9: Innovation and Markets

The success of a company relies heavily on the strategies it adopts. The evaluation of products, services and systems can inform the selection of the most appropriate strategies to follow that will enable a company to achieve its objectives. (1.12)

Designers must consider the market when targeting their product, service or system. The smaller the sector, the more the target audience will have in common. Companies may decide to compete in the whole market or only in segments that are attractive and/or familiar. A designer’s understanding of the identified market is essential. (2.6)

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. (3.8)

Market research often identifies how to improve the product, service or system and increase its chance of success within a particular sector or segment. The price a user is prepared to pay is usually determined through market research. This in turn sets an upper limit of cost to the design and production of a potential product, service or system. Market research has a crucial role in determining the constraints a designer has to work within. (1.5)

In order to diffuse products into the marketplace, the identity of a company is typically embodied in a brand. The brand is communicated to the consumer through a value proposition. Designers help to communicate this by: building a strong user experience around the brand identity; determining content design; establishing the tone of message through advertisements; promotion. (3.9)