Methods To Increase Profit

Question 1

How can a business increase profit by increasing revenue financially

Answer 1

• increase/ reduce selling price

- depends on PED/YED is the data accurate

Question 2

How can a business improve profit by increasing revenue through marketing aspects

Answer 2

• new promotional activities e.g. celeb endorsement/ challenges etc
= extra costs
- diversification = ansoffs matrix = high risk
- increase output
- improve staff training

Question 3

ways of improving profit by reducing costs

Answer 3

• expanding production to achieve E.O.S = short term ^ in expenditure
• negotiate cheaper costs with suppliers = impact quality
• move from labour to capital intensive production = impact on workforce / brand imagine
• move from traditional media to digital marketing = is it sutiable for target market