Product Service Management
Service Product Management deals with managing a service product across its complete life cycle. This organizational function is equally common between Business to business as well as Business to consumer businesses. A service product, unlike a tangible product, is intangible and manifests itself as pure professional services or as a combination of services with necessary tangible products. The service product management practice ensures management of a profitable service in the marketplace. Service Product management identifies profitable service space, packages services in a marketable form and delivers the same to the market. The function is a core service business management function and is a mix of sales and marketing functions. The function interfaces with various organizational groups like Strategy, Planning, Financial Controls /Management Accounting, Sales, Marketing Communications etc.
Product Service Management Functions (Product Life Cycle)
1.) Service Idea Generation/Management: This function deals with capturing market's unmet and/or under-served needs, filtering the ideas based on business viability, business feasibility and potential, potential, company strategy, and capital rate of return considerations. The end result is a potential set of market feasibility and market features captured in a marketing requirement document.
2.) Service Product Creation: Potentially marketable service features are captured and developed. That means creation of necessary product documentation like executive materials, service product document, technical services document, service scope etc.
3.) Service Sales Support: Service product management supports service sales by providing accurate resource estimate and in the right mix to provide an efficient product cost base on which to baseline the customer pricing.
4.) Demand Supply Planning: Services profitability management by supporting balance between service demand and supply of necessary service resources.
5.) Business Management System Support: Efficient management of service product cost and revenues according to service contract and incurred costs. The same is generally needs a service product manager to provide product data management for Enterprise resource planning systems.
6.) Marketing and Market Communications: Industry event participation, press release, consensus building, delivering service messaging through various available marketing channels.
7.) Knowledge Management: Manage the knowledge management process and best practices for the service.
8.) Service Ramp Down: Manage the decision process of SLOWING down service product, and executing the service ramp down thus ending the service product management process.
Products and Services
Service: An activity that is intangible, exchanged directly from producer to consumer, consumed at the time of production, and they are perishable.
Product: A tangible item made by a producer for the consumer.
Warranties and Guarantees
Warranty: In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.
Guarantee: A promise by one party assuring that a product is good.
Product Mix
Product Line: A group of similar products with slight variations in the product mix to satisfy different needs in a market.
Product Assortment:The complete set of all products a business offers to its market.
Packaging: Focuses on five aspects of packaging Ease of Use, Safety, Attraction, Handling, and Environment.
Brand Development: Trademarks,logos,symbols, and other ways of getting a brand out there.
Branding: The nature of branding is that where you have a well known name or symbol established by one company and sold for use by another company to promote its products.
Consumer and business Purchase Classifications:
Consumer:
Convenience Goods:Staple, impulse and emergency goods.
Specialty Goods: Expensive purchases such as boats,cars,houses...etc.
Shopping Goods: Attribute-based or price-based goods; bought for a specific reason.
Unsought Goods: Not wanted very often, rarely sought.
Business:
Capital Equipment: Things bought and used to make a marketable product; most expensive.
Operating Equipment: Things bought and used to make production easier and more efficient;small, less expensive.
Supplies: The products and materials consumed in the operation of the business.
Raw Materials: Unprocessed materials used in the production of the main product.
Component Parts: Incorporated into a product; have already been partially or totally processed by another company.
Service Product Management deals with managing a service product across its complete life cycle. This organizational function is equally common between Business to business as well as Business to consumer businesses. A service product, unlike a tangible product, is intangible and manifests itself as pure professional services or as a combination of services with necessary tangible products. The service product management practice ensures management of a profitable service in the marketplace. Service Product management identifies profitable service space, packages services in a marketable form and delivers the same to the market. The function is a core service business management function and is a mix of sales and marketing functions. The function interfaces with various organizational groups like Strategy, Planning, Financial Controls /Management Accounting, Sales, Marketing Communications etc.
Product Service Management Functions (Product Life Cycle)
1.) Service Idea Generation/Management: This function deals with capturing market's unmet and/or under-served needs, filtering the ideas based on business viability, business feasibility and potential, potential, company strategy, and capital rate of return considerations. The end result is a potential set of market feasibility and market features captured in a marketing requirement document.
2.) Service Product Creation: Potentially marketable service features are captured and developed. That means creation of necessary product documentation like executive materials, service product document, technical services document, service scope etc.
3.) Service Sales Support: Service product management supports service sales by providing accurate resource estimate and in the right mix to provide an efficient product cost base on which to baseline the customer pricing.
4.) Demand Supply Planning: Services profitability management by supporting balance between service demand and supply of necessary service resources.
5.) Business Management System Support: Efficient management of service product cost and revenues according to service contract and incurred costs. The same is generally needs a service product manager to provide product data management for Enterprise resource planning systems.
6.) Marketing and Market Communications: Industry event participation, press release, consensus building, delivering service messaging through various available marketing channels.
7.) Knowledge Management: Manage the knowledge management process and best practices for the service.
8.) Service Ramp Down: Manage the decision process of SLOWING down service product, and executing the service ramp down thus ending the service product management process.
Products and Services
Service: An activity that is intangible, exchanged directly from producer to consumer, consumed at the time of production, and they are perishable.
Product: A tangible item made by a producer for the consumer.
Warranties and Guarantees
Warranty: In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.
Guarantee: A promise by one party assuring that a product is good.
Product Mix
Product Line: A group of similar products with slight variations in the product mix to satisfy different needs in a market.
Product Assortment:The complete set of all products a business offers to its market.
Packaging: Focuses on five aspects of packaging Ease of Use, Safety, Attraction, Handling, and Environment.
Brand Development: Trademarks,logos,symbols, and other ways of getting a brand out there.
Branding: The nature of branding is that where you have a well known name or symbol established by one company and sold for use by another company to promote its products.
Consumer and business Purchase Classifications:
Consumer:
Convenience Goods:Staple, impulse and emergency goods.
Specialty Goods: Expensive purchases such as boats,cars,houses...etc.
Shopping Goods: Attribute-based or price-based goods; bought for a specific reason.
Unsought Goods: Not wanted very often, rarely sought.
Business:
Capital Equipment: Things bought and used to make a marketable product; most expensive.
Operating Equipment: Things bought and used to make production easier and more efficient;small, less expensive.
Supplies: The products and materials consumed in the operation of the business.
Raw Materials: Unprocessed materials used in the production of the main product.
Component Parts: Incorporated into a product; have already been partially or totally processed by another company.
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