2. How should other areas of De Mar (marketing, finance, personnel) support its

Question

2. How should other areas of De Mar (marketing, finance, personnel) support its product strategy?

3. Even though De Mar's product is primarily a service product, how should each of the 10 strategic OM decissions in the text be managed to ensure that the product is successful?

De Mar's Product Strategy De Mar, a plumbing, heating, and air-conditioning company located in Fresno, California, has a simple but powerful product strategy: Solve the customer's problem no matter what, solve problem when the customer needs it solved, and make sure the customer feels good when you leave. De Mar offers guaranteed, same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge for customers whose air conditioning dies on a hot summer Sunday or whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: "We will be there to fix your A/C on the fourth of July, and it's not a penny extra. When our competitors won't get out of bed, we'll be there!" De Mar guarantees the price of a job to the penny before the work begins. Whereas most competitors guarantee their work for 30 days, De Mar guarantees all parts and labor for one year. The company assesses no travel charge because "it's not fair to charge customers for driving out." Owner Larry Harmon says: "We are in an industry that doesn't have the best reputation. If we start making money our main goal, we are in trouble. So l stress customer satisfaction; money is the by-product." e Mar uses selective hiring, ongoing training and education, performance measures, a compensation that incorporate customer satisfaction, strong teamwork, peer pressure, empowerment, and aggressive promotion to implement its strategy. Says credit manager Anne Semrick: "The person who wants a nine-to-five job needs to go somewhere else." Mar is a premium pricer. Yet customers respond because De Mar delivers value-that is benefits for costs. In 8 years, annual sales increased from about $200,000 to more than $3.3 million

Explanation / Answer

this company has service related business, its product is service product not product oriented business. It offers services like repairs,plumbing works,air-conditioner services and heating services.

the tangible physical parts of its product are components,spare parts which are useful to repair and installation. company provides 24/7 services and zero fee.It provides one year quarantee to its customers.

2. To provide this kind of services to customers,its not responsibility of single person and single department. Departments like Personnel,finance,marketing should support.

personnel department should motivate and train people to commit high level and true services.It should commit its employees to its philosophy.

Marketing department is very important for every organization because, activities of this department useful to company to stay in market for long time. Here marketing department should concentrate to improve sales by providing currect information to its customers about company services and commitment.

Finance depatment is a backbone of every organization, it should handle the financial transactions to support the company.

3. This company providing fast service ,reasonable price,one year guarantee, effective human force, well designed duties and responsibilities,greate imporance to customers based on these aspects, this company increased its productivity from $200.000 to $3,3 million over 8 years as mentioned in the above text.

it explains that company strategy is perfect,this is right way to improve profits because,customer is most respectable person in the world

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