Embedded Files
Conceptual Understanding: Empathy for, and understanding of the target audience is developed through thorough analysis of the market chosen. This informs several factors: the standards that end users demand; how and where to distribute and sell the product; how much they are willing to pay for a certain product and its quality; and how to communicate the launch of a product. Correct analysis of these factors could determine the success or failure of a product, despite its quality.
Marketing Mix- 4 P’s
In order for any design to be successful it is important to understand the target market. Through decent research, Designers should be able to understand the factors necessary for success and identify the aspects:
How and where the product should be distributed and sold.
What standards or expectations should be met.
How much consumers are willing to pay for the product.
What types of promotional campaigns will best target the users.
The 4 P's provide you with a template or check list from which to base you empathic understanding of your potential Market and Market Group. Do the research correctly and you'll raise the chances of a successful product entry, or not (you'll avoid product entry and redesign)
Product
Product
Product refers to: Features, quality, packaging, branding, etc.
How does the products function and features relate with the TMG requirements?
How are the values and aesthetics of the brand reflected in the product? Think about the product family.
Does the packaging fit the product? think about the minimal design of the iPhone and its box.
Does the warranty and after sales service match the product requirements and price?
Does the product's build quality and function connect with its price and the brand associated? Rolex vs a Casio watch.
Place
Place
Place refers to: How the product will be sold and distributed.
Where: Geolocations, is the product region locked or international?
Who: Will the product be sold via start up as in the designer, or the manufacturer or retailer?
How: Will the product be sold in the mall or online? Will it be try before buy?
How: Will they get their hands on the product, store pickup, delivery, subscription?
Price
Price
Price refers to: The amount of profit you're looking to make through the pricing you offer the consumer.
The amount of money a company spends to produce, distribute or market a product is the COST
The amount of money it costs to produce a single item is the UNIT COST.
The amount of money a company makes from selling a product after the overheads is the PROFIT.
The amount of money a customer pays for a product or service would therefore be the PRICE.
Promotion
Promotion
Promotion refers to: The methods of informing those customers, both current and potential, of the a product or service and drumming up excitement and want.
How will you advertise?
What will you advertise?
Which platforms will you use?
How much you willing to spend and how often?
A little more on pricing
Cost-Plus Pricing
Cost-Plus Pricing
A percentage is added to the total production costs to generate a profit margin.
Example: A company wants to make a 10% profit, if the product's total cost was $80, then they'd sell it for $88.
Demand Pricing
Demand Pricing
A price that is set according to the demand of a product. Higher demand equals a higher price and vice versa.
Example: A new RTX GPU during high BTC rates.
Psychological pricing
Psychological pricing
Setting the price so that the consumer feels they are paying less. The most common example of this is the classic $9.99, even though SG doesn't really have a 1 Cent in circulation. Better to pay $9.99 than $10.00. This type of pricing also applies to Subscription services, Netflix for example, better to pay monthly than yearly. (We're not talking about the savings)
Product-line pricing
Product-line pricing
Seen within a product family, the better the spec the higher the price. This pricing creates value, getting the same product with a few not needed features saves you cash and gives you value satisfaction.
Example: iPhones, iMac. Move on!
Competitor-based pricing
Competitor-based pricing
Price is set according to what other products are being sold for in the market place. Shoppe instead of Lazada, instead of Harvey Norman.
A little more on products
Product Standardisation
A standard is a rule or a guide to follow, it describes how something is done.
Government standards
Different countries have different standards for products. Designers and manufacturers need to be aware of these requirements.
For example in Europe that need to set a Health and Safety standard for a product as not to harm the user. It is the CE mark on most electrical devices. The CE mark can be used in other countries such as China. State-based legislation to guarantee quality, safety and reduce potential risks for the user. Also eg. ISO 9000 and also electrical goods must meet the appropriate standard for plugs, sockets and voltage eg. 120v 60hz USA / 230V 50Hz UK
Component standardisation
Component standards refer to the sharing of components across an industry. The USB plug is an example that illustrates this. A huge range of devices and accessories make use of this standardised interface. This allows for both ease of use, cross-device compatibility and also reduces manufacturing costs as parts can simply be purchased on mass. From a consumers point of view, choosing a product that uses standardised components make life more compatible and easier.
Industry-wide standards
Industry standards are the shared standards that an industry may adopt. Think about Nut and Bolt sizes, or plywood sheets. Bolts come in Imperial or Metric standards, an M10 means Major 10mm in all countries regardless of the measuring unit they follow. Plywood sheets come in 1220 x 2440 mm stock (3 x 4').
Efficiency and performance
Increasingly governments are concerned with energy conservation and legislate to prevent products with high energy consumption from being sold.
Trigger and increment
This is part of cross selling, up selling and everything with add-ons.
Page updated
Report abuse