Adding Value to Products Flashcards
What does PESTELE mean?
Political, Environmental, Social, Technological, Ethical, Legal and Economic
What is the value analysis triangle composed of?
Aesthetics, Cost, Function
How do you add value?
Building a brand, excellent service, product features, convenience, lowering prices
What are the benefits of adding value?
Higher prices, USP, focusing on target segment, differentiate from competitors
What are the disadvantages of value analysis?
Assumes competitors do nothing, assumes nothing will change, ignores other factors,business is dynamic not static
What is invention?
A new product
What is innovation?
A new idea
What is meant market orientated?
A business reacts to what customers want
What is meant by product orientated?
A business develops a product based upon what it is good at
Give examples of innovation
Improving or replacing a process, developing new products, adding value to existing products
What is research and development?
The process which allows the creation of new products and processes to meet the needs of customers
Give examples of research and development?
Launching new products, improve production processes, using alternative materials, waste reduction
What are the advantages of research and development?
Getting ahead of competition, increased efficiency, improved reputation
What are the disadvantages of Research and development?
High costs, high risks, copying, limited protection of ideas, changes in production, unemployment
What factors influence research and development?
Level of competition, product, external environment, state and economy, specific issues
