Product/Service Management
Generate product ideas
Look at the competition
Look at the indirect competition - companies making products that perform a similar function to yours but which are made in a different way (fried chicken vs bread)
Look inside your own company. Ask the sales teams, look back through old reports, and check the archives.
Look to customers.
Explain the types of promotion.
There are five primary types of promotion:
Advertising: Paid, non-personal communication through channels like TV, social media, or print (e.g., Coca-Cola commercials).
Sales Promotion: Short-term incentives to boost sales (e.g., discounts, coupons, BOGO deals).
Public Relations (PR): Managing public perception through media coverage and events (e.g., press releases, sponsorships).
Personal Selling: Direct, face-to-face interaction with customers to close sales (e.g., car sales).
Direct Marketing: Targeted, personalized communication like emails, catalogs, or text messages
Explain the concept of competition.
changes in consumer taste and demand, the state of the overall economy, and government rules and regulations
Direct: Very similar products being sold in same industry
Indirect: Slightly diff products being sold in same industry, targeting same target market
Explain the importance of meeting and exceeding customer/guest expectations
-Differentiates you from your competition
-Creates loyal customers, returning customers
- 80% 20% rules
-Word of mouth is powerful
Explain the nature of product/service branding
Branding is the use of a name, symbol, or design to identify a product in the marketplace → create a unique image of the product to help customers differentiate between competing products.
Your brand is what identifies your business, and makes specific promises: Walmart's brand is about saving money (Save Money, Live Better)
Good branding: Delivers its message clearly, confirms the credibility of the message
Identify Communications Channels Used in Sales Promotion.
Sales promotion uses a variety of channels to deliver promotional messages effectively:
In-Store Displays: Point-of-purchase displays that attract customers’ attention.
Digital Channels: Email campaigns, social media promotions, or website banners.
Traditional Media: Flyers, newspapers, and magazines.
Events: Trade shows, expos, and live demonstrations.
Retail Partnerships: Collaborations with retailers for joint promotions (e.g., shelf space deals).
Mobile Marketing: SMS messages and app notifications.
Determine economic utilities created by business activities.
There are four types of economic utility, which include form, time, place, and possession.
Form: higher value for products in finished forms - don’t need to assemble themselves = reduce purchasing barriers (not as complicated)
Time: when will product arrive to customers - want to spend as little time as possible waiting; seasonal changes (e.g. more boots sold in winter)
Place: ability to get what customers want, when they want it
Brick and mortar stores - advantage if can show to customers always have in stock = easier to get
Possession: possession of product - after purchasing, customer can use product however they like
Explain the nature of guest recovery
-Recover a negative situation with a guest and help resolve and make them into a loyal customer
-Words will be used that are different for each situation, signals should be consistent
-I care
-I understand
-You can trust me to take care of the problem
1.Anticipating customer needs.
2 Acknowledging their feelings.
3. Apologizing and owning the responsibility.
4. Offering alternatives.
5. Making amends.
Explain the nature and scope of the product/service management function.
Anticipates customer needs and then guides product development to meet them
Product development: Conceptualizing the product idea, and determining the correct branding strategy
Generating product ideas : Coming up with new products or services, or improvements to existing ones, that address a market gap
Anticipating changes in the market: Being prepared for economic downturns, sudden changes in customer preferences, and other drops in demand
Brand management: Using messaging to cater to users' needs, and boost customer satisfaction and brand loyalty
Lifecycle management: Observing and assessing each stage of the product's lifecycle, from conception to potential decline
Explain key factors in building a clientele.
Key Factors:
• Excellent Customer Service: Going above and beyond to satisfy customers.
• Consistency: Providing reliable and consistent quality in products/services.
• Follow-Ups: Staying in touch with customers after a purchase.
• Loyalty Programs: Encouraging repeat business through rewards and incentives.
• Personalization: Tailoring interactions and offers to individual customer needs.
• Word-of-Mouth Referrals: Encouraging satisfied customers to refer others.
• Community Engagement: Building a strong presence in the community through events and partnerships
Cheaper to keep a customer than to get a new one!
Explain the types of economic systems
Traditional - bartering and trading resources, goods, and services
Command Economy - government controls the economy by how to use and distribute goods and services
Market Economy - each person makes their economic decisions; government does not control who buys what; based on the laws of supply and demand
Mixed Economic System - Market based economy where the government controls some aspects of what is sold, and who can buy
Explain the nature of customer service in the hospitality and tourism industry
>It develops a loyal customer base
>Creating a good customer service experience for someone will enhance their vacation experience, so the following time they will want to stay at that chain and recommend it to others
>It can ruin the reputation of the travel business (airline, hotel, cruise) if a customer has a bad experience
-write a review and spread the word, reflection on the company's image
>For many countries, tourism is a main source of income for the economy so service providers want to fulfill the customers requirements to give them the best possible service so they return/spread the word
Identify the impact of product life cycles on marketing decisions.
Introduction: Birth of a new product; expensive stage as dollars are being poured into developing the new product. Early adopters are the consumers who will purchase the goods so marketing should be focused on these trendsetting consumers.
Growth: Customer awareness is limited but growing quickly at this stage as the item is new. Marketing decisions are crucial at this stage - advertising should be at its height because the product still needs to catch on. Word of mouth advertising is also important here.
Acceptance (maturity): Sales increase slowly at this stage. Advertising here is based on the reputation of the product that has lasted so long and serves to remind customers of its existence.
Decline: Marketing here will be trying to determine why there is a decline. Proper identification of the reason is essential to finding a solution to counteract it. Marketing may focus on reigniting sales by altering/updating the product, or by updating/re-launching its image
Decision Point: It is at this point where marketers may elect to completely repackage or rebrand the product in an attempt to create a new buzz or discontinue the product altogether.
Explain the role of promotion as a marketing function.
Promotion plays a vital role in marketing by creating awareness, generating interest, and persuading customers to take action. It bridges the gap between the product and the consumer by communicating the value and benefits of the product or service.
Functions of Promotion:
Inform: Educating customers about new or existing products.
Persuade: Convincing customers to choose your product over competitors.
Remind: Maintaining brand loyalty and customer engagement.
Build Relationships: Strengthening connections with customers to encourage repeat business.
Describe the concepts of economics and economic activities
Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth economic activities. Economic activities include production, distribution, and consumption of commodities.
Deliver Positive Moments of Truth
As a customer service repersontative or a staff, and customers are placed in stressful situations. To let the representative to offer:
- free amnesties
- some positive
- extra things/ compensation
Will alleviate the stress
Explain the concept of product mix.
There are 4 dimensions to a company's product mix:
Explain the nature of marketing plans.
A marketing plan is a comprehensive document that outlines a business's overall marketing strategy, objectives, and tactics to achieve its goals. It serves as a roadmap for how a company will reach its target audience, build brand awareness, and drive sales.
Key Components:
Situation Analysis: Understanding the current market conditions (e.g., SWOT analysis).
Target Market: Defining specific customer demographics and behaviors.
Marketing Mix (4Ps): Product, Price, Place, Promotion strategies.
Goals and Objectives: Measurable outcomes like market share or revenue targets.
Budget and Timeline: Allocating resources and setting deadlines for implementation.
Evaluation Metrics: KPIs to measure success (e.g., sales, customer retention).
Determine factors affecting business risk.
The sources of business risk are varied but include changes in consumer taste and demand, the state of the overall economy, and government rules and regulations. Risk can be created by external factors that the business doesn't control, as well as by decisions made within the company's management or executive team.
1) Market Fluctuations. ...
2) Fluctuations in foreign exchange and interest rates. ...
3) Natural Disasters. ...
4) Competition. ...
5) Implementation of Management Strategies. ...
6) Business Activities Worldwide. ...
7) Strategic Alliance and Corporate Acquisition. ...
8) Financing.
Identify strategies to manage customer experience during peaks in demand
1. Prepare staff for the peak trading
-they aren't stressed by nasty surprises
-heightened emotional state of their customers
-Stress management
2. Rewards and recognition
-Positive reinforcement: introduce rewards and recognition
-Time milestones: set a goal and motivates the worker when it is met
3. Be flexible and scalable
- Design for the peaks and scale for future growth
4. Staff committed people, automate wisely