1.13 Enterprise and Marketing in the Development of Products

Question 1

What are the key characteristics of customers?

Answer 1

age, gender, disposable income, residential location, recreational interests

Question 2

Why is age an key characteristic of customers?

Answer 2

Once a designer knows what age group they are designing for, they may use a certain aesthetic that are relevant to that age group.

Question 3

Why is gender a key characteristic of customers?

Answer 3

The aesthetics of a product might be influenced by gender. For example, a designer developing packaging for a deodorant for a male might use colours such as blacks and silvers, while deodorant packaging for a female market might include soft pastel colours.

Question 4

Why is disposable income a key characteristic of customers?

Answer 4

Designers will need to know whether to develop a ‘budget’ product or one that is aimed at a higher income, perhaps a luxury item

Question 5

Why is residential location a key characteristic of customers?

Answer 5

If the customer typically lives in a one-bedroom flat, the designer might need to give more careful consideration to the size and ease of storage of the product they are developing.

Question 6

Why is recreational activities a key characteristic of customers?

Answer 6

If the customer is interested in adventure sports or fitness products, the designer will try to use aesthetic and functional features, and choose materials that are in keeping with these themes.

Question 7

Market research can identify why the customers are motivated to buy certain products. What might some typical reasons be?

Answer 7

1 social and emotional needs
2 family needs
3 budget pressures
4 brand preferences

Question 8

What is corporate identity?

Answer 8

It is the branding that is used to present the image of a company to the public. Designers use colour or combinations of colours, logos and typeset (letter fonts) to create a ‘brand’ and brand name.

Question 9

Why is corporate identity essential for marketing?

Answer 9

This is vital is establishing and maintaining customer loyalty to a brand, and for a product or range pf products marketed under this brand name. When customers try a product and like it, they will look for the same product again. The key to identifying their favourite product will be the distinctive corporate identity of the brand

Question 10

How do manufacturers protect their brand identity?

Answer 10

They use trademarks, which prevents rival companies copying their logos, colour schemes and specific letter font styles.

Question 11

Why is packaging design important?

Answer 11

Packaging design is a key aspect of product marketing and branding. Many manufacturers use their packaging design as an integral part of brand identity. E.G. coca cola

Question 12

What is global marketing?

Answer 12

The process of promoting a final product or service worldwide. The purpose of this is to reach international markets, which has the potential to rapidly grow a business.

Question 13

What are the factors that designers have to consider when global marketing?

Answer 13

1 the region in which the product is being promoted
2 religious and cultural beliefs
3 the design of the packaging showing images

Question 14

What are some forms of advertising?

Answer 14

TV commercials, radio commercials, magazine advertisements and articles, internet pop-up adverts, billboards, bus shelter posters, social media, ins-tore demonstrations

Question 15

How has social media influenced advertisement?

Answer 15

The use of social media has transformed how products are advertised. Manufacturers using social media are now able to reach potential customers all over the world with relative ease and at a lower cost than other techniques such as TV commercials.

Question 16

What are cookies and retargeted marketing?

Answer 16

Cookies are packets of data exchanged from the website server to the customer’s browser, which allows websites to store certain information about the customer and their preferences. When you have visited a website using a cookie, it can be used to track what you were browsing. The next time you use the internet, pop-up display adverts will appear to promote products or services you were looking at. This is known as ‘retargeted marketing’.

Question 17

What is viral marketing?

Answer 17

The use of social media has seen a new phenomenon known as ‘viral marketing’. This technique relies on people passing a marketing message to their friends. If a large number of recipients pass the marketing message on, the overall growth snowballs and the message goes ‘viral’. This type of marketing is often used in the initial launch of products, and in the growth stage.

Question 18

What are direct costs?

Answer 18

Direct costs are those that are directly associated with making a specific product, and include direct labour (wages of people making the product), direct material costs (materials used to make the product), direct consumable production supplies and direct factory overheads (machine tools and equipment used to make the product).

Question 19

What are indirect costs?

Answer 19

Those that are not specifically associated with making a particular product, but are involved with running a business as a whole. This might include things like administration, personnel and security, maintenance and depreciation of equipment and electricity.

Question 20

How do you find the product cost per unit?

Answer 20

total direct material costs + total direct labour costs + total manufacturing overhead costs/the number of units made

Question 21

What is an entrepreneur?

Answer 21

A person who demonstrates initiative and invests capital into an idea - perhaps setting up a business, project or other venture. Usually, the entrepreneur takes the risk by investing their own capital or by obtaining finance from banks and other investors.

Question 22

What does product life cycle mean?

Answer 22

The stages of a product from introduction, growth and maturity to decline

Question 23

What is a designer-maker?

Answer 23

Someone who both designs and makes products