Phases of Product Service Management
Every company handles product/service management differently, but there are three main phases to be aware of in the management process. They are poor product elimination, monitoring of the current product, and development of new products.
1. Developing new products
- During this stage, businesses dedicate a large amount of resources on developing, creating, and launching new items. The first step is concept generation, which can originate from a variety of people, including staff members, clients, and market research. After that, these concepts are scrutinized to make sure they make sense and fit with the objectives of the business. Concept testing is the first step in evaluating a promising idea’s potential customer interest and commercial readiness.
- A comprehensive business or feasibility analysis is carried out once a concept test is successful, taking into account variables including demand, costs, competition, and potential profit. The product advances to the development stage, where prototypes are made, tested, and improved, if the analysis shows viability. Production, packaging, branding, and distribution planning are also included in this phase. Following development, the product goes through
2. Monitoring existing products
- Companies need to keep an eye on their products’ performance after they are introduced to make sure they satisfy customers and stay competitive. This entails monitoring sales information, client comments, industry developments, and rivalry. Businesses can find opportunities for improvement in product features, pricing schemes, or marketing efforts by evaluating this data.
- Frequent observation also aids in identifying new problems or changes in the market that can call for modifications to the offers of goods or services. Businesses may collect pertinent data for efficiently monitoring current products using a variety of instruments and approaches, such as market research, sales reports, and customer surveys.
3. Elimination of weak products
- Not every product makes it to market, and some might perform poorly or age over time. During this stage, businesses assess the effectiveness of their product line and pinpoint outdated or underperforming items that no longer support their goals. Analyzing client feedback, profitability, market demand, and sales performance are all part of this process. Products that frequently fall short of expectations or don’t support strategic objectives should be discontinued.
- Businesses may stop making certain products, gradually reduce their stock, or replace poorly performing items with better models or different offerings. In order to maximize resource allocation, preserve brand reputation, and concentrate resources on high-potential items that boost profitability and customer satisfaction, poor products must be eliminated.
What do you mean by Product Service Management?
In Project Management, Product Service Management (PSM) is a holistic methodology that unifies the lifecycle management of related services and physical items. To increase the value and usability of products for customers, it includes planning, designing, producing, delivering, and providing support for them. It also includes developing and offering additional services. Where also, PSM attempts to maximize the total customer experience by ensuring that products and services meet or exceed customer expectations and deliver maximum value. This entails matching consumer demands and preferences with product design and development and consistently enhancing goods and services in response to feedback and changes in the market.
Table of Content
- What is product service management?
- Who is a Product Service Manager?
- What is the Role of Product Service Manager (PSM)?
- How Different is Product Service Management from Product Management?
- Important terms of Product Service Management
- Benefits of Product Service Management
- 3 Phases of Product Service Management
- Examples of Product Service Management
- Conclusion: Product Service Management
- FAQs: Product Service Management
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