Design Mix Flashcards
1
Q
What are the 3 examples of Design Mix?
A
Aesthetics - How it looks, feels, tastes etc
Function - How well it performs
Economic Manufacture - How much it costs
2
Q
Benefit of prioritising aesthetics/function? (5)
A
- Prioritising Aesthetics / Function will need significant investment into R&D or Market Research to find out trends
- Differentiate from other competitors
- Gain competitive advantage
- Able to increase price without fall in demand
- Increase revenue + GP margins
3
Q
Drawback of Prioritising Function / Aesthetic? (4)
A
- Prioritising Aesthetics / Function will require investment into market research or R&D
- Therefore Increase Outflows on wages for researchers leading to a lower net cash flow
- Reduced Cash Reserves meaning business can’t pay suppliers and therefore have to sell non current assets
- Business Operations will fail
4
Q
Benefit of Economic Manufacture? (3)
A
- Prioritising E.M will require less robust materials to therefore reduce the cost of sales
- This will gain a competitive advantage able to reduce the selling price
- Leading to an increase in demand and revenue
5
Q
Drawback of Economic Manufacture? (3)
A
- Prioritising E.M will use less robust materials perhaps leading to lower quality
- This could damage the business reputation and consumers will switch to alternative brands
- This will reduce demand leading to lower revenue and profit
6
Q
Benefit of Social Trends? (3)
A
- Adapting to consumer trends will mean the product will meet wants and needs.
- This will be able to increase loyalty and then increase price without fall in demand
- Increase revenue + profits
7
Q
Drawback of Social Trends? (4)
A
- Focusing on trends will result in investment into market research
- This will require a large sample and needs specialist researchers
- Increase Outflows on wages leading to lower net cash flow
- Less cash for operations and bills
