Course Outline BTEC Nationals in Business (Level 3) 1 lesson per week Unit 3: Intro to Marketing with MV (term 1&2) Unit 1: The Business Environment with DP (term 1&2) Unit 2: Business Resources with MV/DP (term 4/5) UCAS points equivalent

Commitment from you! All work submitted MUST be your own (plagiarism) You MUST reference your work correctly You MUST hand in work by the deadlines set At times, you will be required to complete tasks outside of school hours (extended learning) especially for merit/distinction grades.

MARKETING

Introduction to Marketing (P1) Unit 3 BTEC National Level 3 Award in Business Yr12 Miss Vincent

Learning Objectives By the end of today’s lesson, you should be able to… LO1)Define the term ‘marketing’ (Guided - Regular) LO2) Explain using examples what marketing objectives are (Regular - Strong) LO3) Analyse the marketing objectives set in private, public and voluntary sector organisations (Advanced).

Competency Focus Research (I1): to research the policies and organisational values of your chosen company. Morals and Ethics (C1): to understand the moral values of voluntary sector organisations and how these have an impact on aims and objs

MARKETING Class definition:

LO1: A definition of ‘Marketing’ "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. [Chartered Institute of Marketing (CIM)]

LO1: A definition of ‘Marketing’ "Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” [Kotler]

LO2: Business Concepts Businesses exist for different reasons. These can be classified under the headings: - Sales Concept - Production Concept - Marketing Concept What is Alton Towers’ business concept?

LO2: Business Concepts Sales Concept: ‘hard-sell’, business wants to push sales through Production Concept: Mass production of products where economies of scale are exploited. Marketing Concept: Seeks to satisfy consumer wants and needs. Putting the consumer at the heart of all decisions.

Alton Towers: Making a profit! All of the goods and services that Alton Towers Resort provides cost money. Examples of Alton Towers Resort’s costs include: – Staff wages – Raw materials – Advertising costs – Electricity/power costs To cover these costs, a business sells the goods or services it provides - this is known as income or revenue. The money left after all costs have been taken into account is the profit.

What about these...? 1)A business produces a low-priced, low-quality toilet paper which people will buy based purely on price and need. 2)A firm that manufactures replacement windows uses cold-calling to target residential households. 3)A firm has recognised the need amongst consumers for a heated flask. The product will be used mainly by people whose job requires them to be based on the road for long periods of time. 4)A firm manufactures large cardboard boxes; they gain cheaper raw materials by negotiating a rate with their suppliers for buying in bulk. Extension : An insurance firm has just opened up a new call centre, employing 1000 employees in Birmingham. They will now mass target customers by cold-calling households to try and sell their product. Two new sales people have just been hired by a telecommunications company to set up a stand at Merry Hill Shopping Centre, Dudley and try to sell wireless broadband to passers by.

LO3:Aims/Objectives Aim: What a business wants to achieve in the long term. For example, to maximise profit or to survive. Objective: an outcome which allows a business to achieve its aims. E.g. To increase sales by 5% per month over the next 12 months.

LO3:Aims/Objectives Objectives must be SMART: S pecific M easurable A greed R ealistic T ime-constrained

LO3:Aims/Objectives Examples of SMART Objs: -To increase profit by 5% for each week during the month of December. -To reduce advertising budget by 15% for the financial year 2009/10. -To recruit an extra 10 highly motivated staff in the marketing dept over the next 12months.

Scenario... You are the Managing Director at Alton Towers. You have setup a board meeting with your fellow directors to set the company’s aims and objectives for Write down 3 aims and 5 objectives (which must be SMART!) for the company publish in its annual report.

Merlin Entertainments Group’s aims Deliver unique, memorable and rewarding experiences Develop brands that are distinctive, challenging and innovative Deliver the best financial returns in the sector Demonstrate a record of growth in market share Train committed and passionate employees to deliver fun, happy and exciting experiences Deliver prompt, professional and exceptional service Be an exciting company to be involved with.

LO3:What about the other sectors? Private Sector: -Main aims are profit/growth/survival. -Must be SMART. Public Sector: -Not-for-profit (usually providing a service) -Funded/controlled by government. -Objs include efficiency, value for money (taxpayers!!). Voluntary Sector: -Charities (local, national, international causes) -Objs such as raise money for a cause & raise awareness of the cause. - If a charity makes a profit, it is called a ‘surplus’. Now test your knowledge using the ‘cut & stick’!

LO4: Marketing Objectives  Goals that a business is trying to achieve through its marketing.  Must be SMART.  Support the achievement of corporate objectives.  Example: To increase market share by 10% in the next 3 years.

Memory Challenge Marketing Voluntary Sector Objective SMART Private Sector Production Concept AIM

Key Terms MarketingAimObjectiveSMART Public SectorPrivate SectorVoluntary SectorSales Concept Production Concept

P1: Describe how marketing techniques are used to market products in two organisations. Task 1- Produce a presentation Part A Provide two definitions of marketing Identify the broad aims of organisations of the private, public and voluntary sectors. Identify the aims specifically for each of your selected businesses. [This will form the introduction to P1]

YOUR COURSEWORK... PRIVATE SECTORPUBLIC/VOLUNTARY SECTOR BMWNHS Kraft FoodsAcorns Children’s Hospice PepsiCoOxfam AppleShelter McDonaldsRoyal Mail You must choose two organisations from the list below, one from the private sector and one from the public or voluntary sector.