1. Lesson 8 – Selling Points & Pricing
SimVenture Evolution
Lesson 8 – Selling Points & Pricing
23/09/2019

2. Summary of Lesson 7 In this module we covered: Creating a New Product
Reflective Journal
The CBI skills you will have developed today are:
A positive attitude (readiness to take part, openness to new ideas and activities, desire to achieve)
Self-management – readiness to accept responsibility, flexibility, time management, readiness to improve own performance
Team working – respecting others, co-operating, negotiating/ persuading, contributing to discussion (if you are working in a group).
Business and customer awareness- basic understanding of the key drivers for business success and the need to provide customer satisfaction.
Problem solving- analysing facts and circumstances and applying creative thinking to develop appropriate solutions.
Application of numeracy-manipulation of numbers, general mathematical awareness and its application in practical contexts.
Summary of Lesson 7
9/23/2019

3. Selling points & pricing
Overview of what we’re going to cover today:
Setting the selling points & pricing in line with your product design [Branding]
Choose a primary segment for your product
Reflective Journal
In this module you will be learning how to set the selling points in line with your product design.
You will also choose a primary segment and select a secondary segment if you wish.
23/09/2019

4. Process to get to market
Research
Company
set-up
Product
Create new product
Selling points & pricing
Promotions
Sales Channels
Production
More research
Employability
Skills & Capabilities
Enterprise
Innovation
Entrepreneurship
In order to get the best out of running your virtual business we have given you a structure to work through called THE PROCESS TO GET TO MARKET.
This is the process model you should follow to get the business moving along.
For those of you who don’t like to work in a structured way please feel free to run the virtual business as you’d like to but this process works and could be a great starting point for you.
The basic process to get to market is to start with Research and in particular Market Research and we completed this section in a previous module.
So, today we’re going to look at the product your company is selling.
So, here is the process to get to market and where we are currently in the process.
The basic process to get to market…
Action - Gather and analyse all the market research reports. If there are no reports you’ll need to order them in the simulation.
Competition
Customer
Focus Group
Segment
Market overview
Why - To inform: Product Design / Promotions / Sales Channels
The Scenario Briefing & Research Reports provide market intelligence to inform your decisions.
* Design a Product or evaluate an existing product [PRODUCT DESIGN]
Taking into consideration your research
A simple approach to start with is to ‘copycat’ the competition
* Create or re-create the product design [PRODUCT DESIGN]
The design process has 3 stages:
A concept or blueprint with no time or cost to generate (New Design)
A technical specification (requires hours assigned to the design process using the Change Strategy button). As quarters are run the designated hours are assigned to completing the design process.
A completed design containing the detail required for manufacture
Set Selling Points in line with your product design [BRANDING]
Choose a Primary Segment and select a Secondary Segment if you wish.
Set your Product Design ready for Production [PRICING]
Set the selling price (and discount if you wish).
Set Promotions [PROMOTIONS]
To generate awareness about your company and its products…
Set Sales Channels strategy [SALES CHANNELS]
To push your product through the channels.
Manufacture some Products [PRODUCTION]
So they are ready for display in the Sales Channel outlets.
Gather more research to keep your market intelligence up to date: [ALL MARKET RESEARCH REPORTS]
View detailed feedback on your product.
Identify the sub-segments / demographics your sales were drawn from in the last quarter.
Identify the Promotions which attracted Customer attention.
Identify changes as they occur (Competitor Designs & Market Share).
Demographic
Identify the potential reach of Promotions & Sales Channels for each demographic group.
A breakdown of the demographics and preferred Sales Channel for each Sub-segment.
From this point on you should be gaining traction in the market and the challenge is to manage cashflow expand your sales to begin to turn a regular profit.
9/23/2019

5. Log in Open up a browser remembering not to use Internet Explorer.
Try Chrome or Firefox instead.
Go to - don’t forget to add the last forward slash.
Log in with your user name and password using the LOGIN button.
Open the activity that has been allocated to you.
9/23/2019

6. The Next Step
Once you’ve logged in you will see this page called MAIN MENU.
Go to the second section called OPEN ACTIVITY outlined in GREEN and CLICK.
Open the activity that has been allocated to you.

7. Next This is the next screen you will see.
Navigate to SALES & MARKETING| then click into the BRANDING tab.

8. Branding Strategy
Once you’ve clicked into the BRANDING TAB you will see this page.
Read the Overview| Information| Key Considerations and Impacts tabs before making any decisions.
Once you’ve clicked into the CHANGE STRATEGY button you will see this page.
Selling Points - Choose which selling points to use when promoting your product to potential customers. Customers are more likely to consider your product if the selling points match what they are looking for.
Target Segment - Choose whether to target a specific segment and sub segment of the market. Doing this will reduce your reach but improve the chances of attracting attention from potential customers.
Don’t forget to run the quarter to complete all your decisions.
If you are copycatting your competitors use their selling points which you can find in the competition report.
If you are designing a new product you need to set your selling points at this time.
Click into CHANGE STRATEGY to make your changes.
Remember to confirm he changes and run the quarter to execute the changes.
Next we’re going to review your pricing strategy.

9. Pricing – Case Study Complete the case study in the notes below
Title: Pricing
Scenario: Growth
Format: Static Case Study
Green Spokes is a bicycle manufacturing business that has been running for a few years. After conducting initial research, a product design 'StreetSmart' was created to target the Road Commuting segment of the market.
The market is worth roughly 2.8 million (GBP) annually in terms of sales.
As the Sales and Marketing Manager you are aware that continual monitoring of your competitors and their pricing strategies is a key priority. This is because your pricing strategy has a significant impact on the business by stimulating demand and impacting on the profit margins you realize on each product sold.
This can be a team based or individual activity and part of the learning should also include a reflection of the development of the following employability skills:
Self - management
Team working
Business and customer awareness
Problem solving
Application of numeracy
Application of information technology
Positive attitude
Entrepreneurial skills
TASK:
Find out the price of your product(s) then analyse and evaluate the example competition report.
Does your price compare favourably to your competitors pricing?
Consider whether a change in pricing strategy is appropriate for one or more of Green Spokes products.
What other information should inform the decision?
Which employability skill(s) did you develop?
Growth Scenario A-1-12
Ref: DL-SCS-101-Pricing-SN
9/23/2019

10. Pricing This is the next screen you will need to navigate to.
Navigate to SALES & MARKETING| then click into the PRICING tab.

11. Pricing
Once you’ve clicked into the PRICING TAB you will see this page.
Read the Overview| Information| Key Considerations and Impacts tabs before making any decisions.
Click into CHANGE STRATEGY button.

12. Update pricing strategy
Select which product designs you wish to sell and what price you want to sell them at.
You can also set a short term discount to promote sales, but regular use of this will affect customer trust.
Don’t forget to CONFIRM CHANGES and run the quarter so that your decisions are played out in the simulation.

13. Which CBI skills were developed today?
As we outlined in a previous module.
Along with the skills outlined by the QAA at the beginning of this program of studies we’re also going to explore the Chamber of British Industry’s (CBI) definition of employability.
This is because these are the skills that are specifically needed by employers along with the skills identified in the QAA documentation.
This module will help you to become more aware of what employability skills are and how you can develop them.
To do this you’ll be taking part in an evaluation of your skills both before and after the program for a number of reasons:
Part of your assessment will then reflect on the development of these skills.
You will be able to see how your skills have developed and add them to your CV with evidence of how you’ve developed them.
If you haven’t already, please download and read the PDF document you can find here:
Think about which employability skills you have developed in this module.
Whilst you might think you already have all these skills if I asked you show some evidence from this module would you be able to do that?
If not, then you have some further development to do for this module.
9/23/2019

14. Journal
Finding the Journal – go to LEFT HAND SIDE OF SCREEN – ON BLUE TABS YOU WILL SEE JOURNAL.
Click the tab called Journal and you should see a screen like this.

15. Add Journal Entry
Write up a summary of the business as your starting point for your assessed work.
Give the entry a TITLE
CATEGORY
AREA
MESSAGE - Write up your summary which you can use in your assessment. Keep it short and bullet pointed as happens in the real business world.
Remember to press Submit to save the entry.
Well done everyone you’re set up and ready to go.
Go back into the journal to check that your notes are there.

16. Summary In this module we covered:
Setting the selling points & pricing in line with your product design [Branding]
Choose a primary segment for your product
Reflective Journal
The CBI skills you will have developed today are:
Problem solving- analysing facts and circumstances and applying creative thinking to develop appropriate solutions.
A positive attitude (readiness to take part, openness to new ideas and activities, desire to achieve)
Self-management – readiness to accept responsibility, flexibility, time management, readiness to improve own performance
Team working – respecting others, co-operating, negotiating/ persuading, contributing to discussion (if you are working in a group).
Business and customer awareness- basic understanding of the key drivers for business success and the need to provide customer satisfaction.
Summary
9/23/2019