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GCSE Business Studies GCSE Business Studies Unit 1 Introduction To Small Businesses 1.4 Making the Start- Up Effective.

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Presentation on theme: "GCSE Business Studies GCSE Business Studies Unit 1 Introduction To Small Businesses 1.4 Making the Start- Up Effective."— Presentation transcript:

1 GCSE Business Studies GCSE Business Studies Unit 1 Introduction To Small Businesses 1.4 Making the Start- Up Effective

2 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Lesson Objectives 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

3 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Starter activity 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

4 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective A business must always remember that… In order for a business to survive it must provide what the customer wants. The Consumer is King (or Queen)

5 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Identifying need Businesses must understand what their customers wants from a product 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 Customer Focus

6 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Task 1: Complete the table in your booklets. Explain, as a business person, why these three factors are important. You have 7 minutes

7 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective The Marketing Mix 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

8 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Place 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.

9 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Jacks Restaurant Jack has just opened a new Mexican Restaurant called Tequila

10 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Task 2: 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.

11 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Product 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?

12 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Product

13 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective 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

14 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Specialised Versions To attract a new audience, Example: Coca Cola brought out Coke Zero to appeal to men, as Diet Coke was seen as too feminine ImprovementsNew 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

15 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Task 3: Suggestions Jacks 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

16 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Promotion Promotion involves telling consumers about your products or services There are 5 main methods: Types of Promotion Advertising Public Relations Direct Mailing Sales Promotion Packaging TV Radio Posters Billboards Newspapers Magazines Must protect the product Right size and shape to allow stacking for distribution Have consumer appeal Create seasonal looks Special Offers Price Discounts Vouchers Free gifts Prize Competitions Also known as JUNK MAIL Involves sending mail to targeted customers Press Release Organising Sponsorships Damage Limitation

17 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Task 4: 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

18 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Price A product or service needs to be the right price in order to attract customers. Ways of ensuring this is called PRICING STRATEGIES Only useful for a limited time Useful to get rid of old stock Special price for a limited time Promotional Only lasts while there is no competition Allows extra profits to be made Start with a high price for a unique product Skimming Cannot last long Encourages people to try Start with a low price to attract customers Penetration Price may not be profitable Price will be competitive Charge a price similar to competitors Competition May not be able to sell product! Ensures a profit is made Add % profit to the actual cost Cost-Plus Disadvantages Advantages DefinitionStrategy

19 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective 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

20 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective The marketing Mix 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. Its all about getting the mix right.

21 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Exam style questions 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

22 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective Outline 2 possible benefits to Tesco from getting all their directors to spend one week a year as shop floor employees 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

23 GCSE Business Studies Unit 1 Introduction To Small Businesses 1.2 Making the start-up effective 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 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)


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