GCSE Business Studies Unit 1 Introduction To Small

GCSE Business Studies Unit 1 Introduction To Small Businesses GCSE Business Studies 1. 4 Making the Start- Up Effective

• To understand that a focus on the needs of the customer is essential to business success. • To recognise the main elements of the marketing mix. • To be able to identify key elements of the marketing mix in different contexts 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Lesson Objectives

• Joe has just opened a new restaurant in York city centre. • List the 3 MOST IMPORTANT things that Joe can do in order to make his business the most successful 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Starter activity

The Consumer is King (or Queen) • In order for a business to survive it must provide what the customer wants. 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses A business must always remember that…

Customer Focus Anticipating needs How will customers needs change? Businesses must anticipate how fashions and trends will alter customers needs Meeting Customers Needs Identifying and anticipating is not enough. Businesses must actually meet the needs of the customers 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Identifying need Businesses must understand what their customers wants from a product

• Complete the table in your booklets. • Explain, as a business person, why these three factors are important. You have 7 minutes 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Task 1:

In order to meet customers needs, a business must: – – Sell them PRODUCTS that they want Charge a PRICE they are willing to pay Make them available in the right PLACE Make them aware by using PROMOTION These 4 elements are known as the “ 4 Ps of the marketing mix” – – PRODUCT PRICE PLACE PROMOTION 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses The Marketing Mix

• Products must be available to buy at locations convenient to customers. • Examples include – Online – High Street – Shopping centre – Industrial Estate – Catalogue – Wholesaler • The suitability of a location will depend on the product or service. 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Place

GCSE Business Studies Unit 1 Introduction To Small Businesses • Jack has just opened a new Mexican Restaurant called Tequila 1. 2 Making the start-up effective Jack’s Restaurant

• In your booklets match the product to the location. Ensure you explain WHY you have made this decision • You may match more than one product to the same location A/B Extension: Jack has opened his new restaurant in the middle of York City Centre. Justify why you think this is a good location for his business Remember for JUSTIFY questions you must analyse both sides of the argument. 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Task 2:

• Consumers often have lots of choices as to which products they can buy • When you think of Baked Beans, which brand do you think of? 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Product

1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Product

• Because the consumer has lots of choice, the business needs to make their product/service the one that people think of first. • This can be done using different techniques 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Product

To attract a new audience, Example: Coca Cola brought out Coke Zero to appeal to men, as Diet Coke was seen as too feminine Improvements “New Improved Flavour” Example: Herbal Essence shampoo recently brought out an advertising campaign to promote the new formula Changed Packaging To alter the brand image, or make the product look more current Example: When smarties went from being in a circular tube to a hexagonal tube New Technologies Used all the time with electronics Example: Retina displays on smart phones Widening the product range Branching out into other markets Example: A lot of chocolate bars are now drinks/milkshakes and yoghurts In your booklets write down your OWN definition of each of these strategies and come up with your OWN example 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Specialised Versions

• Jack’s restaurant sells authentic Mexican food such as fajitas, nachos, burritos and tacos. He wants to attract new customers. Using the strategies above, suggest ways in which Jack could alter his product in order to increase sales. A/A* - Suggestions for each strategy B – Suggestions for at least 4 C – Suggestions for at least 3 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Task 3: Suggestions

• Promotion involves telling consumers about your products or services • There are 5 main methods: Types of Promotion Advertising • TV • Radio • Posters • Billboards • Newspapers • Magazines Sales Promotion • Special Offers • Price Discounts • Vouchers • Free gifts • Prize Competitions Direct Mailing • Also known as JUNK MAIL • Involves sending mail to targeted customers Public Relations • Press Release • Organising Sponsorships • Damage Limitation Packaging 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Promotion • Must protect the product • Right size and shape to allow stacking for distribution • Have consumer appeal • Create seasonal looks

• Jack has found that business for his Mexican Restaurant is slow during the week. • He wants you to suggest a way for him to boost business during a week day. • In your booklets, suggest one way in which you think Jack could increase sales on a week day 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Task 4:

• A product or service needs to be the right price in order to attract customers. Ways of ensuring this is called PRICING STRATEGIES Advantages Disadvantages Strategy Definition Cost-Plus Add % profit to the Ensures a profit May not be able actual cost is made to sell product! Price may not Competition Charge a price similar Price will be to competitors competitive be profitable Encourages Cannot last long Penetration Start with a low price to attract customers people to try Skimming Promotional Start with a high price Allows extra for a unique product profits to be made Special price for a limited time Useful to get rid of old stock Only lasts while there is no competition Only useful for a limited time 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Price

• Must reflect the value placed on the product by customers • A high price usually = high quality • Determines how much entrepreneurs earn from their work. • Price set must allow you to make a profit 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Price

• It is called a Mix because in order for a business to be successful it must have the right balance of Price, Product, Place and Promotion. • It’s all about getting the mix right. 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses The marketing Mix

Why may customer focus be easier in a small business than a large one? Students must explain why it might be easier in the small business (1 mark) and why it might be more difficult in the bigger business (1 mark) “Customer focus might be easier in the small business because they are likely to have a smaller customer base, therefore recognising the customer needs will be easier. In a larger business there will be more customers therefore it will be harder to understand what they want on mass” 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Exam style questions

• 1 mark per benefit (max 2) • 1 mark per explanation (max 2) Possible benefits • They can see what its like to work for Tesco, therefore understanding their employees needs more • They experience it first hand, and can therefore identify weaknesses in the business • They can talk to customers, and can therefore identify their needs 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Outline 2 possible benefits to Tesco from getting all their directors to spend one week a year as shop floor employees

• • • Identify the pros of selling in Superdrug (1 max) Explain pros (1 max) Identify the cons of selling in Superdrug (1 max) Explain the cons (1 marks) Justify your final decision (2 marks) 1. 2 Making the start-up effective GCSE Business Studies Unit 1 Introduction To Small Businesses Superdrug wants to start selling Chanel products in their stores in the UK. Explain why Chanel might be right or wrong in trying to stop Superdrug selling its products. Justify your answer