1.3.1 Product Design Mix

• What is the difference between a niche market and a mass market?

  A niche market targets specific needs; mass market targets general audience
• What is market segmentation?

  Dividing a market into distinct groups of buyers
• Give an example of market segmentation.

  Age, gender, and income
• What is the formula for calculating price elasticity of demand?

  Percentage change in quantity demanded / percentage change in price
• Name two examples of goods that might be income elastic.

  Luxury cars and high-end electronics
• What is market orientation?

  Focusing on customer needs and preferences
• What is product orientation?

  Focusing on product quality and innovation
• What does the product design mix refer to?

  • Combination of elements in product design
  • Elements include function, aesthetics, and cost
• What does the function aspect of the design mix refer to?

  How well a product works and meets needs
• Why is function important in product design?

  Ensures product is useful and reliable
• Give an example of function in a smartphone.

  High-quality camera and long battery life
• What does aesthetics refer to in product design?

  The look, feel, and visual appeal of the product
• Give an example of aesthetics in a product.

  The sleek design of a Roadster sports car
• Why are aesthetics important in product design?

  Attracts customers to visually appealing products
• What does cost refer to in product design?

  The cost of producing the product influencing its price
• Why is cost important in product design?

  Balances quality with affordability for profitability
• How does cost influence product design?

  It influences the final price and quality balance
• How can Aston Martin use the design mix to appeal to a new target market?

  • Define the design mix
  • Example 1: Enhance aesthetics for luxury appeal
  • Example 2: Improve functionality with advanced tech
  • Benefit: Attracts new customers and increases sales
• What are social trends?

  Changes in attitudes, behaviors, and lifestyles
• How do social trends impact product design?

  Require companies to adapt products to remain relevant
• What is a concern regarding resource depletion?

  Natural resources becoming scarcer
• How can businesses address concerns about resource depletion?

  Design products for waste minimization and recycling
• What does ethical sourcing involve?

  Obtaining materials in an ethical and sustainable way
• Give an example of ethical sourcing.

  Sourcing Fairtrade-certified ingredients for products
• How does ethical sourcing impact a business's brand image?

  Enhances trust and loyalty among consumers
• What are the potential costs of ethical sourcing for a business?

  Higher costs for Fairtrade materials may reduce profits
• How can ethical sourcing benefit a business over time?

  Stronger customer loyalty and premium pricing opportunities
• How might ethical sourcing help a business weather negative publicity?

  Companies seen as ethical retain customers better
• Which element of the design mix is influenced by environmental sustainability?

  Function, aesthetics, and cost
• How might focusing on ethical sourcing impact a company’s costs?

  It may increase costs due to Fairtrade materials