Product Service Mix

• The product service matrix is presented by Group 4.
• The group members are Glorianne, Mikylla Gwen, Osinsao, Jasmine Nicole, Pintor, Drexler, Ocop, Christine Franz P., and Villaseñor, Rose Mharee.

Product Service Mix

• Understanding consumer benefits and satisfaction is a key issue in service marketing.
• Customers seek various elements beyond food when visiting a restaurant like atmosphere, relaxation, entertainment, or status.
• It is important for the service product to match the viewpoints of both customers and suppliers.
• Philip Kotler states a product consists of tangible product, extended product part and generic product.
• Tangible product involves materials and construction
• Extended product part makes up the services
• Generic product is the benefits

Basic Hospitality Product

• A basic hospitality product combines goods, services, and environment.
• Goods refer to physical things provided by a hotel like food, drinks, beds, furnishings, room, and air conditioning.
• Services refer to non-physical things offered to customers where management should ensure congeniality, responsiveness, and professionalism.
• Environment is a tangible or intangible product element comprising the overall customer feelings toward the product, like comfort, security, and relaxation.
• A restaurant with relaxing music and candlelight creates a romantic ambience and calmness for customers.

Components of Hospitality Products

• Hospitality products combine products and services with the goal of satisfying the target market.
• There are five components of a hospitality product
• The core product refers to the fundamental benefit a customer receives from a hospitality service.
• Facilitating products are goods or services necessary for the guest to use the core product.
• The tangible product is the physical translation of the basic product.
• Supporting products add value to the core product and differentiate it from competitors.
• Augmented aspects are support items that complete the product offering and include after-sales service, warranty, delivery, and installation.

What the Hospitality Customer Seeks

• Hospitality customers seek physiological, economic, and psychological satisfactions from a hospitality product or service.
• Physiological satisfactions refer to the basic satisfaction a customer seeks from a hospitality product.
• Economic satisfaction means the value a customer gains relative to the sacrifice made to obtain the hospitality product or service.
• Psychological satisfactions are a perceived notion
• Dissatisfactions/satisfactions include location, facilities, service, image and price.
• Location is the geographical placement of a hotel in a particular village, town, city, or country.
• Facilities are the infrastructure and recreational facilities found in the hotel.
• Service is the facilities which are provided through a hotel's personnel
• Image is the hotel and its branding
• Price is the expression of value provided by the hotel.

Satisfactory Services

• A number of factors should be analyzed to provide satisfactory services to guests in a hotel:
• What does the customer perceive in a product or service?
• How does it satisfy the customer needs?
• What benefits does it offer?
• How does it satisfy demand?
• Who uses it? Why?

Level of Service Delivery

• The customer benefit concept is the first level in the conceptualization of a service product.
• Service concept is the second level in the conceptualization of a service product.
• The service offer is the third level in the service delivery.
• The service provider must provide detailed information on how the service product will be delivered to the customer through service forms.
• The two main elements in a service delivery system are the people and the physical evidence.

Product Planning and Product Development

• A few things that consist of product planning and product development are, product planning, product development, product features and modification

Steps in the Development Process

• Idea generation includes product ideas coming from external or internal sources.
• Screening of ideas chooses the best ideas based on compatibility with resources, objectives, demand, cost, and profitability.
• Formal business economic analysis includes product development features, sales and profit forecasts, and marketing strategy programs.
• Product development focuses on the distribution of new or improved products for the present market.
• Test marketing consists of placing a product for sale in selected areas and observing its actual performance under the proposed marketing plan.
• Commercialization is how a new product or service is introduced into the general market.

Product life cycle

• The product life cycle is the cycle through which every product goes through from introduction to withdrawal or event of failure
• The introduction stage involves launching the product in the market with informative promotion.
• The three goals of the introduction stage are to tell consumers about the new product, encourage consumers to try it, and convince middlemen to distribute it.
• The growth stage is the "market acceptance" stage where sales and profits rise, requiring the marketing organization to develop selective demand.
• The maturity stage is where sales and profits decline as competitors enter the market with more advanced product development.
• The growth maturity is where the sales growth rate declines and there are no new distribution channels.
• The stable maturity phase is where sales level off or break-even due to market saturation and a loss of interest in the product.
• The decaying maturity is where sales decline as customers switch to other brands or substitutes.
• The decline and possible abandonment stage involves new products or brands entering the industry, marking obsolescence due to technical development, changes in consumer tastes, or lower-cost substitutes.

Reasons Why New Products Fail

• Inadequate market analysis leads to an inability to determine market demand, buying motives, and overestimation of potential sales.
• Product deficiencies include poor quality of new products
• Lack of effective marketing effort involves insufficient marketing strategies after introductory programs.
• Higher costs than anticipated may include an inflation rate where raw material prices increased from idea generation to commercialization.
• Competitive strength and reaction is the ease of competitive entry where companies may simultaneously beat timing of introduction.
• Poor timing of introduction includes premature or post-mature product introduction.
• Technical or production problems are the inability to supply the quantity demanded

Solutions to Avoid Product Failure

• Better marketing research will evaluate market needs and prospects
• Organizational changes aimed at strengthening new product planning
• Improved screening and evaluation of ideas and products

Three Advantages to Be Successful

• Product Advantage: the new product is better quality and has a more reasonable price than competitors.
• Marketing Advantage: using greater number of distribution outlets or intensive distribution.
• Advertising Advantage: a greater number of mass media usage or effective advertising copy structure

Product Line and Product Mix

• A product line is a group of products closely related and intended for similar uses such as men's accessories, home furnishings, and appliances.
• Product mix is also known as product assortment.
• Examples are dining table and Nike items.

Major Product Line Strategies

• Expansion of product mix increases the number of product lines, such as Dairy Queen adding ice cream cakes or Hanes adding a line for Ladies.
• Positioning of a product is based on consumers' perception of its image against competitors and is improved by shifting promotional themes or target markets.
• Contracting of product mix involves eliminating and phasing out a “deadwood” product line when market demand is low and cannot offset maintenance costs.
• Alteration of an existing product involves redesigning either the product or the packaging.
• Product Differentiation involves creation of consumer awareness about the different product features.
• Market Segmentation describes knowing the overview of the entire target market.
• Brand is a word, mark, symbol, or a combination of them to identify a marketer's product or service.
• Brand Name is something that can be vocalized or spoken and product logo.
• Trade Name is a registered company name.
• Trade Mark is a brand registered under the intellectual property office (IPO) and therefore given legal protection
• Recognition of trademarks are listed on the product labels
• Reg. Phil. Pat Off means registered under the Philippines Patent Office.
• R means registered
• *Asterisk Mark
• C means copyright under

Classification of Brands

• Manufacturer's Brands are owned brands by the producer or manufacturer.
• Example: Max's Group Commissary, Best Foods - California Manufacturing.
• Distributor or Middlemen's Brands are owned by wholesalers or retailers.
• Example: Restaurant Branches in Malls.
• National Brands: Brands are sold in the entire Philippine archipelago or internationally and are advertised.
• McDonalds, Dunkin Donuts, and Pizza Hut are examples of this
• Private Brands: Not advertised. Examples include Pancake House, TGI Fridays, and Itallianis Restaurant.
• Individual/Separate Name Brands are a name or brand intended for one product.
• Examples: Max’s Group (Max’s Restaurant, Pancake House, Yellow Cab, Sizzling Pepper, Teriyaki Boy, Dencios, Kabisera, Maple).
• Generic Brands: Brands which do not carry official brand names.
• Examples: Generic produts and staple goods like food and drug items.

Importance of Branding for Sellers

• Branding simplifies sales promotion
• Branding encourages repeat sales
• Branding provides protection against substitution
• Branded merchandise is preferred by many middlemen
• Branding minimizes comparison.

Characteristics of Good Brand Names

• Good brand names must be easy to remember
• Brand names must be one to three syllables and be easy to remember, pronounce, and spell.
• The brand names must suggest product benefits or use
• The brand names must be distinctive
• The brand names must be legally protected
• It can not be an imitation of patented brands and registered under the patent office.

Packaging

• Packaging involves designing and producing the container or wrapper for a product.
• Containers like tin cans and glasses are for liquid-based products, while wrappers like tin foil, paper, and cartons are for solid based products.

Reasons for Packaging Products

• Product protection during its route from producer, manufacturer to final user, and protection during storing period before consumption
• Implementing marketing program through product differentiation by customers
• Increases profit possibilities, particularly when other customers buy the product primarily because of the package.

Packaging Strategies

• Family packaging involves making the package for all products using a common feature
• Reuse packaging involves designing and promoting packages that can serve other purposes when contents are consumed.
• Multiple packaging involves placing several units of a product in a single container

Label

• The label is the part of a product which carries verbal information about the product or the seller.
• Label's primary purpose should be to inform buyer fairly representing contents of the package
• Types of labels: BRAND LABEL
• Brand alone applied to the product or package.
• GRADE LABEL: Identifies product quality by letter, number or word such as "Premium".
• DESCRIPTIVE LABEL: Written or Illustrative information about the product, use, construction, care or performance.