1.3

• Factors for designing a product:

  Aesthetic, Costs, Function
• Ergonomic means something designed for efficiency or comfort in the working environment
• Consumer durable means manufactured items that are expected to have a long useful life after purchase.
• Importance of design mix:

  • used to appeal different target markets
  • helps businesses to manufacture appropriate products that are feasible for the customers and the company
  • Minimise wastage and costs
  • understand the social trends of the market
• Bespoke design - custom made, customer built, tailor made to customer
• Design for waste minimisation - Deciding what and how to build, whether to demolish or renovate, what materials to use and the design specifications for construction all impact the amount of waste produced
• Ethical sourcing - ensuring that the products being sourced are created in safe facilities by workers who are treated well and paid faire wages.
• Recourse depletion: the consumption of a recourse factor than it can be replenished. The can be natural or manufactured.
• Business operations that rely heavily on a particular recourse may face increased costs/Operational challenges
• Economic implications - shrinking supply of certain recourses could result in scarcity, inflation, affecting the economy
• Environmental consequences - Overexploitation of natural recourses
• Surface manifestation: companies that source ethically
• Advantages of sourcing ethically -

  • Better reputation
  • Increase investments
  • USP
  • optimum pricing
• Disadvantages of sourcing ethically-

  • Costly
  • Type of market they operate in
• Promotion is the use of marketing tools to bring a product/service to the attention of potential buyers
• Above the line promotion - Paid for adverts using the media
• Below the line promotion - only promotion that doesn't involve the media and uses direct marketing to reach smaller, targeted audiences
• Informative advertising is aimed at increasing customer awareness of products
• Persuasive advertising is designed to put pressure on consumers to buy the product
• Reassuring advertising is aimed at existing customers that they made the right choice
• Personal selling- effective way to manage businesses to customer relationships. Can build customer bond but employee must have knowledge
• Direct marketing- highly focused targeted mail. This is personal to customers but can be seen as spam/time consuming for business
• Public relations- builds a relationship between business and public. It is cost-effective to reach larger audience, but there is not direct control
• Sponsorship- positive correlation with celeb and product. This can build awareness but is expensive/risky
• TV Media advantages:

  • can reach large audiences
  • can demonstrate using the products
  • creativity can have a great impact
  • opportunity to target groups
• TV media disadvantages:

  • expensive
  • message may be forgotten
  • some ignore TV adverts
  • delay between advert and buying
• Newspapers and magazines benefits:

  • National + local reach
  • reader can refer back to advert
  • adverts can be linked to articles + features
  • Opportunity to target with specialist magazines
  • Relatively cheap
• Newspaper and magazines drawbacks:

  • Static
  • may be hard to find or identify
  • rivals products may be advertised as well
• Cinema advantages:

  • Big screen = big impact
  • Can be used for local + national advertising
  • Specific demographics can be targeted
  • Uses sound and movement
• Cinema disadvantages:

  • Messages is short - lived and may be forgotten by the time the audience leaves cinema
  • limited audience
  • message may only be seen once
• Radio advantages:

  • sound can be used to explain value of products
  • minority audience allow targeting of customer segment
  • cheap production
  • can target youngsters/ people who commute
• Radio disadvantages:

  • Not visual
  • May be ignored
  • May lack impact
  • Can be annoying
• Posters and billboards advantages:

  • Can produce national campaigns
  • Seen repeatedly
  • Good for short sharp messages
  • Can have a big impact
• Posters and billboards disadvantages:

  • Posters can get damaged by vandals
  • Only limited information can be shown
  • difficult to evaluate effectiveness
  • views limited to geographical location
• Internet advantages:

  • Can be updated regularly
  • Can be targeted
  • hits + responses can be measured
  • cheap + easy
• Internet disadvantages:

  • share adverts such as pop- up adverts are irritating
  • Possible technical problems
• Types of BTL promotion:

  • Personal selling
  • Direct Marketing
  • Public relations
  • Sponsorship
• Types of ATL promotion:

  • TV media
  • Newspaper and magazines
  • Cinema
  • Radio
  • Posters and billboards
  • Internet
• Sales promotions:

  • B.O.G.O.F (Buy one get one free)
  • Price discounts
  • Money off coupons
  • samples/giveaways
  • special events
  • point of sale
• B.O.G.O.F- Very popular with shoppers, boosts sales and encourages trial and use but increase in costs and only useful in short- term