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PRODUCTS:
CORE AND SUPPLEMENTARY
ELEMENTS
JONATHAN E.W 201360042
STEFANY TABITA.E 201360173
ROSE LINDA 201460052
LYVIA201460082
EDITA ELIEZER 201460092
RISKA IMELYATNI 201460
Overview of Chapter 4
Designing a Service Product
The Flower of Service
Branding Service Products and Experiences
New Service Development
Service Product
A service product comprises all elements of
service performance, both tangible and
intangible, that create value for customers.
The service concept is represented by:
A core product,
Accompanied by supplementary services
Supplementary Services
Delivery Processes
Managerial Implications
Not every core product is surrounded by supplementary elements
from all eight clusters
The nature of the product helps to determine which supplementary
services must be offered and which might usefully be added to
enhance value and make the organization easy to do business with
People-processing services tend to be the most demanding in
terms of supplementary elements. especially hospitality, since they
involve close (and often extended) customer contact; similarly,
high-contact services usually have more customer interaction than
low-contact services
The Flower of Service and its petals discussed here can serve as a
checklist in the continuing search for new ways to augment
existing core products and to design new offerings
Style changed
Service improvements
Supplementary
Process line extensions
Product line extensions
Major process innovations
Major service innovations
Success Factors in
New Service Development
Market synergy
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
Conclusion
Designing a service product is a complex task that
requires an understanding of how the core and
supplementary services should be combined,
sequenced, delivered, and branded to create a
value proposition that meets the needs of target
market segements.