Management Concept of Product and Service Value

摘要

In the traditional approach of product management, the management focuses on mostly physical products. In many cases, development of new products aims at increasing the product performance, adding the product functions, and cutting the product costs for the better product total quality. However, values offering to the customers from organizations are not only the physical products. If organizations recognize that the market offerings are only physical products, it means that the organizations limit themselves to deliver the variety of value of market offerings and chance of market success of the new products. Especially in the current market condition, the competitiveness of the new products is increasing and getting harder. Therefore, organizations need to redefine the concept and methods of o ffering new products to the current market. Organizations need to seek the new method of increasing the own competitiveness. In this paper,the new approach of management of market offerings which include both product and service is introduced. Because both physical products and services hold the value as the market merchandise, new products could be assortment of product and service. The introduced product management concept demonstrates strategic mixtures of products and services. Some of the market offerings are defined by only physical products, however some other market o fferings are organized by only services. The introduced management concept is a type of seamless mixture approach. In the detail, the paper discusses the methods of strategic combination of products and services. In practically, how and how much it should be considered for the level of mixtures are important. Especially, integration method of new and current items including both product and service is introduced in this paper. With introduced new approach for a new “product with service” or “service with product” management concept, effective management methods are able to be designed.