Business lecture 2

You may not be given all the information you need from a client therefore its necessary to ask as many questions as needed. 

Product positioning

The higher the quality of product, the higher the price usually is.

A PEST analysis is a business measurement tool. (Political, economic, social and technological.) These factors are used to assess the market for a business.

Another way of assessing the product and market is through doing a SWOT analysis. This highlights the strengths and weaknesses of the product which are managed internally and the opportunities and strengths which are effected externally.

The product lifecycle.

The sales of a product are seen to decline when introduced to the market and then being to grow, before becoming steady. With time, factors such as political, social, economical and technological may effect these sales. Products are continuously developed and made better, therefore the older models will decline in sales. Companies must consider the product ‘sales expectancy’ in order to produce newer models or replacements to maintain their position within the market.

There are some companies which have been selling the same product for centuries. It is clear that these companies have a product which is timeless and is of good quality. 

Companies such as Coca Cola are international brands that everybody is familiar with. The sales remain steady, as they have done for years. 

Design audits examine the design of something (for example, a product) and assess whether it will be successful on the market or whether it could be improved. The design audit reviews all of the different elements that your company uses to interact with customers and the public. 

It is necessary to get the design right first time to avoid a useless design and wasting your time. When obtaining market research, it is valuable to obtain primary and secondary data. 

Primary data

Quantitive: Asking a large sourcing of people lots of questions.

3 types: Geographic- where you live tells a lot about how you live

Psychographic- how you think determines what you buy

Socio-economic- your class and financial ability indicate what you will buy.

Qualitive: The interview and focus group. Here you discuss with those ‘in the know’ about a market issue that you need to understand.

I think that this would be an effective way of obtaining detailed information through conversation.  Its success is dependent on the control of discussions.

Secondary data

Data that has been published by sources such as Mintel, which is a global database for market research and insight. Care is needed, as only reliable sources must be used for true information.

There is lots of data available therefore it is necessary to be specific within your search. Need to focus on particular needs of the market.

Break market into segments. Approach in this way. Can be done by age, sex, social class, geography, hobby/interest etc.

Segmentation is a more successful way of targeting. It is measurable, accessible, substantial and meaningful. Focusing on small segments helps to understand that specific area of the market in more detail.

Business Lecture 1

When thinking about placement year and employment after graduation, it is necessary to take as much experience within the field of Graphic design as possible. The creative world is enormous therefore it is necessary to research agencies that would suit me best and give me the knowledge to develop my design skills. Employers will be looking for a variety of different qualities and are interested primarily in the process of idea generation.

Do not email companies about placements. Alternatively, type up a letter as this will catch their attention and shows that you have gone out of your way to apply.

Product Orientation

I make this product. Where is my market?

A company that follows a product orientation is not mindful of customer needs and their main focus is to supply a quality product. This approach hopes that their product will attract customers.

Market Orientation

I have these assets. What do you want me to do with them?

Marketing orientation is a business model focusing on designing products according to customer needs, in addition to its quality.

I believe that marketing orientation is a securer way of designing, to ensure people will be interested in buying the product. If market research has been executed, there is a higher probability that people will be attracted to the product as market orientation also takes into consideration the functionality and aesthetics, aiming to create high quality items.

Firms have many ‘sub firms’ that talk to the ‘market’. Competitors, suppliers, customers and clients all form the market. Firms and the market class as a micro economy. When designing, a firm will look to the market, national economy and global economy to gain better understanding of global issues. For example, technology, social change, politics, war and natural disasters. Having knowledge of national and global affairs can impact design to suit clients situated in different parts of the world. A cultural and economical understanding of where you are supplying to is important. To remain ethical, it is necessary to consider what could be offensive.

Need to ask questions before approaching a design.

4 P’s

Price, Product, Promotion, Place

Cost of a product takes many aspects of the design, making, promoting and exporting process into consideration. Reaching an end design can be time consuming as prototypes must be tested and developed. For quality items to be products, quality material must be used therefore, this adds to the pricing. Other elements such as paying employee wages and the packaging must also be considered. Profit is always added so the companies are not making a loss and remain successful. 

Product: Core product: What it must do. (Designing for a specific purpose, specification)

Secondary product: Why the consumer buys it. (Aesthetics, function.)

Promotion: How you tell/ persuade the market about it. I.e. advertising, pricing, offers, packaging.

Promotion can have a great influence on customers, especially through engagement. When writing my essay I found that engagement through advertising is a way of connecting with customers. A conversation can be created through a character. (As I have demonstrated for my Feel Good drinks project.) Examples used within the industry are the John Lewis christmas adverts and the Sainsbury’s christmas advert, using a cat as a promotional figure.

Place:  Where is it available? 

Make sure the product is suited to its surroundings. Where will it be used? At home, work?