Monday, October 3, 2011

Topic 4 - Developing Financial Products and Designing Service Experiences

Topic 4:

Products are need-satisfying offerings of an organisation. Anything that can be offer for attention, acquisition used for consumption that might satisfy a want or a need is considered a product. It includes physical objects (goods), services, persons, places, organisations and ideas.

Services deliver a bundle of benefits to the consumer through the experience that is created for that consumer it is any activity that one part can offer another party that is intangible ad does not result in the ownership of anything.

Services are rendered
Goods are possessed

Unique Service Feature:

Intangibility

Resulting Matching Problems:

1. Service cannot be stored.
2. Cannot protect services through patents.
3. Cannot readily display or communicate services.
4. Prices are difficult to set.

Strategies to Solve:

1. Stress tangible cues
2. Use personal source
3. Stimulate word-of-mouth communication
4. Create strong organisational image
5. Use cost account to set prices
6. Engage in post purchase communication.

Unique Service Feature: Inseparability

Resulting Marketing Problems:

1. Consumer involved in production
2. Other consumers involved too
3. Centralised mass of services is difficult.

Strategies to Solve:

1. Emphasise selection and training of public contact personelle
2. Manage expectations
3. Use multi-site locations

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