Notes/Marketing/Chapter7.md

Chapter 7: New Offerings

##　7.1 The New Offering Development Process

7.1.0 Definitions

A structured process followed by businesses to create, refine, and bring new products or services to market.

• Focuses on innovation and problem-solving for customers.
• Reduces risks by evaluating ideas at various stages.

7.1.1 Idea Generation

• Definition: The process of brainstorming and gathering new product ideas based on solving customer needs or exploring innovative opportunities.
• Sources of ideas: employees, customers, suppliers and competitors.

Examples of Idea Sources

• Employees: For example, a Motorola engineer invented a phone-charging product while rollerblading.
• Customers: JCPenney involves customers in developing new lingerie designs for practical feedback.
• Suppliers: DuPont worked on new materials that led to innovative golf balls in partnership with Titleist.
• Competitors: Huawei closely observes Apple's products and adapts learning in their Mate series.

7.1.2 Idea Screening

• Definition:

  Filtering and evaluating ideas to eliminate those unlikely to succeed.

• Objective: Save time and resources by focusing only on viable concepts.

7.1.3 Feature Specification

To understand the balance between cost, competitive pricing, and customer value.

• Breaking down product features and deciding which benefits to include at varying price points.
• Uses tools like Quality Function Deployment (QFD).

7.1.4 Development

Create prototypes; consider manufacturing, timelines, and costs.

7.1.5 Testing

Testing Method	Definition	Objective
Alpha Testing	Internal testing by employees/teams.	Identify bugs early in development.
Beta Testing	External testing by a small group of users.	Gather real-world feedback pre-launch.
Usability Testing	Evaluates how efficiently users interact with the product.	Enhance user experience (UX).
A/B Testing	Compares two product variations to identify better performance.	Optimize design, features, or engagement.
Stress Testing	Tests product performance under extreme conditions.	Ensure stability and scalability.
Crowd Testing	Testing by a diverse group of real-world testers ("crowd") globally.	Gain feedback from real-world scenarios.
Automated Testing	Uses automation tools to execute and analyze tests.	Speed up process and improve accuracy.
Exploratory Testing	Unscripted testing focusing on identifying unique or unexpected issues.	Expand test coverage creatively.
Agile Testing	Integration of testing in every stage of Agile development cycles.	Continuous feedback and faster iterations.
Mobile Testing with Real Devices	Testing mobile apps/websites on real devices to ensure real-world performance and compatibility.	Ensure functionality across devices/locations.

7.1.6 Launch or Commercialization

• Definition: Introducing a product to the market with a targeted customer strategy.
• Types of Launch:
  • Full Launch: Global rollout (e.g., Apple iPhone launch events).
  • Rolling Launch: Gradual introduction by region or segment (e.g., Huawei's phased market launches for new MateBook laptops).

7.1.7 Evaluation

• Definition: Reviewing the success or performance of the product after launch.
• Metrics to Analyze: Customer satisfaction, sales volume, and key feedback in the first 90 days.

* 7.2 Managing New Products: The Product Life Cycle

• Introduction Stage: When a product is launched in the market with heavy advertising.
• Growth Stage: When sales grow rapidly, causing competitors to enter the market.
• Maturity Stage: When sales stabilize and companies focus on staying competitive.
• Decline Stage: When sales drop as interest fades or newer products replace the old ones.