PRODUCT DEVELOPMENTRichard S Aquino, MITM

Instructor - TMARKPROMO

Presentation Outline

Product life cycle

Physical products

Servicescapes

Product development process

Branding

What is a product?

A product is anything that can be offered to a market for

attention, acquisition, use, or consumption that

might satisfy a want or need.

It includes physical objects, services, places,

organizations, and ideas.

Product life cycle

Five stages

1. Product development – involves market research to

determine the gaps and niches where the product will

compete.

2. Introduction – when the product enters the market.

3. Growth – when the product is becoming increasingly

accepted.

4. Maturity – a demand plateau is evident; rise in

competition.

5. Decline – simultaneous falling of sales and profit

Nature of tourism products

In tourism, the overall product encompasses physical

tangible aspects, services, as well as experiences.

Physical product

The physical product constitutes the ‘core’ of any tourism experience, and supporting products

Core It could be natural, cultural, built, mobile, temporary.

In short, the main attraction of a destination.

Supporting (Facilities & Services) Transportation

Accommodation

Restaurants and cafes

Bars and clubs

Retail outlets

Other support services

Core physical products

Servicescapes

Came from the evolving notions of ‘landscape’

consumption

The nexus between the physical design and décor

elements and the consumption behavior the occurs

within a place is recognized

Servicescape – the constructed physical surroundings as

opposed to the natural and social environment

Servicescape (3 dimensions)

1. Ambient conditions – background characteristics of the

environment such as temperature, noise, lighting, sound

and scent.

2. Spatial layout and functionality – how the equipment

and furniture are arranged, and how they interrelate to

accomplish the goal of the organization

3. Signs, symbols, and artefacts – signals (mostly visual)

that relate cues to people about the meaning of a place

Servicescape example

Place attachment

The concept of place attachment can serve as an

indicator of how tourists consider place in their tourism

experiences.

Place attachment – way of understanding the meaning

that places have for people

The relationship between people and place

Also known as sense of place, community attachment, place

meaning, place bonding

It has two dimensions: place dependence and place identity

Place dependence

Functional attachment

Importance of place in providing the features and

conditions to support goals or activities

Place identity

Emotional attachment

Symbolic properties of a place that serve as repository

for emotions and relationships that give meaning and

purpose to life

Product development process

1. Identifying market needs – understanding of the supply

and demand factors

2. Filtering and evaluation of ideas – More product ideas

can be gathered than actually developed. These ideas

need to be screened to determine the extent to which

they have the potential for profitability.

3. Concept development and testing – Chosen ideas

which have the maximum potential are selected for

development and testing; here, the customer defines the

product

Product development process

4. Business analysis – after product refinement, product-

market fit needs to be visited; profitability and

sustainability need to be examined; forecast product

performance.

5. Product and marketing mix development – product is

integrated with the operational and marketing

structures of the organization, to determine how the

product will be introduced.

6. Test marketing – test product with customers (e.g.

familiarization trips

Product development process

7. Commercialization – if the test marketing results are

positive, introduce the product.

8. Monitoring and evaluation – measure the track

performance of a product.

Branding

Refers to the establishment of a name, symbol, design or

some combination of these that identifies the product of

a particular enterprise

A brand is a name, term, sign, symbol, design, or a

combination of these elements that is intended to identify

the goods or services of a seller and differentiate them

from competitors

Positioning – the place that the product occupies

Destination brand – a name symbol, logo, word mark, or

other graphic that identifies and differentiates a

destination

Brand Promise

Marketers need to position their brands clearly in target

customers' minds

When positioning a brand, the marketer should establish

a mission for the brand and a vision of what the brand

must be and do

A Brand Promise is the marketer’s vision of what the

brand must be and do for consumers.

A brand is the company's promise to deliver a specific set

of features, benefits, services, and experiences consistently

to buyers

The brand promise must be simple and honest

Destination brand

It conveys a ‘promise’ of a memorable travel experience

that is uniquely associated with the destination

Brand

Essence

Positioning Statement

Brand Personality

Emotional Benefits

Rational Attributes

What is the essential nature &

character of your destination?

What Makes the Destination

Stand Out from Everywhere

Else?

How would the Destination like to be

seen and described by its main

audience

How Do they Feel

about the Place?

What do visitors like to see and

do? What influences

business/investments decisions

The Brand Development Model

Creating a Place Brand

Brand at the Core of all Marketing Activities

Brand

Imagery

Design Style

Marketing Campaigns

Brochures, Print, etc.Website

Logo

Behaviour

Creating a Place Brand