Chapter 9

Chapter 9

• 1.
  1 chapter 99
• 2.
  The need tomove money and make payments (e.g current accounts, ATMs, debit cards). The need to earn a return on money (e.g savings account unit trusts). The need to defer payment or advance consumption (e.g loans, credit cards, mortgages). The need to manage risk (e.g life insurance, general insurance). The need for information(e.g share price information services, product information). The need for advice or expertise (e.g tax planning, Investment planning, IPO services). What Customers want
• 3.
  3 Core Tangible Augmented Potential
• 4.
  4 99 Al-murabahah Al-mudharabah Al-Ijarah Qard Hasan Amanah andAl-wadiah Al-Kafalah Takaful
• 5.
  99 Management of existingproduct lines Product range management Consumers Competitors External environment Internal factors
• 6.
  99 The first dealwith decisions about features to a particular product. The second deals with product line management This covers two broad areas:
• 7.
  99 Customers assess servicesquality from both the technical and functional aspects. Technical (or outcome) quality -Is concerned with how the product performs (e.g does a capital growth investment trust provide an acceptable rate of capital growth?). Functional or (process) quality –Is concern with the way in which the service is delivered and might Include factors such as the way staff behave towards customers, and the speed of response to questions.
• 8.
  99 Product modification isconcerned with changing the attitude of a product to make it more attractive to the market. Product development involves creating a new variant of an existing product It is typically associated with either product line stretching or product proliferation.
• 9.
  99 This ensures thatthe range is up-to-date, innovative And meets changing consumers need.
• 10.
  Chapter 1 Version3e 10 99 Major innovations-These are products new to both the organization and the market. Major innovations are thus rare in financial services. New service lines-These refer to products new to the organization but not to the market.
• 11.
  99 NPD StrategyNPD Strategy IdeaGenerationIdea Generation Idea screeningIdea screening Developing and TestingDeveloping and Testing Product LaunchProduct Launch
• 12.
  99 To be orientedtowards taking advantage of new market segment. Seen as crucial to the continued competitiveness of the organization. Required to maintain profitability Designed to reduce excess capacity or even out fluctuating demands.
• 13.
  Generated from bothinside and outside Generated internally from specialized NPD teams and employee feedback or suggestions Externally, generated based on customer feedback, market research Specialist new product development agencies or by Improving on the competitors efforts.
• 14.
  14 This means deciding,in advance, on a set of criteria for idea evaluation. The criteria used are likely to Include the following: oDoes the idea fit the organization's strategy? oDoes the idea fit the organization's capabilities? oDoes the idea appeal to the right market segments? oIs the idea viable in terms of cost and profit?
• 15.
  It is commonto test this newly defined product to identify consumer and market reactions This will help to make the necessary product modifications, If any before it is launched.