1. Edexcel A-level Business Theme 1 1.3 Marketing Mix and Strategy
1.3.1 Product/Service Design
Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders
The design mix and social trends:
Customers are increasingly worried about fair trade, human rights, resource depletion and degradation. Recycling and re-use is becoming more and more popular. Many businesses now focus on:
Design for waste-minimisation
Design for re-use
Design for recycling
Ethical sourcing
Product design: the process of creating a new product or service
Product design: key features that need to be considered when developing a new product/service
Morals: standards of behaviour; principles of right and wrong
Ethics: moral principles that govern a person's behaviour or the conducting of an activity
The design mix will change, depending on the market (customer) needs
Dining room table
Sports car
Being more ethically minded and taking into consideration social trends does increase the costs of production and hence, increase the unit cost, especially in the short term. However:
BENEFITS:
Business may be able to reduce waste, so use fewer resources. Over time this could result in lower costs and higher profits
Likely to be popular and sell in larger quantities. This will raise revenue and increase profits
Some businesses use this as their USP e.g. fair trade
Be seen as good corporate citizens so avoid criticism for trading unethically
Life-assurance policy
Designer high-heeled shoes
Smart-phone
THE DESIGN MIX
Function
Must be fit for purpose e.g. convenient or durable. Can often lead of a USP/competitive advantage
Cost
Needs to be economically viable: can actually be produced AND sold for a profit
Aesthetics
Should provide a sensory stimulation in addition to performing a function e.g. using more expensive materials so customers think its more viable. As the costs of manufacturing comes down, the aesthetics often become more important