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Marketing Hospitality, 3rd ed., Hsu/Powers Chapter 8 The Hospitality Product.

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Presentation on theme: "Marketing Hospitality, 3rd ed., Hsu/Powers Chapter 8 The Hospitality Product."— Presentation transcript:

1 Marketing Hospitality, 3rd ed., Hsu/Powers Chapter 8 The Hospitality Product

2 Core Benefit: Lodging HousekeepingParking Kitchen Facilitating Services Front office Hotel restaurant Frequency club Reservations Supporting Services Elements of Service Offering

3 Physical Environment n First impression: the exterior n Lasting impression: the interior –Atmospherics

4 Atmospherics n Attention creation n Sending a message n Influencing guest feelings –Sight –Sound –Smell –Touch

5 Restaurant Concepts n Menu n Food production strategy n Service n Pricing n Décor/ambience/environment

6 Branding Reasons and Advantages n Identification of operation n Enhancement of image n Protection from competition n Economies of scale n Facilitating market segmentation n Easing introduction of new products n Building brand equity and brand loyalty

7 Types of Branding n Umbrella brands and subbranding n Ingredient branding n Cobranding n Multiple brandings n Family brands and line extensions n Individual brands n Brand bundling

8 Brands in Institutional Foodservice n Proprietary brands n Schools and health care facilities

9 IntroductionGrowthMaturityDecline Product Life Cycle

10 First generation Evolutionary period Second generation Number of units Concept development ExpansionMaturityConcept development/ replacement ExpansionMaturity Product Life Cycle of a Brand Time

11 Responses to Maturity n Product and market development –Competitive points of difference n Changing the marketing mix

12 Build Sales Hold Sales Build customer base Hold existing customers Build dollars Revitalize concept Defend New Product Functions

13 Defining New Products n Imitation n Adaptation n Innovation –Concept innovation –Proliferation of service format

14 1. Market observation 100 problems 2. Idea generation 60 ideas 3. Screening 15-20 potential projects 4. Preliminary evaluation 7-15 projects 5. Prototype development 5-7 prototypes 6. Market testing 3-5 products to test market 7. Product launch 1-2 successful projects The New Product Process

15 New Product Hazard n Cannibalization


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