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Home→The Westburn Dictionary of Marketing→V→value analysis

value analysis

Definition:
The systematic evaluation of the individual elements of a manufactured product, which is already on the market, to determine the optimum combination of each element to satisfy the user's needs at minimum cost. Typical questions which are asked in value analysis exercises include: How is the item currently manufactured? What contribution does it make to the overall product? Could it be redesigned to make it cheaper to manufacture or the overall product easier to manufacture? Could it be replaced or eliminated? If so, by what? Value analysis is critical for any company seeking to produce products which remain competitive in price and value terms.

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Stephen T. Parkinson], [1998].