1. Topic 2 Meeting customer needs

2. Aims for today
To appreciate the role and importance of design in differentiation.
To understand how scientific principles can be applied to research to help in the development of new products.

3. Design & differentiation: Some examples
Sony Cyber Shot TX7 camera
PlayStation Move Versus X Box Kinect
Apple Ipad

4. Design & product differentiation
Design is a significant factor in differentiating products from competitors.
Dyson Hoover (first sold in Japan) was pink & soon became a cult item despite being expensive.
Task
In pairs identify and explain three examples of products that are differentiated by design.
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty

5. Examples of products differentiated by design

9. The Design Mix has: 3 variables.
The range of variables that contribute to successful design
Function
Appearance
Cost
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty

10. 1. Function: How the product works
Are the component parts study to withstand bumps & bashes?
How effective is the cyclone?
Does it do what it supposed to do?
Is it manoeuvrable?
Is the cylinder easy to empty?

11. 2. Cost The cheaper the cost to design & produce and item, the better.
If businesses have lower production costs than their competitors, they will have a competitive advantage.
Do you think Dyson had lower production costs than its competitors?

12. 3. Appearance/aesthetics
Vestalife Firefly iPod dock and speakers

13. Task 2: Design Mix
Create a design mix for an existing new or innovative product.
Function
Appearance
Cost

14. Scientific research
Most new products today require scientific research.
Using scientific research companies can devise more economical, efficient ways of doing things. E.g car production.
The Dyson Hoover was developed using SR and the company spends a lot of money on R&D to develop prototypes.
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty

15. Research & development (R&D)

16. Now a quick test… p40
1. A manufacturer of freezers designs its latest model with more insulation than other freezers on the market. This results in it being the most energy efficient freezer sold. This is an example of:
A appearance as part of the design mix
B product trial
C product differentiation
D repeat purchase
Answer C
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty
Comments
A Incorrect – appearance is about the looks and style of a product not its function, i.e. being highly efficient.
B Incorrect – a product trial is where the consumer samples the product for the first time.
C Correct – the increased insulation and energy efficiency is something that makes the freezer stand out and makes it different from the competition.
D Incorrect – a repeat purchase is where a consumer returns to buy a product on a regular basis.

17. Question 2 2. Function in the design mix is about how
A good a product looks
B much it costs to produce
C good is the brand image of the product
D well a product works
Answer D
Comments
A Incorrect – looks and style are associated with the appearance of a product.
B Incorrect – the function of a product may add or subtract costs but is not directly about the costs of production.
C Incorrect – the brand image comes from many different areas and not just function but also design, looks and reputation.
D Correct – the function is associated with the performance of a product and how well it works.

18. Question 3
3. A car manufacturing company has a large R&D department. R&D stands for
A research and development
B research and discovery
C resources and development
D resources and discovery
Answer A
Comments
A Correct – it is associated with the research into and the development of new products or services.
B Incorrect – discovery is often by accident or as result of careful research and development.
C Incorrect – resources are the things needed to run a successful business, such as raw materials, capital and staff.
D Incorrect – the resources and discovery are separate, individual areas of business.

19. Over to You: London Buses p41
Complete the case study
20 mins
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty

20. Plenary: Explain the keywords
Design Mix
Differentiation
USP
Scientific research
R&D
Aesthetics
Differentiation
Branding
Packaging
Market mapping
Premium pricing
Perception
Brand loyalty