Unit 9 (Innovation and Markets)

Question 1

Name the client based sectors (4)

Answer 1

Consumer, industrial, public sector and commercial

Question 2

What are geographic sectors defined by?

Answer 2

Defined by a region, values, culture and its characteristics.

Question 3

Distinguish between market sector and market segment

Answer 3

SECTOR: broad categorisation of a market (eg. client based)

SEGMENT: further division of sectors (generally by demographic, geographic, psychographic and behavioural factors)

Question 4

Name the types of market segment (4)

Answer 4

Demographic, geographic, psychographic, behavioural

Question 5

Name the key features of a product family (2)

Answer 5

Shared aesthetics and shared parts/ components

Question 6

What is a pioneering strategy?

Answer 6

A strategy that makes use of new technologies, materials or processes to develop a product. It is generally unique/ distinct within the market.

Question 7

What is an imitative strategy?

Answer 7

A strategy that focuses on analysing existing products and developing similar ones, in order to reduce on R&D costs and development time.

Question 8

What is a hybrid strategy?

Answer 8

A strategy that combines both pioneering and imitative strategies to gain advantages from both (higher interest/ competitive edge, reduced costs/ development times).

Question 9

Define reverse engineering

Answer 9

The process of extracting information about a design by disassembling it (common imitative strategy)

Question 10

Describe the Ansoff Matrix of growth strategies (4)

Answer 10

Grid conveying relative risk of design/ market growth strategies.

Existing product + existing market –> MARKET PENETRATION, LOW RISK

(increasing sales to existing customers, identifying new customers for an existing product)

Existing product + new market –> MARKET DEVELOPMENT, MED. RISK

(targeting consumers in a different market segment who are not buying the existing product)

New product + existing market –> PRODUCT DEVELOPMENT, MED. RISK

(slight mods/ enhancements to original product, eg. new sizes/ levels of performance. sold in existing market)

New product + new market –> PRODUCT DIVERSIFICATION, HIGH RISK

(creation of new products in new markets, generally only done by large companies who can absorb the damages if necessary)

Question 11

Name the components of Corporate Social Responsibility (CSR) (3)

Answer 11

Economic, social, environmental

Question 12

Name the components of the Marketing Mix (4)

Answer 12

Promotion (sales, advertising, PR, marketing)

Product (features, quality, branding, services)

Place (market coverage, location, inventory, transport)

Price (pricing, discounts, payment terms, allowances)

Question 13

Define product standardisation and name the types (1+3)

Answer 13

Uniform or shared characteristics of a product.

Government standards (eg. CE mark on electronics) , component standards (eg. USB plug), industry standards (eg. stock forms)

Question 14

List the types of pricing (5)

Answer 14

COST-PLUS
(% is added to total production costs to generate a profit margin)

DEMAND
(more demand –> higher price, and vice versa)

PSYCHOLOGICAL
(tricking consumer into thinking they are paying less, eg. $XX.99)

PRODUCT-LINE
(creating a product family with similar function, varying by price and therefore quality/ number of features)

COMPETITOR-BASED
(price set according to the price of similar existing products in same market)

Question 15

Name the types of market research data (4)

Answer 15

Qualitative (quality or aspect)

Quantitative (number/ value)

Primary (collected first-hand)

Secondary (data collected by others)

Question 16

Name the reasons for market research (6)

Answer 16

determining the market need (what users want/ need)

determining the market potential (at what point in the product lifecycle it should be produced)

identifying the promotional strategies (best for the target market)

collecting demographic data (age, gender, location, etc.)

analysing existing products (how is the design opportunity already being met)

collect information about consumer trends (eg. consumer awareness of plastics –> eco friendly design)

Question 17

Name the categories of target audience reactions to new technology (3)

Answer 17

Technophile (eager to try new tech, early adopters)

Technocautious (someone who needs to be convinced, majority/ late majority)

Technophone
(active resistor of new technology, laggards)

Question 18

List market research strategies (6)

Answer 18

literature research

product analysis

expert appraisal

user trial

user research

perceptual mapping
(graphing on axes of price and perceived quality)

Question 19

What is a brand and why is it used?

Answer 19

A kind of product produced by a company, generally visual. The “face” of the product/ company.

Used to identify or represent the company’s values and qualities to consumers.

Question 20

What is brand loyalty?

Answer 20

A preference that a customer has for one brand over another, usually built up through positive experiences with the brand.

Loyal customers will perceive their preferred brand as superior than competitors, even if it is more expensive.

Question 21

Distinguish between a trademark, registered design and trade dress (3)

Answer 21

TRADEMARK
The visual aspects of a brand, eg. text, symbol, font etc.

REGISTERED DESIGN
The shape and form of the actual product

TRADE DRESS
Same as registered design