Tourism and hospitality product

3. 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.

4. 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.

5. 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

6. 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

8. •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

9. •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

10.  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.

11. 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.

12.  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.

13. 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.

14. 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

15. 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.”

16.  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.