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2.3.1 Define technophile, technocautious and technophobe.
2.3.2 Explain how people can be broadly classified according to their reactions to technological change.
People’s reactions to technological change vary depending on their values and personal circumstances. First-order effects and second order effects should be taken into account, for example, personal gain in owning a car versus social and environmental considerations.
2.3.3 Define corporate strategy.
Long-term aims and objectives of a company and ways of achieving them by allocation of resources.
Definition from BusinessDictionary.com: Approach to future that involves (1) examination of the current and anticipated factors associated with customers and competitors (external environment) and the firm itself (internal environment), (2) envisioning a new or effective role for the firm in a creative manner, and (3) aligning policies, practices, and resources to realize that vision.
2.3.4 Describe the corporate strategy referred to as “pioneering”.
Pioneering means being ahead of the competitors by introducing a new product first. It is the most risky (costly) strategy but one with the potential for the largest gains. A pioneering company requires a strong research and development (R&D) capability, which is expensive. A pioneering company needs to be financially secure and requires product champions to push new ideas. Consider the Sony or Apple companies and their various pioneering developments. Good market research can offset some risk, but is problematic for novel products.
2.3.5 Describe the corporate strategy referred to as “imitative”.
The imitative strategy aims to develop a product similar to the “pioneered” product as quickly as possible. It takes advantage of R&D invested by others, and is less risky, but is based on a strong development capability.
2.3.6 Explain the benefits for a company of using a hybrid strategy.
Companies that use a mixture of pioneering and imitative strategies in order to:
2.3.7 Define market penetration.
''What Does Market Penetration Mean?
A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company’s sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product.
For example, if there are 300 million people in a country and 65 million of those people have cell phones then the market penetration of cell phones would be approximately 22%. This would mean in theory there are still 235 million more potential customers for cell phones, which may be a good sign of growth for cell phone makers. In general, the older the offering or industry, the greater the market penetration.
2.3.8 Describe a strategy that a company would use to enhance market penetration.
Consider product promotion through marketing.
A strategy a company may consider to enhance market penetration is product promotion. Product promotion engages in propagating information about a product, product line, brand, or company. Information gathering and research is exceedingly essential in product promotion because a company must know how to appropriately promote its product or service to a specific desired market. Product promotion is commonly divided into two parts:
The following is just for interests sake:
2.3.9 Define market development.
Finding new applications for existing products, thereby opening up new markets.
2.3.10 Describe how a company would undertake market development.
The identification of new markets for products, for example, nylon was originally developed for parachutes.
2.3.11 Define product development.
The creation of new, modified or updated products aimed mainly at a company’s existing customers.
2.3.12 Describe one example of how a company undertakes product development.
Consider adding variations to a product to develop a range of products building on an established brand, for example, ice cream, snack food products, chocolate products (Kit Kat, Mars bars).
Product development, can be approached through many ways:
2.3.13 Define diversification.
Involves a company both in the development of new products and in selling those products to new companies.
2.3.14 Describe one example of diversification.
For example, a company manufacturing three-pin electrical plugs may consider producing them in a range of colours or from materials of different textures and/or material properties.
2.3.15 Define market sector and market segmentation.
2.3.16 Outline two ways in which markets may be segmented.
Consider income, age, lifestyle, geographical location, and so on.
2.3.17 Define robust design and product family.
2.3.18 Discuss an example of a robust design that evolved into a product family.
Robust product designs change a little over the years continue to sell well over many years different variations of the product have been produced which constitute a family of products
An example of a robust design is the Apple iPod. It is a flexible design that, in just the past few years, developed new features from the original product. It has been changed and has evolved to fit different needs in the market.
Furthermore, the iPod has evolved into a product family. There's the Nano, the Touch, the Classic and the Shuffle; all of these members of the iPod family fulfill the basic needs of being an iPod, they can all play music in the same manner, and all follow the same basic procedure and software. Yet they have little changes in between them that allow them to have robust design. These include:
Bulleted list and italicised paragraphs are excerpted from Design Technology: guide. Cardiff Wales, UK: International Baccalaureate Organization, 2007.
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