1.3

Question 1

Design Mix deifnition?

Answer 1

The design mix refers to three aspects of design that companies need to consider when developing a product. All three are functions, manufacturing costs, and aesthetics

Question 2

Dm: Aesthetic

Answer 2

Refers to design, style and appearance of the overall product.

Question 3

Dm: Cost

Answer 3

Cost of production/cost per unit

Question 4

Dm:Function

Answer 4

Refers to benefits of the product or services of the product. How well the products meets its designated function

Question 5

Design mix to meet social trends

Answer 5

• waste minimisation
  -reuse
  -designed to be recycled
  -sourced ethically

Question 6

Promotion

Answer 6

Promotion is the key method a business will use to communicate with its customers and potential customers; create awareness and understanding for the product

Question 7

Above-the-line

Answer 7

Promotions that involves any form of adveritisng through the media such as:
-tv
-radio
-cinema
-internet
-emails

Question 8

Below-the-line

Answer 8

Pomotions that includes all other forms of promotion that ae not adveritising.
-merchanides
-direct selling
-sales promotion (free gifts)

Question 9

Influence of Promotions

Answer 9

Target audience
technology
promotion budget
message

Question 10

Purpose of adverts

Answer 10

-inform customers
-persuade customers
- remind customers
-reassure customers

Question 11

Branding definition

Answer 11

Branding is the process of creating a distinct identity for a business in the mind of your target audience and consumers.

Question 12

How to build a brand?

Answer 12

-Exploit a usp
-Advertising
-Sponsorship
-social media

Question 13

Strong Brand importance

Answer 13

-added value to the product
-builds trust
-make a product recogniseable
-added value

Question 14

Influence on price

Answer 14

Product life cycle
branding
competition
ped

Question 15

Price penetration

Answer 15

the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers

Question 16

price skimming

Answer 16

Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time

Question 17

phycological pricing

Answer 17

1.99 2.99

Question 18

competitive pricing

Answer 18

When you create product prices based on the prices being offered by your competitors

Question 19

cost-plus

Answer 19

This method of pricing is based on calculating the cost of producing the item and then adding on the percentage profit required by the company.

Question 20

predatory pricing

Answer 20

Predatory pricing is the illegal business practice of setting prices for a product unrealistically low in order to eliminate the competition.

Question 21

Product life cycle

Answer 21

Introduction: Growth: Maturity: Decline/product extension

Question 22

Distributers

Answer 22

agents/brokers- link the buyer and sellers
retailers-provide customers with specialist service and give opportunity to browse
wholesalers-Take bulks quantities from manufactures
direct selling-the main route to direct sell today , online

Question 23

Influences on distribution

Answer 23

Nature of product ,control over promotion, expectation of customers

Question 24

Benefits on e-commerce

Answer 24

customers can shop 24/7
business sales can take 24/7
There is a quicker range of choice
can offer a cope of products online

Question 25

Introduction

Answer 25

Price may be low, heavy promotion, low number of variations

Question 26

Growth

Answer 26

price may increase with popularity, to keep up with demand in growth

Question 27

Maturity

Answer 27

Consider cutting prices to maintain demand, promotion is slow as customers are aware of the product

Question 28

Saturation/growth

Answer 28

the market is ‘full’, prices are cut, there are alternative cheaper products