Tourism Product - Marketing

KEY PLAYERS IN THE TOURISM INDUSTRY

1. Private and non-profit sectors

2. Public Sector Services

3. Suppliers (transportation, accommodation, food and beverage, attractions and events/conferences)

4. Travel Intermediaries

5. The Tourist themselves.

Components of Product

– Destination Attractions’

– Destination Facilities

– Accessibility

– Images

– Price

Collection of attractions which is the element of the tourism product that pulls people to a destination.

Destination Attractions

Philippine attractions mainly fall under the sun, sand and sea category but should also include our old churches, historical and cultural artifacts, festivals and many others. True or False?

True

A wide range of tourist facilities within the destination are those products and services that will help the tourist enjoy the destination attractions

Destination Facilities

For a tourism product to be highly successful, infrastructure services ( airports, roads, bridges) and transportations systems (direct flights of airplanes, trains, buses etc) should be put in place

Accessibility

helps the visitor form expectations of what they will experience when are in the destination. • It also motivates them to make a decision to visit said destination

Images

allows consumers to determine the level of services they may receive in the destination.

Pricing

Factors such as seasonality, distance, product classification and length of time may affect ______?

Pricing

In most destination facilities, products and services have different types.

Core

Facilitating Product

Supporting Product

Augmented Product

_______ are products that the consumer is really buying.

Core products

____________ are goods and services that must be present for the guest to enjoy and use the core product

Facilitating products

___________ on the other hand, add value to the core product and help differentiate it from its competitors. If properly planned, they offer the product’s competitive advantage.

Supporting products

__________ are factors that help the consumer consider the product over other products because these include product accessibility, geographical location, hours of operations, atmosphere, customer satisfaction and customer interactions with each other.

Augmented products

PRODUCT CONSIDERATIONS

Accessibility

Atmosphere

Customer interactions with the service system

Customers interact with other customers

Co-production of the product or service

STAGES OF PRODUCT LIFE CYCLE

Product Development
Introduction
Growth Stage

Maturity Stage

Decline

Phase-out

To prevent decline

Market Modification
Product Modification
Marketing Mix Modification

The company may introduce innovations in the hope attracting another type of market and increasing consumption of existing market.

Market Modification

The company can opt to change product characteristics such as product quality, features and style to attract new users and stimulate more usage

Product Modifcation

This is when the company attempts to improve sales by changing one or more of the marketing-mix elements to attract new customers and prevent consumers from switching brands.

Marketing Mix Modification

DESTINATION LIFE CYCLE

Discovery
Local Control
Institutionalisation
Rejuvenation

Should be an ongoing process to ensure profitability and sustain interest on the product line.

Product Development

Stages of Product Development

Idea Generation
Idea Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Prototype Creation
Test Marketing
Commercialization
Evaluation

is a systematic way of coming up with new ideas. Sources of new ideas include the external environment, internal sources, customers, competitors, distributors and suppliers, and other sources.

Idea generation

leaves you with so many new ideas that need to be screened to see which ones match the company’s objectives and can be developed further. A new product committee can screen the ideas generated in a logical and objective manner

Idea Screening

the products that pass through the screening can now be developed further. A product concept is developed and tested. The customers should be consulted on which product concepts are actually helpful to them because they are the primary users of the product.

Concept Development and Testing

should be kept in mind as the new product is introduced to the market. A new product or service is developed to try to gain a marketing edge and to differentiate itself from its competitors

Marketing Strategy

stage looks more deeply into how much revenue the product could generate, what the cost will be, how much market share the product may achieve and the expected life of the product.

Business Analysis

a prototype of the product is created. Presented to its target market for comments on which adjustments and enhancements should be done

Prototype Creation

the product is then launched in a small geographical area to test the components of the marketing mix.

Test Marketing

this when the product is fully launched to the entire target market either nationally or internationally.

Commercialization

this is the stage wherein the company will know whether the product has gained market acceptance

Evaluation