2.2.1.

Product
Worksheet
 From Edexcel
The design mix:
• Function, aesthetics, cost

The product life cycle:

• The phases of the product life cycle
• Extension strategies

• The importance to a business of differentiating a

product/service
 Lesson objectives
• To be able to identify elements of the design
mix
• To be able to use the product life cycle
• To be able to discuss the importance to a
business of differentiating a product/service
 Starter
• What do you think this is? How does it work?
What does it cost?
The impact of competition on business decision
The design mix
making
 The design Mix – Three questions
• Function – what problem does the product or
service solve?

• Design – how does the product look, feel, taste?

• Cost – can the product be made (or service

provided) for the right price, so a profit can be
made?
Function
• Will the product or service be fit for
purpose?
• What does the product do? In a
Dyson vacuum cleaner it cleans
without needing a bag inside which
lost suction when it got full…
• How well does it perform? In a car
this may be its mpg or its top speed
or its 0-60
• Ergonomics, usability, safety,
reliability, functionality..
How important is it that these products have function in mind
when designed? (rate 1 Not so much and 10 very)

Function
Aesthetics

Consumers are asked through marketing research

about their feelings towards products. This is the
aesthetic, how it looks, tastes, feels.
How the senses respond to the product.
More stylish and beautiful products tend to sell
better and can have a premium price charged.
What emotional attachment consumers have with
the product
(watch the Budweiser puppy advert)
Do products look more appealing with clever
design?
 Cost ££££££
• Questions the design team might ask the
production department…
• What is the minimum cost that we can make
this product for whilst retaining quality?
• Can this product be made using productive
capacity? Can it be made efficiently?
• Can it be produced for a lower cost than the
competitors?
 Example design mix
Function

Aesthetics

Cost
 Example – design mix
Function The iKettle can be controlled via a phone app
Aesthetics Using sleek sharp lines the iKettle still holds it’s
very classic design.
Cost The new iKettle has been reconstructed using only
the very best materials. From the high grade
stainless steel to the extra strong handle and lid,
the iKettle 2.0 has been designed with quality in
mind.

Website
here
The impact of competition on business decision
The product life cycle
making
 Define marketing mix
• The marketing mix refers to the set of actions,
or tactics, that a company uses to promote its
brand or product in the market.
• The 4Ps make up a typical marketing mix -
Price, Product, Promotion and Place

• Product is part of the 4 Ps of marketing

 Product Life cycle – time to draw a diagram
Revenue £

Time
 Product life cycle

Maturity
Revenue £

Growth

Introduction Decline

Time
 Introduction
• The introduction phase
will involve high costs in
research and
development and the
product may have been
test marketed before
launching, so profits may
be negative
• Sales will be low as
customers may not yet be
aware of the products
 Growth
• Growth phase products
are enjoying rapid
growth in sales and
profits
• At this stage the
customers are aware of
the product and
demand is high
 Maturity
• Maturity phase products
face intense competition
now all the producers
have joined the market
• Sales are high but profits
are starting to fall
• Products have to be
discounted to keep sales
high
 Decline
• Decline phase products
may be limited in
production
• At this stage profits and
sales have fallen
• The product may be
withdrawn from sale
Can you guess what stage of the product lifecycle each
of these products is at? (correct at Dec 2016)
 Product Life cycle – how can this be
extended?

Growth Maturity
Sales volume

Introduction

R&D Decline

Time
 Extending the product life-cycle
• A business may have a saturated domestic
market (the country in which the business is
based is the domestic market)
• If everyone who is going to buy your product
has bought it – what does a business do next?
A. Develop new products which is time consuming
and expensive or
B. Find new markets for existing products which will
reduce the average cost and speed up break-even
 A) Product lifecycle extension strategies –
product (example)
• Jaguar land rover regularly
update their models
• This picture shows two range
rovers, one slightly newer than
the other, the engine and chassis
are the same the styling has
changed to extend the brand
• Land Rover have been making
Range Rovers since 1970
• This strategy ensures that the
car remains in the maturity stage
of the product life cycle rather
than going into decline and
being withdrawn
 B) Product lifecycle extension strategies -
promotion
• Re-packaging e.g. Lip tar (see
picture)
• Discounts e.g. DFS sale
• Re-branding e.g. Marathon
became Snickers
• Adding extra features e.g. iPhone
6+ has a bigger screen than the
iPhone6
• New users e.g. toddlers at
Drayton Manor attracted by
Thomas the tank land which has
boosted flagging ticket sales
• New markets e.g. overseas
The
Theimportance
impact of competition
to a business
onof
business
differentiating
decisiona
product/service
making
 Differentiation
• Defined as: When a business makes their
products or service different from the
competition
 Ways to differentiate products / services

1. Branding
2. USP
3. Location
4. Design
5. Customer Service
6. Quality
7. Product mix
 Branding
• A brand is a name, logo,
slogan, and/or design
scheme associated with
a product or service
• Advertising and
marketing builds a
brand
• Customers will buy a
product just because its
their favourite brand
 USP
• This stands for unique selling point*
• This is the secret ingredient that makes one
business different from all the others that are
similar
USP of greeting
card retailer
scribbler is that all
their greetings
cards are full face
to the front -0 think
about Clintons how
is it different?
 Location
• Differentiation can be achieved by having the
best location, for example a petrol station on a
busy road
 Design

• Differentiated
products based on
the packaging design
 Customer service
• Virgin is a full service airline with on-plane
WIFI, touchscreen seatback entertainment,
and full service meals available with roomy
cabins.
 Quality
• Some products aim to set themselves apart
through their quality
 Product Mix
• Some businesses differentiate themselves
from the competition through their product
mix –e.g. Costa and Starbucks range of coffee
and snacks
 Plenary
• Can you explain all 3 elements of the design
mix?
Sample question 1
Answer question 1
Written by Sarah Hilton ©

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