Product / Service Design Flashcards
Product
Refers to goods and services
Product design
The process of planning a new or improved product including its function, appearance and manufacture.
The design mix is a combination of (list)
Function- what the product does i.e is the product fit for purpose
Aesthetic- the appearance ie ‘look and feel’ of the product eg it’s shape, size, appearance, and packaging
Cost (and selling price)- firms use to create a competitive advantage.
Firms introduce new and improved products to.. (list)
Increase sales revenue and so achieve growth and higher profits.
To increase competitiveness
The production of goods and services (list)
Uses up non-renewable resources
Creates waste in the form of unused inputs discarded during production
Generates noise and air pollution
Competitive advantage
Is a set of features a business or product possesses which customers see as superior to rival offerings.
Firms can gain competitive advantage by… (list)
Designing products which can be repaired and replaced
Reducing the size and weight of the item and its packaging so that less resources are used in production.
Designing products for reuse or recycling
Firms can gain a competitive advantage through ethical sourcing. Ethical sourcing involves… (list)
The firm buying components or services from suppliers that satisfy environmental and ethical concerns
Pay living wages and staff
Provide a working environment that meets health and safety standards
The benefits of meeting environmental and ethical concerns in production include… (list)
Unit costs and using fewer resources
Creating a USP and increasing brand identity
Increased demand so increasing revenue and profit
Easier recruitment of a motivated workforce who want to work for an environmentally and ethically concerned firm
Obsolete
Means out of date and so no longer used
Built in obselence
Occurs when firms make products with a limited working life, eg by using components with short working life.
