4&5. Adding value Flashcards
1
Q
Define adding value
A
Adding value to raw materials so there will be a significant difference between the cost of purchasing raw materials and the selling price of the finished article
2
Q
Importance to adding value
A
High price and Competition (allows firm to stand out)
3
Q
How to achieve AV:
A
Product design and benefits
Building a brand
Offering convenience
Deliver with excellent service
4
Q
Product design and benefits
A
+ functionality
- cost
5
Q
Building a brand
A
+Reputation for quality
- Time taken to develop
6
Q
Deliver with excellent service
A
+ higher price (more profit)
-Cost
6
Q
Offering convenience
A
+ higher price (more profit)
-Cost
