10 Business Studies 2
Weekly outline
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- Team building
- Entrepreneurs
- Types of Business
- Markets & segmentation
- Market Research
- Marketing Mix - Product, Price, Place, Promotion
- The role of markets - houses, shares, commodities
- Economics
- Business Issues, goals and stakeholders
- Finance & Accounting
- Market Day - putting it all together
- Web text - Wikibooks GCSE Business Studies
- Team building
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Kia ora koutou; Hi everyone,
Any questions? ask in class, email or find me in Mountains.Mr Suckling :)
NZ Curriculum Levels 5 & 6 include:
Themes for Business NCEA Level 1 include:
- Economic decisions affect people, communities, nations.
- People’s use of resources affects sustainability.
- Economic growth via business, enterprise, innovation.
- Scarcity and consumer, producer, & government choices.
- Role & skills of entrepreneurs.
- Types of business & their pros & cons.
- Market research, marketing mix, target markets.
- Business aims, financial records, cash budgets.
- Effects on society, stakeholders, sustainability, competition.
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Team Building
Learning Intentions
- Start to 'Form' our class as a team
- Build relationships (learn names, backgrounds, etc)
- Discover our business 'prior knowledge'
Success Criteria
- We've learned names of all students in class
- We've worked together to complete a task
- We found things that we have in common
- We know the meaning of common business terms
Activity:
In small groups, choose a 'name game' (idea links below).
Lead the class in the game to help us learn names.
One idea is the 'Time bomb' game:All form a circle and each say their name.
Links to other game ideas:
One says another’s name then throws ball to them.
They have 2 seconds to say another's name & throw to them.
Continue until all names are named.- 5 Name games: https://christiancamppro.com/whats-in-a-name-5-name-games-to-introduce-yourself/
- Things in common chain: https://www.playmeo.com/outcome/learn-names/
Activity
In small groups incl. 3 Whanaus:
- do this crossword (16A: 2017-23)
- decide our team stage (video link)
- add to the 'Building a Team' GDocCreating Questions
MHJC leavers say "we need to know how to ask questions in order to get the right help and to guide research".
The 'Question Quadrant' helps to create different types of question.
Look at the picture of Pooh & Piglet. Generate questions and write them on post-it notes.
Comprehension questions have their answer in the story, photo, video
Research questions have their answer in wider research eg on the internet
Speculation questions can be answered using our imagination about what might be (related to the text, photo, video)
Inquiry (philosophical) questions can be answered through ethics, logic, metaphysics, epistemology, aesthetics.
Ethics - should people be allowed to buy and sell anything?
Logic - If people act in their own interest, will they ever donate to charity?
Metaphysics - how do people know what something is worth?
Epistomology - how do you know something?Questions to answer this year in 10BUS:
- Start to 'Form' our class as a team
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Entrepreneurs
Learning Intentions
- Study case studies of entrepreneurial people
- Investigate the nature of entrepreneurs.
- Explore business purpose/goals/types/examples
- Research pros & cons of business activities (eg multi-national, limited liability)
- We can define an entrepreneur and describe the attributes of an entrepreneur
- We can identify people with entrepreneurial attributes and name examples of entrepreneurial people
- We have identified our own entrepreneurial strengths and areas to develop
- We have started a glossary of business terms
- We can explain the nature of business and its pros & cons.
Do Now - Entrepreneurs- Remain in your small groups of at least 3 Whanau. Spend 3 minutes sharing what you know about 'entrepreneurs'. Then read the following notes and web resources. Share what you've learned that you didn't know before. Discuss whether you think you could be an entrepreneur and why.
Notes
An entrepreneur has an idea and risks time, money and reputation putting the idea into action as a business.Entrepreneurs are innovative. They:
- Have ideas AND can put them into action
- Are creative problem solvers (think outside the box)
- Work long hours
- Can sell and / or build
- Can simplify processes and data - identify what's important
- Are effective with people
Main Activities- Go to Google Classroom and, in the Doc called "2021 10BUS3 Entrepreneurs", complete the tasks. They include watching the two video clips on Caine's Arcade and studying some examples of young entrepreneurs.
Extra Activity- Watch the video "Worst Product Idea - Dragon's Den"
- Consider whether you think Rupert Evans is an entrepreneur and in which of the 6 attributes he is weakest.
Extra Case Study
- In the GDoc called "Entrepreneurs", are resources on Jordan Daykin who, at 18, was the youngest participant on Dragon's Den 2014. He quickly became a multi millionaire.
- In the GDoc called "Entrepreneurs", are resources on Youtube millionaires. Read the articles and discuss as a group if these people are entrepreneurs. What could your Youtube channel focus on?
- Eastern Courier, 12 Feb 2020 - local example of an idea put into practice.
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Personality types & working in teams
For a team to work well together, it is helpful to understand each other's personality.
One model of personality types suggests that there are 4 main types, as shown below:
No one personality type is better than any other - the theory is that it's best to have a mixture of types.
For example, if all members have 'Playful' personalities, they will have fun, but it's possible that goals are not achieved!
Complete the GClassroom Doc called Teams and personality.Team activity
Complete the 'Team activity - Moon survival' activity in GClassroom. -
Business
Learning Intentions- Explore business purpose/goals/types/examples
- Research pros & cons of types of business and of business activities (eg multi-national, limited liability)
- We know examples of multinationals' power and can describe the impact on New Zealanders
The political influence, 'wealth' and power of large multinational corporations has increased over the last 20 years. This week, try to form an opinion about how this power is exercised and how it affects you and your family.
Here are some resources:
Chevron's oil pollution, Donziger and people of the Amazon
Amazon warehouse injuries
Ford Pinto ethics vs profit
Duopoly in NZ's supermarket industry
Amazon's Jeff Bezos and worker rights- In the Google Classroom doc called 'Types of business', there is a selection of resources on business power.
- Activity: also, in this GDoc is a table for your small group to add information that you've researched about the different types of business. You'll present your findings to the whole class. The topics are:
- Soletrader - what is it, pros & cons and examples
- Partnership - what is it, pros & cons and examples
- Company - what is it, pros and examples
- Company - what is it, cons and examples
- Limited Liability - what is it and pros & cons (for the business and for us)
- Public vs private companies and Directors vs shareholders - define each.
- Cooperative - what is it, pros & cons and examples
- Here's a resource that may help Business Structures
- Explore business purpose/goals/types/examples
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Markets & Segmentation
Learning Intentions
- Study case studies of markets and marketing
- Investigate the nature of marketing: Plan, Strategy and Segmentation.
- We can define and explain Markets
- We can describe how & why markets are segmented
- We have added to the glossary of business terms
Markets- A Market is a way in which buyers and sellers exchange goods or services. It can be a physical marketplace like a bazaar or shopping centre, or a virtual, online market (eg share or money market, Trade Me, eBay). Resource on markets
- Maeklong Market in Thailand has hundreds of small vendors using identical stands with identical shade awnings, selling identical products. Many sell the same types of fresh fish, others the same types of vegetables, and others the same cooked food.
Do Now - Markets
- As a class we'll watch the video clip of the market. Discuss the following questions and then answer them individually in the Google Doc called Markets, Segmentation and Research:
- As a customer, why might you choose to buy from one stall, rather than others, when stalls are almost identical?
- If you were a vendor (seller) in the market, would you be able to lower your prices? What might happen if you did?
- Would you be able to make your products be, or appear to be, different? If so, how?
- How could, or how do, vendors promote their products?
- Are there ways that vendors at the market might try to vary the place where they exchange their products with customers?
A clue is to think how Pizza shops and supermarkets are trying this in NZ.
Market Segments
A Market Segment is a group of individuals with similar characteristics, eg Generation Z, retired couples, teenage girls, DINKYS.
For example, markets can be segmented by gender, age & life-cycle stage, socio-economics, ethnicity, lifestyle / family type, location, product use.
By segmenting the market, businesses can more accurately meet the needs of their target market. They can offer variations of their product that make the consumer think one variation is specifically designed for them and so they are willing to pay a higher price.
Do Now
Toothpaste is toothpaste, right? Wrong - at least, not in the Marketing Department. In small groups, discuss the different types of toothpaste available in the shops. This Countdown online shopping site might help. Individually answer the questions in the Google Doc called Markets, Segmentation and Research.
- Study case studies of markets and marketing
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Market Research
Learning Intentions
- Investigate the meaning and examples of research-related terms
- Explore how and why companies gather information on us as consumers
- Can define and explain, with examples, market research-related terms
- Am aware of how companies gather information about my buying habits.
Make your own notes on Market Research in the Google Doc called "Markets & Market Research"(in Google Classroom). Later in the year, you will perform some market research before trading products at a Market Day.Words that you need to include in your notes are:
- Qualitative & Quantitative information
- Primary & Secondary research (with examples of each)
- Sample size
- Closed & open questions
- The difference between a survey and a questionnaire
- Facebook have just been threatened with a fine in Belgium for doing something to do with gathering data on people - describe what.
- Supermarkets and other shops have loyalty cards - explain why this is relevant to market research?
- Describe other ways that companies find out about your buying habits?
- Facebook loses privacy case, faces fine of up to $125,000 million
- 6 ways retailers track your spending habits
- Tracking customers will be the norm
- Technologies to track people
- Smart TV spying on you
- https://www.what-your-smart-tv-knows-about-you-and-how-to-stop-it-harvesting-data
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Researching consumers of bottled water
Read this online article entitled "Is bottled water really better?". It states that more than half of all bottled water is tap water.
This includes popular brands like Aquafina and Dasani, which sell tap water that has been run through a filter.This week, we'll design and perform research into consumers' attitudes, beliefs and preferences on bottled water brands.
Will the most expensive be perceived as the best and will consumers think it tastes the best?
When the product (water) is essentially identical in each bottle, do consumers see each bottle as having identical value?
What role do non-price factors (like labels & packaging) play in influencing consumers' perceptions? Are their perceptions real? -
Marketing Mix
Learning Intentions
- Investigate the meaning and relevance of the Marketing Mix (4 Ps)
- Explore the 'Product' element of the Mix, through case studies and examples
- Can explain the meaning and relevance, with examples, of the Marketing Mix 4 Ps
- Can explain and apply understanding of the Product element of the Mix.
Marketing is the process of gathering information about people in the market and then acting on that information to influence their beliefs or decisions about your products or business.
The Marketing Mix contains the variables that can be changed in order to influence people's beliefs or decisions. In business, the aim is usually to attract customers to buy the product (to satisfy their needs or wants). These variables are called the 4Ps:- Product design features, quality, packaging, after-sales service, etc
- Price skimming, penetration, etc
- Place distribution channels, delivery, retail outlet, mail order, etc
- Promotion advertising, sales promotion, personal selling, publicity, etc
Here's a Google Slide show that summarises this term's Marketing work:
https://docs.google.com/presentation/d/14UDSU13iyh4UQYQb0U7D9PYsvmk-Dzc2K1nIcxsDR0U/edit?usp=sharing
In small groups, discuss the 4Ps of these businesses or products:- Local Dairy shop
- Pack'n'Save supermarket vs Farro supermarket
- Apple computers and phones
- Nike shoes
- Homebrand product range (at Countdown supermarket)
Product
A product is a good (tangible) or a service (intangible) produced by an organisation. Companies can grow using 4 strategies:
Strategies for growthMarket penetration: encourage existing consumers to use more of your product (eg offer a free gift)
Market Development: basically the same product, but sold in a different market (ie. in a different type of shop or part of a supermarket). Could be new uses for a product, new locations geographically. 'Nutrigrain' is sold in the breakfast cereal section. However, in the form of a snackbar, it's sold in the muesli bar section (a different market). IKEA opening a store in Auckland is their same products sold in a new geographical market.
Product development: modify existing products (eg new packaging & flavours, upgraded model). A new flavour of toothpaste is the same product and in the same (toothpaste) market, but might encourage a different type of consumer to buy your product.
Diversification: a new product for this company in a new market, which is risky as they have less knowledge & experience. If a sheep farmer starts a camping site on their land, this is a totally new product and a new market (from lamb and wool to holidays).
Discussion: In small groups, discuss whether the cartoon above about fire fits the definition of diversification in the table.
Activity: In Google Classroom, complete the Google Doc called 'Marketing Mix - Product'.Value Analysis
Value analysis is the process of deciding which product features most attract or satisfy a target customer's needs.For example,- Function will be most important when buying a parachute!
- Fashion clothes or bought mostly on the basis of aesthetics (how they look).
- Economic manufacture is important for customers who have low income.
Activity: In the Google Doc called 'Marketing Mix - Product', answer the questions on Product Life Cycle.
Product Life Cycle
Sales, costs and profit of a product follow a series of stages over its life. When being developed, there are no sales, high costs and no profit - just losses.
A newly introduced product has slowly growing sales, high costs & no profit.
Sales increase rapidly during the Growth stage, unit costs start to fall and some profit may be made.
As competitors enter the market during Maturity, sales stop growing, costs reduce and profits are high.
When the market becomes saturated with too many businesses competing for customers, a price war can start and some businesses drop out. Costs remain constant, but sales and profits decrease.
The market declines and the product eventually becomes unprofitable.
Discussion: In small groups, discuss the range of life cycle diagrams on the right and think of examples of real products for each one.
Activity: In the Google Doc called 'Marketing Mix - Product', answer the questions on Product Life Cycle.The life cycle is important because:
- each stage needs a different marketing mix
- a business needs products at different life stages to survive long term.
Extension strategies
Businesses try to extend products' lives beyond the saturation stage and so might repackage or slightly change it. Lux soap is more than 100 years old and its shape, perfume, colour, size and packaging have all changed to maintain consumer interest in it. Other extension strategies are finding new uses or accessories for the product. Examples of long lived products are Dettol, Bisto, Persil, Marmite, Coleman's mustard, Tetley tea.Life cycles are getting shorter as technological change accelerates. Products can become obsolete within months as more advanced versions are released.
Product portfolio
It helps to sustain your business to have a range of products at different stages of their life cycles, so that as sales of one decline, sales of others are growing.
In the product portfolio, some products may be cash cows, which are established brands in mature markets. The main work has been done. They sell well, bring money in, but are unlikely to increase sales. Every business wants these!
Stars are also great to have because, not only are they strong brands in the market, but also the market is growing and so income and profits will probably increase.
Dogs are products that are sold to the last, loyal, 'die hard' customers. They are not attracting new consumers and will probably be phased out.
Question marks are in a growing market and may become established, popular brands, but this is uncertain. Work is needed here to make them stars.
Obsolescence
Obsolescence is the process by which products become disuded, discarded or 'overtaken' by more up-to-date versions or products (eg vinyl records, magnetic cassette-tapes, CDs, MP3 players).
Built-in obsolescence results from the product's design or durability (ie how long before it wears out).
Planned obsolescence is making a product out of date by deliberately introducing a new version or product.
Discuss examples of products that became obsolete without their manufacturer's intention.
Discuss examples of products that are obsolete because their manufacturer deliberately released a new product.Discuss why obsolescence might benefit a company (eg Apple iPhones).
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Learning Intentions
- Explore product differentiation & branding (part of the Product element of the 4Ps).
- Focus an analysis of a product or business by using a SWOT analysis.
- Can explain the purpose of branding (including logos and slogans) and identify popular examples.
- Can perform a SWOT analysis to analyse a product or business.
- Can describe 4 reasons for packaging and analyse a product's packaging.
Product differentiation and Branding
Businesses often use slogans, for example "The Warehouse, where every one gets a bargain" and "Briscoes, you'll never buy better".
They also use logos These marketing tools are designed to be memorable and businesses spend a lot of time and money associating them with certain values and emotions in customers. They are a large component of the brand'.A brand is any name, term, symbol or distinctive packaging that identifies specific goods or services and helps to differentiate them. With legal protection, it becomes a trademark. Brands can be linked to businesses, single and family line products. Branding helps to achieve marketing objectives by:
- being a focal point for advertisng
- encouraging repeat purchase (customer loyalty)
- allowing non-price competition (product differentiation)
- making it easier to expand a product range
- making it cheaper to advertise (the whole brand rather than every individual product)
Branding can hep customers by:- making it quicker to identify 'good' and 'bad' products
- identifying the business behind the product
- encouraging the business to provide consistent quality
Single product (brand) line and Multiple product (brand) line
Some businesses produce just one product (brand) and advertise its brand eg WD40 spray, Crocs shoes, Michelin tyres, Gorilla glue. Others produce a wide range of different products (brands) eg Pepsico, Unilever, Coca-Cola, Kelloggs, Kraft, P&G, Nestlē, Mars, Johnson & Johnson.
Try searching online using the following key words:
- "Companies with single product lines"
- "Companies with multiple product lines"Packaging
There are 4 reasons for packaging:
- Ease of carrying and protection eg liquids, fragile or dangerous goods, powders
- As part of the Marketing Mix - it can contain the trademark or logo, be eye-catching or distinctive. New packaging can be a cheap way to give the impression that the product has been changed or improved.
- To enhance apparent value to the customer and thus enable higher prices and profits eg perfume, Ferrero Roche chocolates
- Makes stock taking easier - especially in self service stores where theft or damage may be issues.
Product oriented vs Market oriented
A business that is product orientated has a dominant production or research & development department that creates a product and then relies on the marketing department to find a market for it. A market orientated business has a dominant marketing department that identifies trends and needs and then asks the production department to create products that meet that need.As a class, we'll listen to Lucy Kellaway's radio clip on the internet of things and new product development, entitled 'We need smart products because we're stupid'. Given that she believes no-one actually needs "a fridge that tells you when you need more milk", consider whether the internet of things is a market or product oriented development. - Explore product differentiation & branding (part of the Product element of the 4Ps).
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Learning Intentions
- Investigate ways in which businesses can price their products
- Explore examples of different pricing strategies and reasons for using each strategy.
- Explore the specific effect of changes in price on quantity sold and thus on profit.
- Can describe several key strategies for pricing products
- Can predict the effect of a price change on sales and thus profits.
Price
The price of o product sends strong messages to consumers. Would you buy a parachute in a sale at half price, or a perfume, for a valued friend, that was advertised as being low price, or petrol at a much higher price than competitors' prices?
Pricing strategies
- Cost-plus pricing - adding a percentage markup to the estimated unit cost.
- Penetration pricing - initial low price to encourage customers to try the product (but could send the message of low quality).
- Skimming - high price until competition forces it down
- Competitive pricing - in line with, or a certain percentage above, competitors' prices.
- Psychological pricing - appears closer to customer's perceived value (eg $3.99)
- Prestige price - to promote a luxury image (eg perfume)
- Price discrimination - price for the same product varies for different customer groups (eg students, off-peak travel).
- Loss leader - very low price attracts customers into the shop to buy other products at 'normal' prices.
- Promotional pricing - low price for a short time to renew customer interest or clear unwanted stock.
- Range pricing - prices of similar types of product kept within limits.
In your group, discuss which price strategy is being used in each of the examples below:
- A watch that’s very similar to others sold in the shops
- A toy sold for $1.95
- A tour operator sells holidays during the school holidays as well as at other times.
- A new brand of washing powder is launched - there are several similar ones already available
- A supermarket wants to cover the cost of vegetables and make a 100% profit as well.
- A new mobile phone has been developed that has extra features compared to the competition.
Price Elasticity of Demand (PED)
PED is a measure of the responsiveness of demand of a product to a change in its price (ie how much quantity sold will change if you change price).
Market for bread: A small increase in price causes a large decrease in quantity sold
Market for Whittakers chocolate: A large increase in price causes a small decrease in quantity sold.
This is important because any change in price affects your total income.
Consider whether, in order to increase total income, we should i) increase the price of bread OR increase the price of Whittakers chocolate.
Using the equation Price X Quantity = Total Income, calculate the income earned before and after each price change:Income from bread sales before the change: $3 x 5000 = $15,000. Income from bread sales after the change: $3.50 x 2,000 = $7,000. Even though we are receiving more money from each loaf, our total income from selling bread has decreased.
Income from chocolate sales before the change: $2.50 x 1400 = $3,500. Income from chocolate sales after the change: $5.50 x 1000 = $5,500. We are receiving more money from each chocolate bar, AND our total income from selling chocolate bars has increased.
It makes sense, in this example, for us to increase prices of Whittakers chocolate, but not of bread.
Calculating Price Elasticity of Demand
It's possible to calculate a number (called the Coefficient of Elasticity) that represents the price elasticity of demand for a product. This enables us to predict the effect of a price change. There are 2 methods: percentage method and mid-point method.
Percentage method uses % change in quantity which is (change in quantity / original quantity) x 100
% change in price (change in price / original price) x 100For bread: -(5000 - 2000) / 5000 x 100 = -0.6 x 100 = -60 = -3.53 (larger than 1 and so demand is price elastic)
(3.50-3.00) / 3.00 x 100 0.17 x 100 17For chocolate: -(1400 - 1000) / 1400 x 100 = -0.29 x 100 = -29 = -0.24 (< 1 and so demand is price inelastic)
(5.50-2.50) / 2.50 x 100 1.2 x 100 120NB: Both coefficients are negative. This shows that price and quantity have a negative relationship - as one goes up, the other goes down.
Mid-point method also uses % change in quantity BUT this is (change in quantity / average quantity) x 100
% change in price (change in price / average price) x 100For bread: -(5000 - 2000) / 3500 x 100 = -0.86 x 100 = -86 = -5.7 (larger than 1 and so demand is price elastic)
(3.50-3.00) / 3.25 x 100 0.15 x 100 15For chocolate: -(1400 - 1000) / 1200 x 100 = -0.33 x 100 = -33 = -0.44 (smaller than 1 and so demand is price inelastic)
(5.50-2.50) / 4.00 x 100 0.75 x 100 75Which method should I use?
Use the Mid-point method because it calculates the same answer whether the price and quantity are increasing or decreasing.
If you don't believe this, re-calculate the price elasticity of bread and Whittakers chocolate, but this time decrease the price between the same points (ie change the arrow directions). Do this using first the percentage method and then the mid-point method.
Answers: Did you calculate figures of -10.7 and -0.74 using the Percentage Method? Did you find no change using the Mid-Point Method?
In your group, consider what types of product might have a price inelastic demand and which might have a price elastic demand.Extension reading
If pricing and consumer psychology interest you, this online article provides an interesting insight into the science behind pricing and purchasing decisions. -
Learning Intentions
- Investigate ways in which businesses distribute their products to customers.
- Explore examples of different distribution channels and what affects business's choice of channel.
- Can describe several ways to distribute products and the factors that affect this choice.
- Can provide examples of different distribution channels.
Place
Distribution (Place) ensures products are available to customers in the right quantity at the right time in the right place. It involves questions like:
- Where do consumers prefer to buy the product?
- How can we ensure the product is available to existing and potential customers?
- How important are speed, timing, cost, availability
- How much stock should we hold? Too little and we run out; too much and we tie up cash (that then cannot be used to pay daily expenses)
It depends on:- The product - is it perishable, technically complex, a convenience item?
- The market - is it geographically spread out, highly competitive?
- The business - is It large, supplying producers or consumers?
A distribution channel is the means by which the product moves from production to consumption. It might include:- Retailer sells direct to households / end users / consumers
- Wholesaler sells products from different manufacturers to retailers; they 'break bulk' by putting large quantities into smaller packages
- Distributor have a contract to sell a manufacturer's products
- Agent a 'go-between' who never owns the product and earns commission eg real estate, insurance, travel.
- Franchisee allowed to trade under the the manufacturer's name; pays a fee and gives a share of the revenue to the franchisor
- Direct selling door to door, mail order, sales reps
Trends in distribution are:
- more out of town stores and malls (in Europe, malls are closing);
- fewer independent and more multiple / chain retailers;
- more franchises (eg Jim's mowing);
- online shopping and home delivery.
- drone and driverless delivery??
NZ's supermarket duopoly
Read the following article. Note which companies own Pak'n'Save, New World, Countdown. In your group, discuss how it affects you and your family that two companies dominate the NZ supermarket industry.
NZ Herald: Big two supermarket chains locked in fierce food fight
In your group, find out the meaning of 'parallel imports' and discuss why they might be cheaper to buy and whether there are any disadvantages.Extension activities
Research the service that Uber Eats provides.
Consider the impact on distribution of restaurant food.
How do restaurants and householders benefit?
Watch this video clip on drone delivery and discuss the impact on distribution channels and on different organisations that might be affected.
Watch this video clip on 3D printing and and discuss the impact on distribution channels and on different organisations that might be affected. -
A week for catching up on the term's work - several students away on trips and some work outstanding in Google Classroom.
Short video on Coca-Cola Marketing campaign
Website article and infographic on the effects of Coca-Cola on your body!
Article on the effects of drinking Coca-Cola
Link to infographic of the effects of drinking coke
Russel Brand discusses Ronaldo's snub of Coca-cola in terms of the value created by marketing.
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Learning Intentions
- Investigate the purposes of promotion and how businesses promote themselves and their products.
- Explore examples of different promotion methods and what makes them successful.
- Can describe several ways to promote products and the aim of each one.
- Can analyse examples of promotions.
Promotion
Promotion is a range of techniques for communicating with the 'external environment', especially customers. These techniques include:
- Advertising is any communication paid for by the sender and intended to inform, influence or persuade the receiver.
- Personal selling any person to person communication designed to inform potential customers or to persuade them to buy.
- Sales promotion is any financial or economic incentive to encourage a customer to buy.
- Publicity also known as public relations, is communication free of charge which is either within, or out of, the sender's control.
Promotion objectives
The objectives of promotion are summarised by A.I.D.A.:
- Awareness To get people to know that your product exists
- Interest To get people to be interested in what your product might do for them
- Desire To make people want to have your product
- Action To get people to actually spend money buying your product
The purpose of each promotion technique
Advertising is better at telling people that `your product exists and making them interested to find out more. An advert on the TV, say, is unlikely to make a person jump in the car go to the shop and pay money to buy your product.
A sales promotion, such as "buy a Nissan Leaf car in July and we'll give you free insurance for two years" might get people to decide that your car is the one they want. It might perhaps encourage them into the shop, but it is the salesperson who will finally actually convince them to pay money.
Examples of promotions - discuss whether each promotion will achieve Awareness
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Learning Intentions
- To review last term's learning, especially promotion
- Can draw on relevant knowledge on Marketing to answer a range of business questions.
Promotion continued
Another consideration when planning promotion is whether the business is trying to get new customers to try the product for the first time or whether they are trying to get existing customers to keep buying the product. Try answering these 3 multiple choice questions:
1. A publishing company is about to launch a new magazine aimed at female readers aged 14-20. Which two of the following would be direct ways in which the company could try to get potential readers to buy the first issue of the magazine? (Select two answers).
- A) Keep production costs low
- B) Offer a free lipstick with the issue
- C) Take on extra staff
- D) Sell the first issue at half price
- E) Cut advertising on the other magazines by the company
2. A car manufacturing company is worried that there is little customer loyalty amongst car buyers for its vehicles. The lack of customer loyalty is most likely to mean that (select one answer):- A) customers are buying a different make of car when they sell their existing car
- B) car sales for the company are increasing
- C) the cars the company sells are seen as being good value
- D) it would be more profitable for the company to make large cuts in the price of its cars
3. A company making frozen pizzas depends for its success on repeat purchases. Customers are most likely to make repeat purchases because (select one answer):- A) it determines the amount of profit the company makes
- B) it increases sales of pizzas
- C) the company spends heavily on advertising
- D) in the pizza market, customers have little brand loyalty
Questions to check understanding
Here are links to some multiple choice questions. See if your small group can answer them:
Resources
Digital MarketingP&G - the world's largest marketer slide show
https://www.slideshare.net/HarshitGupta245/harvard-case-study-analysis-pg -
Learning Intentions
- To reflect on our understanding of Marketing topics.
- To prepare for the issuing of the assessment (brainstorming products to choose from and evaluating exemplar answers).
- Can identify Marketing concepts that are not fully understood and discuss these with a Marketing Professional who is working in the field.
- Can describe the requirements of the assessment and have identified a small number of potential products and research sources.
Dove - a Marketing case study
In Google Classroom is a slide presentation case study of the marketing of Dove products. Study the presentation slides and write a question on a post-it note for the class to help revise marketing.
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Learning Intentions
- To apply what we've learned in class to a real life product
- To experience an NCEA-style assessment
- Have decided which product's marketing mix to analyse and have planned, and completed, research.
- Have completed part of the final report
This week, you Explore. Focus and start to Plan
Assessment 1
Apply the marketing mix to a new or existing product. -
Learning Intentions
- To apply what we've learned in class to a real life product
- To experience an NCEA Level 1 assessment (and hopefully gain 3 credits at Excellence)
- Understand the importance of SEXY paragraphs and can write these.
- Have entered in the GDoc which product's Marketing Mix I'm analysing.
- Have read the student instructions and mindmapped my draft report.
- Understand what I need to do for Achieved, Merit & Excellence grades (using the examples of student work)
- Have started the draft final report and completed 1 of the 4 P's
This week, you Plan and start to Do (create) your report.
Seek feedback from other students and the teacher
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Learning Intentions
- To apply what we've learned in class to a real life product
- To experience an NCEA Level 1 assessment (and hopefully gain 3 credits at Excellence)
- Have read the student instructions again and the examples of previous students' work
- Have completed the draft writing of 3 of the 4 Ps
- Have shared the draft report with your teacher and other students for feedback
Hi all, please continue to improve your Marketing Mix report assessments, based on the individual feedback provided.
Here's some general feedback for everyone:
1. Mark a friend's report using the student instructions sheet and/or the marking schedule. Be critical and honest, not 'nice'!
2. Ensure your paragraphs are SEXY (statement, example, explain, your opinion) and no more than say 6 or 7 lines long.
3. Consider if there's a Maori value or concept and, if so, say why it's relevant to the product or business.
4. Fill your report with business vocabulary (eg from MHO notes) to explain what's happening.
5. Avoid listing facts that are not relevant or explained. Excellence is possible in shorter, well thought out reports that use SEXY. Don't just include info because you have it.
6. For Merit, you need reasons, causes, effects, comparisons with competitors, and links to other Ps and to marketing terms and vocabulary - answer the question 'So What?'.
7. Have a Bibliography on the last page. Some referencing through the report is good.
Good luck and well done for your work so far.
Mr S :) -
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Opened: Sunday, 28 July 2024, 12:00 AMDue: Monday, 5 August 2024, 4:00 PM
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Assessment 2 information
Assessment 2 is to be confirmed, but will be based on your work towards Market Day.
You'll produce a group Business Plan for your Market Day business and product. The deadline for submitting the Plan will be announced soon (likely to be late this term).Market Day
Market Day is Term 3 Week 10 Thursday (21st September) from 1pm to 1:50pm. Food items are allowed.
Rules:- No on-selling existing products (eg Sprite) - make products from raw materials.
- Year 10s must have original, creative and high quality ideas, products and displays.
- A product is
- a good (food, artwork, craft, food, soap, plants, etc) or
- a service (wash, paint, advertise, organise, etc) - No cooking at school. No entering the Food Tech room.
- Maximum of 4 group members
- There may be a fee paid by each group, which will be paid to charity
- Business Plan MUST include Health & Safety procedures, especially with food (photo evidence they were followed is needed).
- Promotion & Advertising on TV / poster permission from Whanau Dean or DP.
- On Market Day, remove all signs; don't leave 'bike shed' until teacher OKs it.
Simon Sinek's Golden Circle idea will help you be successful
https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en
Here's a Business Plan template that might help
https://www.business.govt.nz/getting-started/business-planning-tools-and-tips/how-to-write-a-business-plan/
(Link to Botany South stats) -
The 6 sections of the Business Plan are:
Introduction
(business description and key points from the business plan eg aim or purpose, specific SMART goals, timeline)Market research
(methods, findings, SWOT analysisMarketing
(marketing mix - Price, Product, Place, Promotion)People
(organisation chart of members & roles, responsibilities)Finance
(budgets & graphs explained, sources of finance, sales forecasts, costs & revenue)Operations
(running of the business (eg production, cash), quality control, health & safety procedures) -
Learning Process for 'Market Day'
We'll use the MHJC Learning Process to guide us towards Market Day.
Lost
We've started by identifying that there's a challenge that we're facing - to design, make, market and sell a product.
Explore
In your small group, brainstorm 100 words relating to ideas for products. Do NOT discuss the words. In particular, do NOT ridicule anyone for strange, left-field ideas, as it's these ideas that can lead to original, innovative products that other teams have not thought of.
Focus
Group your brainstormed words into 2 or 3 general areas (eg brownies, cakes and muffins could be grouped under sweet baking).
When you have 2 or 3 broad possible areas, do research online and think of skills and knowledge that you can access (team members or their family and friends) that might lend themselves to one of the ideas.
Choose one product / area to focus on.Starting a business
Resources
- Xero process:
https://www.xero.com/nz/resources/small-business-guides/how-to- Shopify - starting a business:
https://www.shopify.co.nz/guides/new-zealand/business-structures -
SUBMIT Business Plan!
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New deadline Tuesday 2nd week of holidays :)
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Opened: Sunday, 6 October 2024, 12:00 AMDue: Wednesday, 9 October 2024, 11:00 PM
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