1.27 Enterprise and Marketing in the Development of Products Flashcards
Customer identification
- Knowing your target market and/or target user can help massively in the success of a product
- Market research helps to find out crucial background information such as age, gender, disposable income, residential location, and recreational interest, which all impact on the product design and outcome
- Market research can also identify why customers are motivated to buy certain products, such as social and emotional needs, family needs, budget pressures, brand preferences
Example:
Adult sci-fi enthusiasts may be more likely to buy products with a space-age or sc-fi theme
Labelling
- Labelling can be used to promote the brand or to attract customer attention
- It can also inform consumers about important information, for example:
• nutritional information on food packaging
• use-by dates
• the BSI kitemark or the CE mark to indicate that a product meets basic
safety standards for sale in Europe
Packaging
- Design cannot be ignored in product marketing and branding
- Many manufacturers use their packaging design as an integral part of brand identity
- An early example is Apple, which had minimalist, clever packaging for its products that were revolutionary at the time
- Coco-Cola uses its distinctive bottle shape, which has changed very little over the years
Corporate identity
Corporate identity means the branding 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 and brand name
- Customers will often return to a brand they like or have had a good experience with
- Manufacturers protect their brand identity using registered trademarks, this prevents rival companies copying their logos, colour schemes and specific letter font style
Example:
If a consumer bought a pair of trainers that were uncomfortable, they would be less liekly try that brand again.
Global marketing
Global marketing means the process of promoting a final product or service worldwide
- By reaching international markets, a business can grow rapidly and be known across the world
- Marketing strategies may differ from country to country, depending on cultural differences and designers must be aware of religious and cultural beliefs in different countries
- The language of slogans must also be used with care so that the message does not mistranslate and inadvertently cause offence
Example
Large fast-food chains have different menus that are suitable for use in different countries
Advertising and promotion
These are crucial in serval stages of the life cycle of a product
Product introduction:
- marketing departments use a wide range of media to advertise their
products, to create interest and demand
Product growth:
- marketing departments often use magazine articles and online platforms
to promote the features of their product and its advantages over those of
their competitors
Product decline:
- a product series may be produced for a short time before a new model
comes out
Examples of forms of advertising
- TV commercials
- Radio commercials
- Magazines advertisements and articles
- Internet pop-up adverts
- Billboards
- Social media
- In-store demonstrations
Social media
- Potential customers across the world can be reached relatively easily and with low cost
- Retargeted marketing uses the data collected from cookies on a customer’s browsing history to introduce pop-up adverts the next time they log in; the pop-ups will be linked to items they were browsing
- Personalised video ads are also used, often with images and campaign text and a ‘buy now’ button to direct customers to a ‘checkout’
- Social media also has the advantage of ‘viral marketing’, where a customer passes a marketing message to their friends. If this leads to a large number of recipients who pass on the marketing message, that message ‘goes viral’.
Direct costs
- Direct labour (wages of people making the product)
- Direct material costs (materials used to make the product)
- Direct consumable production supplies
- Direct factory overheads (machine tools and equipment used to make the product)
Indirect costs
These are not specifically associated with making a particular product but are involved with running a business as a whole, such as:
- Administration (personal, hardware, and stationary)
- Security
- Maintenance and depreciation of equipment
- Electricity and power
Entrepreneurs
- Entrepreneurs commonly work with designers and engineers to turn their ideas into reality
- Occasionally, Entrepreneurs will have the skills to invent and design their own products, e.g. James Dyson who created the Dyson range of products
Collaborate work
- This is usually carried out by designers in the industry
- Collaborate design work involves working in a design team, either face to face or virtually using video conferencing and other file-sharing platforms
- It can include working with people in different countries and/or time zones
- Collaborate design means that designers with different skills and expertise can work together to create the best product
- The creative and technical process is spread and covers more than a single person would be expected to have expertise in