marketingch7

Idea > screening > feature specification > development > testing > launch > evaluation

• 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)

• 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

possibility that the company will fail to earn the appropriate return on the $$ and effort put into new product

risk that there is a better idea that gets ignored bc the firm has invested in the idea @ hand

• detailed product specifications developed; features & pricing established
• quality function deployment (QFD): customers desired benefits & design offering that delivers those benefits

actual offering designed

tested first in lab then with customers

made available to customers

evaluated if its delivering right amount of value and meeting firm's business goals

introduction > growth > maturity > decline