UNIT 1 2 2 PRIMARY TASKS INVOLVED IN

UNIT 1 – 2. 2 PRIMARY TASKS INVOLVED IN RUNNING A BUSINESS

PRODUCTION Goods and services are made available to consumers through factors of production. 1. Natural resources – raw materials from the earth, water, and air.

2. Human resources – people who work to create goods and services (labour).

3. Capital resources – are used to produce goods and services. Buildings Trucks Tools Factories Money

Marketing and Advertising Includes 6 main things. 1. Product – the particular good made or service offered.

2. Price – what a customer is charged for the good or service. • • • Must cover your costs and make a profit Must price similar to the competition If price is higher must let consumer know why

3. Place – the methods a business uses to sell and distribute its products. • • Can sell directly to the consumer (bakery) Can sell indirectly to the consumer (wholesaler, retailer, catalogue, ecommerce) How does a business get its good /service to the consumer?

4. Promotion – any attempt to sell a product. • Includes encouraging consumers to buy a product by using: Coupons Samples Contests Premiums Special Events

• Promotion also includes advertising: Flyer Magazine Billboard Radio Internet Newspaper Television

There are 4 standard rules for creating good advertising:

Attract Attention • • • Have a good headline Mention the brand “Sprite: Obey Your Thirst. ” No more than 7 words Leads consumer to the rest of the ad For broadcast ads attract attention with sound, unusual visuals, attractive people, a celebrity or with humour.

Gain Interest • • • Simple and easy to read Avoid mixed typefaces Keep message clear and to the point Do not try to do humour right away (it is difficult) A great illustration (worth a 1000 words) Make people want to read, watch, listen

Build Desire • • Have a problem that your product solves Have a situation that the customer identifies with Repeat the benefits of the product Repeat the brand name

Get Action • • Always ask for the sale Summarize the reasons to buy Have contact information at bottom righthand corner Repeat a phone # or web address to get info or order online Include store address and hours A map is helpful Limited-time offers encourage buy now

5. Competition – a business that sells the same good or service. • • • Need to know who the competition is Direct / Indirect competition Can you compete / enter the marketplace Can you copy / improve what they do Why would consumers choose your business over the competition

6. Customers – the market you are selling to. Need to be as specific as possible: 1. 2. 3. 4. 5. 6. Age Gender Family Life Cycle (Newly married / Seniors) Income Level (Everyone / Wealthy) Culture ( Language / Ethnicity) Lifestyle (Environmentally conscious / Health conscious)

Management and Human Resources This includes: 1. Planning – setting goals and developing strategies to meet the goals. 2. Organizing – arranging people to carry out the plans. 3. Controlling – the resources that are needed. 4. Productivity – being cost efficient. 5. Labour – finding, training, and retaining employees.

Financial Planning and Analysis You must understand: 1. Start-up financing - how much money you need to start and where it will come from. 2. Income statement – the revenue (from sales) and the expenses (money spent). It shows profit or loss. 3. Balance sheet – a record of the assets (what is owned) and liabilities (what is owed). 4. Cash flow – the movement of money in and out of a business.

Legal Issues and Responsibilities This includes laws, business regulations, and ethical issues. 1. 2. 3. 4. 5. 6. Labour laws. Workplace safety. Environmental concerns. Fair trade. Discrimination in hiring and promotion. Concealing information from customers.