Use

d X Performance indicators for BTDM

Acquire product information for use in sellingKnowledge of product means and includes details of use, its utility, its composition, service offered, and so on. To be more clear, knowledge of the product means a thorough knowledge regarding the probable information about the products which the customers generally inquire about. A salesperson or marketer needs this knowledge in order to describe product features or service advantages, to overcome objections, to answer questions, and to acquire confidence in the merit of his offeringsMethods:Sources of product knowledge are many and varied. However, these sources can be classified as basic and subsidiary. The fundamental sources are called basic sources; whereas collateral are called subsidiary sourcesGeneral Education is a must for all sales staff. When joining a sales organization, he/she is given special training so become an expert. Some firms have their own institutions for training, whereas others send their staff to technical institutions. Training increases the knowledge of sales staffExperience is the most important source of information. Initially he/she works under the guidance of a senior salesperson. As an independent salesperson, he comes in contact with hundreds of customers of different types. Contact with every new customer enriches his knowledge and experience institutionUse of the product enables a salesperson to know its real worth. By using the product, he knows all the advantages of it; and also the gap between its description and actual useAdvertisements contain all the salient features of the products. A salesperson, therefore, should study the advertisements of his own firm to acquire valuable information about the features and selling points of productsSales meetings and conferences are also important sources of product knowledge. Manufacturers arrange meetings and conferences of salesperson at regular intervals. In these meetings, senior sales staff and sales managers deliver lecturers and demonstrate important features of the productVisit to factories / showroom are arranged to many factories, which is a rich source of information about the production process, raw materials used, quality control system, method of packing etcSales literature Sales manuals are books published by the manufacturer. This book contains information about products, the procedure to be followed in selling goods, maintaining stock, maintaining the expense accounts, selling reports, credit facilities, discounts, delivery facilities and so onTrade Journals are technical journals containing technical points and details about the products. Companies manufacturing drugs and medicines publish monthly journals and send them to customers. Trade associations publish their own monthlies. The members give advertisements to them emphasizing the main features and selling points of their products. Thus, these journals can serve as a good source of information for acquiring product knowledgeSales bulletins are published periodically to provide additional and up-to-date information

regarding products. It is supplement to the sales manuals. It contains new information regarding product, its selling points, its improvements or additions etcSales portfolios are meant to retailers and wholesalers. It contains actual photographs of the product, instructions and advises regarding method of display, clippings, and names of users in a book form.Analyze business systems and procedures

Does the company have a Code of Conduct that explains the company’s expectations with respect to ethical situations?

There is a Code of Conduct for accountants from the professional organization According to the Code, is the employee required to report stock purchases based on

company information (eg. Legal insider trading) Has there been training ethics in the company? Example—a workshop in dealing

with ethical dilemmas Is there whistleblower protection? Has the company culture set a moral tone and expectations? Does the leadership in the company act ethically? Participants should outline the role and necessary action of the operations/loss

prevention team within the business system. Ideas might include:o Recommending and enforcing a safe warehouse layouto Assessing the current employee training program as well as recommending

training changes to the HR department for them to enforceo Evaluate current security systems and make recommendations for further

action to reduce theft Participants should make the connection between the impact of the operations/loss

prevention team on the procedures of other departments and the success of the business as a whole

Analyze operating results in relation to budget/industry. 3 Analyze product information to identify product features and benefits

Participants should use the facts from the case for each product line to identify how the proposed destination will benefit the multi-generation family. They should consider the types of activities provided teach destination and the appeal for people of various age groups. Solutions should specifically state how the chosen destination appeals to each generationParticipants should identify the destinations they believe would be most successful and least successful based on their analysis of features and benefits to each generation.

2 Analyze the impact of technology on buying and merchandising2 Analyze the use of central buying. 2 Apply decision making business principles and techniques to a situation with an

ethical dilemma Unstructured, non-programmed problem—this is a unique situation Seek information from experts—lawyers, accountants, Board of Directors, Human

Resource Department Find proof of the situation—is the anonymous tip accurate? Reduce the uncertainty of the situation—gather information Dilemma – no clear answer; potential for misinterpretation and conflict of interest

Formalized model – consistency in approach Ask questions: Is it fair? Is it right? Does it enhance the reputation of the firm?

Am I comfortable if the press released my decision? Honesty/transparency

Coach employeesThe purpose of coaching is to make sure they understand what they are supposed to do and be able to do it without error. In the case of inventory control systems, we need to make all personnel understand the importance of controlling inventory for the company’s profit situation. Presumably, as profits rise, the employee’s share of the profits will also rise, and a happier employee may be a more trusted employee.Coach othersThe purpose of coaching is to make sure they understand what they are supposed to do and be able to do it without error. In the case of inventory control systems, we need to make all personnel understand the importance of controlling inventory for the company’s profit situation. Presumably, as profits rise, the employee’s share of the profits will also rise, and a happier employee may be a more trusted employee.

2 Compare and contrast buying from domestic sources with that of foreign sources List of factors to consider in determining feasibility of offshore sourcing is provided

in the case:Advantages

Cost savings – labour, raw materials, production – ability to increase margins Customers – potential appeal to a larger demographic; international reputation

possible Timelines – domestic sourcing – assume shorter time frame than outsourcing Economic factors – currency exchange rates, taxes Financial – becomes a huge success – cannot meet demand – is growth possible Diversity – wider range of merchandise – increased customer base

Disadvantages Cost increases – transportation, distribution, returns Image/customers – negative – buy domestic thrust vs imported – quality concerns;

loss of customers possible if quality or image is damaged – sweatshops? Timelines – increased because of distance; earlier ordering of raw materials and

finished goods; shipping costs increased; contracts to be negotiated; loss of control; requires new contracts and distribution network

Buyers – employees - ?expertise; new employees – hiring/training – increased costs; trips – costly; supervision of operations overseas required

Communication – network required – long distance; less face to face; potential language barriers; delays likely

Legal/economic – must conform to laws of manufacturing nation; export/import tariffs and/or limits; currency; employment laws; fluctuations; instability of government in offshore nation; inflation/deflation; recession/depression – economic cycles; political unrest; sanctions; blockades

Financial – costs greater than anticipated and savings not realized; delays; lost customers; labour disputes – delays; products not satisfactory; bankruptcy

Diversity – business practices vary – willingness to abide by country requirements; ethics

2 Convert customer/client objections into selling points Presenter should discuss the benefits of the product Disadvantages should also be discussed Present higher quality products for a lesser price

7 Coordinate activities in the promotional mixThe four elements of the promotional mix are: advertising, sales promotion, publicity, and personal selling. All elements used should be coordinated to achieve the company’s goals. All initiatives should be coordinated to target the identified markets, clearly communicate the same underlying message.

Advertising includes any paid presentation and promotion of ideas, goods, or services by an identified sponsor (Ex. Print ads, radio, television, billboards etc) Place advertisements that would appear locally promoting the award-winning coffee in newspapers, direct mail, posters/billboards Recognize that TV ads would be created for national chain by the national chain itself

Sales promotions Incentives designed to stimulate the purchase or sale of a product (Ex. Coupons, sweepstakes, contests, rebates etc. Offer sample coffee taste cups at popular local events and venues) . Sales promotion includes media and non-media marketing communication in order to increase consumer demand, stimulate market demand or improve product availability

Public relations includes paid intimate stimulation of supply for a product, service or business unit by planting significant news about it or a favourable presentation in the media and sometimes include direct marketing and sponsorship Contact newspapers and radio stations to come review or feature the restaurant or Sponsor local events

Personal Selling is a process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation (Ex. Sales presentations, sales meetings, sales training) Each waiter should up sell by recommending products, especially our award-winning coffee

Participants should describe a variety of creative ideas that address all areas of concern.Create displaysRetail is a competitive business. Even if your product is completely unique, you still have competition. There is always another store down the street - or in the next cyber-mall - that is aiming for your customers' wallet. Customers have a limited amount of disposable income, but their choices of where to spend it are infinite.While there are many aspects involved in marketing and gaining customer loyalty, one of the most important is your visual presentation.Create a focal pointAn overwhelming display or a boring one can both have the same problem - a lack of focal point.• Where do you want your viewer to look?• Is there one main feature you want them to notice?• Where will the eye travel through the display? Don't leave this to chance. Plan what the customer should do when they see the display. Perhaps a new product is the main focal point, with complimentary items placed in close proximity to encourage multiple sales. The focal point should be at eye level to most viewers. Visitors will not work to get a good

look at your display, they will simply walk on by without noticing.Use line and shape to plan your designDon't just put your products together willy-nilly. Practice drawing a quick layout to help you visualize the plan for your design.• Will your layout be horizontal or vertical?• Will the products be arranged in straight or curved lines, in a pyramid or circular shape?• Will the design combine a variety of elements, or just one?3 Create balanceStrong displays have visual balance. Dark colors appear heavier than light ones. Large objects appear heavier than small ones. This seems straightforward, but you need to think about this as you plan your display. Generally larger, darker items would be placed near the bottom of a display, with lighter items at the top to avoid appearing top heavy. Placing too many items, or heavy looking items on one side appears unbalanced. A grouping of many items on one side of the display can be balanced by one heavy item in just the right place on the other side. Think of weights on an old fashioned scale to get an idea of how this works.We all respond emotionally to visual stimuli. Creating a display is about creating a mood and a desire within the consumer. A lack of balance creates an impression of instability and anxiousness. The consumer is not even aware of the feeling, he or she simply searches out an environment or merchandise presentation that gives them a positive feeling and creates an appealing mood.Keep it simpleDon't try to do too much. The goal is to attract attention to the product. On a slat wall, often simple rows are the best way to show the merchandise. Your goal is to make it easy for the customer to find what they are looking for and to make sense of your product arrangement. Keep your groupings logical by grouping similar products together, with complementary products nearby.Use proper lightingLighting is overlooked far too often. When budgeting for store fixtures and merchandising, display lighting is not an 'extra'. Lighting your displays properly can make the difference between a display that makes people yawn, or makes them stop and look.Displays should not be lit directly from the top, or you will get unattractive shadows. Lights should be slightly off to the side, and to the front of the display. They should enhance the 3-dimensional quality of the product. Preferably the display will be lit from more than one angle. Lighting should be adjusted every time you change your display.Look at the display from all anglesAfter you have completed your display, step back and look at it. Very few people will see it standing directly in front of it. Most displays are approached from the side and seen from an angle.Approach your display from all possible angles and view it as a customer would.• Is your focal point still placed appropriately?• Do you need to angle the display to the customers viewpoint?• Is the signage visible and readable?• Does the arrangement still appear balanced?Observe the direction from which most customers approach the display. Make sure that the best view of the display is the one that most of the customers will see.

2 Create promotional signsDemonstrate a customer service mindsetA service mindset is an outlook that focuses on creating customer value, loyalty and trust. A business with this outlook wants to go beyond simply providing a product or service. It wants to create a positive and indelible imprint in the customer's, or even in the prospect's mind. To do this, a business has to care about the customer or prospect experience and work continuously at enhancing it Listen carefully to the customer’s complaint and acknowledge that you are there to help

—in this case that the business meeting has been disrupted Explain that you appreciate and value the business that the customer has given you and

that you would like the relationship to continue Provide customer surveys to get feedback from the customers. This could be done by a

card with the bill, a website address or a phone call to important customers. There could be an incentive such as a discount or free dessert if they fill out the survey

Use interpersonal skills to handle customer requests and questions, Understand management’s role in customer relations, understand procedures for handling difficult customers, explain business policies to customers and handle customer complaints.

you should view negative customer interactions as opportunities to learn even more about the customers’ needs and expectations

2 Demonstrate appropriate creativityCreativity in the workplace is the next step up from problem solving. It is a real asset to employers hunters, if they can show how they bring additional value to the employer, and preferably prove a dollar value to that creativity. Initiative and good ideas are now much more appreciated than they were in the old hierarchical corporate jobs. Ideas are valuable, and so are employees who can get more value out of the endless possibilities of new systems.Some people actually make much more of a career out of ideas, rather than just doing a job. The opportunities are always there. Everybody, on any job, soon figures out a better way of getting things done. Most value adding is about dealing with volumes of work. Just as well, too, because that's how efficiency is achieved. It's a natural use of skills to make work easier and more productive. That's also why many people who are quite efficient in organizing their own work don't even recognize why they're efficient. They think it's common sense, but it's actually part of the creativity in the workplace effect. Think about how you've organized your own work to suit your own needs. There will be something. You may not have redesigned the whole workplace, but you will have done something to make yourself work more efficiently.Now comes the rest of the question, how to show value in your creativity.Work value is measured by:

Profit Savings Improved time frames Increased efficiency in your own work Increased efficiency which carries through up the work chain to others from your

own workThis is what is meant by improving productivity. It's productive in that it generates income,

saves time and therefore money, and improves the efficiency of yourself and others. In whatever sense it's done, it's valuable to the employer.So you have to express the value of your creativity in those terms, to the judges, and show them why it's valuable. If you've come up with a better way of doing things, or a more efficient or obviously quicker way of doing your work, you've answered the question effectively, and made your point.As with all interview questions, you must structure your answer so the interviewers can see the processes involved, and the value of your work.In this case, creativity is a very broad range of possible subjects, but you can simplify and clarify your answer:

Explain the work, and the processes. Explain your idea and its benefits in terms of the productivity criteria.

Tell the judges what you've achieved with your creativity. Also tell them your manager or supervisor's reaction to your work if you can tell them about a positive response from them. That's proof of achievement.

7 Demonstrate connections between company actions and resultsMost companies will compare their actions and results by having set some specific objectives and seeing how closely they are meeting them. In this case, the company will probably be setting goals involved with an increase in revenue and/or an increase in profit. They would want to have the results of the catering function kept separate from the results of the regular restaurant activity although there would be some carry-over of fixed costs between the two practices. They might even separate the activities into two separate companies. In any case there should be a measureable difference in the company in terms of profit.Brochures, ads and web pages are not results. A marketing department needs tangible objectives and deliverables. But it is easy to fall into the trap that looks at these deliverables as ends in themselves. A new department in the store means nothing if it doesn’t in some way contributes to improving the state of your business. Similarly, brand awareness isn't a result. It is also a means. Building brand awareness may be a reasonable objective but only if your marketing team can articulate how it drives results. . Opening a coffee shop is not a result. That's all the more reason that your marketing efforts need to be focused on the right results. Because it is difficult to measure directly the effects of many marketing tactics, it is important to design those tactics with appropriate end results in mindWhat are your most influential economic engines, and are your marketing efforts focused on them? Do you make significantly more profit on a small number of loyal customers than you do on a large number of transactional customers? If so, do your marketing efforts focus appropriate energy on building customer loyalty, or is the lion's share of your efforts focused on finding new customers? Does opening a coffee shop add significantly to the profitability of product sales?

4 Demonstrate knowledge/understanding of ethical behavior within a business environment Is the decision or solution ethical as well as legal? Which stakeholders are impacted by the decisions?

Example—consumers, employees, management, money lenders, suppliers, distributors, shareholders

Will the company’s reputation suffer if the public finds out about this situation?

Knowing who stakeholders are - any decision, even if internal, has a ripple effect throughout organization and into the environment

Position in society; financial success; ability to attract and retain talent; relationship with suppliers and customers – all affected by human resources policies

Long-term consequences of unethical behaviour outweigh potential short-run gains Visibility Global society – instant media/communication – the word will get out

Demonstrate negotiation skillsThe best way to demonstrate good negotiation skills is to do so in an active negotiation. I have not run across any tests that prove how good a negotiator one is since every negotiation has its own peculiarities -- even with a person with whom you negotiate all the time. Participants in negotiations need to be cognizant of seven elements in the negotiation process. The seven process elements are: Relationship, Interests, BATNA (Best Alternative to a Negotiated Agreement), Creativity, Commitment, Fairness, and Communication. In addition, a good negotiator is well-preparedSometimes, the manager needs to be prepared to make an offer that will satisfy the customer without making negative comments about the product

Demonstrate orderly and systematic behavior. Demonstrate problem-solving skillsIdentify the issues

Be clear about what the problem is. Remember that different people might have different views of what the issues are. Separate the listing of issues from the identification of interests (that's the next

step!). Understand everyone's interests

This is a critical step that is usually missing. Interests are the needs that you want satisfied by any given solution. We often

ignore our true interests as we become attached to one particular solution. The best solution is the one that satisfies everyone's interests. This is the time for active listening. Put down your differences for awhile and listen

to each other with the intention to understand. Separate the naming of interests from the listing of solutions.

List the possible solutions (options) This is the time to do some brainstorming. There may be lots of room for creativity. Separate the listing of options from the evaluation of the options.

Evaluate the options What are the pluses and minuses? Honestly! Separate the evaluation of options from the selection of options.

Select an option or options What's the best option, in the balance? Is there a way to "bundle" a number of options together for a more satisfactory

solution? Document the agreement(s)

Don't rely on memory. Writing it down will help you think through all the details and implications.

Agree on contingencies, monitoring, and evaluation

Conditions may change. Make contingency agreements about foreseeable future circumstances (If-then!).

How will you monitor compliance and follow-through? Create opportunities to evaluate the agreements and their implementation. ("Let's try

it this way for three months and then look at it.") Effective problem solving does take some time and attention more of the latter than the former. But less time and attention than is required by a problem not well solved. What it really takes is a willingness to slow down. A problem is like a curve in the road. Take it right and you'll find yourself in good shape for the straightaway that follows. Take it too fast and you may not be in as good shape. Working through this process is not always a strictly linear exercise. You may have to cycle back to an earlier step. For example, if you're having trouble selecting an option, you may have to go back to thinking about the interests. Demonstrate product knowledge Demonstrate suggestion selling

You will suggest to the customer that you have many other watches that will suit the purposes of a graduation gift

You will explain that with the number of stores your company has throughout the country, you will be able to meet the needs of their request

You will offer incentives to keep the customer from going to another store to purchase their gift, such as complimentary gift wrapping or a free first time battery change on their watch

You will offer to clean their jewelry free of charge while head office is trying to locate the watch

You will offer them a discount on a future purchase as a result of their inconvenience. This will be an incentive to get them to return to your store for a future purchase and to keep them as a customer

You will be polite and remain calm throughout this entire experience2 Describe ethics in personnel issues

Equal opportunity; equal pay No discrimination/bias – application process/career path Truth in hiring, promotion policies – all human resources issues

5 Describe factors used by businesses to position corporate brandsBranding is all about creating unique identities and positions for products and services, hence distinguishing the offerings from competitors. Hence a corporate branding strategy can enable the corporation to further leverage on its tangible and non-tangible assets leading to branding excellence throughout the corporationThe main factors that go into defining a brand position: Brand Attributes: What the brand delivers through features and benefits to

consumers Consumer Expectations: What consumers expect to receive from the brand? Competitor attributes: What the other brands in the market offer through features

and benefits to consumers Price: An easily quantifiable factor – Your prices vs. your competitors’ prices Consumer perceptions: The perceived quality and value of your brand in

consumer’s minds (i.e., does your brand offer the cheap solution, the good value for

the money solution, the high-end, high-price tag solution, etc.?) Quality image/products – Logo, slogan, unique storefronts/layouts Product appeal Control - promotion

Describe factors used by marketers to position products/businesses Students may define the term positioning in light of the case – they will define the

characteristics of the good/services being offered by the bookstore Marketers must determine whether or not they will take a stand and position their

products Marketers must determine who they will position the store to and what

goods/services will be offered to the target group Determine why their positioning is relevant for their target consumer Ensure that their positioning is clear so that the target consumers will understand Marketers must also position their product in a way that is distinctive – without a

unique position, consumers do not have a reason to choose their product3 Describe factors used by marketers to position products/services

Differentiation in the context of business is what a company can hang its hat on that no other business can. The positioning concepts focus on the rational or emotional benefits that buyer will receive or feel by using the product/service. Products/services should be positioned based on their comparative advantagesFor example, for some companies this is being the least expensive. Other companies credit themselves with being the first or the fastest. Whatever it is a business can use to stand out from the rest is called differentiation. Differentiation in today’s over-crowded marketplace is a business imperative, not only in terms of a company’s success, but also for its continuing survivalPositioning is also defined as the way by which the marketers attempt to create a distinct impression in the customer's mind. Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. Products/services should be positioned based on their comparative advantages. A company can positively influence the perceptions through enlightened strategic actionsMarketers often use a Product Positioning Map to “map” out the position that their products occupy in comparison to the completionThese positioning maps are based on 2 dimensionsThe most common dimensions are price and qualtitySo, for example, Rolex may be categorized as high price, high quality. Timex may be categorized as low price, high quality..Some possible positioning strategies:

Focus on healthy low calorie snack (< 200 calories) Price and quality Positioning by features and benefits Positioning relative to competition

3 Describe pricing strategies

Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can make a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing.Penetration Pricing A small company that uses penetration pricing typically sets a low price for its product or service in hopes of building market share, which is the percentage of sales a company has in the market versus total sales. The primary objective of penetration pricing is to garner lots of customers with low prices and then use various marketing strategies to retain them. For example, a small Internet software distributor may set a low price for its products and subsequently email customers with additional software product offers every month. A small company will work hard to serve these customers to build brand loyalty among them.Price Skimming Another type of pricing strategy is price skimming, in which a company sets its prices high to quickly recover expenditures for product production and advertising. The key objective of a price skimming strategy is to achieve a profit quickly. Companies often use price skimming when they lack financial resources to produce products in volume, according to the article "Pricing Strategy" at NetMBA.com. Instead, the company will use the quick spurts of cash to finance additional product production and advertising.Product Life Cycle Pricing All products have a life span, called product life cycle. A product gradually progresses through different stages in the cycle: introduction, growth, maturity and decline stages. During the growth stage, when sales are booming, a small company usually will keep prices higher. For example, if the company's product is unique or of higher quality than competitive products, customers will likely pay the higher price. A company that prices its products high in the growth stage also may have a new technology that is in high demand.Competitive-Based Pricing There are times when a small company may have to lower its price to meet the prices of competitors. A competitive-based pricing strategy may be employed when there is little difference between products in an industry. For example, when people purchase paper plates or foam cups or a picnic, they often shop for the lowest price when there is minimal product differentiation. Consequently, a small paper company may need to price its products lower or lose potential sales.Temporary Discount Pricing Small companies also may use temporary discounts to increase sales. Temporary discount pricing strategies include coupons, cents-off sales, seasonal price reductions and even volume purchases. For example, a small clothing manufacturer may offer seasonal price reductions after the holidays to reduce product inventory. A volume discount may include a buy-two-get-one-free promotion.

2 Describe production activitiesProduction activities include: Designing the products to be sold Determining the resource needs Acquiring the materials and equipment/tools needed to produce the furniture such as

wood, fabric, stuffing, nails, etc Assembling the materials to produce an end product Adding finishing touches to the furniture such as labels, care instructions, etc before

they are sent to the warehouse

Describe steps used in designing and preparing displaysRetail is a competitive business. Even if your product is completely unique, you still have competition. There is always another store down the street - or in the next cyber-mall - that is aiming for your customers' wallet. Customers have a limited amount of disposable income, but their choices of where to spend it are infinite.While there are many aspects involved in marketing and gaining customer loyalty, one of the most important is your visual presentation.Create a focal pointAn overwhelming display or a boring one can both have the same problem - a lack of focal point.• Where do you want your viewer to look?• Is there one main feature you want them to notice?• Where will the eye travel through the display? Don't leave this to chance. Plan what the customer should do when they see the display. Perhaps a new product is the main focal point, with complimentary items placed in close proximity to encourage multiple sales. The focal point should be at eye level to most viewers. Visitors will not work to get a good look at your display, they will simply walk on by without noticing.Use line and shape to plan your designDon't just put your products together willy-nilly. Practice drawing a quick layout to help you visualize the plan for your design.• Will your layout be horizontal or vertical?• Will the products be arranged in straight or curved lines, in a pyramid or circular shape?• Will the design combine a variety of elements, or just one?3 Create balanceStrong displays have visual balance. Dark colors appear heavier than light ones. Large objects appear heavier than small ones. This seems straightforward, but you need to think about this as you plan your display. Generally larger, darker items would be placed near the bottom of a display, with lighter items at the top to avoid appearing top heavy. Placing too many items, or heavy looking items on one side appears unbalanced. A grouping of many items on one side of the display can be balanced by one heavy item in just the right place on the other side. Think of weights on an old fashioned scale to get an idea of how this works.We all respond emotionally to visual stimuli. Creating a display is about creating a mood and a desire within the consumer. A lack of balance creates an impression of instability and anxiousness. The consumer is not even aware of the feeling, he or she simply searches out an environment or merchandise presentation that gives them a positive feeling and creates an appealing mood.Keep it simple

Don't try to do too much. The goal is to attract attention to the product. On a slat wall, often simple rows are the best way to show the merchandise. Your goal is to make it easy for the customer to find what they are looking for and to make sense of your product arrangement. Keep your groupings logical by grouping similar products together, with complementary products nearby.Use proper lightingLighting is overlooked far too often. When budgeting for store fixtures and merchandising,

display lighting is not an 'extra'. Lighting your displays properly can make the difference between a display that makes people yawn, or makes them stop and look.Displays should not be lit directly from the top, or you will get unattractive shadows. Lights should be slightly off to the side, and to the front of the display. They should enhance the 3-dimensional quality of the product. Preferably the display will be lit from more than one angle. Lighting should be adjusted every time you change your display.Look at the display from all anglesAfter you have completed your display, step back and look at it. Very few people will see it standing directly in front of it. Most displays are approached from the side and seen from an angle.Approach your display from all possible angles and view it as a customer would.• Is your focal point still placed appropriately?• Do you need to angle the display to the customers viewpoint?• Is the signage visible and readable?• Does the arrangement still appear balanced?Observe the direction from which most customers approach the display. Make sure that the best view of the display is the one that most of the customers will see.

2 Describe strategies used by marketers to position products/businessesDifferentiation in the context of business is what a company can hang its hat on that no other business can. The positioning concepts focus on the rational or emotional benefits that buyer will receive or feel by using the product/service. Products/services should be positioned based on their comparative advantagesFor example, for some companies this is being the least expensive. Other companies credit themselves with being the first or the fastest. Whatever it is a business can use to stand out from the rest is called differentiation. Differentiation in today’s over-crowded marketplace is a business imperative, not only in terms of a company’s success, but also for its continuing survivalPositioning is also defined as the way by which the marketers attempt to create a distinct impression in the customer's mind. Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. Products/services should be positioned based on their comparative advantages. A company can positively influence the perceptions through enlightened strategic actionsMarketers often use a Product Positioning Map to “map” out the position that their products occupy in comparison to the completionThese positioning maps are based on 2 dimensionsThe most common dimensions are price and qualtitySo, for example, Rolex may be categorized as high price, high quality. Timex may be categorized as low price, high quality..Some possible positioning strategies:

Focus on healthy low calorie snack (< 200 calories) Price and quality Positioning by features and benefits

Positioning relative to competition

Describe the nature of managerial control (control process, type of control, what to control)Participants should demonstrate an understanding of the importance of managerial control measures to ensure the integrity of the business. Having more than one person reviewing financial records avoids any abuse of positional power by employees to influence records or overlook errors. Control:

the process of measuring performance and taking action to ensure desired results Make sure that plans are achieved Make certain that actual performance meets or exceeds specific performance

Control process: Establish objectives and standards Measure actual performance Compare results with objectives and standards Take corrective action—fix if below standard, and learn how to repeat if above

standard Managers are responsible for planning, organizing, leading and controlling Control refers to measuring how well the organization/their area of responsibility is

performing with respect to organizational goals and then taking action to ensure goals are met

In this case, managerial control would require the supervisor/manager to monitor hours worked, ensure that employees are working the required number of hours, ensure that employees are properly added to benefits for which they qualify and taking corrective action if requirements are not met

It would appear that managerial control was lacking in this case and now the manager must take corrective actionDescribe the nature of product bundling Product bundling is the process of securing two or more necessary goods or services from a single vendor. This strategy usually provides several advantages, including saving a great deal of money. Long a practice among businesses, the concept of product bundling has expanded to include residential customers over the last twenty years, especially in regard to various types of communication servicesThe basic nature of product bundling involves the willingness of a supplier or vendor to provide two or more services to a customer for basic rate. This rate normally provides significant savings over purchasing the products individually. For example, a grocery store last Canada day offered a Meal Deal which included a barbeque Chicken, a family sized salad kit, stick bread and a block of ice cream coloured with the Canadian flag in the block. The savings over offering each item individually was over $10Along with saving money, product bundling also provides other benefits for the customer. One has to do with sheer convenience. In many cases, the cost and convenience created by product bundling go a long way toward promoting customer loyalty. This makes the client less likely to switch to another vendor for any of the services, especially if the price for the bundle is competitive. Vendors also benefit from providing various types of bundled packages to their clients. In many cases, the cost and convenience created by product bundling go a long way toward promoting customer loyalty. This makes the client less likely to switch to another vendor

for any of the services, especially if the price for the bundle is competitive. Product bundling also simplifies the billing process for the vendor, since all services and products are usually billed on one invoice, rather than several different ones

2 Describe the use of grades and standards in marketing Grades and standards provide a common ground for comparison of products based

on their features, functions, and quality It allows for claims of “better than” and “leader in” to be used in advertising Favourable comparisons help build trust in the brand over the competitors

Describe the use of technology in operations In production In design In automated stock control In provision of services In communication In data collection E-commerce RecruitmentDescribe the use of technology in the channel management function

From a business and technological standpoint, perhaps the most significant change has stemmed from the rise of digital.  We now live in a world where more than four billion people own mobile devices (a quarter of which are smartphones) and another billion have Facebook accounts.  Whether marketers like it or not, the “digitization of everything” is having a profound effect on direct marketing—from the strategies and tactics down to the individual communication channels. Technology has its impact in the direct marketing channel. It can be in the form of:

Banners on websites and social network sites Social networks like Facebook and Twitter Email campaigns having bought selected e-mails

Technology has created a new channel of distribution known as e-tailing where customers and industrial buyers make purchases using the Internet. The online shopping location is known as an e-marketplaceUse of the internet by the customer provides greater convenience to the customer as they can shop from the convenience of their home, at any time of day. E-tailing also provides benefits to the business as orders can be received and processed electronically.

2 Describe the use of technology in the product/service management functionIn today’s technologically advanced world, technology is necessary in all aspects of product management. Technology allows companies to project the success of their product and test their markets without spending a lot of money. Technology also makes it easier to conduct research during the first phase of the product cycle

Technology can be used to experiment with new test products – on line sample of products

Can be used as means for surveying existing customers in terms of future wants and needs and providing feedback to samples of new test items

Can be used as a means of reaching new customers through on line mailings and web pages with new test items

Technology can be used as a means of adoption or acceptance of a new product or

innovation, according to the characteristics (demographic and psychological) of defined adopter groups

Describe the use of technology in the promotion functionThe internet, websites and most recently social networking are common ways of using technology in the promotion function. Interactive websites offer consumers a different way to use or experience the product. Participants should be careful to not overuse and get too technical with their use of technology given that many senior citizens use emerging technologies such as the internet for email and basic communication and personal interest. (They are participating in online gaming, for example)

Computers-world wide web, on line advertising, online sales, on line catalogues Smart phones with updates on sales, promotions, timed sales, one day

promotions Links from computers to store for updates on new merchandise and promotions

Determine customer/client needsThe participant should use the following strategies to indentify out what a customer/client needs are:

Questioning Observing Listening After carefully doing all of the above, vendors should continue to observe and listen

carefully while making suggestions of merchandise to the client They should listen for verbal and non-verbal clues and respond / alter their

responses appropriately2 Determine vision

The manager must set a vision for the business that makes safety a priority He/she should reward staff that are following safe practices and providing quality

customer service with regard to safety Safety practices should be reported at all staff and be a part of the regular

communication with the staff—perhaps a count of how many days accident free3 Discuss actions employees can take to achieve the company’s desired results

Employees, whether they are wait staff, food preparers, or even shift managers, all have the responsibility on behalf of the restaurant of satisfying the customers needs (motives). It could be wrong to blame certain people, because the situation is changing (different types of clients), and therefore different types of behaviour on the parts of employees is called for. Right now, customers are getting upset, and presumably this will mean more employees will also be getting upset. Someone is going to have to take the initiative to get the employees, managers, and owners together to discuss how to handle the new situation. This is an opportunity for some employees to demonstrate both leadership and management skills. They have to realize that their success and enjoyment on the job depends on how successful the restaurant is, so they have to be prepared to contribute to helping the restaurant become more successfulA performance based pay linked to achievement of company goals and targets (i.e. sales, profits)The participant should demonstrate knowledge of the following:

an understanding of the target market and the selling process understand motivations behind customer decisions

understand the overall goals of the company2 Discuss motivational theories that impact buying behavior

Consumer motivation is linked to Maslow's "hierarchy of needs." According to this model, motivational drivers have different levels of importance. The most common needs are physiological and concern basic survival--the need for food, shelter and safety. Higher-level needs include social ones (for relationships and love), esteem needs (recognition and status) and self-actualization needs (fulfillment of self). According to Maslow, an individual must meet lower-level needs before being motivated to fulfill higher-level needsMotivational Levels Depending on how important a purchase is to an individual, his motivational levels may

vary from low to high. Influences include familiarity with the purchase, status factors and overall expense and value. Where fulfillment rewards are low, as with groceries, motivation levels are also relatively low and involve little decision-making behavior

The behavioral aspect of consumer motivation concerns the actions someone takes before purchasing and consuming goods or services. A person might do a lot of research--evaluating alternatives, testing and sampling--before making a selection. She might decide to buy something based on which goods or services most closely meet and satisfy motivational wants and needs. Marketers aim to gain the most impact and eventual sales by linking their products and services to clearly defined consumer needs and by understanding what motivates people to buy

Motivational levels differ greatly between individuals and are influenced by many external variables. These include the social value of making the "right" decision, beliefs about brands and alignment of brand values and personal values. If other people are involved in the decision, their motivation also affects the behavior of the primary consumer

They may also identify categories of buying motives such as rational or emotional reasons why people eat out and choose one restaurant over another. The key to any business is that they must have a plan to try and understand what consumers are willing to pay for and to try and satisfy their needs. It is not enough to simply open a restaurant and hope customers will come. You have to give them a reason. Maslow is the obvious choice given its popularity in business textbooks. Participant could mention the factors that motivate consumers to purchase without actually naming a theory or theorist. What needs are satisfied when consumers save money on special deals – needs/benefits.

Discuss the global environment in which businesses operateDiscuss the nature of customer relationship managementThe key word in “customer relationship management” is management. If you want satisfied customers, an effort must be made to find what they want. Initially, they are facing some dissatisfaction at the implementation of their new marketing plan. Two things should have happened or must still happen The new plan is causing some concern with both the new and old customers. It is time

to evaluate the plan to see what possible adjustments could be made (see question 3). Unless these issues are solved, there will continue to be complaints from both customers (and staff) and the situation will be expected to deteriorate. A plan must be formulated

Training sessions are necessary for the staff. Food preparers will have to find ways of

getting the food out faster. Wait staff should discuss the implications of dealing with younger clients. Shift managers could be more aware of seating customers in certain areas and possibly of adjusting work schedules to have certain staff on or off shift during the promotion

The owners must truly want to improve relationships with their customers and must take the lead and set the exampleDiscuss the role of ethics in operations ethics defined as what you believe is morally right participant may discuss current trend toward non-GMO in food (relate to company like

A&W who have moved away from GMO food and use meat without antibiotics)2 Distinguish between merchandising and marketing2 Enlist others in working toward a shared vision

Shared vision between community and leaders and Chamber of Commerce The leaders within the community must be brought on board to share in the vision and

be informed of the benefits of working together within the community Letters/pamphlets to be sent out Presentations to local businesses

2 Establish policies/procedures for preventing internal theftParticipants’ ideas may include: Installing security cameras Increasing supervision Using a Just-In-Time inventory system to avoid having excess furniture vulnerable to

theft and going unnoticed in the warehouse Increasing the frequency of inventory counts so that employees during certain periods

of time can be held accountable for theft Security checks of employee automobiles as they leave the premises to check for stolen

furnitureExplain business ethics in product/service managementBusiness ethics that relate to product/service management focus on making customers aware of product information that can affect safety and health when the product is used. Some of the general areas that the participant should identify include:

product recalls allergy information labeling clear instructions on how to care for the good or service

Specifically, the participant could identify that labels for proper care of their garments should be included, as should labels identifying the materials used and country where the garment was manufactured

Product must work well Product must work as stated in advertisements and websites Information must be clearly written and easy to understand Company must deal with complaints responsibly. For example, if customers

complain about the larger font, they should be offered the free software and the money returned

The participant should identify some of the following criteria that buyers should be aware of when selecting suppliers to work with:

Production capabilities Past experiences Product quality Special buying arrangements Special services Pricing

Buyers should have clearly defined expectations and standards so that vendors are aware of what should be delivered

2 Explain business ethics in selling e.g. the salesperson must be truthful in its communications with his clients. Should he

then proffer that Grenadier may not be around to honour the gift certificates? Salesperson needs to follow company policy, but is it ethical to continue selling gift certificates when there is uncertainty they can be honoured?

Is the company adhering to correct business practices? Does the company have a Code of Business ethics? Have customers been informed of policy prior to purchase of a gift certificate Is the gift certificate policy posted in the store for customers to see Easier to keep customers than get new ones Honesty builds trust between customers and the company A company must ensure that none of their claims are fraudulent In this case: The company was ethical because both options were provided and free software was

provided for a year. Customers must expect the company to make a profit The company needs to research how many customers renew after the two year

subscription or were they angry enough to not renewExplain company selling policies Layaway policy offered to customers Not common practice to extend layaway dates, policy is if date has passed,

merchandise is returned to the sales floor Store policy is if layaway merchandise is not picked up by the date, monies left on

deposit are put towards a store credit and not returned to the customer as cash. Explain employee’s role in expense controlParticipants’ should begin with an explanation of the importance of expense control as it relates to this case. Points may include:

If employees are trained on safety precautions and procedures and feel that they are supported with a safe work environment, there will be less personal injuries, more awareness of their surroundings and therefore less damage to inventory

Less injuries leads to less employee absenteeism and a salary expense that is reflective of a productive workforce

Less damage to inventory leads to controlled expense of damaged inventoryIt is the company’s job to train these employees, and it is the employees’ responsibility to use the skills and know-how to help control such expenses

2 Explain ethical considerations in providing information Information ethics has been defined as "the branch of ethics that focuses on the

relationship between the creation, organization, dissemination, and use of information, and the ethical standards and moral codes governing human conduct in society". It

provides a critical framework for considering moral issues concerning informational privacy, moral agency, new environmental issues problems arising from the life-cycle (creation, collection, recording, distribution, processing, etc.) of information (especially ownership and copyright, digital divide, and digital rights). Dilemmas regarding the life of information are becoming increasingly important in a society that is defined as "the information society". Information transmission and literacy are essential concerns in establishing an ethical foundation that promotes fair, equitable, and responsible practices. Information ethics broadly examines issues related to ownership, access, privacy, security, and community

In this case, there is a certain amount of privacy on the part of the evaluators, but because of the public nature of their comments, the companies they are evaluating are demanding more information on the evaluations and evaluators

The accountant had an ethical and moral obligation not to insider trade If a person has access to information as a part of their job, they are morally bound not

to use it for their own gain. They are also ethically bound not to share the information In this case, the accountant used the information to defraud shareholders of the

manufacturing firmExplain factors affecting pricing decisionsPricing depends on the objectives of price as it relates to the businesses profitability. The image of the business, supply and demand, the stage of the product life cycle, and the expense related to the product are all considerations. Four factors: costs/expenses; supply and demand; consumer perception; competitionPricing is a competitive tool – indicates quality to the consumer; is a function of supply and demand; position of the company in the market place; laws in place, break even point; economies of scaleParticipant should mention some of the above and how they affect the ability of the restaurant to offer specials on an on-going basis. They want to increase demand by increasing the number of patrons ordering before 5:00 pm, but cannot exceed capacityThe participant should recognize some or all of the following factors:

profit variable and fixed costs of the goods and/or services competition business law and ethics

3 Explain key factors in building a clientelePeople eating in a restaurant are making a choice. This is normally not a matter of necessity. Therefore, they will choose to eat at this restaurant if their needs are being met. Some of the more obvious reasons they would have are:

The food is good The prices are right They enjoy the ambiance and feel welcome They know the owners They respect and support the restaurant as a member of the community They want their children to be exposed to different dining situations They don’t feel like cooking themselves

If the restaurant owners and management want to rebuild their clientele, they must address these (and perhaps other) issues

Students need to demonstrate an understanding of why customers will patronize a business; ie, what can the business do to continue attracting and keeping customers. It will not be enough to advertise to attract new customers, it is also necessary to satisfy them in order to keep them coming back frequently. Eating out is not a necessity. Consumers have a choice as to where to spend their money and they will generally do so in a place they enjoy.

The market (consumer attitudes) could be changing, and what has worked in the past is no longer popular.

The demographics (types of customers in the area) may be changing (aging?) There will likely be new competitors that may be trying to copy your success Ensure

every customer has a pleasant experience at the restaurant Relate to creating brand loyalty by providing an excellent product with supreme

service in an amazing atmosphereStudents could also be more specific and include examples of different types of events or promotions the restaurant could use. Just like retail stores change their window and interior displays, even a restaurant has different things they can do to give the customers a new look or feelThis case tries to deal more specifically with having the proper menu items.

Did the student explain and develop a defined plan for building and keeping customers?

Did the student address issues related to competition and competitive advantage?Explain management’s role in the achievement of qualityExplain routine security precautions Most stores now incorporate magnetic tags and doorway sensors. Many also now

search their employees bags as they exit the store after a shift. The key here is that it must be done for all items, and for all employees. (This however won’t be effective when the manager who is checking is part of the theft problem.)

Regular rotating inventory checks will find specific areas with shrinking inventory. Security cameras are also an option In this case it would be wise to inform staff of the situation, that jobs have been lost

and that the specific staff who have been fired are not welcome in the store anymore. Hotel security departments usually use preventative tasks such as patrolling,

monitoring, and investigating in order to prevent problems Employees’ are properly screened to ensure that they are trustworthy

Guests are offered storage vaults or boxes to store valuables Adequate lighting is provided in the surrounding environs to ensure that guests and

their property are safe from intruders All staff should be trained in safety and security issues and to consider privacy of

information eg. What room a guest is in2 Explain the concept of competition

The rivalry between two or more businesses to gain as much of the total market sales or customer acceptance as possible Helps to maintain reasonable prices, provides consumers with new and improved products, and results in a wide selection of products from which to choose. Forces businesses to operate efficiently. In this case there is a competition between the companies being evaluated, and the evaluations can have a great effect on competition

Competition

Did the student discuss the pros and cons of competition? Did the student address issues related to competitive advantage?Competitors Who are the direct/indirect competitors?

What target market are they competing for?.Explain the concept of economic resources Also known as the factors of production, economic resources are inputs to produce

finished goods. These include human resources, natural resources, and capital resources Human resources include the effort and technical knowledge used in production.

Human resources are the people who work to produce the goods and services; also known as the workforce or labour, and includes both the physical and mental work performed

Natural resources include naturally occurring goods such as water, soil, minerals, etc Natural resources are those raw materials we get from the earth, water, and air

Capital resources are man-made resources such as buildings, equipment and money that is used to produce goods and services

Entrepreneurship is sometimes considered another economic resource in that they innovate new ways to produce new products

Economic resources are defined as the means through which goods and services are made available to consumers. Another term for economic resources are factors of production

The proposed new convention centre will utilize both the city’s human and capital resources in a productive manner

To not utilize these available economic resources would stifle continued economic development, a commitment and vision the city has already embarked upon

2 Explain the concept of leadership Did the student explain ‘what is a leader’? What are the characteristics of a good leader? What are the criteria of choosing the leader of the team?

o Someone they respecto Someone who has a vision and is able to execute strategy to achieve that visiono Trust and confidence by subordinateso Effective communication – help employees understand company’s business

strategy, understand how they can contribute to the success of the organization, share information with employees on how the organization and division is doing

Explain the concept of management 8 Explain the concept of Market and Market Identification

Market is the term which makes reference to your actual and potential customer base Market identification is the process of identifying existing or potential customers Market segmentation – target a specific group of potential customers – divide the total

market into smaller groups of people who share specific needs and characteristics Geographics – segmenting a market based on where people live – locally, regional Demographics- characteristics of a population – age, gender, income, ethnicity,

education and occupation Psychographics- study of consumer’s lifestyles and the attitudes / values that shape

it Product benefits- features built into products to suit the needs/wants of consumers

Niche Market (very high end users) and Micromarket (local and individual) are two additional means of segmenting the market

Explain the concept of marketing strategiesAn organization's strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a marketing planYour marketing strategy is an explanation of the goals you need to achieve with your marketing efforts. Your marketing strategy is shaped by your business goals. Your business goals and your marketing strategy should go hand-in-handA marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goalA marketing strategy is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena, corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statementBottom line: think of the definition of marketing strategy as the high-level rules that direct your marketing activities. For example, if there’s a single influencer who touches all your customers and has a significant impact on the way those customers try to solve their problem... one of your strategies may be to focus on building a strong relationship with that influential individual or companyMarketing strategies are the chosen mix of short-term and long-term marketing activities coordinated to achieve the goals of the business. The strategies used vary depending on the stage of the product life cycle, nature of competition, and availability of resources to commit to marketing efforts. Examples of strategies include but are not limited to:

- Market Introduction Strategies – the primary goal of these strategies is to increase awareness of the product and entice potential customers to try it

- Market Growth Strategies – the primary goal of these strategies is to encourage continued use of the product and increase new sales

- Differentiation Strategies – the primary goal of these strategies is to emphasize competitive advantages over competitors to sway the potential customer in the company’s favour

Market Dominance Strategies – the primary goal of these strategies is to emphasize the organization’s leadership in the market and aggressively maintain that position

3 Explain the concept of product mixA product mix is a range of related products that when sold together yields larger sales. For example, selling a chicken burger in a combo as opposed to individually A product mix is the full list of all products offered for sale by a company. In this case, the product mix will also include the service of catering. A product line is a group of goods/services in the product mix that have some kind of similarity. A product is the individual unit. The product mix can have both width (variety of products or product lines) and depth (the assortment of items offered within the product mix). Width – what are we offering? Do customers pick up the food or do we deliver? Will serving the food be done by the customers or do we provide staff? Depth – what food will be offered: current menu, additional items (party favours, napkins, cutlery). These decisions will also include the types of functions (dinners, parties, company meetings or picnics)All the different products a company sellsProduct line – group of related products – in this fast food restaurant – the burger line Depth – adding Tasty Pork is an example of product depthParticipant should identify Pork Tastyas product depth – and indicate whether or not it is consistent with the company image and other products in the lineLikely, participant will mention R&D requirements, surveys, branding, etc. – all factors to be considered when adding to product offeringsStudents would be expected to give a definition of product mix, and perhaps some related terms such as product line. A product mix is the full list of products offered or sale by a company while a product line is a group of similar products. There are certain economies of scale in keeping the number of items offered for sale to a minimum (McDonalds originally only sold 9 separate items), but today’s customers are more sophisticated and demanding. The addition of other product lines (healthier foods) would attract more customers (especially from their competitors)Product mix is a specific marketing term that is defined as all of the different products that a company makes or sells. This will include not only our food, but other items that will reflect on our image; for instance, customers that would be interested in low-fat foods might also be interested in using containers that didn’t harm the environment. This would include washable cups, plates and silverware along with recyclable products for take-out items. It would also be important to provide a mix of goods that reflects the preferences of consumerseExplain the concept of production

The fabrication of products in a manner which is both cost effective for the producer and still satisfies the desires of the consumer

Includes converting raw materials (inputs) into products (outputs) and the steps in between, e.g. packaging

Production often limited by laws (safety regulations, restrictions on % of certain materials, etc.)

2 Explain the employee’s role in expense controlParticipants’ should begin with an explanation of the importance of expense control as it relates to this case. Points may include:

If employees are trained on safety precautions and procedures and feel that they are supported with a safe work environment, there will be less personal injuries, more

awareness of their surroundings and therefore less damage to inventory Less injuries leads to less employee absenteeism and a salary expense that is

reflective of a productive workforce Less damage to inventory leads to controlled expense of damaged inventory

It is the company’s job to train these employees, and it is the employees’ responsibility to use the skills and know-how to help control such expensesExplain the importance of business credit

2 Explain the influence of economic/ demographic/ social/ political/ geographic/ psychological factors on buying products. Explain the nature and scope of channel management

Channel Management refers to how a business uses marketing and sales techniques to reach their customer base. Channel Management refers to the ability of a business to operate all of its sales outlets or methods effectively. These Channels of Distribution could include direct from manufacturer, retail, wholesale, import, or specialty channel (internet, home shopping, catalogue, vending machine, etc). When done properly, effective channel management allows a business to deliver products successfully and a manner of its choosing to customers thus strengthening the relationship between the business and its customersChannel management organizes all possible ways to communicate with customers. Organizations must consider their target markets in terms of their preferred methods of communication while trying to reach their goals of gaining and maintaining customers. Regardless of the channels chosen, the messages must always be consistent with the organization’s branding and position. Types of communication channels include but are not limited to: social media, print advertising, corporate website, online advertising, telemarketing, email marketing, webcasts, tradeshows, direct mail promotions, white papers, and face-to-face eventsIn this case Dorm Outfitters is looking at selling in stores in order to reach the population who do not yet feel comfortable buying on line. The decision between retailers must make sense in terms of who it will now reach higher-end shoppers, or lower end shoppers

Explain the nature and scope of financing3 Explain the nature and scope of purchasing

The purchasing function of a business ensures that all production materials or inventory items are available for use when needed. In this case, various chemical ingredients are vital to the business. Effective purchasing must be cost effective and efficient and take into account the quality of raw materials, where they are coming from, and what future costs are expected to be (will raw materials increase in price over time, will there be a shortage of raw materials due to external factors, etc). In this case, students are faced with the decision to pre-purchase a bulk quantity of an ingredient at a discounted price at a time when necessary funds may not be readily available (liquid). Purchases must stick to a budget communicate effectively with the accounting/finance department

purchasing function of a business ensures that all production materials or inventory items are available for use when needed

participant may discuss importance of finding vendors who will be reliable in delivering non-GMO goods consistently

6 Explain the nature and scope of the product/service management functionProduct management includes developing a product plan, which includes defining goals and objectives, specifying tasks or how goals will be achieved, what resources are needed, and associating budgets and timelines for completion. It also includes implementing the plan along with careful controls to stay on the “critical path”, that is to ensure the plan is being managed according to plan. Product management usually follows major phases with various titles for these phases, including feasibility study, product planning, implementation, evaluation and support / maintenance

Service manager is responsible to make sales and maximize profit margins Respond to customer requests Provide customers with best service possible Determine products needed for customers Responsible to manage the other staff Report to the owner Decisions based on products, pricing, distribution and promotions

4 Explain the nature and scope of the selling functionParticipants should identify that the selling function provides consumers with the products or services that they want or need. They should also mention that this includes all members of the distribution channel. Participants should explain that the selling process is a personalized communication and influences the purchase of a product or service and future salesParticipants should identify the various levels of personal selling in the apparel industry as it relates to the level of interaction with customers: Stores that promote a discount image – may have limited sales staff who offer little

service beyond checking out at the cash register Stores that attract customers interested in exclusive, ‘pricey’ items have sales

personnel to not only help customers make buying decisions, but also make customers feel important

Participants should identify that the selling function is not necessarily the same for male and female customers in a female clothing store and that differences should be present to ensure that all clients are being served and all receive the same level of quality from the sales experience

7 Explain the nature of a promotional plan Detailed plan for delivering your promotional mix identifies all the potential promotional activities in promotional mix, who will carry

them out, the costs, etc Calendar based, and is tied in to the buying plan (media, products, etc) It is coordinated with all the different aspects of promotion, with distribution and

inventory, staff being ready, store being set up properlyThe participant should recognize most or all of the following components of a promotional

plan: description of promotional methods associated costs and budget explanation of how promotions relate to objective measure of success; maximizing return on promotional efforts

An outline of the marketing tools, strategies and resources that a company intends to use to

promote a product or service. A promotional plan is usually considered a vital planning tool by most business managers that helps contribute toward the successful launch of a new product or service or its expansion into a new market

Promotion is one of the market mix elements or features, and a term used frequently in marketing. The marketing mix includes the four P's: price, product, promotion, and place.[1] Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. Promotion is also found in the specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[2] A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, there are three basic objectives of promotion. These are:[3]

To present information to consumers as well as othersTo increase demandTo differentiate a product

There are different ways to promote a product in different areas of media. Promoters use internet advertisements, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts (i.e., coupons), free items, or a contest. This method is used to increase the sales of a given product

2 Explain the nature of buyer reputation/vendor relationshipsExplain the nature of channels of distributionA channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption Channel 1 contains two stages between producer and consumer AAA has a large set of

client companies which provide roadside assistance to the client members of the club Channel 2 contains one intermediary. In consumer markets, this is the retailer towing

company, and service business They sell their services and expertise to the AAA clients

Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a towing and auto service companies selling directly to the customer

3 Explain the nature of corporate brandingCorporate branding is the practice of using a company's name as a product brand name it creates product brand recognition by use of the familiarity of the brand name. One advertising campaign can be used for several products, all under the brand name. It helps with new product acceptance because customers are already familiar with the nameDorm Outfitters has already established their company’s name with their existing clientele. They should continue to use this corporate branding as it has favourable recognition with their clients. New products, services and clientele that they develop and introduce to their customers should be branded under the existing corporate brand as the brand is already established and has positive recognition in the market.

Whichever retailer they choose has to meet the same standards.Explain the nature of financial needsFinancial needs are monetary requirements that arise in the course of business. They are often related to poor sales or costs – both variable and fixed. In this specific situation the University needs to control costs and increase revenue from its sports programs. Financial needs in this specific case are $7.1 million (the deficit) and $81 million (needed for a new field house)

2 Explain the nature of managerial ethicsExplain the nature of marketing plansA marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. A marketing process can be realized by the marketing mix. The last step in the process is the marketing controllingA marketing plan is the company’s strategy for positioning the product and encouraging sales. It includes a determination of the product, price, place and promotion to be used. This expectation is linked to the previous with the identification of the target market. The marketing plan that is used should make sense given the target market that was previously identified for each line. The product launch time should also be included in the marketing planSome considerations for the marketing plan might include:Product: May include identification of each product’s features and benefits: quality,

fashion, trend-setting, etcPrice: The price range has been given in the case for each line. Students may link the

price range to the target market they have identifiedPlace: can involve the positioning of each line within the shoe department of the store.

Solutions should be logical for the image created for each brand and may include merchandising methods used

Promotion: refers to the combination of all methods used to attract and create desire of the customer. This includes advertising, sales promotions, personal selling, etc.

Solutions must be tied to target market and be reasonable for the targeted market and image to be createdExplain the nature of operations Operations generate recurring business income Delivery of goods at a low cost to ensure profits Converts or transforms resources into goods and services Includes: inventory management, quality control, production scheduling, facility

location, facility layout In one case—accepting the orders, placing order to manufacturing in China, receiving

shipment, checking shipment, mailing orders to individual customers, accepting payment

Problem—small inventory, customers must wait a long time for shipment, complaints have occurred

The participant should recognize some of the following characteristics of operations: identify the job/task identify the resources or data required to carry out the job/task impact of job/task on customer satisfaction/experience

2 Explain the nature of overhead/operating costs

Fixed costs that are “sunk costs”, i.e. already spent and not material in decision making

Arbitrarily assigned on a per unit basis for accounting reasons Will decrease on a per unit basis as unit produced increases; this will have no real

impact on business Explain the difference between fixed and variable costs Fixed costs do not fluctuate due to the number of items sold Variable costs fluctuate depending on the total number of items soldOverhead costs and operating costs deal with different types of company expensesOverhead costs generally relate to expenses necessary for the functioning of the business but which do not help to directly generate profits. Typical of these would be rent, gas/electricity, indirect wages). Examples of rising overhead costs would be for the installation of security cameras or more expensive cash registers that would reduce employee errorsOperating costs are the recurring expenses which are related to the production and sales of a business, and therefore directly related to profits. These include direct wages, advertising, and food preparation, such as our food preparers using too much of the inventory to make our menu items. If too much food is put on a plate, or too much food is wasted in making the food, our operating costs will rise compared to sales. Since all costs will eventually reduce the amount of profit a business has, any expenses the business has related to inventory control systems and shrinkage are importantIdeally, the money spent to install and implement these systems would more than make up for the amount of shrinkage a company faces, but it still has an impact on the efficiency of a business when one includes the additional time necessary to monitor and administer these procedures. Overhead and Operating costs combine to add up to the costs of operating the

business These costs can either be fixed (overhead) or variable (operating) Overhead costs (fixed) must be paid regardless of the level of production or sales

o costs that remain the same for a period of time (insurance, rent, hydro, water, heat, wages, taxes)

Operating costs (variable) are dependent on the business’ level of production or sales

o can change monthly depending on the needs of the business (advertising, office supplies, utilities, packaging, labour salaries)

5 Explain the nature of positive customer/client relationsThe participant should demonstrate an understanding of this concept through examplesA positive customer relations mindset means believing that your customers:

Deserve the very best Are your employers Deserve your focused attention Have the right to expect things of you Have important problems and complaints

Positive customer relations yield benefits to the: Business Employees

CustomerBusinesses benefit by being:

Employees may receive: customer compliments perhaps a raise or promotion for good customer service skills

Customers may benefit from: a more pleasant, satisfactory buying experiencePositive customer relations need to be demonstrated when speaking to customers in person, over the phone, or online. It should also be evident while handling customer complaints, inquiries and requests. Demonstrate good customer relations by doing the following: considering and attempting to meet their needs concentrating on the without distractions follow up with them following through on what you say you are going to do

being efficient in handling issues3 Explain the nature of product/service branding

In an ever-competitive world, branding is one way of helping you increase sales and at the same time protect and extend the uniqueness of your service or product. Your uniqueness is the very reason why it’s important to develop your brand, and your brand is not your logoYour brand helps customers and prospects, understand and remember what’s unique about you. It tells your story and helps attract new customers and keep the ones you already have. Your brand is the definition that identifies your business, and makes specific promises: Walmart’s brand is about saving money (Save Money, Live Better). Mazda’s brand is about having fun while driving (Zoom-zoom)Branding is just as important for small business as for large ones. For example, there are hundreds of coffee shops in Vancouver, several per block in some neighbourhoods. Why do some thrive while others fail? Is the coffee better? Is the atmosphere friendlier? Is the service faster? Is the price lower? Is one the go-to location for business meetings, where another is the neighbourhood hang-out? A good brand speaks clearly to its audience about the nature of the product or service, and the people behind itA well-branded business knows the one or two things it’s best at, and uses those to create a brand message. A good brand:

delivers its message clearly confirms the credibility of the message connects to its audience emotionally motivates the buyer reinforces loyalty

A brand isn’t “different for the sake of being different.” A strong brand is clearly differentiated by its own unique storyExplain the Nature of Risk Management

Risk Management strategies are used by business to mitigate the impact of business failures and to eliminate or reduce the possibility of business failures. Businesses often use four strategies of Risk Management: Risk Transfer (moving the risk to another party), Risk Avoidance (eliminating or reducing the likelihood of risk factors), Risk Insurance

(purchasing insurance to cover costs associate with realized risks) and Risk Retention (accepting the possibility of risk and not acting). Students may suggest that by eliminating athletic programs, they are reducing risks and eliminating poor sources of income. Students may suggest that increasing ticket prices is a very risky thing to do

2 Explain the nature of sales management Underlying goal of any business is to increase profits By weight the costs and benefits, it is in the best interest of the hotel to pursue the option that can guarantee the greatest profitsSales management includes taking into consideration the long term benefits as well (i.e. if this is an annual dog show and it is a success, the hotel can increase their occupancy during downtimes on an annual basis)

Explain the principles of supply and demandSupply and demand determine the prices and quantities of goods and services produced. Supply is the amount of goods and services producers are willing to make and sellDemand is the willingness and ability of consumers to buy goods and services. The law of supply states that price and quantity supplied move in the same direction

(a direct relationship) As price increases, the amount of goods and services supplied increases. The law of

demand states that as price increases, the amount desired by consumers will decrease (an inverse relationship)

When the amount of a product/service being supplied equals the amount being demanded, equilibrium exists in the marketplace at that price.

A surplus exists when there is more supply than demand, leading to lower prices A shortage exists when there is more demand than supply, leading to higher prices

Explain the purposes and importance of creditCredit enables businesses to obtain products or money in exchange for a promise to pay later. Businesses use credit to buy materials and supplies from other businesses and credit makes it possible for many companies to purchase goods/services who otherwise would not have the means to do so. Also, companies can extend credit to provide purchasing incentives to customers, enhancing their sales revenue. A business would use credit to purchase product for resale as well as supplies and

assets for the daily operations of the business It would extend credit to customers to increase sales and earn higher profits while

also collecting interest for using credit Credit allows customers to be able to purchase products and pay over a period of

time and not have to pay cash in one lump sum,Explain the relationship between customer service and channel management

Channel management is a term that refers to the way that a business or supplier of products uses various marketing techniques and sales strategies to reach the widest possible customer base. The channels are all of the various outlets by which the product is marketed and sold to customers. When done properly, channel management motivates those channels to sell the product and ultimately develops a better relationship between customer and product. This is achieved by identifying the goals for each distinctive channel and then implementing various marketing strategies to make sure that those goals are attained, all while staying consistent to the overall brand of the business

The world of marketing has become much more complicated as technological advances have taken hold. No longer can a business rely simply on good customer relations or word of mouth to maintain or improve revenue. Possibilities for marketing a product or service grow seemingly each day, and keeping track of all of these disparate marketing avenues is not an easy chore. That is why the concept of channel management has become so prevalent in marketing.

2 Explain the role of business in society Businesses provide employment opportunities for people in society. These people

become trained, skilled workers through their work experience thereby increasing their work capacity and potential to contribute to the business and the economy. As workers develop, they are paid reflective of their skills, experience, and contributions

Some of the compensation earned by working is spent on consumables purchased from other businesses. This revenue generation allows the businesses to continue to afford to employ more people

The government taxes business income, personal income, and purchases. This money is then reinvested into programs such as health care, education, and infrastructure for the maintenance and betterment of our standard of living

Businesses also have a responsibility to the environment and sustainable practices such that future generations’ quality of life and standard of living aren’t compromised for today’s society

Provide employment to people and therefore compensation and a means of achieving a standard of living

Contribute to the improvement of society through the development of inventions and innovations

Offer essential services to people via public sector businesses Offer luxury services and allow for the consumption of entertainment, the arts, sports,

etcExplain the role of customer service as a component of selling relationships

Selling relies on repeat business – customer service drives repeat businessIntegral to successful selling is good customer contact. Service extras are what the customer will remember and cause him/her to returnProduct knowledge is part of customer serviceParticipant should mention specifics of customer service as it applies to The Shed – product knowledge, speed of service, acknowledging customer concerns. In this case, acknowledge should be made of the fact that the server was likely at fault and that the table in question could have been offered the discount, or some other incentive to return to the restaurant. Ensuring customer satisfaction must be the goal.

3 Explain the role of promotion as a marketing function Promotion is part of the marketing mix Promotional mix includes personal selling, advertising, sales promotions and public

relations/publicity Talk about promoting brand image and creating brand identity and loyalty Increase awareness Increase sales Persuasive communication Informs people about products and services

Used to enhance public image, reputation and to persuade people that the company’s products are valuable

Goals of promotion = AIDA – first attract Attention, then build Interest and Desire and finally ask for Action

Promotion used to convince prospects to select ABC services instead of the competition

Promotional activities explain the major features and benefits of the product/service, identify where it is sold, advertise sales, answer customer questions and introduce new offerings

Product promotion helps companies to foster good relations with existing customers and creates loyalty

Explain the role of situation analysis in the marketing planning process SWOT analysis: measure of Strengths, weaknesses, opportunities and threats SWOT analysis should distinguish between where your organization is today, and

where it could be in the future Once key issues have been identified with your SWOT analysis, they feed into

marketing objectives Study of the internal and external factors that affect marketing strategy SWOT Examination of the overall market – opportunities and threats, competition

Participant could perform SWOT analysis and determine that the opportunity is ripe for a new product launch – this is the expectation of the ownerExplain the role of training and human resource development.

2 Explain the selling process Basic selling process: identify need/want, find information on alternatives, evaluate

alternatives, purchase, evaluate post-purchase satisfaction Many customers need help in determining the correct products to solve their problems

Store personnel have the opportunity to up-sell and cross-sell other products while the customer is thereExplain the time value of money Future value of money is different than current value Inflation and deflation cause the value to fluctuate, so a dollar may be worth less in the

future2 Explain the types of advertising media

Mail Print Advertising – Newspapers, Magazines, Brochures, Fliers Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events Broadcast advertising – Television, Radio and the Internet Covert Advertising – Advertising in Movies Celebrity Advertising

5 Explain the types of promotionPromotion itself has its own elements called the promotional mix, namely, advertising, sales promotion, public relations, and personal selling Emphasize the perceive value offered to customers. Customers more likely to believe prices are fair if they perceive value in the product

Advertising Personal Selling Sales Promotion Public Relations

3 Explain the use of visual merchandising in retailing. Follow established security procedures/policies

2 Follow safety precautions Were the students’ recommendations in the interest of safety? Did their suggestions align with modern safety procedures The manager needs to make certain that all employees are aware of the safety

procedures and practices these procedures New employees need to be trained as part of their orientation After an incident, the staff needs to review the incident to see what can be learned

for the next time If employees do not follow these safety precautions or do not take them seriously,

the manager should discipline them As always, the manager must lead by example

2 Generate product ideasThe conditions given involve low-fat alternatives to other fast food places. This recognizes that the target market will include customers with knowledge of nutritional information and a desire for healthy eating. Our location is near a large shopping mall. Most of the customers will probably be middle and upper aged adults, some with young children. The more popular sandwiches would be chicken, turkey, tuna, salmon, tomato, cucumber, egg, etc. Avoid the heavier red meats, although it might be acceptable to have an option of lean roast beef. Soups selections should concentrate on low sodium and mostly clear soups. Since we are not a chain, it would be acceptable to try different types of soups on a rotating basis and eventually we would find which ones were more desirable. The sides should include a variety of salads (healthier choices like spinach, house, and cole slaw), an assortment of fresh fruits or fruit salads, and possibly cookies or “sweets” that have been prepared with healthier ingredients. The beverages should include a variety of teas and coffees, as well as water, juices, and diet drinks. The conditions also included little food waste. Students could suggest using some of the scraps in the soup or buying fresh to avoid having to dispose of cans, cartons, and other packagingAs previously mentioned, the participant should acknowledge that the product must be low in cost to the consumer as well as small in portion while maintaining the quality that the company is known for. The participant may generate any number of products that fit this criteria, as long as it falls in line with the restaurant’s chicken theme Introduce soups, cold meats sandwiches, wraps Freshly squeezed juices, vitamin water

2 Identify communication channels used in sales promotionMarketing communications are the means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands that they sellTraditional methods can be covered (print, television, radio) as the target market is an older audience who may/may not use social media (the target are those who are purchasing the

gift cards, not the graduates themselves)Communication channels used in promotion may include: Print media – newspapers, magazines, direct mail Broadcast media – radio, television Display media – billboards, signs, posters Electronic media – internet, mobile web Social media – Facebook, Twitter, Instagram, etc.

The participant should demonstrate an understanding of the target market and select the appropriate promotional medium (i.e. print, broadcast, etc.)Identify company’s unique selling proposition The key to effective selling in this situation is what advertising and marketing professionals call a "unique selling proposition" (USP). Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully. Pinpointing your USP requires some hard soul-searching and creativity. One way to start is to analyze how other companies use their USPs to their advantage. This requires careful analysis of other companies' ads and marketing messages. If you analyze what they say they sell, not just their product or service characteristics, you can learn a great deal about how companies distinguish themselves from competitorsUncover the real reasons customers buy your product instead of a competitor's As your business grows, you'll be able to ask your best source of information: your customers. For example, the pizza entrepreneur could ask them why they like his pizza over others, plus ask them to rate the importance of the features he offers, such as taste, size, ingredients, atmosphere and service. You will be surprised how honest people are when you ask how you can improve your service

7 Identify factors affecting a business’s profitProfit is the monetary return a business` owner receives for taking the risk of investing in the business. Profit equals income less expenses. There are two types of profit: gross – the money left over after the cost of goods is subtracted from sales, and net – the money left over after the operating expenses are subtracted from the gross profitFactors that affect profit include: the demand for the good/service, expenses, prices, the economy, and chance. To increase profit, a business can increase worker efficiency, increase sales or decrease expenses Revenues: number sold * sales price per ruler Expenses: Fixed costs + (variable costs * number produced) 4 P’s of marketing – Product; Price; Place; Promotion 4 C’s of marketing – Consumer wants/needs; Cost to satisfy; convenience to buy;

Communication The amount of sales The cost of the merchandise Price merchandise is being sold for Amount of overhead Cost of sales Competition Success of an advertising campaign Merchandise that is being sold Ability of the sales staff

Ability of staff to close sales and to add on sales once an initial sale has been closed Revenues: rentals Expenses: advertising, salary, rent, utilities expenses

2 Identify information monitored for marketing decision-makingTarget and segment markets for a new endeavor need to be explored thoroughly. It is possible to identify the type of customer that would be more likely to eat in each of the two styles of restaurant. The majority of the information required would involve determining the demographics and psychographics of the potential customers in each city. Demographics are the finite or definitive characteristics of a group of people in an area and would include a combination of age groups, incomes, education, occupation, type of dwelling, living downtown or in suburban areas, size of the family, etc. Psychographics deals with is their attitudes and interests

The company would also have to determine the competition already in each market to determine if there are enough customers to support an additional restaurant how often customer frequents establishment revenue per customer area that customers come from demographic characteristics revenue per customer

2 Identify market segmentsMarket segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.A market segment should be:

Easily and clearly identifiable Measurable Accessible by promotion, communication and distribution channels Different in its response to a marketing mix Stable (not changing too quickly) Appropriate for the company’s policies and resources Substantial enough to be profitable

Segments may be Geographic, Demographic, Psychographic or Behavioral6 Identify possible resolutions of an ethical dilemma

Example solutions: Is the decision or solution ethical as well as legal?

Do nothing Fire the accountant Search for more information Confront the accountant with the accusation Call the police Report to Securities Commission

Possible solutions: Do nothing Search for more information ~ survey customers; review complaints; what

policies and procedures are competing businesses using

Change gift certificate policy ~ make gift certificate transferable; increase date of redemption (i.e. 1 year); gift certificate can be used for sale items (treat like cash); encourage as much selling as possible; offer online purchases

Have an automated reminder system ~ send customer a reminder of expiry date (via email). (Option not advisable)

5 Identify product opportunitiesNeed to identify appropriate target markets and further develop their individual needs and wants. This would be preferable to simply advertising a general service. Many of the answers will be based on the specific location and demographics we deal with. Requires market research, market segmentation, product research etcIdentify quality-control measuresA business builds a loyal clientele and many people in other cities would be aware of their name and image. Customers will have an idea of what to expect when they go to any location with the same name, and therefore, it is very important that the quality, presentation, product is carefully duplicatedIt should be relatively easy to use the same suppliers for all locations. The bigger and more flexible issue will involve consistent presentation. In the case of a restaurant each cook usually develops their own particular “touch” with the food they are preparing, and extensive training or rigid guidelines will have to be in place to ensure consistent quality among locations. This will even involve the presentation and serving of food to the customersThe Head Office should also consider having area supervisors who would travel from location to location to ensure the consistency was being maintained.

4 Identify the elements of the promotional mixThe combination of personal selling, advertising, sales promotion, direct marketing and public relations make up the promotional mix. Each plays a vital role in promoting businesses and their productsReference:

o Personal Selling – Personal selling requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers. It is one of the costliest forms of promotion. Direct contact can take the form of personal meetings, telemarketing, email contact and correspondence

o Advertising – is a form of nonpersonal promotion. Companies pay to promote ideas, goods or services in a variety of media outlets. Advertising can be found everywhere from magazines, newspapers, televisions and web sites to gymnasiums and city buses. With advertising a company engages in one-way communication to the prospect or customer

o Sales promotion – represents all marketing activities – other than personal selling, advertising and public relations that are used to stimulate purchasing and sales. The objectives of sales promotions are to increase sales, inform potential customers about new products and create a positive business or corporate image

o Direct marketing – advertising directed to a target group of prospects and customers rather than to a mass audience. The two forms of direct marketing are printed direct mail, which is information sent via regular mail to home or business and electronic direct mail. The goals of direct marketing are to generate sales or leads for sales representatives to pursue. Generally direct marketing generates a

response from the targeted customer i.e. special offer coupon. Direct marketing gives recipients an incentive to respond

o Public Relations and PublicityPublic Relations (PR) – activities enable an organization to influence a target audience. Often public relations campaigns try to create a favourable image for a company, its products, or its policies. However, companies can rely on public relations strategies and techniques for many reasons. One of the goals of a public relations program is to cultivate media relations with reporters who cover a specific industryOne of the most important media tools is the news release. A news release is an announcement that is sent to the appropriate media outletsPublicity involves bringing news or newsworthy information about an organization to the public’s attention. This process is known as placement. The main function of publicity is to develop a positive perception or awareness of the organization in the marketplace. The right kind of publicity can create and maintain a company’s image; negative publicity can devastate it. People like to do business with respectable companies. Placement of publicity is free. A news story on the evening news is free while advertising can cost thousands of dollars. News reporters are usually viewed as more objective than advertisers. The disadvantage is that you cannot control the content of publicity

2 Identify the impact of product life cycles on marketing decisions Increase marketing at the Introduction Stage of the product life cycle Growth stage of product life cycle, increase advertising Maturity stage of product life cycle, maximize marketing campaign Reduce marketing at the decline stage of the product life cycle

Five stages of the PLC – Introduction, Growth, Acceptance (maturity), Decline and Decision Point

PLC explains the different stages of customer acceptance of an item Introduction – birth of a new product, very expensive stage as dollars are being

poured into developing the new product. Early adopters are the consumers who will purchase the goods so marketing should be focused on these trendsetting consumers. Advertising in magazines are through popular media outlets (celebrities) are also useful for engaging the early adopter

Growth - Customer acceptance is limited at this stage as the item is new – the item is available on a small scale – retailers purchase small amounts and watch to see how they are received by the customers. Marketing decisions are crucial at this stage – advertising should be at its height because the product still needs to catch on. Word of mouth advertising is also important here. Do not want the product to be removed early (BUST)

Maturity – sales increase slowly at this stage. Advertising here is based on the reputation of the product that has lasted so long

Decline – marketing here may be based on a change in price, packaging/design, or the campaign

Decision Point – it is at this point where marketers may elect to completely repackage or rebrand the product in attempt to create a new buzz

Students will present various ideas that will fit within this framework.

Students should recognize that marketers need to be mindful of their customers and their progressing acceptance of the goods they offer. Various promotional strategies should be utilized in order to keep customers interested in purchasing books

may also discuss fads, niches, or seasonality in looking at how to respond to sales opportunitiesParticipant should identify the stages of life cycle and that Tasty Burger’s new product offering is at the development stage and requires the associated promotion and attentionThe student could indicate the necessity of market research to determine target market, effects of this new product on the current offerings, price, etc.

2 Identify ways that technology impacts businessComputer software and hardware provide a manager with the means for capturing, storing, and analyzing information regarding the operations of the businessBetter technology makes the job of managing easier because it improves the accuracy, timeliness, and usefulness of the information producedExample: computer scanning of UPC codes when receiving eliminates errors made in identifying part numbers, which is an important factor in managing inventoryExample: linking the sales processing and invoicing system to the inventory management system also improves accuracy and reduces loss.The legal field has expanded due to the impact technology as had on society. Today technology is a term referred to daily in every business. It may be relating to ticket sales in the entertainment business or on-line shoe sales in retail. It may be related to a new phone system being installed or new data entry software. There is no end to the impact technology has on communication, productivity and the overall nature of today’s business culture. With this new powerful innovative tool, come concerns and cautions that create a need for counsel in terms of confidentiality, on-line security, trademark and copyright protection, cross- culture issues, and more. Technology has also created concerns for ethics, but the benefits from profits and savings in productivity outweighs these concerns and commerce demands that technology keep rolling in a fast and aggressive manner

Can make it more effective and efficient Easy to organize information and keep track of it Can reduce costs for organization (automated payroll, bookkeeping etc.) Can create a secure environment to maintain sensitive business or consumer

information Can improve company communication processes within organization and with

customersMaintain a safe work environmentParticipants should outline what a safe work environment entails. Factors to consider include: Layout of the warehouse and associated risk factors to both employees and inventory Employee breaks Lighting Implementing training programs for employees to learn and refresh essential safety

procedures and precautions in the warehouseParticipants emphasize the value of a safe work environment with the following benefits: Less employee absenteeism due to injuries Less damaged inventory

Increased productivity and efficiency due to employees’ security and faith in the company’s ability to maintain a safe work environment

Increased sales and revenue as less damaged goods are created and therefore less are being marked down by 40%, as well, higher productivity and efficiency may give the company the opportunity to expand delivery further

Maintain a safe work environmentParticipants should outline what a safe work environment entails. Factors to consider include: Layout of the warehouse and associated risk factors to both employees and inventory Employee breaks Lighting Implementing training programs for employees to learn and refresh essential safety

procedures and precautions in the warehouseParticipants emphasize the value of a safe work environment with the following benefits: Less employee absenteeism due to injuries Less damaged inventory Increased productivity and efficiency due to employees’ security and faith in the

company’s ability to maintain a safe work environment Increased sales and revenue as less damaged goods are created and therefore less are

being marked down by 40%, as well, higher productivity and efficiency may give the company the opportunity to expand delivery further

Make decisions2 Organize and communicate knowledge, ideas and concepts effectively for the area of

business ethics2 Persuade others2 Plan a product mix2 Plan special events

Participant should incorporate the following elements into their plan for the special event: Advertising, including where it would be placed Stock levels on hand Number of employees required Hours of the special event Whether rain checks will be available Security personnel Description of the event – what are the specifics of the sale, which departments, what

prices/promotions, etcPlan visual merchandising activitiesPlan/schedule displays/themes with management

4 Present analysis and resolutions in an organized and well thought out manner Use a decision-making model to create a solution Example:

o Define the problemo Generate and evaluate alternative solutionso Select a preferred solutiono Implementation

o EvaluationRecognize sources of business financingRecognize/reward employees Students are to outline ways to: Recognize employees i.e. a plan to implement an easy to use employee evaluation

system. Supervisors to grade employees who are direct reports Reward employees i.e. bonus for quality efficient work Explain that you appreciate and value the business that

Reinforce service orientation through communicationService orientation refers to a focus on service. In communication, service orientation can be maintained by demonstrating emphasis on customer service in all communication. Similar to handling difficult customers, communication with a service orientation should demonstrate empathy and a focus on finding solutions that will satisfy the needs of the customer

staff to be trained in proper customer service techniques, including greeting customers, asking to assist them, wishing them a good day when leaving, etc

customer service training, tips and messages to take place on on-going basis in staff meetings, employee newsletters, employee bulletin boards

training to include role plays of customer service situations thanking customer to be part of role plays concluding transactions at cash employees must make it clear to customers that we want to help them; the whole

experience in our store must be positive open communication from customer – employees – management (full circle) customers can be given opportunity to fill out comment cards/on-line surveys,

perhaps with chance to win something/discountsemployees also be given chance to fill out feedback forms, surveys, suggestions

Select and use display fixtures/formsUse networking techniques for professional growth