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35 Cards in this Set
- Front
- Back
Different Types of Product
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the core product the tangible product, and the extended product
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Delivers the fundamental functional benefits that the customer is seeking.It is the customer, not the company, that defines this |
CORE PRODUCT |
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It is composed of the physical elements that are necessary for the core product (benefits) to be delivered |
TANGIBLE PRODUCT |
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Tangible Product includes: |
1. product features (the size and range of facilities),2. design (external and internal),3. quality and service standards. |
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includes intangible elements of the product that can add value, differentiate the offer, and provide customers with additional benefits |
EXTENDED PRODUCT |
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Extended Product Elements |
1. People 2. Accessibility 3. After Sales Service 4. Ancillary or special facilities 5. Atmospherics 6. Brand Image and Corporate Ethics |
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offer-staff training, courtesy and contact with customers |
People Element |
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this includes location characteristics and opening times |
Accessibility |
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customer billing procedures and complaint handling |
After sales service |
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for example, business centers and leisure clubs for hotel residents. Atmospheric and overall aura |
Ancillary or special facilities |
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the important sensory element of the hospitality experience |
Atmospherics |
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it is the ____________ that delivers what is distinctively different about the customer experience - and this is where competitors in the same product class really compete. |
extended product |
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One of the most important product decisions facing multiple-unit organizations is how much of the product should be standardized and how much should be customized. |
Service Delivery Concepts |
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• The same service delivery process• The same staff recruitment, training and service standards• The same layout, seating and internal décor• The same external frontage, signage and brand logo.• Customers receive a consistent, reliable product• Service processes can be blueprinted |
Standardized Products |
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is a flowchart that sets out the various tasks that have to be performed for a service to be delivered to a customer |
Blueprint |
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adapting or customizing the product according to the needs of niche market segments, and even individual customers. |
CUSTOMIZED PRODUCTS |
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The PRODUCT LIFE CYCLE The PRODUCT LIFE CYCLE |
IntroductionGrowthMaturityDecline |
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• During this period the new product concept is conceived, researched, assessed and, in some cases, test-marketed prior to introduction in the marketplace |
PRODUCT DEVELOPMENT |
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Most new product concepts fail at this stage and are never actually launched |
Products Development |
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This is the period when the new product becomes more widely accepted by consumers, and sales grow as the concept becomes better established |
GROWTH |
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At this stage, the product has reached its potential and growth slows. |
MATURITY |
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Eventually the product no longer satisfies the needs and wants of its customers, as alternative products/ competitors provide better benefits to consumers |
DECLINE |
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WAYS TO INNOVATE |
1. Acquisition 2. Development |
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Once a successful entrepreneur has proved the viability of the new product concept, larger hospitality organizations can either imitate the concept or buy out the entrepreneur's company. |
Acquisition |
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Larger organizations set up a new product in-house development team to generate and evaluate new product concepts formally. |
Development |
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Most so-called new products are actually _______ , cost reductions or product line extensions, as opposed to original product concepts. |
product modifications |
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The introduction stage for new hospitality products includes new-build openings, new brand launches, and re- launches of tired products includes new-build openings, new brand launches, and re- launches of tired products |
NEW PRODUCT LAUNCH STRATEGIES |
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• In the growth stage, sales grow, but despite this healthy trend there are pitfalls associated with growth. |
GROWTH PRODUCT STRATEGIES |
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business needs to generate:
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Satisfied customers Positive word-of-mouth Repeat sales Relationship marketing Continuous feedback Setting prices Targeting new market segments Continued investment in marketing communications |
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Growth is limited, and is largely dependent upon gaining market share from competitors |
MATURE PRODUCT |
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MATURE PRODUCT STRATEGIES
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Continued investment in product quality Product modifications Refurbishment of the premises to re-launch the product
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DECLINING PRODUCT STRATEGIES
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Aim to cut costs in every facet of the business Reduce staffing levels Only invest in essential repairs Reduce overall product quality Take a longer time to pay suppliers. |
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where the new owners can reformulate the product offer and invest in the re- launch of the business
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Dispose of the business |
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the product by closing the existing business, investing in a new product concept, and starting the PLC again |
Rejuvenate |
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This is the launch period, when the new hospitality product is introduced to the market – for example, the opening of a new restaurant. |
INTRODUCTION |