6.1.1. What is Marketing?
The term “marketing” is employed in numerous contexts today. In this chapter, we will investigate marketing as a distinct organizational function that affects promotional activities within foodservice operations. The American Marketing Association (AMA) defines marketing as both an organizational function and a series of processes aimed at creating, communicatingand delivering value to customers, as well as managing customer relationships to benefit the organization and its stakeholders. (Kohli & Jaworski, 1990; What Is Marketing? — The Definition of Marketing — AMA, n.d.)
The marketing concept is a business philosophy focused on directing resources and activities toward meeting customer needs and desires through an exchange process, with the understanding that these efforts will positively impact the bottom line. In today’s competitive environment with limited resources, it is crucial for organizations, including foodservice operations, to adopt a strategic marketing approach. Managers must embrace this idea and empower their employees to prioritize customer needs, as the existence of the foodservice organization depends on its customers. The marketing concept emphasizes the importance of having the vision and adaptability to respond to customers’ changing needs, wants and demands.
Marketing activities are essential for identifying and attracting customers to an organization and its products and services. Until recently, marketing was not widely recognized as valuable in non-commercial settings. However, industries such as healthcare and education in Canada have faced numerous challenges, including rising costs, increased government regulation, reduced government reimbursements and competition for customers. For instance, schools, colleges and universities must contend with competition from nearby restaurants and students bringing lunch from home.
The idea of a captive audience does not really exist. The foodservice departments in these organizations can play a crucial role in attracting and retaining customers by offering high-quality food, exceptional service and raising awareness of their services. For example, good food and service can be a deciding factor for families considering admitting a loved one to a long-term care facility. A diverse and exciting menu in a school cafeteria can encourage students to choose it over a nearby fast-food restaurant. Additionally, hospital patients who are satisfied with their meals are more likely to have a positive overall impression of their stay.
