Product Orientation & R&D

Question 1

What is Product Orientation?

Answer 1

Involves focusing on the product instead of wants and needs

Question 2

What’s the benefit of Product Orientation? (6)

Answer 2

1. Focuses on Developing the Product
2. Focuses on lots on investment into R&D
3. Improved Innovation
4. Differentiates
5. Increase Price without fall in demand
6. Increased Revenue and Profits to reinvest into R&D

Question 3

What is the drawback of Product Orientation? (5)

Answer 3

1. It is Expensive due to the investment into R&D
2. Increased Fixed Costs due to paying researchers for wages
3. Reduced Operating Profit
4. Reduced retain profit to reinvest into R&D
5. Therefore can’t differentiate in the long term

Question 4

What is a prototype?

Answer 4

A first version of a product that will have development over time

Question 5

What is the Process of R&D? (3)

Answer 5

1. Create a prototype
2. Test and Adapt the Prototyple
3. Release the final product