Method Marketing Newsletter: Volume 2 Issue 22
March 8th, 2002

Create An Effective Neighborhood Marketing Plan

Synopsis:

Use a business-like process of neighborhood marketing to maximize limited funds. Use your store and your staff as your prime advertising vehicles.


"There's no place like home"
Dorothy, Wizard of Oz


"Neighborhood marketing is local, personal, distinctive and targeted"
Rick Hendrie


Your guests define 'value' by the totality of the experience: the service, the décor, the food and its flavors and aromas and the cost: all details that create a memory.

The most memorable experiences come from an organized, well-rehearsed and communicated performance. Great 'word of mouth' is built note by note, scene by scene, act by act, so that by the end of the visit your guest walks away 'wowed'. Or bored. Or, worse of all, disgusted. It's your choice.

1. Some consider the phrase 'effective neighborhood marketing' an oxymoron. From the perspective of Method Marketing, it is a natural extension of The Fifth Golden Rule: Market From Inside the Restaurant, Out. Further, the functional 'marketing' part of Method Marketing is based on several principles:

  • Your staff and store are the primary advertising vehicles.
  • Your guest relates to your concept in an emotional way.
  • Every restaurant provides a unique twist on your branded persona.

The most successful restaurant marketers share one focus, the guest. They endeavor to ensure the guest is satisfied, to win the guest's loyalty and to own the relationship with the guest. Many talk the talk, but, as Shakespeare said, " It is observed more in the breach than in the observance."

What are the mechanics of a successful plan?
1) Do your guest research to determine demographic profile; use behavior and guest attitudes toward your concept. Know your guest.

  • Set up maps at each meal period in your host area or entrance to permit guests to tell you from where they come.
  • Use red dots for 'work' and green dots for 'home'.

    • Use 3' x3' reproductions of the area within 3 miles of each store. Make sure you give guests a means to indicate the zip code of the location from where they originated, as there will be some that travel from beyond the 3-mile radius.
  • Note the zip codes that generate the highest concentration of guests.

2) Track and analyze your business to establish numeric benchmarks.

3) Define your trading area. Note: the only entities that see a trading area in terms of concentric circles are real estate brokers and birds. Human beings see interstates, forests, rivers, railroad tracks and other barriers, as well.

  • Identify traffic generators.
  • Locate competitors.

4) Ask your credit card companies to give you a list of guests who have used their card when patronizing your establishment. Have them sort the list by zip code, most to least.

5) Make a plan and use the 80/20 rule.

  • Concentrate on your strengths first, be they operational, location-driven or conceptual. Focus on what you do well. Promote what you are known for. Then concentrate on the strengths of the trading area, be they malls, schools, business parks, residential, all the above or something else.
  • Include your staff in the planning and execution. Offer extra incentives for the help.
  • Do not discount. Give your guest a 'full-value' reason for coming.
  • Be methodical. Move from section to section of the trading area.
  • Go for the 'biggest bang for your buck'. Target those consumers who most resemble your primary guest demographic profile.

6) Measure your results

  • Be S.M.A.R.T.
Specific
Measurable
Aggressive/Achievable
Realistic
Timebound
.

The planning process, from inception to execution, will stretch over 8-12 weeks. A great neighborhood-marketing plan is founded on the premise that relationships you nurture within the four-walls of your restaurant are extended outward to the immediate trading area.

Method Marketing News continues our series of profiles with a conversation with Arlene Spiegel, restaurateur extra-ordinaire and one of the leading lights in our business. -->GO

 

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