CHAPTER 5

PRODUCT STRATEGIES

LESSON 1: NEW PRODUCT STRATEGIES

Topic: Service Strategies Activity: Discussion

 ● Formulate viable business models for
product concepts; and
● Apply the key strategies for improving
service quality

OBJECTIVES ESSENTIAL QUESTION:

HOW CAN WE IMPROVE PRODUCTS?

Topic: Service Strategies Activity: Discussion

 Business Plan

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Topic: New Product Strategy Activity: Discussion
 ● The mode by which the product
concept seeks to make money so that
Business Model it can have a sustainable operation

Topic: New Product Strategy Activity: Discussion

 ● Advertising
Alternative forms of
● Sponsorship
revenue generation
● Donations
● Rent or lease
● Subscription

Topic: New Product Strategy Activity: Discussion

 ● Least Cost
Competitive
● Differentiation
Strategies ● Niche

Topic: New Product Strategy Activity: Discussion

 CHAPTER 5

PRODUCT STRATEGIES

LESSON 2: SERVICE STRATEGIES

Topic: Service Strategies Activity: Discussion

 ● Know the characteristics of service-
oriented business and
● Apply the key strategies for improving
service quality

OBJECTIVES ESSENTIAL QUESTION:

HOW CAN WE IMPROVE SERVICES AS
PRODUCTS?

Topic: Service Strategies Activity: Discussion

 GOODS - refer to tangible products that consumers can
actually observe with their senses. These are objects
with physical manifestations and attributes that can be

Goods detected by our senses

vs
SERVICES - refer to intangible offerings that are
abstraction nature and cannot be observed with our
senses. A key characteristic of services in that the act of

Service delivery itself is the product.

Topic: New Product Strategy Activity: Discussion

 Example of Services ● Banking, investments and
as products insurance
● Hotel accommodations
● restaurants , bars and catering
● News and entertainment
● Transport and freight
● Education
● Health care
● Wholesaling and retailing
● Professional consultations

Topic: New Product Strategy Activity: Discussion

 Other distinct characteristics of services

● Customers do not gain ownership of services

● Customer is an active participant in the production of the service
● The product experience is typically a composite number of factors
● There is greater variability in the inputs and outputs of a service
● It is difficult for customers to evaluate the quality of the service itself
● Time is a significant factor for assessing service quality

Topic: New Product Strategy Activity: Discussion

 Directed at Directed at
people Possession

PEOPLE POSSESSION
PROCESSING PROCESSING
Airlines Freight
TANGIBLE
Types of
Hospitals Repair
ACTS Hotels Cleaning
restaurants Landscaping
Retail
Service MENTAL INFORMATION
STIMULUS PROCESSING
Processes INTANGIBLE
PROCESSING
Broadcasting
Accounting
Banking
ACTS Consulting Insurance
Education Legal
Therapy Research

Topic: New Product Strategy Activity: Discussion

 ● Personnel Selection and
Service Training
● User Interface
Elements ● Points of Contact
● Tangible Mementos

CUSTOMER SERVICE VS CUSTOMER EXPERIENCE

Topic: New Product Strategy Activity: Discussion

 Thank You

Topic: New Product Strategy Activity: Discussion