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Business studies 1.3.1: Product/service design - Coggle Diagram
Business studies 1.3.1: Product/service design
The marketing mix
The marketing strategy is the plan a business uses to reach its marketing objectives. The marketing mix makes up the strategy.
The
design
of the product
Promotion
and branding techniques used
Promotion is designed to inform consumers about a product or persuade them to buy it.
Promotional objectives include:
Increasing sales + profits
Increasing awareness of the product
Prmotion has to get the customers attention so they can be informed or persuaded about the product.
Pricing strategy
used for the product
Place
where the product is sold or the type of distribution.
The design mix
When a business makes a new product, they must ensure that the product is fit for purpose (functional), looks good (aesthetics), and isn't too costly (cost).
Function: The product must fulfil its intended function for use. For example, a chair may be aesthetically pleasing, but not be comfortable to sit on.
Aesthetic: the design must appeal to customers. For example, a car that is good value and functional may be hard to market if its shape or interior is seen as cheap or clunky.
Cost: The cost must also be considered, as a product may fill all these criteria but be too expensive for customers to purchase.
Some businesses may focus in particular aspects of the design mix. For example, jewellry companies may be more concerned with aesthetics than cost or function.
Changing social trends which influence the design mix
Reusable / recyclable materials
Many consumers are concerned about the overuse of resources and want businesses to minimise the amount of waste they produce by making products more recyclable.
Ethical sourcing
Many consumers are demanding that raw materials should be ethically sourced to help the environment and sustain local communities.
Example: Palm oil, which is used in many foods and cosmetics. There is a concern that rainforests are being destroyed to make way for palm oil plantations, so consumers are demanding ethically sourced palm oil.
Is it worth making changes?
If a business fails to make an ethical decision on its sourcing/using recylable materials, consumers may switch to an alternative, decreasing their loyal customer base and sales revenue.
However, switching to ethically sourced materials/recycblable materials can often increase a business's costs. A business should carefully consider whether it is worth it or not.