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

Atmosphere

Accessibility
Customer
Participation

Marketing for Hospitality and Tourism, 6e

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Augmente
d Product

Customer
Interaction

2014 by Pearson Higher Education, Inc

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Atmospheres 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
Joining

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Consumption
Consumption

Detachment
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

Upper Saddle River, New Jersey 07458 All Rights Reserved

New Product Development

Idea
Generation

Business
Analysis

Idea
Screening

Product
Development

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Kotler, Bowen and Makens

Concept
Development
and Testing

Test
Marketing

Marketing
Strategy

Commercialization

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Idea Generation

External
Environment
External
Sources

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Idea
Generation

Internal
Sources
Crowdsourci
ng

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Commercialization

?
re
he

W
Hh
owe
n??

Commercialization
Decisions

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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. Its all about creating
differences between products.

Aural The dimension of atmosphere

relating to volume and pitch.
Brand 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 equity The added value
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.

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Brand promise The marketers vision

of what the brand must be and do for
consumers.
Consumption phase Takes place
when the customer consumes the
service.
Core product Answers the question of
what the buyer is really buying. Every
product is a package of problem-solving
services.
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.

stage when a new product is first

distributed and made available for
purchase.

Detachment phase When the

customer is through using the product
and departs.
Drop The action taken toward a
product that may cause harm or
customer dissatisfaction.
Facilitating products Those services
or goods that must be present for the
guest to use the core product.
Growth The product life-cycle stage
when a new products sales start
climbing quickly.

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Joining stage The product life-cycle

stage when the customer makes the
initial inquiry contact.
Maturity The stage in a product life
cycle when sales growth slows or levels
off.
Olfactory The dimension of
atmosphere relating to scent and
freshness.

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.
Product development Developing the
product concept into a physical product
to ensure that the product idea can be
turned into a workable product.
Product idea Envisioning a possible
product that company managers might
offer to the market..
Product image The way that
consumers picture an actual or
potential product.

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Supporting products Extra products

offered to add value to the core product
and to help to differentiate it from the
competition.
Tactile The dimension of atmosphere
relating to softness, smoothness, and
temperature.
Visual The dimension of atmosphere
relating to color, brightness, size, and
shape.

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved