Lesson 2 GTPTPADV - Product Concepts

Vocabulary flashcards covering core concepts: needs, wants, and demands; Maslow’s hierarchy; Kotler’s three product levels; core/actual/augmented products; product life cycle and Concorde case; tourism product/mix; and market/product mix decision options.

Product

Anything offered to the marketplace to capture attention, acquire customers, and satisfy a need or want.

Need

A state of felt deprivation; the basic physical requirements (e.g., food, clothing, warmth, safety).

Want

The form needs take as shaped by culture and personality; more sophisticated and require more effort to obtain.

Demand

Wants backed by buying power; the desire and ability to pay to have wants satisfied.

Maslow's Hierarchy of Needs

A hierarchy of human needs ranging from physiological to self-actualization, guiding what people seek.

Physiological needs

Basic physical needs: food, water, warmth, rest.

Safety needs

Security and safety.

Belongingness and love needs

Intimate relationships and friendships.

Esteem needs

Self-fulfillment, prestige, and a sense of accomplishment.

Self-actualization

Achieving one's full potential, including creative activities.

Core product

The basic need function or dominant benefit delivered by the product; often intangible.

Actual product

The physical product or service with its features, styling, branding, and design.

Augmented product

Add-ons and extra values (e.g., credit terms, after-sales service) that accompany the product.

Tangible product

The physical form of the product—the actual goods or services.

Concorde: product life cycle case

A journey through the product life cycle; Concorde showcased introduction, peak, and decline phases of a high-cost, luxury transport.

Concorde crash (Flight 4590)

Air France Flight 4590 crashed on July 25, 2000; 113 on board killed; contributed to the end of the Concorde era.

Product life cycle

The stages a product goes through from introduction to decline (conceptual framework for managing products).

Core product (Dubai vacation example)

The dominant benefit the customer seeks; e.g., the fundamental experience of a vacation.

Actual product (Concorde features)

The tangible attributes of the product, such as appearance, design, and brand.

Augmented product (premium service)

Added features beyond the core/product itself, such as premium services or warranties.

Three levels of product (Kotler)

Core product, tangible product, and augmented product—the hierarchy of what a buyer purchases.

Theme Park product levels

Core product (excitement/atmosphere), tangible product (rides, safety, service), augmented product (complaints handling, parking, opening times).

Core product example (hotel leisure centre)

The basic benefit of the offering (feeling good, rest, shelter).

Actual product example (Concorde features)

The product's design, brand, quality, and features differentiating it from competitors.

Augmented product example (premium service)

Added values like champagne, special services, and loyalty programs.

Tourism product: product mix

The portfolio of products a tourism organization offers to a market or markets.

Product mix

The total number of product lines and individual products offered by a company.

Option 1: Several markets with multi-product mixes

Targets multiple markets with a broad multi-product range for each market.

Option 2: Several markets / single product for each

Multiple markets, but each market is offered a single product.

Option 3: Several markets with a single product for all

One product offered across all markets.

Option 4: Single market with a multi-product mix

One market, but a range of products available.

Option 5: Single market / single product

A niche market with one product.

Which product mix option to adopt?

Choose based on forecasted demand, competitive advantage, and organizational capability to service the product/markets.

Package holiday product components

Destination, Originating airport, Airline, Coach transfers, Hotel, Resort Representatives.