2.2. Business Idea & Value Proposition
2.2.3. The Value Proposition as a Product and Service
A business idea makes an offer to a customer. A service is offered. Two basic types of services can be distinguished: the product and the service.
The product can be characterised as a product or material object. For example: watch, mobile phone, pen, clothes, technical accessories, machines, books, cars, computers, bio-diesel, plastic shells, measuring device, software, mobile phone network, smart card, spectrometer, clothes, food. Products must be developed and designed.
task of product development produce an object or a product in such a way that it can be sold on the market Product development includes both new development and further development. Technical progress requires the constant adaptation of products to the new needs in the market. Most customers in our culture have a high affinity for innovative products. generation of mobile phones, jewellery collection, the latest fragrance, the latest car, and the latest edition are preferred.
There are hardly any limits to product development. Everything that has been and will be produced in our world is thought up and developed by people. In the process, ever more rational manufacturing processes are being devised and used. The product life cycles are becoming shorter and shorter for many objects. Most of all products sold today have only been developed and produced in recent years. New products are being created all the time. In the globalised world, many new products are brought onto the internationally networked markets every day.
The task of product design is to decide on usability, quality, size, shape, colour and design It is about finding and developing the best possible benefit for the customer. In the process, for example, the usability of services is constantly adapted.
Product development and design are driven by different motives. One strong motive is the novelty of the product. Equally important are cost considerations. The compulsion to adjust costs to the market price in competition leads to productivity increases in companies. Market adjustment is the basis of a company's competitiveness. In the globalised world, production moves to those regions where the best conditions for capital utilisation exist.
The difference between product and service lies essentially in its material character. The service is defined by the fact that the performance is generated directly at or with the customer It hardly ever happens that it is produced without the customer Typical services are those of a hairdresser, a craftsman, an agency, an agent for travel, for real estate, for insurance, for trade, for education and teaching, for counselling. Service can be many things that do not directly concern production. Service means service for the marketing of products. In a café coffee and drinks are sold as products, the service can be understood as a service. In a tanning salon, "tan" is sold, which can be an expression of the desire for "healthy and beautiful appearance". Services must be directly tailored to people's needs, only then do they become marketable. Only if the service is right will the customer come back.
Service quality is increasingly at the forefront in today's It is characteristic of services that they are not exchangeable or reversible. Rectification is only possible to a limited extent. An unkind word cannot be taken back, even if an apology is possible. A service cannot be stored or produced in stock. It takes place in the creation process itself, in which the customer is passively or also actively involved. The outcome quality of a service refers to having to achieve previously defined goals. If the objectives are not met, the service is provided inadequately. If the quality is missed, the customer will look for better quality. The service stands and falls with the skills of the person who performs it.
Customer orientation plays a direct role service Customer orientation can be understood as the orientation of all activities and business processes of a company to engage with wishes, requirements, and expectations of the target customers. In this context, quality is understood as the optimal fulfilment of customer requirements. customer-oriented concept of quality must be reflected in the type and quality of a product as well as in the provision of a service.