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Feature Specification
The next step involves narrowing down the product’s features. Again, price enters the picture as the
company considers which features are important to consumers at different price points. A premium (high-
priced) offering is likely to be loaded with extra features. By contrast, a low-priced offering is likely to be a
“bare-bones” product with few features.
Quality function deployment (QFD) is a process whereby a company begins with the customer’s
desired benefits and then designs an offering that delivers those benefits. The benefits are linked to
certain characteristics of the offering, which are then broken down into component-part characteristics.
From this list of component parts, the product is designed. Thus, the feature specifications process begins
with a strong understanding of what consumers want and need.
HP has developed a number of computer printers using the QFD process. The QFD process has been
particularly helpful when it comes to bundling the right features within the HP’s printer line because each
printer model can be targeted to specific customer needs. Customers can then purchase the model that
best suits their needs and doesn’t have a bunch of features that don’t add value for them.
Development
In the development stage, the actual offering is designed, specifications for it are written, and prototypes
of it are developed. It is also during this stage that the firm considers the product’s manufacturing
process. For example, when a restaurant is developing a new dish, it must not only taste good; it must also
be a dish that can be made in a reasonable amount of time once it’s ordered and prepared at a cost that
earns the restaurant a profit. In terms of a manufacturer’s offerings, using the same technology platform
as another product (like Apple has done with iPods) can be very effective and cheaper. Using the same
platform also generally makes it easier for a company to train its technicians to service a new product.