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BUS 2201 Dis Forum Unit 4

The document discusses the stages involved in developing and managing offerings, including idea generation, screening, specification, development, testing, launch, and evaluation. It also discusses evaluating new ideas based on consumer satisfaction and business objectives like value added, quick production and market introduction, and profitability within budget. The decline stage in product management occurs when sales and profits decline due to changes in customer preferences or new competition.

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30 views2 pages

BUS 2201 Dis Forum Unit 4

The document discusses the stages involved in developing and managing offerings, including idea generation, screening, specification, development, testing, launch, and evaluation. It also discusses evaluating new ideas based on consumer satisfaction and business objectives like value added, quick production and market introduction, and profitability within budget. The decline stage in product management occurs when sales and profits decline due to changes in customer preferences or new competition.

Uploaded by

Cherry Htun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Offering management and development are done in stages to prevent errors that could end up costing

the business a lot of money. Strategies that align with the company's mission and vision are employed in
both of these processes (developing and managing), ensuring that the final product meets all
requirements. Seven stages are involved in the development of an offering: idea generation, idea
screening, feature specification, development, testing, launch/commercialization, and evaluation. There
are four stages in the managing offering: introduction, growth, maturity, and decline. The process of
generating an offering begins with the generation of ideas. Ideas are obtained from a variety of sources,
including employees, engineers, rival businesses, customers, and other stakeholders (Tanner et al.,
2016). It might be a suggestion for a brand-new product or one to enhance or expand upon an already-
available one. A line extension is an illustration of how a concept for a new product might be developed.
For instance, a cellphone's primary function might be making calls, but adding features like a camera
might be considered a line extension since the phone would then be called a camera phone.

The key activities in each offering development process, beginning with the first, is idea generation.
Typically, it's also the one with the lowest process costs. Following idea screening, this is the stage
where the company strives to stop mistakes from occurring in the early stages of the process, eliminate
faulty ideas, and reduce loss and investment as soon as possible. The company also makes an effort to
evaluate the quality of the offer by looking at important factors including if the service or product
offered value for customers, how quickly it could be produced and launched onto the market, or
whether it was consistent with the company's overall business plan. The following step is feature
specification, during which the firm examines potential application areas for features. It also includes a
discussion of the features of the product or service, and this is where the price is once again a factor.
The fourth step, Development, involves designing the offering, taking note of the specifications, and
putting prototypes into production. Testing is the following stage, where the service or product is tested
first in a lab and subsequently on actual customers. After the service or product has been tested, the
sixth step, called Launch or Commercialization, is when it enters the market and becomes available to
customers. The final phase is evaluation, in which it will be determined whether the service is providing
customers with the right value and achieving the company's goals.

A company should evaluate new ideas based on consumer satisfaction and business objectives. They
should also consider whether the new idea or suggested product would add value for customers, as well
as whether it can be produced quickly and introduced to the market. Finally, they should consider how
many items will be sold at what price and whether they can be produced and sold within the budget
while still making a profit. These are the criteria for idea evaluation:

- A SWOT analysis examines the idea's strengths, weaknesses, opportunities, and threats. It
facilitates taking the notion and examining it from a variety of angles and provides a
comprehensive analysis of it.
- Experts compare ideas using an evaluation matrix in accordance with predefined criteria. For a
thorough examination, for instance, five criteria are applied. Each criterion may be graded on a
scale of 0 to 5, along with extra remarks explaining the reasoning for the rating.

The decline stage in the product management stage occurs when sales decline and profits are low due
to changes in client preferences, technical advancements, product satisfaction, or the entry of new
companies with affordable products. Companies that experience product decline in the product life
cycle employ strategies like cutting back on product promotion spending and the number of distribution
channels through which they are sold; implementing price reductions to entice customers to buy the
product; harvesting the product and gradually reducing all costs associated with it, including
investments made in the production and marketing costs; and disassociating the product from its
offering.

Reference

Tanner, J. & Raymond, M.A. (2016). Principles of marketing.Open Textbooks for Hong Kong.


Licensed under a Creative Commons by-nc-
sa. https://www.opentextbooks.org.hk/ditabook/16010

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