UNIT 3 Business Organisation

FUNCTIONAL DEPARTMENTS Sales and Marketing Production/Operations Human Resources/Personnel Finance Administration IT Services

Sales and Marketing Selling goods to customers Market Research Advertising Promotions

PRODUCTION DEPARTMENT Turn raw materials/supplies into finished goods

HUMAN RESOURCES DEPARTMENT Staff Recruitment – advertising job, get applications, interview, appointment Staff Training Health and Safety Staff Welfare Staff Records

FINANCE DEPARTMENT Keeping financial records Control money Make payments Receive customer payments

ADMINISTRATION DEPARTMENT Office Services – telephone, mail, reprographics etc Dealing with paperwork, filing Using computer applications (WP, Spreadsheets, Databases) Communicating information

ORGANISATION CHARTS These show: Organisational structure No of levels of management Links between staff/departments Lines of authority and responsibility Job titles

Structures Tall Organisational Structure Lots of levels of management Narrow spans of control Long lines of communication Long time for decision making Flat Organisational Structure Few levels of management Wide spans of control Clear communication

OTHER TERMS SPAN OF CONTROL The number of people a person has DIRECT authority over Can be wide or narrow CHAIN OF COMMAND Commands flow DOWN an organisation through the levels

LINE RELATIONSHIP Information flowing up and down the LINE through different levels eg Managing Director General Manager Sales Manager Sales Assistant LATERAL RELATIONSHIP Relationship between people of same level who report to same superior eg Department managers who report to General Manager

CHANGES TO STRUCTURE Due to expansion or contraction Changes to save costs or improve efficiency DELAYERING Removing layer(s) of management shortens chain of command improves flow of communication workers get more responsibility (EMPOWERMENT) Downsizing – as workers are more productive, less staff required

UNIT 4 Marketing

Marketing is the anticipation, identification and fulfilment of consumer needs.

Marketing involves: Researching the market Developing and designing a PRODUCT ( Producing quality products in the right quantity) At the right PRICE Informing the consumers – PROMOTION Available in the right PLACE

MARKETING MIX PRODUCT – unique selling point, look good, work well PRICE PLACE – right place at right time PROMOTION – telling about existence and availability of product

MARKET SEGMENTS A part of the whole market with similar characteristics  Age  Gender  Income  Area  Religion/race  Socio-economic group

MARKET RESEARCH DESK RESEARCH Using secondary (available) information – internal or external sources Cheap Quick and easy to obtain FIELD RESEARCH Collecting primary data – direct investigation Eg questionnaires, test marketing, consumer panels Provides specific information eg on a product Focuses on needs of organisation

Constructing Questionnaires Introduction Questions clear, short, easy to answer  Avoid jargon  Use groupings eg age range  Don’t ask leading questions Test questionnaire before distributing

THE PRODUCT MOST IMPORTANT PART OF MARKETING MIX Product mix Product range Branding/Own brand Packaging Product Life Cycle Extension strategies

PRODUCT LIFE CYCLE The stages through which a product passes Development Launch Growth Maturity Saturation Decline

EXTENSION STRATEGIES To extend life of product Introduced before sales start to fall POSSIBLE STRATEGIES Improve design Wider product range New market Change appearance or packaging Encourage more frequent use Find a new use

PRICE HIGH AVERAGE LOW Price must be acceptable to customers

Pricing Considerations What are competitors charging? What is the production cost? What profit level is required? What market segment are we targeting? Will low price increase number sold?

Pricing Techniques Hour based pricing Cost plus pricing

Pricing Tactics (short-term) Penetration Pricing – bring in low then raise price Price Skimming/Creaming – start at high price – unique product then lower Destroyer Pricing – very low price to get rid of competition Competition based pricing – close to other prices Market orientated pricing – based on market demand

PROMOTION Giving information to potential customers: make customers aware product is available, what product is, how product will help them Persuade customers to buy it (again and again!)

Promotion Techniques ADVERTISING AND PUBLICITY Advertising – including media advertising Direct mail Public relations Branding SELLING AND MARKETING Sales promotion Eg money off, discount vouchers, competitions, free gifts, PR Promotions

PROMOTION Into and out of the Pipeline Manufacturer Retailer Consumer INTO PIPELINE - Manufacturer promotions to retailer to encourage them to buy/stock OUT OF PIPELINE - Retailer to the consumer to encourage purchasing

PLACE Where the product is made available to consumers

Reaching the Market DELIVERY/DISTRIBUTION Road Rail Air Sea Pipelines

FACTORS TO CONSIDER  Cost  Speed  Reliability  Safety  Location  Type of Good  Bulky/small  Perishable/non perishable

Manufacturer Wholesaler Retailer Consumer

End of marketing revision slides MORE TO DO YOURSELVES…..