Learning for everyone Principles of Business Unit 5

Learning for everyone… Principles of Business Unit 5 – Learning Outcome 1 Understand Business Markets

Learning for everyone… Understand business markets In essence ‘Business Markets’ are the range of business, such as yours who utilise each other to purchase goods, resources, materials, products and services used to promote, develop and to sell their own products

Learning for everyone… Characteristics – Example a Wine Bar Buys in: Raw ingredients – food Wines – Cases/bottles Beers and Lagers Spirits and mixers Entertainment – Dj/band

Learning for everyone… Characteristics – Example a Wine Bar Sells: Quality cooked food from a wide ranging menu Wines – Bottles/glasses Beers and Lagers – draft and bottled Cocktails, spirits and a wide range of drinks

Learning for everyone… The Interactions are Suppliers and wine bar develop good working relationships Suppliers sell more products and create income to pay debts, staff wages and overheads such as warehouse costs Suppliers use effective marketing to other close by businesses to stimulate and develop their market places

Learning for everyone… The Interactions are The Wine bar creates a warm welcoming and relaxing atmosphere for diners, they sell a range of high quality food – utilising word of mouth advertising to develop a wider audience (Market Place) Link to suppliers to encourage higher discounts for the purchase of higher volumes of stock

Learning for everyone… The Interactions are Wine Bar - Promotion nights within the wine bar – sell more specific items – generate more sales - impress suppliers – create a negotiation opportunity financial support through discounts – Suppliers - sell more products – creates cash-flow and profit – may create more business links through mixed advertising – may lead to own negotiation with

Learning for everyone… Organisations Goals Lets look at the Suppliers – What do you think It’s goals are? q Generate a renown business name within all wine bars/restaurants q Offer a wide range of quality products at competitive prices q generate profits to allow expansion

Learning for everyone… Organisations Goals Lets look at the wine bar – What do you think It’s goals are? q Stand out from the crowd and become well know and frequented by a wide customer base q Offer quality products, high levels of customer service, plush and welcoming environment q Become successful, expand into new