Product design environment, Marketing Research

Product development is an interdisciplinary activity requiring contributions from almost every part of a company. Three areas that are always involved are:

  • Design
  • Manufacturing
  • Marketing

These functions must be considered concurrent: the development of the design should evolve in parallel with the knowledge of how the product will be made and how it will be marketed.

The three types of product design usually undertaken are:

1)New Category Products - Introduction of new products to the marketplace. High risk to the company but high rewards if successful. With no competition, a price premium is enjoyed.

2)"Me - Too" Products- Products that compete in an established marketplace. Less risk involved for the company. Rewards depend on sales volume.

3) Enhanced Products - Innovations to existing products to improve competitiveness. Low risk due to prior market acceptance.

Lowest reward as the company is competing with itself.

For a company to be successful it must be capable of producing a product that satisfies the needs of its customers and it must be able to do it in a timely and profitable manner. A product must not only be well designed in terms of appearance, function, and ease of use, but it must also be made available at a price the customer is willing to pay. Better quality (higher reliability, more features) usually means higher manufacturing costs resulting in a higher selling price and/or lower profit margin. Good marketing also plays a role in the success of a company. A customer can't buy your product if they aren't aware of it.

When examining the cost to manufacture a product, not only must you consider the incremental cost of producing each unit, but you must also include spending on capital equipment and tooling. Even more significant is the development cost. In fact, most of the cost of manufacturing a product occurs at the initial design stage (estimated at 70% in the car industry). For a "new" product (the original VCR's and DVD players) a company can try to recover most of this development cost quickly by setting an initially high price. For a "me-too" product, however, the company must compete with current market prices.

The design process begins with an identified need and ends with the acceptance of a prototype. The goal in design is to satisfy a set of requirements. There is no single solution, only a best solution given available resources. Achieving it requires integration of all design activities within an environment conducive to good communications. A company that wishes to undertake such a project must be willing to commit the required personnel. A design team will require people from engineering, marketing, sales and administration.

Although the design process will vary from company to company, it is important that a company does have some kind of formalized approach. A well-defined process is useful for product quality assurance, project coordination, planning, and management, and process improvement. In general, the design process can be broken down into 6 basic steps:

1.Recognition of need and problem identification

2.Idea generation (preliminary ideas)

3.Conceptual design & refinement

4.Detailed analysis

5.Production planning & Prototyping

6.Implementing production

Although the design team will work sequentially from step to step, it should be an iterative process - updating previous steps as new information is acquired.

Posted Date: 2/19/2013 7:06:42 AM | Location : United States







Related Discussions:- Product design environment, Assignment Help, Ask Question on Product design environment, Get Answer, Expert's Help, Product design environment Discussions

Write discussion on Product design environment
Your posts are moderated
Related Questions
Scope of the Act : The Foreign Exchange Regulation Act covers the types of transaction having international financial implications. Broadly the Exchange Control regulates the fo

Procedures for Furnishing the Forms : The declaration form GR (in duplicate) shall be submitted in duplicate to the commissioner of Customs. After duly verifying and authenticatin

Actual Total Loss (ATL): An actual total loss may occur in three ways. Firstly when the, insured cargo is physically destroyed when fire in the hold of the ship destroys complet

Describe video games market segmentation  Segmentation criteria -Do SWOT analysis (Nintendo, Sony/Playstation, Microsoft/Xbox) -Define and describe Nintendo Wii Target mar

Q: What are the different needs and motives of the consumer according to which a consumer buy the product? Ans: Needs : Requires can be explained in the following manner:

PROCEDURE FOR TAMING A POLICY : An intending exporter should fill in a proposal form (no. 12 1) available with all ECGC offices and submit it to the nearest office. After examinin

Q. What role is played by memory in consumer behavior ? Learning involves a change in the content or else organization of long term memory and/or behaviour. The initial part of

Rate of Interest: The interest payable on pre-shipment finance is usually lower than the normal rate, provided the credit is extinguished by lodging the export bills on remittance

Negotiation of Export Documents under Letters of Credit : Where the exports are under letter of credit arrangements, the banks will negotiate the export bills provided it is drawn

total jobbers in India ?