1.3 Flashcards
Design Mix deifnition?
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
Dm: Aesthetic
Refers to design, style and appearance of the overall product.
Dm: Cost
Cost of production/cost per unit
Dm:Function
Refers to benefits of the product or services of the product. How well the products meets its designated function
Design mix to meet social trends
- waste minimisation
-reuse
-designed to be recycled
-sourced ethically
Promotion
Promotion is the key method a business will use to communicate with its customers and potential customers; create awareness and understanding for the product
Above-the-line
Promotions that involves any form of adveritisng through the media such as:
-tv
-radio
-cinema
-internet
-emails
Below-the-line
Pomotions that includes all other forms of promotion that ae not adveritising.
-merchanides
-direct selling
-sales promotion (free gifts)
Influence of Promotions
Target audience
technology
promotion budget
message
Purpose of adverts
-inform customers
-persuade customers
- remind customers
-reassure customers
Branding definition
Branding is the process of creating a distinct identity for a business in the mind of your target audience and consumers.
How to build a brand?
-Exploit a usp
-Advertising
-Sponsorship
-social media
Strong Brand importance
-added value to the product
-builds trust
-make a product recogniseable
-added value
Influence on price
Product life cycle
branding
competition
ped
Price penetration
the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers
price skimming
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
phycological pricing
1.99 2.99
competitive pricing
When you create product prices based on the prices being offered by your competitors
cost-plus
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.
predatory pricing
Predatory pricing is the illegal business practice of setting prices for a product unrealistically low in order to eliminate the competition.
Product life cycle
Introduction: Growth: Maturity: Decline/product extension
Distributers
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
Influences on distribution
Nature of product ,control over promotion, expectation of customers
Benefits on e-commerce
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
