Core Principles Flashcards
What is market pull?
Market pull refers to the need for a new product or a solution to a problem which comes from the market. The need is identified by potential customers. Consumers will often demand certain things to benefit them so manufactures can use this demand to design and make products to meet it.
What is technology push?
Technology push is when research and development in new technology, drives the development of new products. It tends to start with a company developing an innovative technology and applying it to a product. Products can be re-designed because of changes in materials or manufacturing methods
Name the 4 stages of the product lifestyle (in order).
- Introduction
- Growth
- Maturity
- Decline
What happens during the introduction stage (of a product lifecycle)?
When a product is launched on the market, its sales will begin to grow slowly and profit will be rather small. Advertising is required to promote the product and money will have been spent to research and develop the product.
What happens during the growth stage (of a product lifecycle)?
Sales will usually lift off and profits are generated as sales increases. Competitors will of had time to access the product and predict its impact on the market. Then they may potentially respond with a similar or improved version.
What happens during the maturity stage (of a product lifecycle)?
Sales reach their highest point and companies can slash of prices of their products and increase promotional efforts to sell off stock.
What happens during the decline stage (of a product lifecycle)?
The sales of a product start to fall profit can no further be maintained. Newer products will begin to outsell the current one as its considered old.
What is global production and its advantages and disadvantages?
Global production is using companies that can produce or source materials,products,components etc and transporting them anywhere. This means production can happen worldwide and companies can source materials closer to manufacture, minimising the environmental impact made by transportation.
:) - It can improve the opportunity for employment
:( - can negatively impact culture and people by increasing the opportunity for unfair pay.
- habitats may be destroyed in the production of the new workplaces
What is a lifecycle analysis?
A lifecycle analysis is completed to determine the environmental impact of a product from the design stages through to manufacture, use and disposal. Sometimes referred to as ‘Cradle to Grave’
What is BSI?
British Standards Institution creating standards of excellence to training people to work in more effective ways, assessing how companies are doing and helping them perform better in the future.
What is ISO?
International Organisation for Standardisation are standards that ensure products and services are safe, reliable and of good quality. For business, they are strategic tools that reduce costs and increase productivity.
What is the BSI kite mark?
This is a highly recognised symbol of trust and safety. To achieve it, high standards of manufacture, safety and quality must be reached and maintained.
What is the CE logo?
The CE mark is a manufacture claim that the product meets the specified safety requirements (set by European agencies). Certain products must contain this symbol to be sold in the EU.
What is one off (job) production?
This is where a single product is made (e.g. prototypes, architectural models). One off production is expensive because all the costs of design/manufacture must be recovered in the price charged for one product. Skilled workers are needed; expensive materials.
What is batch production?
A batch of a particular number of units are made. Specialist machines and equipment are used and the workers will have particular skills. Examples are clothes, furniture.
