π Enterprise and Marketing in the Development of Products
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AQA A-level Design & Technology: Product Design (7552) · Enterprise and Marketing in the Development of Products
Mini-Lesson
Enterprise and Marketing in the Development of Products
This mini-lesson covers enterprise and marketing β the marketing mix (4 Ps), market pull vs technology push, segmentation, pricing strategies, the product life cycle and the USP.
Work through each screen, answer the questions as you go and collect β stars. Press Start when youβre ready.
Overview
Enterprise and marketing
Enterprise is spotting an opportunity and taking a calculated risk to bring a product to market β the work of an entrepreneur. Marketing then communicates the productβs value to the right customers. Both decide whether a good design becomes a commercial success.
Marketing mix
The marketing mix β the 4 Ps
Product β what it is: features, quality, design, packaging.
Price β how much, and the pricing strategy.
Place β where and how it is sold (shops, online, distribution).
Promotion β how it is advertised and communicated.
Match it
Match each P
Tap a "P" of the marketing mix, then tap the question it answers.
Term
Match
Quick check
Which P is this?
?A company decides to sell its product exclusively through its own website and selected department stores. Which "P" of the marketing mix is this decision?
Pull vs push
Market pull vs technology push
Market pull β development is driven by a customer need or demand ("people want X, so we design it").
Technology push β a new technology or material creates a product that people did not know they wanted ("we can do X, so we make it").
Quick check
Pull or push?
?A firm develops the first product to use a brand-new battery chemistry it has invented, then looks for a market. Is this pull or push?
Segmentation
Market segmentation
Markets are divided into segments so products and messages can be targeted. Common bases: age, gender, income, lifestyle, location.
Mass market β a large, broad audience (everyday goods).
Niche market β a small, specialised group willing to pay for exactly what they need.
Pricing
Pricing strategies
Cost-plus β add a fixed profit margin to the unit cost.
Price skimming β launch high (new tech, keen early adopters), then lower it.
Penetration β launch low to win market share quickly, then raise it.
Competitive β price in line with rivals.
Calculate
Your turn β cost-plus price
βA product costs Β£8 per unit to make. The company uses cost-plus pricing with a 50% mark-up. What is the selling price?
Hint: price = 8 Γ (1 + 0.50) = 8 Γ 1.5.
Quick check
Price skimming
?A brand launches a new phone at a high price aimed at eager early adopters, then reduces it over the following months. Which strategy is this?
Life cycle
The product life cycle
Most products pass through introduction β growth β maturity β decline. As sales mature or fall, firms use extension strategies β restyling, new features, new markets or repackaging β to prolong profitable life.
Sort it
Which "P" is it?
Tap a marketing activity, then tap the "P" it belongs to.
π¦ Product
π· Price
π£ Promotion
Brand & USP
Branding, USP and funding
Branding & corporate identity β a consistent name, logo, colours and values that build recognition and loyalty.
Unique selling point (USP) β the feature that makes a product stand out from rivals.
Crowdfunding β raising start-up money directly from many backers (e.g. Kickstarter), also testing demand.
Quick check
What is a USP?
?A cordless vacuum is marketed on being the only one in its class with a self-cleaning filter. What is this an example of?
Recap
The big ideas to know
Enterprise: spotting an opportunity and taking a risk to bring a product to market.
Marketing mix: Product Β· Price Β· Place Β· Promotion (the 4 Ps).
Pull vs push: market pull = customer demand; technology push = new tech first.
Segmentation: target by age/income/lifestyle; niche vs mass market.