Unit 2:Growing as a Business

  Advertising – most widely recognised Other forms of promotion:  PR – raise profile of business often through media  Personal selling – dedicated sales team  Sales promotions - BOGOF Promotional activities

  Target audience – internet reaches many people, local paper a much smaller focused audience. Not just geographical but also income related – The Times v The Sun. generally a growing business will use methods designed to hit a bigger target audience  Cost – as a business grows it’s resources increase which means they can afford more expensive forms of promotion like TV adverts Promotional activities and a Growing Business

  Methods of communication – TV is the most powerful but very expensive  Factors to consider: cost, coverage no of people hit, quality, media ( sound v print v sound & images) Promotional activities and a Growing Business

  How the products (goods and services) are distributed to the consumers  Chain of distribution runs producers – wholesalers- retailers  Wth online selling the chain is being reduced sometimes to the extent that producers carry out all of the above functions  Wholesalers and retailers are intermediaries in the distribution channel Place

  Online selling – most popular form of direct selling (also mail order and telesales) Most businesses have their own website and offer the customers the option to buy online  Mail oreder – catalogues which customers order from  Telesales – sell products over the phone e.g. double glazing Distribution channel connections

  Zero level – producers sell direct to the consumer 9most modern)  One level – one intermediary between producer consumers  Two level – two intermediaries between producer and consumer (traditional) Levels of Distribution

  Increased access to a wider market when selling through retailers  Retailers offer a market where consumers can compare brands Advantages of intermediaries

  Obviously add cost to the product and therefore its price  Loss of control over how the product is sold and the brand image of the product Disadvantages of intermediaries

  Ultimately decided by cost  Loss of control over the brand  Type of product sold – products wised often which are perishable mean that they have to be readily available in many places  More expensive products need to be available in less places as bought very rarely – can be sold direct on the Internet. Selecting the right channel of distribution