Developing the Product, Service and Value of the Offering

1. Developing the Product, Service
and Value of the Offering
Rohan S Telang
Rohan Javagal
Vandana Puttaparthi
Saket Kale
Jain University

2. The product life cycle

3. The Product Life Cycle and Life Stage of Offerings
• Offering Development Stage – Product is not completely defined;
no profits.
• Promotion beyond the selling point, is considered to be publicity
about technological development.
• Offering Introduction Stage – Profits are negative or at best,
break through to positive side
• Promotion is used to build awareness , and distribution is necessary
for other than large OEM customers
• If, in the development process, designers in the supplying firm elect
to outsource elements of the product in a different manner than
previous offerings, a unique or first time value network is created

4. • Offering Growth Stage – profits increase rapidly as new
customers accept the product
• Product differentiation becomes apparent, as competitors seek
distinguish offerings
Product Acceptance – Product Differentiation– Economies
of Scale
• Offering Maturity Stage – profits will have peaked and
competition may begin to fight over market share.
• Promotion is used to reinforce buying decisions and focus on
supplier reputation and value
• Offering Decline Stage - Promotion is reduced to the minimal
levels that will accommodate existing customers.
• Consolidation usually occurs among suppliers and price
becomes a major part

5. New Product Development Process
Stage 2. Product Screening
A select, multidisciplinary team
reviews descriptions of potential
projects to determine those that
warrant continuation.
Stage 1. Idea Generation
New ideas come from many
sources. Ideally, under
marketing concept customers
needs source new ideas.

6. New Product Development Process
Stage 3. Business Case Analysis
Ideas that survive the second stage must
have the business plan , including both a
market and technical assessment,
developed more fully.
Stage 4. Product / Strategy
/ Plan Development
The product’s strategy and
implementation plans are
developed.

7. New Product Development Process
Stage 5. Test Market
If the new product is intended for a broad
market, a limited release of the early
product is trail launched.
Stage 6. Product Launch
Promotion efforts aimed at target
markets may be used to create
awareness, interest and early trials.
Stage 7. Hand off the Innovation
Translation/Customer Education Team

8. Role of Marketing in the Product Development
Process
• Understand the technology in depth
• Define and redefine current and future customer needs
• Motivate other company departments and organisations
• Screen and select ideas from all sources
• Guide the new product development with continuous redefinition of
customer needs
• Rewards the efforts of staff
• Catalyse company resources to get the right talent

9. Reducing the Risk of New Product Failures
Why do new products fail ?
• The missing marketing plan
• No real needs exist
• Overestimated market size
• Offering fails to meet the need adequately
• Market will not pay
• Contrary perceptions of innovations.

10. Thank You..