is insignificant. A small coffee bar and a 300 seat theme restaurant must do the same thing to keep growing and maintaining a customer base.
Rarely is advertising successful economically for the independent restaurateur. Advertising cannot produce the results a well thought out marketing plan can produce, usually for less than the cost of traditional ad media.
Larry Edger, Author
The Restaurant Ebook







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