Product
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Core Products
The most basic level. Why the guest is buying the product. For example at a food establishment it would be the food because the person is hungry and that is what they came for.
Facilitating products
Services or goods that must be present for the guest to use the core product
Facilitating products for one market segment may be supporting products for another. Examples: beds, staff, location
Supporting products
Extra products offered to add value to the core product and help to differentiate it from the competition. Examples: Room Service and concierge services.
Augmented product
Additional consumer services and benefits built around the core and actual service.
Accessibility, atmosphere, customer interaction with the service organization, customer participation, and customers' interaction with each other. Examples: Hilton rewards
Brand Equity
Brands are more than just names and symbols, they are a key element in the company's relationships with consumers
Brand positioning
Marketers need to position their brands clearly in target customers' minds
Product attributes/ Desirable benefit/ Beliefs and values
Marriot: travel brilliantly healthy bending
Brand Name selections
1) It should suggest some-thing about the product's benefits and qualities.
(2) It should be easy to pronounce, recognize, and remember.
(3) The brand name should be distinctive.
(4) It should be extendable.
(5) The name should translate easily into forei
Leveraging Brands
employing co-branding and ingredient branding.
Another form of co-branding
same-company or retail co-branding in which two retail establishments use the same location to optimize space and profits.
Brand Portfolios
the set of all brands and brand particular category or market segment
Idea Generation
New-product development starts with______.
The purpose of_____ is to create a large number of ideas.
Idea Screening
The purpose of ______ is to spot good ideas and drop poor ones as quickly as possible
The idea or concept _____ stage is the appropriate time to review carefully the question of product line compatibility
Concept Development and Testing
Surviving ideas must now be developed into product concepts
It is important to distinguish between a product idea, a product concept, and a product image
. Marketing Strategy
Designing an initial ______ for introducing the product into the market
Business Analysis
involves a review of the sales, costs, and profit projections to determine whether they satisfy the company's objectives
Product Development
If the product concept passes the business test, it moves into ________ and into a proto type
One problem with developing a prototype is that the prototype is often limited to the core product
Test marketing
The product and marketing program are introduced into realistic market settings
Market testing allows the marketer to gain experience in marketing the product, to find potential problems, and to learn where more information is needed before the company go
Commercialization
If the company goes ahead with commercialization, it will face high costs.
When?
The first decision is whether it is the right time to introduce the new product
Where?
The company must decide whether to launch the new product in a single location, a regio
PRODUCT LIFE CYCLE STAGES
Product Development
Introduction
Growth
Maturity
Decline
Product Deletion
If a product is no longer profitable, it is important to TERMINATE rather than continue to pour time and resources into reviving it
Product Deletion
Phase-out
The ideal method; it enables a product to be removed in an orderly fashion
Run-out
Used when sales for an item are low and costs exceed revenues drop
This option is usually chosen when the product may cause harm or complaints
Drop it
It is best
Upstream Partners
are firms that supply what is needed to create a product or service
Downstream partners
connect the firm with its customers
Value Delivery Network
where all parties partner with each to improve the performance of the entire system
Distribution Channel Functions
Information-promotion-contact-matching-negotiation-physical distribution-Financing-Risk Taking
Major hospitality distribution channels
direct booking
OTAs
GDSs
Travel agents
Travel wholesalers
Retail Travel agencies
Vary in size
Charge suppliers a service fee.
Retail vs. Corporate Travel Agency
The number of travel agents has been decreasing in recent years
Use GDS (Global Distribution System)
Global Distribution Systems (GDSs)
Global distribution systems (GDSs) are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products
Travel wholesalers
A wholesaler is a company that plans, markets, and administers travel packages (airline + hotel + activities +....)
Supplier Wholesaler Retailer
1. Inbound - provide local services to other tour operators in specific countries or destinations (coming in)
Chinese Tour Operator
-selling hotel room in China to retailer in the US that organizes trip to China. (inbound)
-Selling hotel room in the US to retailer in China who is coming from China. (Outbound)
OTA
Conduct business through the internet
-Non-opaque OTA
Opaque OTA: do not disclose the brand and specific hotel one is purchasing until it is purchased in a nonrefundable transaction with the consumer
Corporate travel agencies
Works for corporate clients
Goal: cost efficiency (corporations' travel expenditures)
-Coordinating corporate travel arrangements to maximize the efficiency of corporations' travel expenditures
Restaurant Distribution Channels
Online Reservations-Open Table
Delivery, Take-out, Drive-through window
-UberEATS
-Food delivery platform powered by Uber
Why do we need distribution channels?
1. Retailing at locations convenient for travelers
2. Expanding distribution network.
3. Providing specialized knowledge
Recent trends
Disintermediation: decreasing role of traditional travel intermediaries
E-commerce
M-commerce
Marketing to intermediaries
Is in essence B2B marketing
3 steps:
Research and select travel segments
Decide on the positioning approach and objectives
Establish a promotional mix
Research and select trade segments
Where do our clients come from? Specific cities/areas.
Who provides business to us?
B2B Positioning
It is equally important to create a distinctive image for the intermediaries
IHG: IHG Commission Guarantee
Promotional mix
is a combination of advertising, sales promotions, social media campaigns, personal selling, PR, etc.
1.Travel trade advertising: e.g. Travel Agent magazine
2. Trade sales promotions
a) fam(familiarization) trips
b) trade shows
3. Cooperative marketing (p
The promotion Mix
Public relations
Advertisng
Direct and Digital Marketing
Sales promotions
Personal Selling
PR
A company's total promotion mix=
marketing communications mix
Consists of tools to communicate customer value and build customer relationships.
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Direct and digital marketing
Engaging directly with carefully targeted individual consumers
Sales promotion
Short-term incentives to encourage the purchase or sale
Personal selling
Personal presentation by the firm's sales force
Public relations
Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
More companies adopting integrated marketing communications (IMC)
Shift toward a more rich mix of media and brand content.
Company carefully integrates its many communications channels
Recognizing all touchpoints where the customer may encounter the company and its brands
Consistent, clear, and compelling company and br
Steps in developing effective communications
1.Identifying the Target Audience
2.Determining the Communication Objective
Decide what response is sought
The target audience may be in any of six buyer readiness states:
Awareness
Knowledge
Liking
Preference
Conviction
purchase
3.Designing the Message
E
Advertising Benefits
Seems legit
Allows repetiton
Builds long term image
Low cost per exposure
Draw backs of advertising
Impersonal
One-way communication
Easily ignored
Can be very costly
Public relations
The process by which a positive image and customer preference are created through third-part endorsement
Low cost (Planning/management)
Effective because they are not seen as ___COMMERICAL_____________messages
PR changes due to social media
Social media has proven to be a great way to reach thousands of customers and potential customers.
Today, most PR campaigns use Internet: Web sites, blogs, and social networks such as YouTube, Facebook, and Twitter are providing interesting new ways to re
Press relations
The aim of press relations is to place _newsworthy_______________ information into the news media to attract attention to a person, product, or service
One reason for the growth of press relations in the hospitality industry is its credibility
Product Publicity
Product publicity involves various efforts to publicize specific products
Corporate Communication.....
covers _internal and external communications and promotes understanding of the organization
Companies also need to manage their communication with their stockholders to make sure the stockholders understand the company's goals and objectives
Lobbying
involves dealing with legislators and government officials to promote or defeat legislation and regulation
Counseling
...involves advising management about public issues and company positions and image
Counseling is important when there may be sensitive issues associated with the business
pr process
Effective PR is the result of a process - a process that must be integrated with the firm's marketing strategy
The PR process consists of the following steps:
1) Research
understand the company's mission, objectives, strategies, and culture
know the vehic
Sales promotions
Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service
Includes a variety of promotional tools designed to stimulate earlier or stronger market response
Direct marketing
The traditional forms of direct marketing used in the hospitality industry are direct-mail marketing, telephone marketing, and kiosk marketing
Direct-Mail Marketing
Involves sending an offer, announcement, reminder, or other item to a person at a particular address
Direct mail is by far the largest direct marketing medium
Direct mail is well suited to direct one-to-one communication
It permits high target market sele
Telephone Marketing
Involves using the telephone to sell directly to consumers and business customers
Properly designed and targeted telemarketing provides many benefits, including purchasing convenience and increased product and service information
However, the explosion in
Kiosk Marketing
As consumers become more and more comfortable with computer and digital technologies, many companies are placing information and ordering machines�called kiosks (in contrast to vending machines, which dispense actual products)�in stores, airports, and oth
Interactive TV (iTV)
lets viewers interact with television programming and advertising using their remote controls
iTV gives marketers an opportunity to reach targeted audiences in an interactive, more involving way
Relationship marketing and loyalty programs
To build long term relationships with customers.
All the company's departments work together as a team to serve customer
Marketing tools
-Financial benefits
-Social benefits
-Structural changes
When it comes to relationship marketing, you don't want a rel
Benefits of marketing and loyalty programs
Continued patronage of loyal customers
More frequent purchase
Purchase broader variety of items
Make more purchase
Partnership activities of loyal customers
Reduced marketing costs
Less likely to switch with price increase
Relationship Marketing and Loyalty Programs
Objective: to change customer behavior.
e.g. to purchase more frequently, to purchase higher dollar amount, and to spread positive word of mouth
Advantage: Companies can gain information that will develop systems and products to better serve their guests
Online marketing
Marketing via the Internet using company Web sites, online advertising and promotions, e-mail marketing, online video, and blogs.
Web Sites and Branded Web Communities
To engage customers and move them closer to a direct purchase or other marketing outcom
Social Media Marketing Advantages
Targeted and personal-they allow marketers to create and share tailored brand content with individual consumers and customer communities
Interactive- making them ideal for starting and participating in customer conversations and listening to customer feed
Social Media Marketing Challenges
Companies are still experimenting with how to use them effectively
Results hard to measure
Largely _____________controlled
Managing User Generated Social Media Content
User generated content is valuable, whether it is positive or negative
The positive comments create community and encourage others to use the product
The negative comments provide feedback on what customers do not like and how we did not meet their expect
Customer database:
organized collection of comprehensive data about individual customers or prospects, including:
Geographic data/ Demographic data/ Psychographic data/ Behavioral data
In business-to-business marketing, the customer profile might contain:
The products and services the customer has bought
Past volumes and prices
Key contacts
Competing suppliers
Status of current contracts
Estimated customer spending for the next few years
Assessments of competitive strengths and weaknesses in selling and se
The ________ product level answers the question of what is really being bought.
Core
Brand Equity
The added value endowed on products and services is the:
In the ________ phase of the new product development process prototypes appear for the first time.
Product development
Companies can leverage an existing brand by employing co-branding and ingredient branding.
true
Phase-out is the ideal way of removing a product from the market.
true
In a supply chain, "downstream" from the company is a set of firms that:
Provide a connection between the firm and its customers
The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets
true
_______ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.
global distribution system
OTA stands for:
Online Travel Agencies
a direct marketing channel has no intermediary level.
True
The promotional tool that rewards customers for a quick, short-term response is:
sales promotions
informative
________ advertising is used when introducing a new product.
________ is a measure of the percentage of people in the target market who are exposed to an ad campaign over a given period of time.
reach
The type of message appeal that relates to an audience's self-interest is:
rational
Sales promotions are most effective in building long-run brand preferences.
false
Samples do not have to be free
True
Public relations campaigns can contribute to all but which of the following objectives?
Replace most other promotion costs
________ are certificates that offer buyers savings when they purchase specific products.
coupons
____ covers internal and external communications and promotes understanding of the organization:
Corporate communication
The first step in the sales promotion process is setting the conditions for participation.
false
Even with the advent of Internet marketing, the role of direct marketing has stayed the same.
false
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships are known as:
Direct marketing
Which of the following is NOT a form of direct marketing?
marketing website
true
Nearly every socioeconomic group has adopted the web
Viral marketing can be very expensive and is ineffective.
FALSE
SOCIAL MEDIA MARKETING PROJECT
1. Group Formation
2. Interview with contact/Physical inspection
3. Business online presence/strategy analysis, competitive and Bench-marking Analysis
4. Consumer research/Social media SWOT
5. Online strategy recommendations
GROUP GUIDELINE ORDER
FINAL REPORT
1. Project Goal and objectives (one paragraph or as needed)
2. Project methods (One to two paragraphs or as needed)
3. Background Analysis (4 pages, single-spaced, including tables and diagrams that you may need). By interviewing the management and conduc
Major Decisions in advertising
objectives setting
Budget Decisions
Message Decisions and Media Decisions
Campaign Evaluation
Informative adversting
used heavily when introducing a new product or when the objective is to build primary demand
Persuasive advertising
becomes more important as competition increases
Reminder advertising
is important for mature products because it keeps customers thinking about the product. Example mccdonalds commericals are not to inform or persuade, its to remind them that mcdonalds is there.
Two Major elements of advertising strategy:
creating advertising messages and selecting advertising media.
Brand
a name, term, sign, symbol, design, or combnation of these elements that is intended to identify the goods or services of a seller and differenciate them from competitors
branding
the process of endowing products and services of a with the power of a brand. Its all about creating differences between products.
The brand promise
the marketers vision of what the brand must be and do for consumers
A company can obtain new products
by acquisition or new product development
Crowdsourcing
An open innovation new product idea program
Commerialization
When
Where
To whom?
How?
Value Delivery Network
A better approach is to think of the supply chain as a _________ where all parties partner with each to improve the performance of the entire system
Recent Trends
Disintermediation: decreasing role of traditional travel intermediaries
E-commerce
M-commerce
Sales promotion process
1.decide the size of the incentive
2. set the conditions for participation
3. decide how to promote and distribute promotion program
4. set promo dates
5. decide on the sales promotion budget