Elements and Performance Criteria
- Research the market.
- Focus the research of potential tourism products within the context of the overall business plan and marketing focus of the organisation.
- Identify and access general information sources for tourism, tourism market trends, and distribution and marketing networks.
- Consult with and incorporate input from internal colleagues and external stakeholders in the research phase.
- Conduct research to identify current market trends, needs, and product and service gaps and analyse the potential for future product development.
- Identify a range of product development opportunities based on review of the market place and market needs.
- Identify distribution and marketing networks that would support the proposed tourism product and analyse the ability to successfully market.
- Analyse issues relevant to establishing the product.
- Identify and analyse product preferences and requirements of different consumer markets, including those with special needs.
- Consult external stakeholders on customer and tourism industry service and quality expectations for tourism products and services.
- Identify and assess external issues that impact on establishing a product.
- Assess suitability of destinations at which product will be delivered for accessibility and availability of services that will meet preferences and requirements of target market.
- Conduct a self-assessment of organisation's capability to provide proposed product and identify additional resources required to establish and deliver the product.
- Consider issues relating to product life cycle.
- Determine a profitable selling price.
- Identify all expenditure items involved in delivering the tourism product to determine the nett delivery cost.
- Identify organisations that will be involved in the product distribution network and the commission or mark-up structures that would apply.
- Incorporate required distributor commissions or mark-ups, and determine required profit margin and mark-up for profit.
- Make reasonable cost adjustments to ensure market take-up of price-competitive product.
- Assess cost-effectiveness and profitability of a range of proposed products and choose products that will provide the highest yield.
- Clearly and accurately document the full range of pricing structures.
- Establish the product.
- Monitor and evaluate the success of the product.
- Monitor product development initiatives in terms of response in the marketplace; feedback from the distribution network, staff and customers; and changes in the internal or external environment that may impact on plans, cost-effectiveness and profitability.
- Identify and action changes required in a timely manner and according to any contractual obligations.
- Communicate changes to all relevant colleagues, customers and distributors.