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Tourism and hospitality product

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Tourism and hospitality product

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Tourism and hospitality product

  1. 1. Core Product product is fulfilled basic need , company's products which are most directly related to their core competencies. core product is the main product which manufacturing by the company for the customer. Core products are central to the company's performance and make the most money that sustain the business. Tangible Product There are specific features included product . Styling, brand name,desingn,weght ,quality are the features. Producer add the extra features due to increase the product value and facilitate.
  2. 2. Augmented Product Customer not expect these type of features but producer add some incredible features in to the product. Augmented features may included credit terms, after sales guarantees, car parking and opening time etc. These levels help to producer modifications there product.
  3. 3. According to the Seaton and Benett we can identify five product mix.  Several markets with multi-product mixes for each.  Several markets with a single product for each.  Several markets with a single product for all.  Single market with a multi product mix.  Single market with a single product. The most successful products emerge by analyzing the tourism product by considering its features and benefits.  Features  Benefits
  4. 4. The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall. The main stages of the product life cycle are:  Product development stage- researching, developing  Introduction –launching the product  Growth – when sales are increasing at their fastest rate  Maturity – sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation  Decline – final stage of the cycle, when sales begin to fall
  5. 5. •New product launched on the market •Low level of sales •Low capacity utilisation •High unit costs - teething problems occur •Usually negative cash flow •Distributors may be reluctant to take an unproven product •Heavy promotion to make consumers aware of the product •Expanding market but arrival of competitors •Fast growing sales •Rise in capacity utilisation •Product gains market acceptance •Cash flow may become positive •Unit costs fall with economies of scale •The market grows, profits rise but attracts the entry of new competitors
  6. 6. •Slower sales growth as rivals enter the market •High level of capacity utilisation •High profits for those with high market share •Cash flow should be strongly positive •Weaker competitors start to leave the market Common features at this stage include: •Falling sales •Market saturation and/or competition •Decline in profits & weaker cash flows •More competitors leave the market •Decline in capacity utilisation –switch capacity to alternative products
  7. 7.  Positioning is “establishing an image for a product or service in relation to other in the marketplace”.  The objective of positioning is to create a distinctive place in the minds of potential customers.
  8. 8. Burke and resnick (1991) have identified four key positioning strategies, 1. Positioning relative to target market. 2. Positioning by price and quality. 3. Positioning relative to a product class. 4. Positioning relative to competitors.
  9. 9.  Branding is “a method of establishing a distinctive identity for a product based on competitive differentiation from other products”  The practice of branding was developed in the field of packaged goods, as a method of establishing a distinctive identity for a product based on competitive differentiation from other products.
  10. 10. Packaging is “the process of combining two of more related and complementary offerings into a single-price offering”. Packaging provides several customers benefits, 1. Easier budgeting for trips, the customer pays at one time and has a good idea of the trip’s total cost. 2. Increased convenience, which saves time and prevent aggravation. 3. Greater economy, as the cost to the customer is usually more economical than purchasing the package components individually. 4. The opportunity to experience previously unfamiliar activities and attractions. 5. The opportunity to design components of a package for specialized interests.
  11. 11. According to Holloway and plant16, a company has four alternatives when developing new products. 1. Market penetration 2. Market development 3. Product development 4. Diversification
  12. 12. The company can be follow a market penetration strategy by “modifying an existing product for the current market.” Market development is identifying and developing new markets for current product.” Product development is “involves developing a genuinely new product to be sold to existing customers.” Diversification is “seeking opportunities outside the present business.”
  13. 13.  Concentric Diversification The company can seek new products that have technological or marketing synergies with existing product line, even though the product may appeal to a new class of customers.  Horizontal Diversification The company may search for new products that could appeal to its current target market.  Conglomerate Diversification The company can seek new businesses that have no relationship with the company’s current technology , products or markets.

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