As software development migrates from its roots as a process for building a custom product to a process for buidling packaged products, there is a greater need for an appropriate product development process model that is market-oriented. Field data, including an exploratory study that we conducted, suggests that process models are not widely used in the package industry. An overview of normative process models in the software engineering, engineering management, and marketing disciplines reveals that all of them fall short in one way or another for packaged software processes. Eight special needs are identified that set the packaged software process model apart from other individual models: addressing multiple user types, differentiating the product, finding the remote customer, involving the remote customer, facilitating speed of development, creating the marketing interface, developing in a highly iterative mode, and releasing a near defect-free product. These needs are operationalized into the proposed packaged software process model. The process model is based on two central constructs: a requirements loop's and a quality loop. The loops are separated by a stage in which requirements specifications are frozen. The requirements loop's goal is to discover requirements early and comprehensively. It is incremental (relying on prototyping), has several evaluation and exit points, and structures involvement of customers and other external sources such as marketing. The quality loop addresses the need to reduce defects: it begins with design and coding stages. It is also incremental and has several evaluation and exit points.