STAGES IN NEW SERVICE DEVELOPMENT PROCESS

Generation of Idea :- Idea can be generated by 2 sources .

Internal Source :- Org should encourage their employees to communicate any ideas that they may have for NSD or improvement in current service offering . Ideas are gathered by interaction with customers or competitors . Brainstorming sections are held to get ideas from employees . External Source :- This can be by customer feedback on existing services , getting innovative ideas from field experts , research basis etc

Screening :-

Many of the ideas look interesting but they are scanned against service objectives , service policy , and organization's resources .
Concept Testing :Idea is formulated into service offering with suits a market segment . The concept will be tested by way of qualitative research , discussion groups etc to acertain whether potential customers have possibility of getting benefits and look thoughtfully of purchasing any of the offering

Business Analysis and Design of Service :Involves defining the target market ,its size , its structure, and existing customer trends .Present and future demand forecasts can prove to be extremely useful in helping the organisation decide whether to launch the new service . In addition , information about the effects of external environmental factors is essential for the organisation to develop measures to tackle problems that may arise during developing and launching the new service .

Test Marketing :To further reduce the risk , organizations should test market their services before launching them in market. Organization can select specific areas where they allow consumers to use their services and provide constructive feedback .

Infrastructure Development :- The infrastructure required to deliver the service is developed in this stage when company prepares to launch the service. Some activities like hiring and training personnel ,selecting the channel, pricing policies includes in this stage .
Service Launch :- The life cycle of service begins here and it is important to regularly supervise the operations to maximise revenues . At this stage ,the new service gets revenue to cover for the costs involved in designing and launching it .