Does a product have to be PROFITABLE to make it into production? Starter Does a product have to be PROFITABLE to make it into production?

The Marketing Function Making profitable products that people actually buy

Our Usual Approach Identifying or Anticipating Needs: Finding a problem that people have, that needs to be solved or something that people might want to own (now and in the future) Satisfying Customer Requirements: We then find out what the Customer would want from such a product then set about designing it.

Technology Push Market Pull Advances in technology are used to produce new products. Inspiration for new products comes from research and development labs. An innovation based upon a new invention and a perceived market need. Market Pull Inspiration for new products often comes from the needs of society, market research improves products, brand loyalty, “have to have one” psychology. An innovation based upon market pull has been developed by the Research & Development function in response to an identified market need, fashion or trend.

Obsolescence Planned Obsolescence A product is no longer working or useful. Obsolete Consumer demand leads to the production of new products Planned Obsolescence A Manufacturer deliberately minimises the ‘life’ of a product to maintain sales of future products – Planned obsolescence = Built in obsolescence

Pull Push Analysis Mobile Phones Office Chair Technology Push Market Pull What features have been demanded by the Target Market, that have then had to be invented and led to new products What new technologies have been invented that have led to new products being released. Office Chair Technology Push Market Pull

Demographics We tend to define a specific TARGET MARKET However when considering how profitable a product might be we need to properly consider DEMOGRAPHICS Demographics is actually the statistics about the population of a given area. However as a designer we can look at particular demographic profiles and demographic trends

Product Evolution Products Naturally Change over time. Small improvements can gradually adapt the design of the product so that after a while it is very different to how it started but has never had a MAJOR redesign These small changes can be driven by: new technology, improved production methods, style and fashion, problems with the old model etc

Demographic Profiling Demographic information can include: gender, age, ethnicity, language, ability/disability, home ownership, employment status & location Demographic Profiles are groups of people that are lumped together by the marketing industry to be targeted as a potential market (hence: Target Market) Age Bands \ Social Class Bands - and combinations of. Gender /

Demographic Trends Marketing professionals also refer to Demographic trends and target these groups for particular products https://www.youtube.com/watch?v=jHpbdQCMnwQ

The Marketing Mix A company needs to consider the marketing mix in order to meet their consumers' needs effectively. Elements of the marketing mix The marketing mix is the combination of product, price, place and promotion for any business venture. No one element of the marketing mix is more important than another – each element ideally supports the others. Firms modify each element in the marketing mix to establish an overall brand image and unique selling point that makes their products stand out from the competition.

The Marketing Mix