Product

A product is anything that can be offered in a market, receive attention, be acquired, used, or consumed, and can satisfy a need or desire. Products include physical objects, services, places, organizations, and ideas."

Kotler et al., 2011

Definition

• The brand is a name, symbol, or design, or a combination of them, that serves to identify the goods or services of a supplier.

Advantages

• Identification & Differentiation:

  • Identifies specific products and differentiates them from competitors.

• Quality Association & Legal Protection:

  • Links the brand to consistent quality standards and protects unique product traits.

• Risk Reduction:

  • Reduce consumer uncertainty due to the intangible nature of tourism products by simplifying decision-making.

1. Basic Product

   • Definition: The core benefit or service the customer seeks; it answers, "What is the customer really buying?"

   • Key Insight: Focus on the primary benefit, not just features.

   • Example: A night of rest, relaxation, or quality time with loved ones.

2. Tangible Product

   • Definition: The actual offering with physical, visible components the customer pays for.

   • Key Insight: What the customer directly experiences.

   • Example: Room, bed, amenities, pool, gym, and meals.

3. Augmented Product

   • Definition: Additional services or experiences that exceed expectations and add value.

   • Key Insight: Differentiates the company by delighting customers.

   • Example: Personalized services, spa treatments, free Wi-Fi, or complimentary drinks.

Definition:

• Begins when the company manages to create a certain level of brand awareness that translates into consumer preference

Generates:

• Room revenue above the competition, resulting in higher returns on hotel investment for owners and encourages more property owners (owner of the hotel) to adopt the brand

Conclusion

• Increases the scale of marketing operations -> greater visibillity to the brand. - > increases more value

Brand Strategies in Tourism

• Some promote on specific attractions (e.g., pyramids in Egypt).

• Others promote the entire destination as a unique experience (e.g., New Zealand as an adventure destination).

• Some hotel chains use a single name for all establishments, even if they differ in location, features, and service levels.

• Other hotel chains create separate brands based on the unique features of their establishments.

Specific Branding Strategies

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  • Single Brand: One brand for all products/locations (e.g., NH Hotels until 2013).

  • Multiple Brands: Separate brands for different offerings (e.g., Marriott).

  • Umbrella Brand: A shared name with variations (e.g., Hyatt: Hyatt Resorts, Hyatt Regency, Grand Hyatt).

• Products age and no longer meet market needs

Not to do

• Constantly searching: for new products is crucial

• Launching new product: can be high risk (failure potentially leading to significant losses)

• Not attempting the market: also poses a high risk to the long-term survival of the company.

1. Idea Generation

   • Ideas come from customers, employees, suppliers, competitors, or conferences.

   • Most originate internally within the company.

2. Selection of Ideas

   • Narrow down ideas by eliminating those that are impractical or unfeasible based on product characteristics, resources, and market conditions.

3. Development & Concept Testing

   • Define the product idea in terms consumers understand.

   • Test how consumers perceive (wahrnehmen) and evaluate the concept.

4. Business Analysis

   • Evaluate sales, costs, and profit projections to ensure they align with company goals before moving to development.

5. Development & Market Testing

   • Create a prototype and test it in the market.

   • In tourism, market testing can be challenging.

6. Marketing Strategy

   • Define the target market, positioning, and expected benefits for the first years.

   • Outline pricing, distribution, and the first-year marketing budget, as well as long-term sales and strategies.

1. Lack of Demand:

   • Poor market analysis or overestimating demand.

   • Ignoring research in favor of executive preferences

2. Lack of Differentiation:

   • The product isn’t seen as unique or better than competitors.

3. Planning and Execution Issues:

   • Weak organization, limited budgets, poor positioning, or unrealistic pricing.

4. Unexpected Costs:

   • Development costs exceed estimates (schätzungen), lowering profitability.

5. Competitive Pressure:

   • Strong competitors prevent achieving sales targets.

6. Challenges with Novelty (Neuheiten):

   • Highly innovative products require habit changes, increasing risk.