Topic 2.2.1 - .2.5

• What is the design mix?

  Function - refers to the utility or purpose of the product or service

  Aesthetics - visual appeal, style and attractiveness of products/services

  Cost - financial aspect of design
• What are the phases of a product's life cycle?

  Introduction - when the product is first introduced to the market

  Growth - sales start to increase as consumer awareness and demand grow

  Maturity - sales reach their peak, but growth slows down as market becomes saturated

  Decline - sales decline as consumer preferences change
• What are some extension strategies?

  Product improvement - enhancing a product's features to meet changing customer needs

  Market development - expanding into new markets or market segments

  Product diversification - introducing new versions of existing products

  Promotional strategies - offering discounts and intensifying market efforts
• What is the importance of differentiating a product/service?

  Competitive advantage - offers business unique features, benefits that distinguish them from rivals

  Customer satisfaction - helps business meet diverse customer needs, enhancing customer loyalty

  Brand identity - reinforces brand identity and positioning in the marketplace, creating a strong brand image

  Market resilience - less susceptible to price competition and market fluctuations