Diploma In International Hotel

& Tourism Management

Module: Introduction to
Marketing
Lesson 3

Developing and Managing Product &

Services and Products
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 AGENDA
INTRODUCTION
TYPES OF PRODUCT
CONSUMER PRODUCT CLASSIFICATION
PRODUCT DEVELOPMENT (PLC)
TALC (TOURISM AREA LIFE CYCLE)
PLC STAGES
LIFE CYCLE STRATEGIES
PRODUCT AND SERVICE DECISIONS
CONCLUSIONS > CHANGE, EVERYDAY
 INTRODUCTION
A product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might
satisfy a want or need.
Broadly defined, “products” also include services,
events, persons, places, organizations, ideas, or mixes
of these.
To differentiate their offers, marketers create and
manage customer experiences with their brands or
company.
Hospitality products are the bundles of tangibles and
intangibles that hospitality business offer to satisfy the
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needs of their targeted guests.
 TYPES OF PRODUCT
Products
Tangible Intangible
GOODS SERVICES

Services are a form of product that consist of activities, benefits,

or satisfactions offered for sale that are essentially intangible and
do not result in the ownership of anything.
A company’s market offering often includes both tangible goods
and intangible services.
At one extreme, the offer may consist of a pure tangible good,
such as soap or toothpaste. At the other extreme, the offer may
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Consumer Product Classification
CONVENIENCE

SHOPPING

SPECIALTY

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 Convenience Product
Convenience products are consumer products and
services that customers usually buy frequently,
immediately, and with a minimum of comparison
and buying effort.

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 Shopping Product

Shopping products are less frequently

purchased consumer products and services
that customers compare carefully on
suitability, quality, price, and style.

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 Specialty Product
Specialty products are consumer
products and services with unique
characteristics or brand identification
for which a significant group of buyers
is willing to make a special purchase
effort.

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 Unsought Product
Unsought products are consumer
products that the consumer either does
not know about or knows about but
does not normally think of buying.

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Product Development (PLC)
Product Life Cycle is the way products go through stages
from development to death.

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TALC (Tourism Area Life Cycle)

Like most products, destinations have a lifecycle. In the 1980, Butler proposed a
widely-accepted model of the lifecycle of a tourist destination. The basic idea of
Butler’s 1980 Tourism Area Life Cycle (TALC) model is that a destination begins
as a relatively unknown and visitors initially come in small numbers restricted by
lack of access, facilities, and local knowledge and goes on. > CHANGE, EVERYDAY
 PLC Stages
The cycle has five distinct stages:
Product development begins when the company finds and develops a new-
product idea.
Introduction is a period of slow sales growth as the product is introduced in the
market. Profits are nonexistent in this stage because of the heavy expenses of
product introduction.
Growth is a period of rapid market acceptance and increasing profits.
Maturity is a period of slowdown in sales growth because the product has
achieved acceptance by most potential buyers. Profits level off or decline
because of increased marketing outlays to defend the product against
competition.
Decline is the period when sales fall off and profits drop.
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 Life cycle strategies
STYLE
A style is a basic and distinctive mode of expression.

FASHION
A fashion is a currently accepted or popular style in a given field.

FAD
Fads are temporary periods of unusually high sales driven by
consumer enthusiasm and immediate product or brand popularity.

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Product and Service Decisions
PRODUCT ATTRIBUTES

BRANDING

PACKAGING

LABELING

SUPPORT SERVICES > CHANGE, EVERYDAY

 Product attributes
Product Quality has two dimensions: level and consistency. The quality level means
performance quality or the ability of a product to perform its functions. Quality
conformance means quality consistency, freedom from defects, and consistency in
delivering a targeted level of performance.
Product Features are a competitive tool for differentiating the company’s product
from competitors’ products. The company should periodically survey buyers who
have used the product and ask these questions: How do you like the product? Which
specific features of the product do you like most? Which features could we add to
improve the product?
Product Style and Design is another way to add customer value.
Style describes the appearance of a product. Design contributes to a product’s usefulness as
well as to its looks.

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 Branding
A brand is a name, term, sign, symbol, or design, or a
combination of these, that identifies the maker or seller of a
product or service Brand names:
--help consumers identify products that might benefit them.
--say something about product quality and consistency.
--become the basis on which a whole story can be built about a
product.
--provide legal protection for unique product features.
--help the seller to segment markets.
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 Packaging
A package is the covering or container for a
product, but it is also a lot more.

Packaging protects the product. It makes it easy

for consumers to handle and store the product.

Packaging also plays an important role in

communicating brand personality.
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Labeling

Labels identify the

product or brand,
describe attributes, and
provide promotion.

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 Support services
Companies must continually assess the
value of current services to obtain ideas for
new ones.
They also need to develop a package of
services to satisfy customers and provide
profit to the company.

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 Question and Answer
Please leave your question on the following mail

sjughdharree@poly.ac.mu

WhatsApp
On 5733 70 20

OR
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 CONCLUSIONS
The product range and how it is used is a function of
the marketing mix. The range may be broadened or
a brand may be extended for tactical reasons, such
as matching competition or catering for seasonal
fluctuations. Alternatively, a product may be
repositioned to make it more acceptable for a new
group of consumers as part of a long-term plan.
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