Marketing for Hospitality and Tourism
Kotler, Bowen and Makens
Designing and Managing Products
Chapter 9
Learning Objectives
1. 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.
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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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.
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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Product Levels
Core Products
Facilitating
Products
Supporting
Products
Augmented
Products
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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Augmented Product
Accessibility
Customer
Participation
Marketing for Hospitality and Tourism, 6e
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Augmented
Product
Atmosphere
Customer
Interaction
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Atmosphere’s Effect on
Purchase Behavior
AttentionCreating
Medium
EffectCreating
Medium
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MessageCreating
Medium
MoodCreating
Medium
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Customer Interaction with the
Service Delivery System
Joining
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Consumption
Detachment
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Elements of Branding Strategy
Brand Equity
Brand
Portfolios
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Brand
Positioning
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Brand Positioning
Beliefs and Values
Benefits
Attributes
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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New Product Development
Idea
Generation
Business
Analysis
Idea
Screening
Product
Development
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Concept
Development
and Testing
Test
Marketing
Marketing
Strategy
Commercialization
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Idea Generation
External
Environment
External
Sources
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
Idea
Generation
Internal
Sources
Crowdsourcing
© 2014 by Pearson Higher Education, Inc
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Commercialization
Commercialization
Decisions
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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Product Life Cycle
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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Product Deletion
Phase-Out
Drop It
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Run-Out
© 2014 by Pearson Higher Education, Inc
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Key Terms
Augmented products Additional
Branding The process of endowing
consumer services and benefits built
around the core and actual products.
products and services with the power of
a brand. It’s all about creating
differences between products.
Aural The dimension of atmosphere
relating to volume and pitch.
Brand promise The marketer’s
Brand A name, term, sign, symbol,
vision of what the brand must be and
do for consumers.
design, or a combination of these
elements that is intended to identify the
goods or services of a seller and
differentiate them from competitors.
Consumption phase Takes place
when the customer consumes the
service.
Brand equity The added value
Core product Answers the question
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.
of what the buyer is really buying.
Every product is a package of problemsolving services.
Marketing for Hospitality and Tourism, 6e
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Crowdsourcing An open-innovation
new-product idea program.
© 2014 by Pearson Higher Education, Inc
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Key Terms (cont.)
Decline The period when sales fall
Introduction The product life-cycle
off quickly and profits drop.
Detachment phase When the
stage when a new product is first
distributed and made available for
purchase.
customer is through using the product
and departs.
Joining stage The product life-cycle
Drop The action taken toward a
stage when the customer makes the
initial inquiry contact.
product that may cause harm or
customer dissatisfaction.
Maturity The stage in a product life
Facilitating products Those
cycle when sales growth slows or levels
off.
services or goods that must be present
for the guest to use the core product.
Olfactory The dimension of
Growth The product life-cycle stage
atmosphere relating to scent and
freshness.
when a new product’s sales start
climbing quickly.
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens
© 2014 by Pearson Higher Education, Inc
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Key Terms (cont.)
Phase-out The ideal method of
Run-out Removing a product after
removing an unpopular or unprofitable
product; it enables a product to be
removed in an orderly fashion.
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.
Product concept A detailed version
of a product idea stated in meaningful
consumer terms.
Supporting products Extra
Product development Developing
the product concept into a physical
product to ensure that the product idea
can be turned into a workable product.
products offered to add value to the
core product and to help to differentiate
it from the competition.
Tactile The dimension of atmosphere
Product idea Envisioning a possible
product that company managers might
offer to the market..
relating to softness, smoothness, and
temperature.
Visual The dimension of atmosphere
Product image The way that
consumers picture an actual or
potential product.
Marketing for Hospitality and Tourism, 6e
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relating to color, brightness, size, and
shape.
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