1.13 Enterprise and Marketing in the Development of Products

Question 1

customer identitification

Answer 1

• ensures product appeals to correct target market- sell more
• can influence aesthetics
• eg deodorant for men vs women

Question 2

factors considered in customer identification

Answer 2

• age
• gender
• disposable income (budget vs luxury product)
• residential location (space for ease of use- eg 1 bed apt)
• recreational interests

Question 3

corporate identity

Answer 3

• logos important- make company memorable, cultivate customer loyalty
• protected by trademark etc to prevent copycats stealing customers

Question 4

packaging design

Answer 4

• distinctive & recognisable
• build customer loyalty
• used as marketing
• eg coke bottle

Question 5

global marketing- why advertise differently in different regions? (3)

Answer 5

• appeal to different cultures & trends
• adapt to different cultures & religious beliefs so as not to offend customers
• adhere to different marketing/branding laws
  eg different colours have different meanings

Question 6

retargeted marketing

Answer 6

• uses cookies (store data about customer & preferences)

- cookies track what was browsed, used to advertise products as pop ups

Question 7

viral marketing

Answer 7

• uses social media
• relies on people passing a marketing message to their friends
• if a large number of recipients pass it on overall growth snowballs and message goes viral
• often used in initial launch & in growth stage

Question 8

direct costs =

Answer 8

• costs directly associated with making a product:
• direct labour (workers’ wages
• direct material costs
• Direct consumable production supplies & direct factory overheads (machine tools & equipment)

Question 9

indirect costs =

Answer 9

• costs not directly associated with making product, but running the business:
• admin
• personnel & security
• maintenance & depreciation of equipment
• electricity