Product development Flashcards
1
Q
Why do new products need to be developed
A
Because some products will fall into the decline stage and needs to be replaced so product in the development and intro stage can take their place.
2
Q
Advantages of developing new products
A
- Increase overall sales and extend lifecycle of existing products
- may appeal to a new target market
- A business can charge higher prices before the competitors bring a similar product to the market
- it can be good for a businesses reputation meaning people may be interested in their future products
2
Q
Disadvantages of developing new products
A
- Costly and time-consuming
- Business can lose money if they invest too much into research and development without releasing the products to market quickly enough
- Businesses can waste resources by developing something customers didn’t want
- Business might not be able to produce new product on a large scale at a low cost
- risk of running reputation if new product is of poor quality
3
Q
Why is it important to be market driven
A
- Market driven is using market research to find out what the target market want meaning the product is usually useful.
- product driven this one firms invent a new product and then try and sell it without doing market research so nobody really wants it
4
Q
What is brand image
A
- Easily recognised and liked by customers
- brand image built up over a number of years e.g. Apple and Coca-Cola
- use the marketing mix of products, prices, promotion, and place to build good brand image
- High quality products
- increases sales
5
Q
Why is differentiation important in product development
A
- Product differentiation is making your product distinct in the market
- by giving the product a USP (unique selling point)customers may be more likely to buy your products over our competitors if there is something different
6
Q
What are the 3 main parts to product design
A
- Cost ideally a good design will have low manufacturing prices leading to higher profits
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7
Q
Why is function important in product design
A
- The design should be fit for its purpose unique features can also help
8
Q
Why is cost important in product design
A
- A good design will have low manufacturing cost meaning higher profits for the firm
9
Q
Why is appearance important in product design
A
- A good product will look attractive and distinctive
- packaging should also be eye-catching to stand out and protect the product
10
Q
A
