Topic 9 Flashcards
ethical implications
Designer must consider ethical implications of imitating others’ products and their implications for cultural, economic, and intellectual property rights.
Pioneer and Imitative Strategy
Pioneering Strategy = first to market with an innovation
Imitative Strategy = developing products that are similar to existing, new products on the market
Ansoff Matrix
= a marketing tool that helps to determine a product’s growth.
- Invented by H. Igor Ansoff
- Has 4 alternatives of marketing strategies: Market penetration, product developmet, market development, product diversification
Market Development / Extension
= finding new applications for existing products, which opens new markets → increasing sales to existing customers or finding new customers for an existing product
- Selling existing products to new markets - can be made w/ market segmentation to identify new clients
- Assumes existing markets are fully exploited
Product Development
= creating new, modified, or updated products usually aimed at existing customers
- New products introduced into existing markets OR modification of an existing product for existing customers
Market Penetration
= increasing sales to existing customers or finding new customers for an existing product
- Used to determine the potential growth available for product sales
- Calc: product sales/total market pop
- Least risk since products are already familiar to customers and market
- Changing the pricing or quality of the product
Product diversification, related diversification, and unrelated diversification
= modifying an existing product so market potential increases (e.g. large and small size of iPhones)
Related diversification: business stays in the same industry
Unrelated diversification: no previous industry relations
- the most risky
Corporate social responsibility
the organization taking responsibility for its actions socially, ethically, and environmentally
Market sectors and segments
Sectors = broad categorization of what market is aiming for
Segments = smaller groups where purchasers have similar characteristics and tastes
- Geographic segments: country climate, env, etc.
- Psychographic: user specific needs, attitudes, behaviours, values
- Demographic: gender, income, lifestyle, profession, family, etc.
Product family
= a group of products having common classification criteria - often have many common parts and similar assemblies
- encourages customers to buy other products in the range
Marketing mix - 4 Ps
- Product: variety, quality, design, brand
- Place: distribution, delivery, sold where, etc.
- Price
- Promotion: advertising, sales, marketing, etc.
Product standardisation
legislation to guarantee quality, safety, and reduced potential risks for the users
Setting price 4 strategies
- Demand pricing: products from a product family are priced differently (price based on demand)
- Competitor pricing: offering lower prices than competition to increase demand
- Psychological pricing: feels like you’re paying less bc its 12.99 not 13
- Cost-plus strat: company adds a percentage to the total cost for production
Market research and its strategies
For idea generation and development, evaluating market potential and economic trends
- systematic gathering of data
Perceptual mapping
showing how the product is understood, interpreted, and seen by identifying its connections w competing products, buyer choices, etc.
Environmental scanning
Study and interpretation of political, economic, social, and technologic events that influence business
technophiles, technophobes, technocautious
Technophiles: immediately welcomes the tech
Technophobes: resists all technological change
Technocautious: someone who needs convincing before embracing the tech
eco-warriors, eco-fans, eco-champs, eco-phobes
Warriors: actively demonstrate on env issues
Fans: adopts environmentally friendly practices
Champions: influential people that use their position to influence certain issues within an organisation
Phobes: resent talks about environment protection
difference between trademark and registered patent
Trademark = logo or brand legally registered to be used by or represent a company
Patent = protects the product’s appearance/shape
