Matakuliah
Tahun
: V0222 - Penjualan dan Pemasaran Hotel
: 2009 - 2010
Designing and Managing Products
Pertemuan 6
“Profit is payment you get when you take advantage of
change.”
-Joseph Schumpeter“Being fed a decent meal in a casual environment is a
commodity in far
more supply than demand.”
-Barry M. Cohen-
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
• Includes physical objects, services, places,
organizations, and ideas
Product Levels
Core Product
Facilitating Products
Supporting Products
Core Competency
Core Product
• What the buyer is really buying
• Every product is a package of problem-solving services
Facilitating Products
• Goods or services that must be present for the guest to
use the core product
Supporting Products
• Extra products offered to add value to the core product
and help to differentiate it from the competition
Augmented Product
• The augmented product includes accessibility,
atmosphere, customer interaction with the service
organization, customer participation, and customers’
interaction with each other.
Core Competency Review
• Supporting products offer a competitive advantage
only if they are properly planned and implemented
• They must meet or exceed customer expectations to
have a positive effect
Atmosphere: The Physical Environment
• Can be the customer’s reason for choosing, or not
choosing, to do business with an establishment
• Multidimensional
– Visual, aural, olfactory, tactile
Product
levels
(Adapted from
C. Gonroos, “Developing
the
Service Offering—
A Source of Competitive
Advantage,” in
Add Value to Your
Service,
C. Surprenant, ed.,
Chicago:
American Marketing
Association,
1987, p. 83.)
Customer Interaction with the Service Delivery System
• Joining stage is when the customer makes the initial inquiry
contact
• Consumption phase takes place when the service is
consumed
• Detachment phase is when the customer is through using a
product and departs
Customer Interaction with Other Customers
• Hospitality organizations must manage the interaction
of customers to ensure that some do not negatively
affect the experience of others
Customer Coproduction
• Increase capacity
• Improve customer satisfaction
• Reduce costs
Brand Decisions
A brand is 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
• Brands are among a company’s most
valuable assets
• A Brand represents what the company is and
what it stands for
• A Brand implies trust , consistency, and a
defined set of expectations
• The strongest brands own a place in the
customer’s mind
Branding
Consistency
Quality & Value
Attributes
Identification
Advantages
of
Brand Names
High Brand
Loyalty
Name Awareness
Brand
Equity
Strong Brand
Association
Perceived Quality
Conditions that Support Branding
• The product is easy to identify by brand or
trademark
• The product is perceived as the best value for
the price
• Quality and standards are easy to maintain
• The demand for the general product class is
large enough to support a regional, national,
or international chain
• There are economies of scale
Leveraging Brand Equity
• Cobranding
• Partnerships
New Product Development
• Product life cycle
– Product is born
– Passes through several phases
– Eventually dies as younger products come along that better
serve consumer needs
New Product Development Process
Marketing
Strategy
Development
Concept
Development
and Testing
Business
Analysis
Product
Development
Idea
Screening
Market
Testing
Idea
Generation
Commercialization
Idea Generation
•
•
•
•
•
Internal Sources
Customers
Competitors
Distributors and Suppliers
Other Sources
Idea Screening
The purpose of screening is to spot good ideas and drop
poor ones as quickly as possible
Concept Development and Testing
• A product idea envisions a possible product that
company managers might offer to the market
• A product concept is a detailed version of the idea
stated in meaningful consumer terms
• A product image is the way that consumers picture
an actual or potential product
• The task is to develop an idea into alternative
product concepts, determine how attractive each is
to customers, and choose the best one
• Concept testing occurs within a group of target
consumers
Marketing Strategy
Includes information such as the target market and
product positioning as well as both short and long term
projections in terms of sales, profits and costs
Business Analysis
Business analysis involves a review of the sales, costs, and
profit projections to determine whether they satisfy the
company’s objectives
Test Marketing
The product and marketing program are introduced into
realistic market settings
Product Development
• The prototype must:
– Have the key features described in the
product concept statement, as
perceived by the customer
– Performs safely under normal use
– Be produced for the budgeted costs
Commercialization
In launching a new product, a company must
make four decisions:
When?
Where?
To whom?
and How?
Product Development Through
Acquisition
• A method of product development that reduces the risk
considerably for large companies that have the assets to
purchase and then develop a fledgling chain
Product Development
• Product development begins when the company
finds and develops a new product idea
• During development, sales are zero and the
company’s investment costs add up
Product Life Cycle
Sales and Profits Over the Product’s Life From Inception to Demise
Sales and
Profits ($)
Sales
Profits
Time
Product
Development
Losses/
Investments ($)
Introduction
Growth
Maturity
Decline
Product Deletion Process
(Martin Bell, Marketing Concepts and Strategy, 3rd ed., p.267, 1979, Houghton Mifflin Company; used by permission, Mrs..
Marcellette (Bell) Chapman. )
Key Terms
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•
•
•
•
•
•
•
•
•
Augmented products
Aural
Brand
Consumption phase
Core product
Customization
Decline
Detachment phase
Drop
Facilitating products
•
•
•
•
•
•
•
•
•
•
Growth
Introduction
Joining
Maturity
Olfactory
Phase-out
Product concept
Product development
Product idea
Product image