1.3 Design Branding Promoion Flashcards
What will designers take into account when creating a new product
Shape and appearance
Whether it fits the intend need
How easily and cost effectively it can be made
Materials to be used
Image of the final product
What it says about the business
What does the design mix contain i
Aesthetics, function and economics manufacture
Business Ethics
Honesty
Avoid conflicts
Compliance
Relevant information
Law abiding
Fulfilling commitments
How a business might promote their ideas
Telling customers about a new product
Reminding customers about an existing product
Reaching a new target audience
Reassuring customers about a product
Showing customers that rival products are not as good
Improving or developing the image of the business
Types of advertising
Above the line and below the line
Definition of Above the line promotion
Advertising products in the media
Definition of Informative (above the line promotion)
Increasing awareness
Definition of Persuasive (above the line promotion)
Pressure to buy a product
Definition of Reassuring (above the line promotion)
Aimed at existing customers to suggest the brought the right product
Definition of Below the line promotion
Any type of promotions which does not involve advertising
E.g. public relations, merchandising and packaging, direct mailing, direct selling and exhibitions and trade fairs
Definition of manufacturers brands
Brands created by the producer of he good or service
Definition of own label brands
Manufactured for retailers but have the retailers name on it
Definition of Generic brands
Products which only have the name of the product on it
Benefits of a strong brand
Added value
Premium prices
Reduced PED
Definition of Price
The amount that customer has to pay in order to have access to or acquire a good or service
Different types of pricing strategies
Penetration pricing
Competitor pricing
Predatory pricing
Psychological pricing
Price skimming
Loss leader
Cost plus pricing
Discrimination pricing
Definition of Penetration pricing
Price is set lower in order to gain market share
Definition of Competitor pricing
Price matching to your nearest competitor
Definition of Predatory pricing
Sustaining low price to drive competitors out of the market
Definition of Psychological pricing
Pricing an item to make it appear better value
E.g. 99p instead of £1
Definition of Price skimming
Price is set gig usually at launch to maximise profits
Definition of Loss leader
Price is set below the cost as a way of attracting customers
Definition of Cost plus pricing
A percentage mark up is added to unit cost of production of an item
Definition of Discrimination pricing
Charging different price to different customers for the same item
Factors affecting pricing decisions
Differentiation and USP
PED
Competition
Branding
Stage of the product life cycle
Definition of Distribution
The way in which something is shared between a group of people
Different marketing channels
Direct
Retail
Wholesale
Agent
Direct channel
Producer -> consumer
Retail channel
Producer -> Retailer -> consumers
Wholesale channel
Producer -> Wholesaler -> Retailer -> Consumers
Agent channel
Producer -> agent/broker -> wholesaler -> retailer -> consumer
Definition of Product Lifecycle
A process a product goes through in terms of being created, advertised, sold and then removed from the market
What are the stages of the product life cycle
R&D, introduction, growth, maturity, extension strategies and decline
Definition of Launch
Product is put on sale for the first time
Definition of Saturation
Product may now start to face challenges from competitors
Definition of Maturity
Sales have hit a peak and the business may start looking at new ways of developing the product
Definition of Development
Product is not on sale, product is being tested and refined, production process is being designed
Definition of Growth
Sales begin to expand as word of mouth creates customer awareness
Definition of Decline
Sales fall sharply as competitors provide better rival products
Definition of Extension Strategies
Lengthening the life of a product in the market
Examples of extension strategies
More simple:
Lowering prices
Increasing advertising
More complex:
Changing the name
Changing the logo
Creating a new promotional campaign
Modifying the look
Introducing new varieties
What is the aim of extension strategies
To simulate interest again or make the product appeal to a different market segment
Definition of Differentiation
Products that stand out/different/better than competition
Methods of Differentiation
Unique functions
Unique style or design
Create and use a distinctive brand name
Provide consistently excellent customer service
Ensure the product is made to a high quality
Definition of Product Portfolio
Every product that a business has/owns
Definition of Product range
Every type of product a business owns in one section of their portfolio
Boston Matrix
Star - higher market growth, high racket share
Question mark/problem child - high market growth, high market share
Cash cow - low market growth, high market share
Dog - low market growth, low market share
What are the 4Ps of the marketing mix
Price, product, place and promotion
Definition of Marketing strategies
A set of plans to meet a marketing objective
What does B2B stand for
Business to business
Businesses sell to other businesses
What does B2C stand for
Business to Consumer
Businesses sell directly to consumers
Definition of Outbound Marketing
directly marketing at potential customers whether they are expecting it or not
E.g. emails, telemarketing, target adverts etc
Often more expensive then inbound
Definition of Inbound Leads
Attracting potential customers to the websites when they are looking for suppliers or a solution to a problem
E.g. Blogging, social media marketing, search engine optimisation, free e-books, video marketing, target email marketing
