CH 7: Offering Development and Product Life Cycle

These flashcards cover key concepts related to the development and management of product offerings, including steps in product development and stages in the product life cycle.

Idea Generation

The first step in offering development where the basic idea for a product is created and described.

Idea Screening

The process of evaluating a product idea's potential, calculating costs, profits, and sales at various price levels.

Feature Specification

The phase where detailed specifications for the product including features and pricing are established.

Development

The actual designing and creating of the product offering.

Testing

The phase where the offering is tested in a lab and then with real customers to gauge its effectiveness.

Launch (Commercialization)

The phase where the product offering is made available to customers.

Evaluation

The process of assessing the product's performance against business goals and customer value.

QFD Process

A method used to translate customer needs into measurable product specifications.

Product Life Cycle (PLC)

The stages a product goes through after development, including introduction, growth, maturity, and decline.

Skimming Pricing

A pricing strategy that sets high initial prices to maximize revenues from early adopters.

Penetration Pricing

A pricing strategy that sets a low initial price to attract a large number of customers quickly.

Maturity Stage

The stage of the product life cycle where sales level off and growth slows down.

Decline Stage

The phase where product sales decrease at an increasing rate, often due to obsolescence or market shifts.

Alpha Testing

Testing the product in controlled conditions before it is offered to actual customers.

Beta Testing

Testing the product with actual customers in real-world conditions before the full launch.

the new offering development process

idea generation, idea screening, feature specification, development, testing, launch (commercialization), evaluation

harvesting

companies reduce investment in a product, service, or good

divesting

companies get rid of a product, service, or business