About product.
PRODUCT (offer)
Product – Any offer which is determined by the market in order to meet certain needs.
In the hospitality industry and tourism there are many different products (a combination of product – service).
A specific product of the hotel, which consists of:
• material elements (quality of the building and its architectural qualities, the nature of accommodation, support facilities – reception hall, restaurant, swimming pool, night club
• intangible elements of the intended scope of services (ease of booking in advance, welcome guests at the reception, offering snacks and distractions while waiting, instead of putting on clothes, an elevator operator, hotel information, children’s corners, the operating hours of bars and restaurants, quality dining and beverage tickets , the provision of special meals, range of services, knowledge, skills and behavior of service personnel, guarded parking, safe deposit boxes)
• environment and atmosphere.
When planning the market offers the trader should consider five levels:
• default level – the basic benefits that the customer actually buys (eg Hotel is a relaxing, sleep, security)
• Basic version or a generic product (hotel consists of a building in which the reception, rooms for rent, restaurants)
• anticipated product – a set of attributes and conditions which the customer normally expects (clean bed, soap, towels and hot water, telephone)
• Extended product – includes additional services and benefits which set it apart from its competitors (Internet connection in the room, fresh flowers)
• potential product – extensions and menu changes that occur in the future.
Decisions about the product relates to:
• Quality and image
• range (the range of services)
• the development, modification
• life cycle.
Each company offers several types of offerings that make the product mix.
Product mix is the set of all product lines and items that a company offers its customers to buy.
Width of product mix – the number of product lines.
Length of product mix – the number of items in all product lines.
Product line is a group of products that are closely related to (perform the same or similar function have the same distribution, pricing and advertising policy).
Depth of product line – the number of items in a specific row.
For each item product line to monitor the proportion of sales and profit share (see Figure 6.1).
Fig. 6.1 Product Series CK
Length of product lines:
• A number is considered long when removing items from a number of profit increase
• A number is considered to be short, if you add many items to increase profits.
Extension series – complete range of items:
• the same level of service
• higher service levels (ie stretch upwards)
• with lower service levels (ie stretch downwards).
Extending product range using the hotel chain, it is called structuring according to brands (eg Royal, Duality, economists), which allows you to get a larger share of specific target markets that customers are offered accommodation that better suits their needs (luxury - cheaply).
Modernization Series:
• all items at once, it has the advantage over the competition, but there is lack of interest of customers and costs are high
• items successively, the reaction to verify customers and benefit costs are low, but the competition can also perform this upgrade.
Interesting item number:
• cheapest product – to obtain cost-sensitive customers
• the most expensive product – the goal is to get a customer who focuses on luxury, prestige.
Brand
Generally, the purpose of the brand to distinguish goods or services similar offers from competitors. Make the product in the minds of consumers assessed extensively.
Is brand name, term, abbreviation, sign, symbol or graphic design or a combination thereof. The brand can be given legal protection in the form of Trademarks (TM – Trademark or R – Registered Trademark), which prevents a certain period of time the exclusive rights of the producer or seller to use the mark on products, packaging and elsewhere, and provides consumers a unique origin of goods or services.
Znakovost undoubtedly increase costs, it is necessary to pay for legal protection, the product must be properly packed and provide labels (for some products is a tendency for the unmarked goods, eg food products, household appliances, reducing price).
Survey “force” brand among European consumers showed that among the most popular include: Mercedes Benz, Philips, Volkswagen, Rolls-Royce, Porsche, Coca-Cola, Ferrari, BMW, Michelin, Volvo, Adidas, Jaguar, Ford, Nivea, Esso, Sony, Nescafe, Colgate, Christian Dior, Nestlé.
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