1. New offering development process
    Idea > screening > feature specification > development > testing > launch > evaluation
  2. idea generation
    • ideas come from customers (biggest source), employees, suppliers & competitors
    • especially important w/ service consuming
    • line extension: company comes out w/ another model based on platform & brand as one of other products (ex. ipod > nano > shuffle)
  3. idea screening
    • costs, profits, potential sales of the offering calculated at different price levels; how well offering fits in w/ competitive strategy
    • try to work out mistakes before real development
    • considers feasibility of actually making & servicing an offering, price & cost are important
  4. investment risk
    possibility that the company will fail to earn the appropriate return on the $$ and effort put into new product
  5. opportunity risk
    risk that there is a better idea that gets ignored bc the firm has invested in the idea @ hand
  6. feature specification
    • detailed product specifications developed; features & pricing established
    • quality function deployment (QFD): customers desired benefits & design offering that delivers those benefits
  7. development
    actual offering designed
  8. testing
    tested first in lab then with customers
  9. launch (commercialization)
    made available to customers
  10. evaluation
    evaluated if its delivering right amount of value and meeting firm's business goals
  11. product life cycle
    introduction > growth > maturity > decline
Card Set
chapter 7