1.3

• Product service design


  New products and d services help generate more revenue and ensure that the business remain competitive

  Product design - generation and development of Ideas through a process that leads to new products or services
• Design mix

  • Function
  • Cost
  • Aesthetics
• The materials used in design are important
• Function

  Must be fit for its intended purpose. manufacturers of consumer durables offer long warranties to show that they have confidence in the reliability and durability of their products
• Aesthetics


  Provide a sensory stimulation in addition to performing a function
• Cost

  A well designed product or service is more Lilly to be more economically viable. This also means that business needs to sell the product or service at a profit
• Design mix social trends

  Worries about global warming and resource depletion and pollution have been ncouraged many to adopt more environmentally friendly lifestyles
• Design for waste minimisation

  Products that use A lot of energy should be very durable for a long time.

  Products should be smaller and lighter, help save resources.
• Design for reuse - resources can be saved

  Design for recycling - adapting their production methods so that newly designed products can be produced using recycled materials
• Ethical sourcing

  Means that business only use materials, components and services from suppliers that respect the environment, treat their workforce well by paying them a fair wage and provide a safe working environment
• Adapting product designs to change in social trends

  Reducing waste will reduce costs and increase profits

  Designs reflect social trends, profits and are likely to be more popular and sell a lot better in larger quantities
• Promotion

  Business drawing attention to their products, services or companies
• Above the line promotion

  Involves advertising in the media. Business pay television Companies and newspapers
• Informative advertising

  Adverts are designed to increase consumer awareness of products
• Persuasive advertising

  Designed to put pressure on consumers to buy a product. Convince consumers to buy a particular brand rather than that of a competitor
• Reassuring advertising

  Aimed at existing customers. Designed to be comforting and suggest to consumers that they were right to buy a particular product that they should continue to do so
• Advertising media

  Television

  newspapers and magazines

  cinema

  radio

  posters and billboards

  internet
• Below the line promotion

  Refers to any form of of promotion which does not involve advertising
• Sales promotion

  Incentives which encourage people to buy products
• Types of sales ProMotion


  Free gifts

  Coupons

  loyalty cards

  competitions

  BOGOF - buy one get one free

  money off deals - discounts
• Public relations

  Increase sales by improving the image of the business
• Types of public relations

  Press release

  Press conference

  Sponsorship

  Donations
• Merchandising and packaging

  Point of sale so it seems interesting and eye catching
• Examples of merchandising and packaging

  Products layout - the layout of products in a store

  Display material - To try and persuade customers to buy a product

  Stock - Keeps shelves well stocked
• Direct mailing

  Mail to houses
• Direct selling

  Calling house hold and hoping to sell products
• Exhibitions and fair trade

  Attend trade and exhibitions to promote their products
• Types of branding

  Manufacturer brands

  Own label brands

  Generic brands
• Manufacturer brands

  Brenda which are created by the producers of goods and services
• Own label brands

  Manufactured for wholesalers or retailers by other business
• Generic brand's


  Only contain the name of the actual proxy category rather then the company or product name