- What is De Mar’s Product? Identify the tangible parts of this product and its service components.
De Mar offers repairs and installations of plumbing, heating and air-conditioning. Tangible physical parts of repairs and installations Service components same day service 24/7; only one tariff – no extra charges; one year guarantee.
- How should other areas of De Mar (marketing, finance, personnel) support its product strategy?
Personnel must be hand-picked and need to undergo a special education and ongoing training. De Mar should carefully see if the potential employees fit into their company profile and can collide with the company philosophy. De Mar Marketing should send a message that they deliver a high quality at reasonable prices. Telling their potential customers that their services are going to become more expensive but including the above mentioned points of their intangible services the ratio value/price is better for the customer. The company should carefully monitor its competitors to keep their prices at a reasonable level.
3) Even though De Mar’s product is primarily a service product, how should each of the 10 strategic OM decisions in the text be managed to ensure that the product is successful?
Fast service, constant price, one year guarantee Human Resources need to have a certain routine. The job design has to consider flexibility, friendliness to the customer, qualifications. As the text indicates productivity increased over the last 8 years from $ 200.000 to over $ 3,3 million. This shows that the company strategy is performing well and it should this way.