Professional Documents
Culture Documents
Must relate marketing opportunities to firms resources (physical, financial, technological, human) Identify, evaluate firms marketing assets Customer portfolio/lifetime value (customer equity) Market knowledge Marketing implementation skill Product line Competitive positioning strategies Brand reputation (brand equity) Identify, evaluate firms operating assets Physical facilities, equipment Technology and systems (especially IT) Human resources (numbers, skills, productivity) Leverage through alliances and partnerships Potential for customer self service Cost structure
Operating Assets
(Facilities/Equipment, IT Systems, People, Op. Skills, Cost Structure)
Service
frequency
Vehicle
Transport
In-flight service
product (a good or a service) supplementary services that add value to the core In mature industries, core products often become commodities Supplementary services help to differentiate core products and create competitive advantage by: facilitating use of the core service enhancing the value and appeal of the core
core
Core and Supplementary Product Design: What Do We Offer and How Do We Create and Deliver It?
Process
What Should Be the Core and Supplementary Elements of Our Service Product?
How is our core product defined and what supplementary elements currently augment this core? What product benefits create the most value for customers? Is our service package differentiated from the competition in ways that are meaningful to target customers? What are current levels of service on the core product and each of the supplementary elements? Can we charge more for higher service levels on key attributes (e.g., faster response, better physical amenities, easier access, more staff, superior caliber personnel)?
Core and Supplementary Services in a Luxury Hotel (Offering Guests Much More than a Cheap Motel!)
Reservation Cashier Business Center A Bed for the Night in an Elegant Private Room with a Bathroom Valet Parking Reception Baggage Service
Cocktail Bar
Entertainment/ Sports / Exercise
Restaurant
What Happens, When, and in What Sequence? The Time Dimension in the Augmented Service Product
Reservation Parking Check in USE ROOM Get car Check out Phone USE GUESTROOM OVERNIGHT Porter Meal Pay TV Room service
Pre Visit
Consultation Order-Taking
Exceptions
KEY:
Hospitality Safekeeping
Core
Core
Many goods and services must be ordered or reserved in advance. Customers need to know what is available and may want to secure commitment to delivery
Core
How much do I owe you? Customers deserve clear, accurate and intelligible bills and statements
Core
Customers may pay faster and more cheerfully if you make transactions simple and convenient for them
Core
Core
They may also want delivery and after-sales services for goods that they purchase or rent
Core
Customers appreciate some flexibility in a business when they make special requests. They expect it when not everything goes according to plan
Hotel Brands
British
Airways Brands
Marriott Hotels Marriott Resorts Courtyard by Marriott Fairfield Inns Residence Inns SpringHill Suites TownePlace Suites Marriott Vacation Clubs International
Intercontinental
First Club World World Traveller Plus World Traveller Club Europe Euro-Traveller Shuttle
European
UK Domestic
umbrella brand
Sun Microsystems line brand (system support services) Sun Spectrum Support
Product
Sub-brands
Sun Spectrum Support: Sub-branding Highlights Four Service Levels Sub-branding clarifies service levels offered at different fees
Platinum: Mission Critical On-site service 24/7, two-hour response; telephone support 24/7, onsite parts replacement; additional services available Gold: Business Critical Onsite service Mon-Fri 8am-8pm, four-hour response; telephone support 24/7; onsite parts replacement
Silver: Basic Support Onsite service Mon-Fri 8am-5pm, four-hour response; telephone support Mon-Fri 8am-8pm; onsite parts replacemen
Bronze: Self Support Phone support Mon-Fri 8am-5pm; parts replacement by cour
Major process innovations--using new processes to existing products and offer extra benefits
deliver
Product line extensions--additions to current product lines Process line extensions--alternative delivery procedures Supplementary service innovations--adding new or improved facilitating or enhancing elements Style changes--visible changes in service design or scripts
Customers can rent goodsuse and return for a fee instead of purchasing them
Any new durable product may create need for after-sale services (possession processing)
Shipping
Installation Problem-solving Cleaning Maintenance Repair Upgrading Disposal
Fast-Food Restaurant (Eat In) Drive-In Restaurant (Take Out) Home Delivery
See sign
Pick up meal
See sign
Telephone Restaurant
Eat
Home Catering
Eat
features
Room
features services
facilities
Securitypeople/systems
Market synergy Good fit between new product and firms image/resources Advantage vs. competition in meeting customers needs Strong support from firm during/after launch Firm understands customer purchase decision behavior Organizational factors Strong interfunctional cooperation and coordination Internal marketing to educate staff on new product and its competition Employees understand importance of new services to firm
Market research factors Scientific studies conducted early in development process Product concept well defined before undertaking field studi