Hospitality Product and Service Matrix

Product Service Matrix

• Service marketing seeks to understand consumer benefits and satisfaction.
• The restaurant manager provides food, but the customers want an atmosphere different from leisure, relaxation, entertainment, and status.
• The service product has to match customer and supplier desires.
• According to Philip Kotler, a product has three parts:
  • Tangible Product: Materials and construction
  • Extended Product Part: Services
  • Generic Product: Benefits

Basic Hospitality Product

• Basic hospitality is goods, services, and environment.
• Goods are hotel provisions, like food, drinks, beds, and air conditioning.
• Services mean non-physical things a hospitality marketer offers.
• Management must control employees' congeniality, responsiveness, and professionalism.
• The environment comprises customer feelings toward the product like comfort, security, and relaxation.
• A candlelit restaurant with soft music provides a romantic ambience.

Components of Hospitality Products

• Hospitality products combine goods and services intended to meet target market needs.
• The core product is the fundamental benefit the customer gets.
• Facilitating products are required for guests to use the core product.
• Tangible product is the physical translation of the basic product.
• Supporting products add extra value and differentiate the core product.
• Augmented items complete the product, like after-sales service and delivery.

Hospitality Customer Satisfaction

• Physiological satisfactions are the basic satisfactions a customer seeks from a hospitality product.
• Economic satisfaction is the value gained relative to the sacrifice to get the product or service.
• Psychological satisfactions are a perceived notion.
• Location: Hotel's geographical placement in a village, town, city, or country.
• Facilities: Infrastructure and recreational features like bedrooms, restaurants, pools, gym, and tennis court.
• Service: The facilities provided to guests by the hotel staff.
• Image: Consumer perception of the hospitality product or service.
• Price is the hotel's value based on location, facilities, service, and customer satisfaction.

Satisfactory Services

• Analyze what the customer perceives in a service.
• Determine how a service satisfies customer needs.
• Identify the benefits a service offers.
• Determine how a service satisfies demand.
• Learn who uses the service and why.

Level of Service Delivery

• Customer Benefit Concept
• Service Concept
• Service Offer
• Service Forms
• Service Delivery System

Service Conceptualization Levels

• Customer Benefit Concept: First level in the conceptualization of a service product.
• Service Concept: Second level in the conceptualization of a service product.
• Service Offers: The third level in service delivery, describing details of the service.
• Service Forms: The provider details how the service product will be delivered.
• Service Delivery System: Two elements in delivery are the people and the physical evidence.

Product Planning and Product Development

• Product Planning
• Product Development
• Product Features and Modification

Development Process Steps

• Idea Generation: Ideas come from external or internal sources.
• Screening of Ideas: This step chooses ideas compatible with cost, profitability, resources, demand and objectives.
• Formal Business Economic Analysis
  • Analysis of product development features
  • Sales and profit forecast for new product development
  • Program for marketing strategies
• Product Development: Distribute new/improved products for the present market.
• Test Marketing: Placing a product for sale while observing performance under the marketing plan.
• Commercialization: Introducing a new product or service into the general market.

Product Lifecycle

• Product life cycle is a product's journey from introduction to withdrawal.
• Introduction Stage: Inform consumers about the advantages and uses of the new product:
  • Inform about the product's features
  • Encourage trial
  • Convince middlemen to distribute.
• Growth Stage: Sales and profits increase at an increasing rate, also known as market acceptance.
  • The marketing organization must develop selective demand because competitors are reacting.
• Maturity Stage: Sales and profits decline as more competitors enter with advanced products.
• Three Phases of Maturity Stage:
  • Growth Maturity: Sales growth declines and new distribution channels are absent.
  • Stable Maturity: Sales plateau due to market saturation and loss of interest.
  • Decaying Maturity: Sales decline, customers switch to other brands/substitutes.
• Decline and Possible Abandonment: New products replace old ones
  • Sales decline due to technical changes, consumer tastes, or cheaper substitutes.

Reasons for Product Failure

• Inadequate Market Analysis: Inability to determine market demand.
• Overestimation of potential sales and buying motives.
• Product Deficiencies: Poor quality.
• Lack of Effective Marketing Effort: Insufficient post-launch marketing strategies.
• Higher Costs than Anticipated: Inflation increasing raw material prices.
• Competitive Strength and Reaction: Competitors may beat the timing of introduction.
• Poor Timing of Introduction: Premature or post-mature product introduction.
• Technical or Production Problems: Inability to supply the demanded quantity.

Solutions to Avoid Product Failure

• Better marketing research
• Organizational changes for strengthening product planning
• Improved screening and evaluation of ideas/products.
• Successful solutions require product, marketing, and advertising advantages.
• Product Advantage: New product is better quality with a reasonable price.
• Marketing Advantage: Increased distribution outlets compared to competitors.
• Advertising Advantage: More mass media usage.

Product Line and Product Mix

• Product Line: Related products for similar uses. Men's accessories, home furnishings, and appliances.
• Product Mix: Product assortment; the complete product list offered or produced.
  • Dining tables, Nike sells clothing.

Major Product Line Strategies:

• Expansion of Product Mix
  • Increasing the number of product lines.
• Example:
  • Dairy Queen Ice Cream cake and Hanes for Men added a new line Hanes for Ladies.
• Positioning of the Product
  • Consumers' perception of a product, positioned against competitors and other products by the same company.
• Improved position is achieved by shifting the promotional theme or target market.

More Examples:

• Perla detergent was promoted as laundry detergent but changed to skincare.
• A Pandesal added Malunggay to highlight its effect on our body.
• Contracting Product Mix
  • Removing "deadwood" product lines.
• This happens if market demand cannot offset maintenance costs.

Alteration of Existing Product

• Redesigning industrial or consumer product packaging.
• Perla detergent began to be promoted for its skincare.
• Pandesal added Malunggay highlights for its effect on the body.
• Product Differentiation: Creates consumer awareness regarding a products features.
• Market Segmentation: Knowing an overview of the target market.
• Brand: A Word or symbol identifies marketer's product/service.

Brand Identifiers

• Brand Name: Vocalized.
• Brand Mark: Not Registered design
• Trade Name: Registered company name.
• Trade Mark: Brand registered under the IPO for legal protection.
• Registration Marks
  • Trademarks may say "Reg. Phil. Pat Off," registered under the Philippines Patent Office.
  • "R" means registered.
  • *Asterisk Mark
  • "C" for copyright.

Brand Classifications

• Manufacturers' Brands
  • Owned by the producer/manufacturer.
  • Max's Group Commissary, Best Foods
• Distributors' or Middlemen's Brands
  • Owned by wholesalers or retailers.
  • Restaurant Branches in Malls. -National Brands:
  • Sold widely and advertised
  • McDonalds, Dunkin Donuts, and Pizza Hut.
• Private Brands:
  • Not advertised.
  • Pancake House, TGI Fridays, and Italianis Restaurant.
• Individual or Separate Name Brands:
  • Intended for one product.
  • Max's Restaurant, Pancake House, Yellow Cab
• Generic Brands:
  • No official name.
  • Items like drug items

Branding Importance and Brand Name Characteristics

• Branding simplifies sales promotion.
• Branding encourages repeat sales.
• Branding provides protection against substitution.
• Branded merchandise is preferred by many middlemen.
• Branding minimizes comparison.
• Brand names should be easy to remember,
• Brand names must be one to three syllables long
• Brand names must suggest product benefits.
• Good brand names must be distinctive with relatable symbols and colors.
• Good brand names must be legally protected and registered.

Packaging

• Packaging is designing and producing a product container/wrapper.
• Containers for liquids and wrappers for solids
• It provides protection, implements marketing, and increases potential profits.
• Family Packaging
  • Common design for all products.
• Reuse Packaging:
  • Serves other purposes.
• Multiple Packaging:
  • Several units in a single container.
• Label is the product part with verbal information for buyers.
• Fair representation of package contents to inform buyers.
• Brand Label: Brand alone on the package
• Grade Label: Quality identified by letter/number/word to indicate first class quality.
• Descriptive Label: Illustrative information about construction, use, care and performance.