Chapter 6 Distribution Promotion and Selling 6 1

Chapter 6 Distribution, Promotion, and Selling 6. 1 The Marketing Mix─Distribution 6. 2 The Marketing Mix─Promotion 6. 3 Selling and Promoting Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 6. 1 The Marketing Mix─Distribution Goals n Describe the four basic options of channels of distribution. n Apply channels of distribution to the specific needs of various types of businesses. n List factors to consider in the physical distribution of products. Chapter 6 Slide 2 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n n n supply chain management distribution channels of distribution direct channel indirect channel physical distribution Chapter 6 Slide 3 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Supply Chain Management n supply chain management n the coordination of manufacturers, suppliers, and retailers working together to meet a customer need for a product or service Chapter 1 Slide 4 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n distribution n involves the locations and methods that are used to make products available to customers n channels of distribution n the routes that products and services take from the time they are produced to the time they are consumed Chapter 6 Slide 5 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Direct and Indirect Channels n direct channel n moves product directly from the manufacturer to the consumer n indirect channel n uses intermediaries n people or businesses that move products between the manufacturer and the consumer Chapter 6 Slide 6 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Channel Options Chapter 6 Slide 7 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Manufacturer to Consumer n sales methods may include: n the Internet n direct mail n television shopping channels n no intermediaries n most cost-effective n limited sales opportunities Chapter 6 Slide 8 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Manufacturer to Retailer to Consumer n sales force sells goods to retailers n retailers sell goods to consumers n offers more sales opportunities Chapter 6 Slide 9 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Manufacturer to Wholesaler to Retailer to Consumer n manufacturer sells large quantities to a wholesaler n wholesaler stores and sells smaller quantities to many retailers n lower production costs can lead to lower prices Chapter 6 Slide 10 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Manufacturer to Agent to Wholesaler to Retailer to Consumer n The manufacturer delegates the sales function to an agent. n frequently used in international marketing Chapter 6 Slide 11 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What are the four basic options of channels of distribution? Chapter 1 Slide 12 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Distribute Goods and Services n Distribution channels will vary based on business needs. n market size n type of product or service n customer needs and wants Chapter 6 Slide 13 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Retail Businesses n Retail businesses can distribute products in a variety of ways. n offer the product at a convenient location during convenient times n use advertising to reach customers n allow for phone or fax ordering n develop a website for online purchases Chapter 6 Slide 14 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Service Businesses n Most service businesses sell directly to customers. n production and consumption of the service happens at the same time n the service needs to be provided to the customer when the customer needs it n some service providers sell through retail stores Chapter 6 Slide 15 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Manufacturing Businesses n Manufacturers usually sell products to other businesses. n The other businesses sell to the final consumer. Chapter 6 Slide 16 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why are channels of distribution different for different types of businesses? Chapter 1 Slide 17 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Physical Distribution n Physical distribution n n Chapter 6 Slide 18 transportation storage handling packaging Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Transportation n The best and most cost efficient transportation method should be determined. n The type of product and the destination of the product will help guide the decision-making process. Chapter 6 Slide 19 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Product Storage and Handling n Benefits of efficient storage include: n balancing supply and demand of products n Other considerations of storage include: n adds to the cost of products n increases the risk of damage or theft Chapter 6 Slide 20 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Packaging n The purpose of packaging is to protect the product from the time between production and consumption. n Effective packaging provides value by minimizing product damage. Chapter 6 Slide 21 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Receiving Goods to Sell n All types of businesses must receive goods from suppliers. n Sources that can be consulted to find suppliers include: n The American Wholesalers and Distributors Directory n The Thomas. Net website n Trade magazines Chapter 6 Slide 22 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What factors are important to consider in the physical distribution of products? Chapter 1 Slide 23 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 6. 2 The Marketing Mix─Promotion Goals n List the many forms of advertising and discuss advantages and disadvantages of each. n Define publicity and describe ways to use publicity as a promotional tool. Chapter 6 Slide 24 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n n advertising publicity press release public relations Chapter 6 Slide 25 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Promotion Strategies n promotional mix n n Chapter 6 Slide 26 advertising publicity personal selling sales promotion Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Advertising n a paid form of communication sent out by a business about a product or service n Advertising is very important for small and/or new businesses. n Advertising should clearly communicate your message and image. Chapter 6 Slide 27 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Online Advertising n Online advertising has increased as Internet usage has grown. n Online technology lets businesses interact with consumers via n chat rooms n blogs n e-newsletters Chapter 6 Slide 28 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Common types of online advertising include the following: n n n Chapter 6 Slide 29 Banner Ad Floating Ad Wallpaper Ad Trick Banner Pop-Up Ad Pop-Under Ad Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n As it is easier to determine the effectiveness of online advertising than traditional advertising, new methods to charge for online advertising have been developed. Chapter 6 Slide 30 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Three common ways to charge for online advertising include: n Cost per Mil (CPM) n the advertiser is charged based on the exposure of the message to a specific audience n priced per thousand viewers reached with the message Chapter 6 Slide 31 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Cost per Click (CPC) n the advertiser is charged based on the number of user clicks on the advertisement n viewers respond to the ad by clicking on the hyperlink within the ad n Cost per Action (CPA) n the advertiser is charged when a user takes an action that leads to a sale n the publisher of the ad assumes all the risk in running this type of ad n advertisers prefer this type of charge for banner ads Chapter 6 Slide 32 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of Online Advertising n In an effort to combat excessive spamming, many Internet users now utilize software that blocks promotions from reaching their computers. Chapter 6 Slide 33 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What are three examples of online advert. . .

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What is the difference between CPC and C. . .

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: An online ad that changes the background. . .

Television Advertising n commercials n last less than a minute n infomercials n last a half hour or more n provide in-depth coverage about a specific product Chapter 6 Slide 37 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Fees associated with television advertising include: n the fee paid to the station for airing the commercial n based on the length of time the commercial plays n the costs of producing the commercial Chapter 6 Slide 38 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of television advertising include: n it is very expensive n the audience is too broad to be effective for most businesses Chapter 6 Slide 39 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Radio Advertising n less expensive than television advertising n listener demographics are more specific than television n easier to reach target audience n pay for air time n pay for production costs Chapter 6 Slide 40 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of radio advertising include: n the message is purely audio n a visual of the product is not shown n listeners may forget what they hear n listeners may “surf the airways” during commercials Chapter 6 Slide 41 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Newspaper Advertising n Historically, newspapers were the single largest form of advertising in the U. S. n Advantages of newspaper advertising include: n relatively inexpensive n targets a limited geographic area n reaches a large number of people Chapter 6 Slide 42 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of newspaper advertising include: n Many people in the audience may not be interested in your business. n Your ad faces a lot of competition from many other ads in the newspaper. Chapter 6 Slide 43 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: A radio station will provide a psychogra. . .

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What is a major advantage of newspapers. . .

Telephone Directory Advertising n Consumers use telephone directories repeatedly. n Ads usually appear close to the listing and phone number of the business placing the ad. Chapter 6 Slide 46 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of telephone directory advertising include: n People only look in the directory when they are already seeking a specific business. n It is hard to persuade a potential customer to use your business instead of your competitor’s business. Chapter 6 Slide 47 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Direct-Mail Advertising n promotional materials sent to target customers through the mail n Companies that specialize in maintaining targeted mailing lists can provide almost any type of list needed. Chapter 6 Slide 48 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of direct-mail advertising include: n Direct-mail is often considered to be “junk mail. ” n It often gets discarded without being read. Chapter 6 Slide 49 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Magazine Advertising n Magazines are an excellent way to aim products and services at specific markets. n Local magazines that target a limited geographic area are often the best choice for small businesses. Chapter 6 Slide 50 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What is an advantage of direct-mail adve. . .

n Disadvantages of magazine advertising include: n National distribution can make some magazines an inappropriate way to advertise a local business. Chapter 6 Slide 52 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Outdoor Advertising n billboards and signs n can be effective as the name of your business is located where many people can see it Chapter 6 Slide 53 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Disadvantages of outdoor advertising include: n limited information can be included n may not project the image you wish to convey Chapter 6 Slide 54 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Transit Advertising n signs on public transportation n can provide more information than a billboard n effective if your target market includes consumers who use mass transit Chapter 6 Slide 55 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Social Networking Sites n Business owners are using social networking sites for business promotion. n n n Chapter 1 Slide 56 Twitter Linked. In You. Tube Facebook Blogging Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Budgeting for Promotion n Obtain cost estimates for all advertising that is under consideration. n Calculate a projected budget. n Determine whether your advertising budget, as a percent of sales, is in line with industry averages. Chapter 6 Slide 57 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: Why is promotion important to a business. . .

Publicity n publicity n a nonpaid form of communication that calls attention to your business through media coverage n can be positive or negative n Publicity is free. n Staging the events that generate publicity is usually not free. Chapter 6 Slide 59 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n press release n a written statement meant to inform the media of an event or product Chapter 6 Slide 60 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Public Relations n public relations n the act of establishing a positive relationship with customers and the general public Chapter 6 Slide 61 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Ways to support your community include: n sponsoring a sports team n donating to local charities n supporting work-based programs at local educational institutions n supporting Big Brothers or Big Sisters n organizing community programs Chapter 6 Slide 62 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Self-Promotion n Self-promotion is a way to keep the name of your business visible and in the forefront of people’s minds. n Self-promotion methods include the distribution of goods with your company’s identifying information on it. n t-shirts n office supplies Chapter 6 Slide 63 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What are the advantages and disadvantage. . .

Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Poll: What's one thing a business can do to im. . .

Lesson 6. 3 Selling and Promoting Goals n Explain the role of selling in a business. n Determine how to meet customer needs and wants. n Discuss other types of promotional activities. n Evaluate the effectiveness of promotional categories. Chapter 6 Slide 66 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n n n n personal selling rational buying decisions emotional buying decisions sales promotion rebate telemarketing visual marketing Chapter 6 Slide 67 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Selling n Entrepreneurs need selling skills for many reasons. n It is necessary to sell business ideas to potential investors when selling a business. n For many customers, the salesperson is the business. n a positive image should be conveyed Chapter 6 Slide 68 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n personal selling n a direct communication between a buyer and a sales person n the sales person tries to influence the prospective buyer’s purchasing decision Chapter 6 Slide 69 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Product Knowledge n features n the physical characteristics or capabilities of the product or service n benefits n the advantages that could result from the use of those features Chapter 6 Slide 70 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What are some selling strategies an entrepreneur can employ? q q Salespeople should represent company well Identify customers’ needs, issues, & concerns Turn features into benefits Train salespeople well (product, market, industry) Chapter 1 Slide 71 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Determine Customer Needs and Wants n A salesperson must determine what need the customer is seeking to satisfy. n lower-level needs usually do not require personal selling n upper-level needs often require better selling skills Chapter 6 Slide 72 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Needs Assessment n need satisfying n fulfilling the needs of a customer who knows exactly what they want n problem resolution n helping the customer find products or services when they are not quite sure what they want Chapter 6 Slide 73 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Buying Decisions n rational buying decisions n based on the logical reasoning of customers n customers evaluate alternatives n purchase after careful thought Chapter 6 Slide 74 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n emotional buying decisions n based on the desire to have a specific product or service n little time or thought is used when making the buying decision Chapter 6 Slide 75 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Customer Decision-Making Process n A problem-solving approach for helping customers includes the following steps: n define the problem n gather information Chapter 6 Slide 76 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n n n Chapter 6 Slide 77 identify various solutions evaluate alternatives select the best option take action evaluate the action Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why is it important to meet customer needs and wants in the selling process? q Customers purchase goods and services to satisfy needs and wants. If their needs cannot be met, a sale will not be made. Chapter 1 Slide 78 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What are some emotional buying motives? q q q Fear Protection Appearance Recreation Improved health Comfort Chapter 1 Slide 79 q q q Recognition Pride of ownership Imitation Prestige Popularity Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What are some rational buying motives? q q q Safety Simplicity Quality Reliability Economy Convenience Chapter 1 Slide 80 q q q Service Durability Knowledge Money gain Ease of operation Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Other Types of Promotion n sales promotion n an incentive offered to customers in order to increase sales n rebate n a refund offered to people who buy a product Chapter 6 Slide 81 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Telemarketing n telemarketing n using the phone to market your product or service Chapter 1 Slide 82 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Visual Marketing n visual marketing n the use of visual media to promote, sell, and distribute a product or service to a targeted audience n n n Chapter 1 Slide 83 logo signage promotional tools company vehicles uniforms Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is the purpose of sales promotions? q Sales promotions offer incentives to customers in order to increase sales Chapter 1 Slide 84 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Evaluation Strategies 1. Is the volume of sales increasing? n New leads/appointments 2. How are you getting new customers? 3. Does your advertising and/or promotional activity produce direct responses? n Are you using the right media for target market? Chapter 1 Slide 85 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. Do your networking activities create new opportunities for you? n Need to know source of new business 5. Do your marketing tactics make it easier to sell your services? 6. What is your sales conversion rate? 7. Does your plan have a positive return on investment (ROI)? Chapter 6 Slide 86 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

How can you determine the effectiveness of promotional activities? Chapter 1 Slide 87 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What’s Next? n p. 176: #4 in groups n HW: 6. 3 Assessment (1 -3) Chapter 1 Slide 88 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

PERFORMANCE INDICATORS n Demonstrate knowledge and understanding of entrepreneurship n Engage in activities that clarify and enhance understanding of entrepreneurship n Plan and implement presentation/activities to educate and promote entrepreneurship to targeted groups Chapter 6 Slide 89 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Derive facts from data, findings from facts, conclusions from findings, and recommendations from conclusions n Demonstrate critical-thinking skills n Develop a concept from an idea to reality n Plan, organize, and conduct a group project n Determine priorities and set deadlines Chapter 6 Slide 90 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

THINK CRITICALLY 1. What are the benefits of presenting this project to elementary or middle school students? 2. Why is it important to explain risks associated with entrepreneurship? Chapter 6 Slide 91 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Who are popular examples of entrepreneurs? 4. What are three characteristics of successful entrepreneurs? Chapter 6 Slide 92 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.