3.2.1 Design and research development Function Select three products that you are familiar with. How important is each element of the design mix to your products? Cost Appearance 3.2.1 Design and research development 3.2.1. Design and research development

Is an iPad aesthetically pleasing, functional or both? 3.2.1. Design and research development What is Design? A plan that is produced to show the look or function of a product Design will be used in a variety of businesses where a product is planned and considered before possible production Design may be aesthetically pleasing, functional or a mixture of the two Design is key in product differentiation – making your product stand out from competitors Is an iPad aesthetically pleasing, functional or both?

The design mix The design mix is those elements that go in to successfully planning a new product: Function – the purpose of the product. Does it actually do what it is meant to do? Cost – for most products a business will try to produce at low unit costs. This will allow higher profit margins per unit and will provide a competitive advantage Appearance – a product that is pleasing to the eye has a better chance of selling List these elements in the order of importance to you when buying: A mobile phone A pair of trainers A calculator 3.2.1. Design and research development

3.2.1. Design and research development Research development Research and Development (R&D) refers to scientific investigation (research) and technical growth (development) of a new product or process. New technology means that firms can continually improve their products. Those that invest in R&D are the ones that will reap the rewards in future years. In competitive global markets firms that do not invest are the ones that will not have the new products to meet future demand. R&D is the first stage of the product life cycle. It can be informed by market research but scientific research is about development of the actual product or process not identifying what the market is looking for.

Why do these big businesses spend so much on 3.2.1. Design and research development R & D spending Big businesses have big budgets for R & D spending In just 4 months (April – June 2012) who spent how much? Can you match the business to the spending? Apple $2.3bn Microsoft $2.3bn Google $1.3bn Apple $758m Why do these big businesses spend so much on R & D? Microsoft $1.3bn Google $758m

3.2.1. Design and research development Group activity Which company is responsible for the development of all these products? How important is each element of the design mix for the different products shown? In 2010 the company reported that profit doubled as a result of investment in R & D. Spending on R & D is a cost so how can profits double if more is being spent? What next? – identify one household product that needs this company to redesign it. Design a new improved product. You will each have one minute to give “an elevator pitch” explaining the benefits of your new design based on the design mix.

Question time 1) Product design is useful to a business because it: 3.2.1. Design and research development Question time 1) Product design is useful to a business because it: A Increases cash outflow B Differentiates the product C Leads to a lower price D Creates problem children (1 mark) 2) Explain one reason why appearance is important in marketing a product. (3 marks) 3) The research and development team at Samsung are looking to develop a new phone. Use one element of the design mix and suggest how they could improve upon the Galaxy S3. Justify your answer. (5 marks)