Marketing deals with the relationship
between the organization and its customers. Customers do not always run to a
producer and demand supplies, however useful and valuable the product may be.
They will not make the effort to buy, if the
effort is not commensurate with perceived value. It must be available when
needed, at places that are convenient and at prices that seem reasonable. They
have to know what is available, where and at what price. Often they have to be persuaded
that the purchase is beneficial to them. This is given so for products that
apparently meets an important need. Services are bought by customers and they
produce satisfaction.
We will takes into account the various
concepts relating to product in tourism, product design etc.
What is Product in Tourism
The needs of a tourist relate to comfort and
pleasure in travel, stay, food arrangements and to visit spots of interest and
attraction.
Hence, a tourist hopes that she or he will:
• Be looked after and cared for,
• Be able to visit places of interest, spend
adequate time at such places and engage in the activities that interest them,
• Not face wastage of time in waiting for
transport or at places of no interest because of bad weather or other reasons,
• Not be hurried or hustled against the
preferred place,
• Be offered palatable and suitable food to
one's tastes and health,
• Get good company of others, if in a group,
• Be able to experience in the new places
the local life styles, culture, food etc. as per one's own choice, • Be facing
no risk to one's person or belongings, etc.
These expectations of the tourist are met by
three main ingredients:
• Attractions are the things to see and
enjoy, and will range from beaches to mountains, flora and fauna, places
representing history and culture, entertainment etc.
• Facilities take care of the comfort and
range from accommodation, food, communications, guides and so on.
• Accessibility relates to the formalities
in reaching the places, like visas, customs, bookings etc. acquiring resources
like accommodation, exchange, transportation without haste and damage. The
tourist product is a complex one. It consists of several elements provided by
various persons.
You have read about the constituents of the
Tourism Industry. Some of them are located at the tourist destinations (hotel,
shops, attractions, guides), some are at the place of origin of the tourist
(embassy to provide, visa, travel agency or tour operator) and some are enroute
(customs, transport, exchange).
Some of these services are tied to
tangibles. Both hotels and transportation use a variety of tangibles. The
comfort of a stay in a hotel is an experience which does not come only from the
quality of furniture and fittings within, but from the efficiency of the
equipment including the noise it makes and the disturbance from the outside
during periods of rest. Noise and disturbances can be very annoying to some
people, but not to all. These in turn depend on the maintenance as well as the behavior
of other people in the hotel. The annoying experience of noise and disturbance
is part of the product the hotel provides, probably more than the quality of
the furniture. The experience is real but intangible. The product has both
tangible as well as intangible elements. The service part is intangible.
Similarly, in transportation, the car may be
the latest mode11000 in perfect running condition. But if the driver is rash or
not very polite and considerate, the experience is of bad service. Rashness,
politeness, consideration etc. are one's evaluation of other's correctness.
They are intangibles. For example in this case evaluations are made of the
chauffeur's actions but are also related partly to the customer's perceptions
and standards. The customer, in using the service (of the chauffeur)
experiences 'bad' service. The environment at the time influenced the
perception and therefore the experience. The bad service was provided by the
chauffeur. He 'made' the product at the time of consumption.
Both, production and consumption occurred
simultaneously. Without the consumption, there would not have been a product.
If the client did not notice bad behavior, there would have been bad behavior.
Core and Peripherals
A product is basically something that a
producer offers to a customer to provide satisfaction. To the manufacturer or
producer, the product has an aggregate of technical and physical features and
characteristics. To the consumer, it is an aggregate of utilities, expectations
and perceptions, a complex cluster of value satisfactions.
1.
Attribute of a Product
A product is not merely a physical
commodity. People endow products with attributes beyond the functional
characteristics of the product. Soap is valued not merely for its ability to
clean but also for its shape, colour, size and the 'status' that its use symbolizes.
The packing, the labeling, the price, the image (created through promotion
efforts), all add up to make the product occupy a position in the mind of the
consumer. Utility is only one element of the complex product personality.
The product has a core constituent i.e. the
technical characteristics to perform the basic functions for which it is made.
The peripherals have no great functional utility, but they add value. For
example, a core constituent of a television set will be its engineering,
circuitry etc. that provides clear images and sound. The peripherals would be
the design of the cabinet, position of the control knobs, remote control
facilities, the brand name, the guarantees etc.
The peripherals are also referred to as the
associated features that augment the product. Products may be differentiated
through claims made by the manufacturer. For example, cooking oils refer to
effects on cholesterol levels to differentiate themselves; toothpastes are
differentiated on the basis of clove oil, fluoride and so on. These
differentiation create distinctive value and avoid competition on price.
Competition is among equals and not among unequal.
Products also may be customized to meet the
specific requirements of the consumer. This is done partly for high value
industrial products which may be fabricated or modified to meet specific needs.
This is not done for mass produced items.
In the service sector, the opportunity, as
well as the need, for customization, is very high. Packaging and labeling are
very important in goods. Packaging provides protection, attractiveness and
identity. Labeling helps in identifying and also provides information about
distinctive features, technical data, usage instructions, precautions etc.
2.
Tourism Product
In tourism, the products are varied. A
travel agent may arrange for itineraries and airline booking as the core
product, but add on as peripherals help in getting passport and visas. Foreign
exchange clearances, embarkation formalities at airport and so on.
Similarly attractions are added to a
destination. For example, 18 rooms of Buckingham Palace have been recently
opened to visitors. This expected to become a major tourist attraction in
London. Apart from the Throne Room, Drawing Room and the Picture Gallery, the
Souvenir shop (selling white china mugs with Buckingham Palace written on it or
crystal Balls with details from State Dining Room), is a part of the
attraction.
Product Design
Designing a product means determining the
features of the product and the benefits that will provide to the user.
Effective designing will maximize the benefits and the appeal to the consumer.
This implies that adequate attention has to be paid not merely to the core but
also to the peripherals and the packaging, labeling, etc. which augment the
value of the product.
The Service Product
The service product is not a physical
entity. The elements that could go into making the aggregate service product
are many. A choice has to be made as to what elements have to be incorporated
in the core service offer which will become the product.
• Delivery of articles designated within
specified time limits.
• Arrangements for collection of articles.
• Nature and size of articles would be
accepted for delivery. In a theatre, the elements will include, apart from the
shows, climate control, cleanliness, quality of seating, elevator service,
reservation facilities, conveniences in lobby, decor, attached restaurants,
nature of patronage, information on forthcoming programmes, car park facilities
and a lot more details on reception etc.
Satisfactions increases when one is recognized
as a patron by the officials in the theatre; when one can have the seats of
one's choice whenever required; when the others in the theatre are of an
acceptable kind and so on.
A product in tourism is the place of
destination and what one may experience while proceeding to and staying in that
destination. For example, Sentose Island off Singapore is packaged as a place
where there are no shops, no skyscrapers, no offices-a place of quiet and
tranquility, to relax and be with nature, so different from Singapore.
Travelling by cable car to the island is part of this package.
Places in Cross River.
National Park like Obudu Cattle Ranch are
being offered as tourism products to experience the life styles of intending
tourists, living in real palaces with kingly appurtenances, travelling in
'Palace on Wheel's, the African bushes as the prospect of seeing wild life.
Many pay more to live in the tents in open country 'with nature' instead of in
a five-star comfort.
The
Steps in Developing a Service Product
The
steps in developing a service product are:
• Determine what the consumer values as
benefits (benefit concept)
• Determine which of these benefits should
be offered (service concept)
• Decide on the precise service offer which
includes forms and levels of the benefits to be offered and the arrangements
for delivery of the service (delivery concepts)
The benefit concept will include
expectations of the customer which are boundless of functional and
psychological attributes. One needs to be clear on who the customer is. The customer
of an educational institution is the student, the parent and also a part of the
society that will benefit from the student's education. Business houses are
customers of management schools.
Therefore, the management school has to keep
in mind the expectations of the potential employers. Some management schools
have multinationals as their customers, while others are smaller organizations
of the district and state levels who would like to benefit from the products of
the management schools. An airlines customer is the passenger who travels as
much as the travel agent who effectively influences the final buying decision.
The expectations from a restaurant may vary in kinds of food, (Nigerian,
Continental, Chinese, Thai, and Mexican etc.), extent of spread (salads, sea
foods etc.), price, courtesy of service, comfort of seating, ambience and so
on. One restaurateur may in his service concept include authentic Nigerian food
or Chinese food only and speed of services, paying little attention to seating,
or ambience or courteous service. Another may conceive service in terms of
quick, clean, simple, wholesome lunches for business executive without much of
a choice in menu but offering convenient seating and atmosphere to enable
serious business discussions as well. These choices are made keeping in mind
the:
• Market segment proposed to be served.
• Resources one has and can muster.
The choice of elements to make the service
offer should bear in mind the:
• Ability to render 100 per cent consistent
performance, and extent of personal satisfaction.
Service and Delivery
Once the service concept is clear,
arrangement have to be made for the delivery of service.
Service is delivered by:
• People, and
• Using equipment and other physical
facilities that have to be put in place. Up-gradation in level of service is
achieved by taking the service to the customer, i.e. outside the premises of
the service provider. For example, a hotel that arranges to meet the guests at
the airport and bring them in is upgrading the service by extending it beyond
the premises.
In the case of a service, the product is
manufactured at the point of delivery. An airline or the railways may design a
service of information on arrivals and departures over the telephone. Every
time an enquiry is made, the response one gets is a service and that is made
specifically at that point of time. If the response is not available, because
the telephone line is not attended, is busy for a long time or because the
information is not updated, there is effectively no service. So if a service is
to be offered, arrangements need to be made to ensure that it is possible to
render that service.
The arrangements to be so made are in
respect of equipment, systems and people. These arrangements do not constitute
service but constitute preparedness and readiness to render that service when
the offer is accepted by a customer.
Technology and equipment can be of great
help in maintaining consistent quality of service. For example, the information
service referred to above can be organized through a recording machine that
will be connected to all incoming calls.
Similarly there is need of systems in
services. Systems refer to the arrangements for flow of information and
material to the point where the service is being delivered. For example,
Airlines have to keep their booking agents informed of changes in flight
schedules, if the carrier fails in his service to the passengers.
Positioning
Customers distinguish one product from
another on the basis of distinct characteristics. A five star hotel is
considered as a place of luxury and exclusiveness. To stay there is, therefore,
a matter of high status. Similarly, soap 'Y' kills germs and removes body
odour. Soap `X' is beauty soap. `G' locks are safe 'M' is not. Lagos si the
place to visit not Abuja, etc. These are all images in one's mind which
determine one's behaviour relative to that product. For example a tourist may
not like to go to Bar Beach for it is too crowded in season but will go to
National Conservation Foundation (NCF) Lekki nearby. Another may not like NCF
for it is too calm and quiet there.
Market Research
Knowledge about relevant parameters and
characteristics has to be gathered through a study of the market. Studying the
market to know its characteristics provides the basis for making decisions
about the elements in the marketing mix. It helps to analyze the problems that
may be experienced and in finding solution thereto. Market research may attempt
to answer specific questions or generate general information to be used in due
time.
What is It?
Market Research May Be:
• Market Analysis, or show, spread and
growth of market in terms of volume, revenue, shares of competition, economic
conditions, etc.
• Consumer Research, "to know profiles,
awareness, habits, needs preferences, expectations, perceptions, both
quantitatively and qualitatively.
• Products and price Study, to know products
in the market, price sensitivity, technology, acceptability of features,
packaging.
• Promotion and Sales Research, to know
consumer reaction to alternative concepts and media, effectiveness of sales
force and promotion.
• Distribution, availability of facilities
for stocking, merchandising, possibilities, outlets and shelf space
availability.
• Evaluation and performance monitoring,
looking at the extent of customer satisfaction.
The market is so big and scattered that it
is impossible to do a complete study in totality.
Hence, market research depends on techniques
of sampling the market. It is not possible to be sure that the sample it truly
representative of the whole, tourists comes to Nigeria from a number of
countries. You cannot study all. So you pick the countries sending highest and
lowest number of tourists for your study.
Decisions on the research design include:
• Deciding the purpose of the study like
knowing the duration of stay or expenditure habits, etc.
• Choice of samples like tourist coming from
Europe or US or high budget tourists or low budget tourists, • Determination of
the nature of the data to be collected,
• Method of data collection (surveys,
secondary sources, observation etc) and
• Design of questionnaires (instruments) to
collect and record data, including scales to he used. A lot of data can be
collected through desk research, looking at records, publications, commercial
analysis, trade information, press cuttings, previous studies etc.
Other ways to obtain data are:
• Tourism department
• Discussions with tourists (customers),
• Observations of customers at premises,
• Observation and discussions with visitors
to exhibitions and trade shows,
• Market experiments and surveys with
recording of responses and results,
• Attitude, image perceptions and awareness
studies,
• Advertisement and other media response
studies, and
• Studies of usage pattern, etc.
Quantitative
and Qualitative Studies
Some of the market researchers are
quantitative studies while other are qualitative. Among them some can be done
on a continuous basis and some sporadically. However, when sporadic studies are
made at regular intervals, trends and changes can be known.
The manner in which research is designed and
conducted ensures its reliability. Research findings often form the basis of
corporate decisions of long term implications. The techniques of sampling,
questionnaires, surveys and evaluation have been developed and these constitute
a specialized field of study. The same sets of principles are used in opinion
polls about destinations and predictions for tourist arrival. In the case of
quantitative data, the numbers tend to give the study an illusion of
objectivity and reliability. In order to have a proper interpretation and
evaluation, it is necessary to know how the numbers have been generated. For
example, the preference for a particular destination among four may be because
a fifth destination had not been included in the study.
The numbers coming out of a quantitative
study depend on the way the questions are asked and therefore cannot be assumed
as to saying everything there is to know. Hence, one needs insights to make
valid evaluations. In the case of service, the data to be collected and
evaluated is more abstract and qualitative than in the case of tangible
consumer goods. It is relatively easier to elicit responses by showing samples
of goods and the way they perform as per the sample experience.
Moreover, it is not easy to articulate
satisfaction and expectations. They are often not in the realm of conscious
rationality. How does one explain the impressions created by a movie except to
say whether it was liked or not? This answer is not adequate to decide what
kind of movie would be generally acceptable to an audience.
The experience is total and it is difficult
to identify the particular aspect that is creating the experience, pleasant or
otherwise.
If a specific element is stated as the
critical one leading to the pleasantness or otherwise of the experience, this
identification may have been made for a number of unrelated reasons.
Did one get irritated at the breakfast table
because of the:
• Temperature of the coffee served,
• Consistency of the pudding,
• Warmth of the bearer's attention,
• Behavior of the couple at the corner,
• Pressures of the next appointment or the
late hours of the previous night?
Similarly, there can be other questions like
what is the kind of music that should be played at lunch or dinner time? How
loudly should the music be played? These are difficult questions to answer. The
data is not related to measurable objective phenomena. Capture of qualitative
data needs very sophisticated and sensitive instruments.
Some of these are:
• Use of focus groups, specially invited to
discuss and express themselves,
• Individual interviews where the person met
is en courage to talk freely,
• Trade off questions to determine relative
values.
There is need for expertise and insights to
interpret and evaluate. Responses to a study may not be the same as the actions
in real life. People often do what they say they do not, or do not admit what
they do. People do not own up feelings.
They are quick to rationalize irrational behavior.
These are some reasons why interpretation of research data needs to be
carefully handled. Inadequate expertise could end up with misleading
information and incorrect decisions.
Insight
and Experience
Expertise in the techniques of market
research can be hired. Insights into the situation being researched conies from
experience. These insights should be used both ways i.e. to design the study as
well as to interpret the data. In the service business, unlike in the business
of goods, 90 per cent of the personnel are in touch with customers.
When one is in touch with the customers, a
lot of data about the customer's experience, expectations and satisfactions can
be heard directly from him or her. Contact personnel can be trained to feedback
such data to a specific point in the marketing department. The opportunity for
direct access to the customers is much more in the service business than in the
business of goods.
To that extent, the reliance of external
research agencies can be reduced. Disneyland in France is losing money.
The reasons have to be found. Do the
Europeans have different ways of enjoying leisure compared to the Americans?
What are the differences that need to be made in the entertainment schedules
and patterns? The answer to these questions will come partly through research
and partly through insights and experience.
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