Adding Value This is being able to charge more for the output than the total cost of the inputs (i.e. 1+1=3). The act of production can ‘add value’ and so does good marketing. The finished product must have an image or meet a need so a consumer is willing to pay more. e.g.1: to produce a replica football shirt costs £5-£7, yet they cost around £35. The additional cots is image created by marketing. e.g.2: fast foods are more expensive as within the production process the time- consuming work has been done for the consumer. UNIQUE SELLING POINT (USP) This is what differentiates one product/service from the next. It gives the firm a competitive advantage. This can be real or imagined. REAL USP: a physical difference which gives real benefit (may be protected by patent). IMAGINED USP: effective promotion can create this, but is often expensive. To be a success it must: distinguish the product live up to the image have a good, all round marketing mix.