designing and managing products

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Designing and Managing Products Chapter 9 Kotler, Bowen and Makens Marketing for Hospitality and Tourism

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Marketing for Hospitality and Tourism. Kotler, Bowen and Makens. Designing and Managing Products. Chapter 9. Learning Objectives. Define the term product , including the core , facilitating , supporting , and augmented product. - PowerPoint PPT Presentation

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Page 1: Designing and Managing Products

Designing and Managing Products

Chapter 9

Kotler, Bowen and Makens

Marketing for Hospitality and Tourism

Page 2: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Learning Objectives1. Define the term product, including the core,

facilitating, supporting, and augmented product.

2. Explain how accessibility, atmosphere, customer interaction with the service delivery system, customer interaction with other customers, and customer coproduction are all critical elements to keep in mind when designing a product.

3. Understand branding and the conditions that support branding.

4. The new product development process.

5. Understand how the product life cycle can be applied to the hospitality industry.

Page 3: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

What is a Product?

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

It includes physical objects, services, places, organizations, and ideas.

Page 4: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Product Levels

Core Products

Facilitating Products

Supporting Products

Augmented Products

Page 5: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Augmented Product

Customer Participation

Customer Interaction

Accessibility AtmosphereAugmented Product

Page 6: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Atmosphere’s Effect onPurchase Behavior

Mood-Creating Medium

Effect-Creating Medium

Message-Creating Medium

Attention-Creating Medium

Page 7: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Customer Interaction with theService Delivery System

Joining Consumption Detachment

Page 8: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Elements of Branding Strategy

Brand Equity

BrandPositioning

BrandPortfolios

Page 9: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Brand Positioning

Beliefs and Values

Benefits

Attributes

Page 10: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

New Product Development

BusinessAnalysis

ProductDevelopment CommercializationTest

Marketing

MarketingStrategy

IdeaScreening

IdeaGeneration

ConceptDevelopmentand Testing

Page 11: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Idea Generation

External Sources

Crowdsourcing

External Environment

Internal Sources

Idea Generation

Page 12: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Commercialization

CommercializationDecisions

Page 13: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Product Life Cycle

Page 14: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Product Deletion

Phase-Out

Run-OutDrop It

Page 15: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Key Terms

Augmented products Additional consumer services and benefits built around the core and actual products.

Aural The dimension of atmosphere relating to volume and pitch.

Brand A name, term, sign, symbol, design, or a combination of these elements that is intended to identify the goods or services of a seller and differentiate them from competitors.

Brand equity The added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm.

Branding The process of endowing products and services with the power of a brand. It’s all about creating differences between products.

Brand promise The marketer’s vision of what the brand must be and do for consumers.

Consumption phase Takes place when the customer consumes the service.

Core product Answers the question of what the buyer is really buying. Every product is a package of problem-solving services.

Crowdsourcing An open-innovation new-product idea program.

Page 16: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Key Terms (cont.)

Decline The period when sales fall off quickly and profits drop.

Detachment phase When the customer is through using the product and departs.

Drop The action taken toward a product that may cause harm or customer dissatisfaction.

Facilitating products Those services or goods that must be present for the guest to use the core product.

Growth The product life-cycle stage when a new product’s sales start climbing quickly.

Introduction The product life-cycle stage when a new product is first distributed and made available for purchase.

Joining stage The product life-cycle stage when the customer makes the initial inquiry contact.

Maturity The stage in a product life cycle when sales growth slows or levels off.

Olfactory The dimension of atmosphere relating to scent and freshness.

Page 17: Designing and Managing Products

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Key Terms (cont.)Phase-out The ideal method of removing an unpopular or unprofitable product; it enables a product to be removed in an orderly fashion.

Product concept A detailed version of a product idea stated in meaningful consumer terms.

Product development Developing the product concept into a physical product to ensure that the product idea can be turned into a workable product.

Product idea Envisioning a possible product that company managers might offer to the market..

Product image The way that consumers picture an actual or potential product.

Run-out Removing a product after existing stock has been depleted; used when sales for an item are low and costs exceed revenues, such as the case of a restaurant serving a crabmeat cocktail with sales of only one or two items per week.

Supporting products Extra products offered to add value to the core product and to help to differentiate it from the competition.

Tactile The dimension of atmosphere relating to softness, smoothness, and temperature.

Visual The dimension of atmosphere relating to color, brightness, size, and shape.