1. Research and development Research helps a business to find out what customers want and if they can produce such a product Development involves the business testing out the product and continuing to improve it

2. Design and Product Differentiation Design helps a product stand out from its competitors. It is a very important form of product differentiation

3. Examples of products with a differentiated design:

4. The Design Mix – 3 Elements FUNCTION How well a product works COST OF PRODUCTION The cheaper the better! A design that costs less to produce than rivals will give a business a competitive advantage, however a business may choose more expensive production if they are looking for quality APPEARANCE Stylist products are likely to sell more than plan products so appearance is very important in design

5. Scientific Research The process of developing products using a process of experiment, trial, observation and analysis. Benefits of Scientific Design: – new designs which may be cheaper to produce and to operate – more fuel efficient processes found – new features and functions found to meet customers’ needs – prototypes which can be tested before introduced to the market.

6. Scientific Research Many businesses have their own research and development departments, whereas some businesses buy in parts from companies who have developed them using science.