CHAPTER 5.3 | HIERARCHY OF NEW SERVICE CATEGORIES

00:09:18
https://www.youtube.com/watch?v=eB4FjRsQYMY

Summary

TLDRThe video outlines the hierarchy of new service categories which ranges from style changes, where no major improvements are needed, to major service innovations that introduce entirely new market goods and procedures. Examples include process line extensions and product line extensions. It also discusses achieving success in new service development through market synergy, organizational factors, and market research. Market synergy involves blending new products with a company's current image. Organizational factors stress the importance of employees understanding new innovations. Comprehensive market research is essential for planning and ensuring new service developments align with customer needs, ultimately driving satisfaction and loyalty.

Takeaways

  • 🔄 Style changes require no mechanical improvements.
  • 🔒 Service improvements involve making minor modifications for security and efficiency.
  • 🆕 Supplementary service innovations introduce new products or enhance existing services.
  • 🚗 Process line extensions offer customers more comfort and convenience.
  • 🔍 Market research plays a vital role in establishing successful new services.
  • 🏆 Achieving market synergy blends new products with existing company image.
  • 🎓 Understanding organizational factors helps in implementing service innovations.
  • 📊 Comprehensive market analysis is vital for planning new services.
  • 🌐 Major service innovations introduce new market goods and procedures.
  • 📈 Focus on consumer satisfaction turns into loyalty over time.

Timeline

  • 00:00:00 - 00:09:18

    The video outlines the hierarchy of new service categories, starting with the simplest being style changes that typically do not require improvements in procedures or outputs, such as uniform updates. It then discusses service improvements which require minor enhancements to current products, like implementing secured service transactions through QR codes. Supplementary service innovation involves introducing new products or upgrading existing services. An example is the use of QR codes for payments. Process line extensions aim at enhancing the customer experience in existing services. Product line extensions involve adding to existing product lines, like offering a waffle alongside a main product. Major process innovations include using innovative processes to provide advantages, such as transitioning from face-to-face to online classes using platforms like Zoom. Major service innovations introduce new market services with new aspects and procedures, such as waterless car washes.

Mind Map

Video Q&A

  • What are the simplest types of developments in service categories?

    They are style changes, which usually don't require improvements in procedures or output.

  • What is an example of a service improvement?

    Having a secure shopping experience through improved forms and technology.

  • What constitutes a major service innovation?

    It involves emerging market goods with new services and radical procedures, such as waterless car wash.

  • What is market synergy in new service development?

    It refers to blending a new product with a company's current image, experience, and resources.

  • Why is organizational factors important in service innovations?

    Production employees must understand their role and the value of new innovations to the company.

  • How does market research contribute to new service development?

    It helps in planning process with comprehensive market analysis to establish successful product ideas.

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    [Music]
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    [Music]
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    yes
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    [Music]
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    moving forward we have the hierarchy of
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    new service categories
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    we'll start from the bottom which is
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    style changes
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    the styles changes this is the simplest
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    kind of development that usually does
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    not require
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    improvements in either procedures or
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    output
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    so an example of this puede young
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    uniform
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    if ma pansinho tinetta
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    are having that kind of
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    development but this does not
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    uh require a mechanical improvement
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    procedure
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    would that mean we will be more
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    efficient in teaching
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    or we will be more productive in terms
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    of doing
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    extensions research and training
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    the next we have service improvements
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    so they require minor performance
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    modification
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    in current products or enhancements
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    to either the main product or existing
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    additional facilities one example of
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    this is
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    for us to have a secured
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    shopping or secured
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    availing of services so
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    parents
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    form and they are trying to improve it
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    more in regard and
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    qr code so those are service
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    improvements
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    next we have supplementary service
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    innovation so this
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    take the form of introducing new service
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    products to the current core service
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    or substantially upgrading an existing
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    added service
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    in different establishments
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    later on debit or credit card
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    now later on nagaranama qr codes
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    for gcash and pay maya
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    and at some point they're also accepting
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    cryptocurrency like for example bitcoin
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    so next we have process line extension
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    so this
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    aim to give current customers more
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    comfort and experience or to draw
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    customers
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    who find their conventional approach
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    unsatisfactory
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    example
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    they're just into hotels
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    uh amusement parks then the car owner in
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    the
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    hiring of drivers or hiring of
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    cars renting of cars rather so
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    extension
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    next we have product line extension so
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    there are additions to the existing
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    product lines of a company for example
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    unanimous
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    then you offer it waffle that's product
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    line extension
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    then another sabimu um
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    okay then next we have major process
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    innovations
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    so this consists of using innovative
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    processes
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    offering newly introduced advantages
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    apparent for goods
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    online class and we're using different
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    platforms like for example
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    zoom we're also using google me
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    divine terms of communication classroom
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    and other applications
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    so there is from traditional
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    face-to-face classes online classes
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    okay next we have major service
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    innovations
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    there are emerging core market goods not
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    previously
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    identified typically this contained both
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    new aspects of the service
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    and radical new procedures an example of
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    this is
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    samanila if you will go there and you
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    will ask for car wash which is
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    a type of service
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    is
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    okay so this one is very popular
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    in other countries so from
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    what usage of water is waterless car
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    wash
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    next we have achieving success in new
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    service development we have
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    three first is the market synergy
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    so to market synergy the new product
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    blends in with a company's current image
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    experience and resources an example of
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    this would be the sm
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    bonuses products
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    there are different products the merong
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    sm bonus no logo
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    so they're trying to blend it with the
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    image of
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    sm in terms of experience and resources
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    in purchasing habits non-customers
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    namaste feeling
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    lower price but has the same efficiency
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    no okay then next we have
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    organizational factors so production
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    employees must be well informed of their
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    involvement
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    and the value of new innovations to the
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    company
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    until production where christmas grasp
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    the new product and the underlying
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    mechanisms as well as information on
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    direct drivers
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    phone vivo or samsung or whatever
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    branding
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    on paris sales is not in which is an
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    organizational factor because you're
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    part of the organization
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    they are different uh
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    employees na makicater
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    onsa mismo customer okay so they have to
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    know
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    and biology improvement no uh for
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    example so oppo we have reno five
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    from renault three and in comparing
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    arena five to one tobacco capacity
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    samsung it's about
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    apple hey so that they will
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    be knowledgeable the unsa product that
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    they're selling
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    and this is actually a good selling
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    point for you to be knowledgeable
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    okay the next we have market research
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    factors in planning process
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    comprehensive and objectively planned
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    market analysis
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    are performed early with a good
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    understanding of the type of knowledge
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    to be collected
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    until conducting field services
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    successful product idea is
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    established most likely in the discuss
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    not in those
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    eight steps then from there
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    you manipulation therefore
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    the market research will help you
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    to achieve the new service development
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    that will be accepted by your
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    customers or your prospective future
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    buyers so that would be all for
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    this chapter which is marketing research
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    techniques for
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    product and service development i hope
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    that we will consider
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    points of selling and points of
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    operation
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    for example expenses and profit for us
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    to develop
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    products and services that are needed
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    and demanded by the
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    consumers which will yield satisfaction
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    and later will turn to loyalty
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    you
Tags
  • Service Categories
  • Development
  • Service Innovations
  • Market Synergy
  • Market Research
  • Organizational Factors