1. Chapter 10 Designing Products

2. 10.1 Hospitality and Tourism Products Goods – tangible items such as hotel room, hamburger Goods – tangible items such as hotel room, hamburger Service- something someone does for you- arranges your travel Service- something someone does for you- arranges your travel These are intertwined – offer information (service) such as brochure (goods) These are intertwined – offer information (service) such as brochure (goods) see page 207 graph see page 207 graph

3. Variety of Products Hospitality Products= lodging, food service Hospitality Products= lodging, food service Tourism and Transportation Products= airlines, cruises, railroads, auto, and motor coach Tourism and Transportation Products= airlines, cruises, railroads, auto, and motor coach

4. PRODCUT LEVELS Core = main product that customer is buying Core = main product that customer is buying Facilitating Product= goods and services that aid in the sue of the core product Facilitating Product= goods and services that aid in the sue of the core product (might include: parking, phone) Supporting Products= extra goods or services that accompany core product to add value to make it better than the competition (might be turn down service, luxurious towels) Supporting Products= extra goods or services that accompany core product to add value to make it better than the competition (might be turn down service, luxurious towels)

5. PRODUCT MIX SAMPLE Total assortment or products that a company makes or sells =see page 209 for example Total assortment or products that a company makes or sells =see page 209 for example What would you offer your customers? What would you offer your customers?

6. 10.2 Product Planning Life Cycle of Products = various stages that a product goes through during existence. Life Cycle of Products = various stages that a product goes through during existence. Product Development = new idea for product, plan to introduce the product to the market- target markets Product Development = new idea for product, plan to introduce the product to the market- target markets Introduction stage = launched into marketplace, profits rise and people take notice Introduction stage = launched into marketplace, profits rise and people take notice

7. Maturity Stage= sales slow, product does not attract new customers, may add new packing or new and improved items Maturity Stage= sales slow, product does not attract new customers, may add new packing or new and improved items Decline Stage = may drop the product or keep it to satisfy loyal customers Decline Stage = may drop the product or keep it to satisfy loyal customers See graph on page 212 See graph on page 212

8. Dealing with Customer Satisfaction Customer satisfaction = a positive feeling a customer has about a business or product Customer satisfaction = a positive feeling a customer has about a business or product Expectations and Satisfaction Expectations and Satisfaction Customer Loyalty = customers faithlyfulness to a business and its products Customer Loyalty = customers faithlyfulness to a business and its products Comes from being extremely satisfied Comes from being extremely satisfied

9. What Builds Customer Loyalty ?? What Builds Customer Loyalty ?? Employee Relations Price and Value Quality Service Relationship Marketing = building relationships with customers by adding value to the interaction that will lead to long – term customer satisfaction

10. Relationship bulling will help by.. Relationship bulling will help by.. Financial benefits Personalization Special Services Less likely to switch brands