Presentation is loading. Please wait.

Presentation is loading. Please wait.

Welcome to MT209 This seminar is being recorded Small Business Management Unit 7: Pricing & Credit Decisions, Promotional Planning, & Global Marketing.

Similar presentations


Presentation on theme: "Welcome to MT209 This seminar is being recorded Small Business Management Unit 7: Pricing & Credit Decisions, Promotional Planning, & Global Marketing."— Presentation transcript:

1 Welcome to MT209 This seminar is being recorded Small Business Management Unit 7: Pricing & Credit Decisions, Promotional Planning, & Global Marketing Dr. Charles A. Fail

2 Contact Information Email: cfail@kaplan.educfail@kaplan.edu AIM: charlesfail Meebo: ProfessorFail Phone: 770-926-3960 Cell: 770-366-5480 (No Text Msg.) Office Hours: Wed.: 9-10 P.M. Thur.: 8-9 P.M. Kaplan Technical Support: 1-866-522-7747 (For all computer related issues)

3 Agenda Glance at Final Project Review of Unit 5 Review of Unit 6 Unit 7 Look Ahead at Unit 8

4 Final Project Our graded Final Project (Business Plan) is due no later than the end of Unit 9 To complete our Final Project, please refer to three (3) resources in Doc Sharing: -MT209 Final Project Overview -MT209 Final Project Template -Final Project MS PowerPoint Template In Units 2, 4, 5, 6, & 8, students are encouraged to work on specific elements of the Final Project and, in Unit 5, you will complete Financial Planning Activity Completed Business Plans & MS PowerPoint presentations should be submitted via the DropBox The Final Project is worth 180 points

5 Review of Financial Management from Unit 5

6 Understanding Financial Statements Financial Statements (Accounting Statements) -Reports of a firm’s financial performance and resources -Helps determine a startup’s financial requirements -Assesses the financial implications of a business plan Basic Financial Statements -Income statement -Balance sheet -Cash flow statement

7 Exhibit 10.3 The Balance Sheet: An Overview

8 Exhibit 10.5 The Fit of the Income Statement and Balance Sheet

9 The Cash Flow Statement Cash Flow Statement -A financial report showing a firm’s income (cash) when it is received and expenses when they are paid. -Cash flows from normal operations (operating activities) -Cash flows related to the investment in or sale of assets (investment activities) -Cash flows related to financing the firm (financing activities)

10 Determining Financing Requirements Basic Principles for Financing of Firms -The more assets a firm needs, the greater the firm’s financial requirements. -A firm should finance its growth in such a way as to maintain proper liquidity. -The amount of total debt used in financing a business is limited by the funds provided by the owners. -Some types of short-term debt maintain a relatively constant relationship with sales. -Equity ownership comes from the investments of owners, and retained earnings (profits).

11 Exhibit 12.3 Sources of Financing Funds

12 Exhibit 12.4 Startup Financing for Inc. 500 Companies in 2003 Source: Mike Hofman, “The Big Picture,” Inc. Magazine, Vol. 25, No. 12 (October 2003), p. 87. Copyright 2003 by Mansueto Ventures LLC. Reproduced with permission of Mansueto Ventures LLC in the format Textbook via Copyright Clearance Center.

13 Exhibit 12.5 Sources of Personal Capital for Small Firms Source: Republished with permission of Dow Jones Inc. from Staff, “Entrepreneurship Monitor 2002,” Wall Street Journal, August 26, 2003, p. B8; permission conveyed through Copyright Clearance Center, Inc.

14 The Government Small Business Administration (SBA) loans -The 7 (a) Guaranty Loan Program -SBA guarantees repayment of loan to lender -The Certified Development Company (CDC) 504 Loan Program -The 7(m) Microloan Program -Small Business Investment Companies (SBICs) -Small Business Innovative Research (SBIR)

15 Unit 6 Review Information Theme: Building Customer Relationships & Pricing and Supply Chain Management Readings: Longenecker – Chapters 14 & 15 (361 to 417) Discussion Board: Horse (page 389) (40 points) Case Study #3: eHarmony (pages 636 to 637) (50 points) Final Project Activity: Definition of the Market, Product/Services, & Marketing & Sales Strategy (ungraded) Seminar: No Seminar in Unit 6

16 What is Customer Relationship Management? Customer Relationship Management (CRM) -A company-wide business strategy designed to optimize profitability and customer satisfaction by focusing on highly defined and precise customer groups. Focus of CRM: -Customers rather than products -Changes in processes, systems, and culture -All channels and media involved in the marketing effort, from the Internet to field sales.

17 Exhibit 14.1Sources of the Next Sale

18 Importance of CRM to the Small Firm Economic benefits of maintaining relationships with current customers: 1.Acquisition costs for new customers are high. 2.Long-time customers spend more money than new ones. 3.Happy customers refer their friends and colleagues. 4.Order-processing costs are lower for established customers. 5.Current customers are willing to pay more for products.

19 Extraordinary Service Do Business on First-name Basis Address Problems Promptly Keep in Touch Ways to Provide Extraordinary Service Find Ways to Help Provide Custom Service

20 Final Project Activity: Marketing Definition of the Market & Products/Services -This portion of your mini-business plan should contain information on the market you plan to serve. Include summary information on the size and composition of your target market and your business competitors. Briefly describe your products/services, including their unique features. Marketing & Sales Strategy -This portion of your mini-business plan should contain information on how you will market, sell, and distribute your products/services. Please remember: As a guide to help you develop your mini- business plan, please refer to the content of the Atayne, LLC business plan on pages 675 to 695 of our textbook.

21 Unit 7 Information Theme: Pricing & Credit Decisions, Promotional Planning, & Global Marketing Readings: Longenecker – Chapters 16, 17, & 18 (pages 418 to 492) Discussion Board: Foley’s NY Pub & Restaurant (page 440) (40 points) Review: Chapters 14 through 18 (Part 4 of textbook) (40 points)

22 Innovation: A Path to Growth Competitive Advantage and Innovation -Innovation and entrepreneurship often go hand-in-hand. -Coming up with and perfecting new products or services is often not easy. -The risk of failure increases when innovation is the goal. -Innovation is a means by which a firm can sustain its competitive advantage.

23 Sustainability and Innovation Sustainable Competitive Advantage -A value-creating position likely to endure over time -Is difficult to imitate -Creates high barriers to market entry -Can be patented or copyrighted -Is renewable at higher performance capabilities Stages in the Competitive Advantage Life Cycle -Develop: invest resources -Deploy: boost performance -Decline: competitors overcome advantage

24 Exhibit 15.1The Competitive Advantage Life Cycle

25 Exhibit 15.2Sustaining Competitive Advantages

26 The Product Life Cycle and New Product Development Product Life Cycle -A detailed picture of what happens to a specific product’s sales and profits over time -Promotion, pricing, and distribution policies must be adjusted to the product’s position on the curve. -It is important to rejuvenate product lines before they die. -The life cycle of a product follows the classic sigmoid curve—innovation is necessary for a firm’s survival.

27 Exhibit 15.3The Product Life Cycle

28 Supply Chain Management -Integrates and coordinates the means by which a firm creates or develops a product or service and delivers it to customers. Distribution -Physically moving products and establishing intermediary relationships to support such movement. Physical Distribution (Logistics) -The activities of distribution involved in the physical relocation of products. Channel of Distribution -The system of relationships established to guide the movement of a product.

29 Exhibit 15.8Alternative Channels of Distribution

30 Scope of Physical Distribution Storage -Lack of storage space is a common problem. Materials Handling -Protecting the firm’s output during warehousing. Specifying Responsibility for Delivery Terms -Paying freight costs—F.O.B. origin, freight collect. -Selecting the carriers. -Bearing the risk of damage. -Selecting the modes of transport.

31 Look Ahead

32 Unit 8 Information Theme: Professional Management & Managing Human Resources Readings: Longenecker – Chapters 19 & 20 (pages 493 to 546) Discussion Board: Too Many Bad Questions (page 521) (40 points) Final Project Activity: Financial Management (ungraded) Seminar: No Seminar in Unit 8

33 Any questions ?

34 Thank You for Joining Me This Evening! Good Night All! (770) 926-3960 (770) 366-5480 (cell) AIM: charlesfail


Download ppt "Welcome to MT209 This seminar is being recorded Small Business Management Unit 7: Pricing & Credit Decisions, Promotional Planning, & Global Marketing."

Similar presentations


Ads by Google