Product Design (Quick Revision)

Question 1

Define: Product Design

Answer 1

Product design is the way in which a product is built, including its specifications.

Question 2

State three factors that might influence a product’s design.

Answer 2

• What it has to look like
• Cost of design
• Cost of manufacturing

Question 3

State two possible consequences of cutting the cost of a design.

Answer 3

• Quality may suffer, reducing customer loyalty and sales

* May boost profit margins if the firm can maintain the selling price

Question 4

A design may provide a USP. What is a USP? What benefits does it provide?

Answer 4

Unique selling point (proposition); may enable premium pricing and develop brand loyalty

Question 5

State three factors that might influence how much a firm spends on product design.

Answer 5

• Overall resources
• Likely returns
• How well the finances are managed

Question 6

What is the Examiner’s note for Product Design?

Answer 6

The product is one element of the marketing lix; other elements include:

• Price
• Place (distribution)

And…

• Promotion

These need to be integrated (e.g. an exclusive design will usually require limited distribution and a high price).

Question 7

What is the Evaluation point for Product Design?

Answer 7

The relative importance of the elements of design will vary from product to product (e.g. the look of the product is very important with perfumes, while the cost of manufacturing is very important with high-volume commodity products).