Value creation process Flashcards
What are the 2 faces of value creation
Customer value creation
enterprise value creation
What is the core product?
core product is the basic good or service. (SOP)
What is an Enhanced product
Enhanced product a basic good with additional implication( enhancement). It brings more value.
What does the consumer expect?
Customers expect and buy the benefits and value of the total offer.
What is a tangible benefit?
Tangible is a physical feature of the product
ex: packaging
What is an intangible benefit?
intangible feature and benefits is a unphysical feature of the product
What are the levels of the offer
Four levels of offer:
- Core or generic
- Expected
- Augmented
- Potential
What is a core or generic offer?
The basic physical product or service
What is Expected offer?
the minimal items that are expected to receive in order to use the basic product.
ex: manual, warranty
What is Augmented offer?
Extra items to differentiate a product with other rivals
what is Potential offer?
the potential innovation of the offer thant can be improve to attract new customers.
Marketing ladder of loyalty?
Prospect customer client supporter advocate partner
What is a prospect?
A candidate business partner
What is a customer?
someone who has done business with you
what is a client?
Someone who has repeatetly do business with you
what is a supporter?
someone who likes your org and supports you passively
What is an Advocate?
Someone who actively recommends you to others
What is a Partner?
Someone who has the relationship of a partner with you
What is a Value Chain?
- It is used to describe the linked business activities
- It gives visual model of the activities allowing to determine where to reduce costs
- It allows to create competitive advantage.
What are the 2 activities in value chain analysis?
Primary and support
What are in support activities?
- Firm Infrastructure
- Human Resource Management
- Technology development
- Procurement
What is Firm Infrastructure?
Take care all the management, financial, and legal systems
What is Human Resource Management?
Responsible for the processes in managing employees and hiring new staffs.
What is Technology development?
IT department where it helps business innovate and increase efficiency or decreasing production costs
