Principles of business , marketing and sales, financial

management Afternoon June 16th 2016

Trainers Bev Gilder and Diane Eaton

Objectives for this session….• Understand the characteristics of different business

markets• Understand how businesses and organisations interact

with each other.• Understand the effects of wider world on businesses.• Understand the legal obligations of businesses• Understand what drives innovation and product

development.• Understand the role of budgets and financial planning• Understand the principles of marketing and branding

• Ideas.

What is a business market

• A market is a place where buyers and sellers come together

• May exist physically or virtually • Has to be dynamic• Has to know its business customers• Has to innovate and develop• Has to know its market segment • Is where goods and services are amended or

reprocessed by their own production

What makes B2B markets different • More complex decision

making units• Buying may be more

‘rational’• Products may be more

complex• Less buying units• Fewer behavioural• Personal relationships

may be more important

• May be longer term relationships

• Drive innovation more• Packaging not as

important• Sub brands less

effective • Very demanding

Exercise….

• Identify 5 different types of organisation which would buy and sell on a business to business basis. What would they likely to be buying and selling ?

• Consider service industries ?• Production industries ?• Resellers ?• Public sector ?

Organisational goals and innovation are affected by

Internal factors • Management and

leadership• Culture• Products and processes• Innovation• Resources• Staffing• Skills available

External factors• Political• Economic• Social• Technological• Legal• Environmental • …. PESTLE

Different types of business structure• Sole trader• Partnerships• Private Limited Company• Public Limited Company• Co-operatives• Franchises • Charitable status

Innovation ….a definition

• Business innovation is an organisation's process for introducing new ideas, workflows, methodologies, services or products.

Innovation Process Models- Linear or flexible ?• Technology Push Model• Market Pull Model

Innovation models

Linear models

• Product or service concept is frozen at early stage so as to minimise risk.

• Involves series of sequential steps • Innovation project must through pass each

stage or gate with the permission of a gatekeeper before moving to next

Linear model

Cyclical model

New product development (NPD)

Financial viability … why ?

Exercise • Who is affected by your financial viability

overall ?• How would lack of financial viability affect

these groups ?• Think about who your stakeholders ?• How would you find out about your financial

viability ?

Budgets …are a plan of action not a statement of fact…. why do them ?• Planning• Control• Communication• Coordination• Predictability• Cash flow management• Progress monitoring … if you don’t manage a budget talk to your manager and research how they manage theirs

What is marketing ?

Chartered Institute of Marketing (CIM) defines marketing as: 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably' Philip Kotler ‘Satisfying needs and wants through an exchange process’

Or ..

• "Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value.“

• ‘Satisfying needs and wants through an exchange process’

Philip Kotler

The Marketing Mix.. The 4 P’s

Price and Place• Price – How you price your product or service

so that your price remains competitive but allows you to make a good profit.

• Place (Also referred to as Distribution) – Where your business sells its products or services and how it gets those products or services to your customers.

Product and Promotion

• Product – The products or services offered to your customer: Their physical attributes, what they do, how they differ from your competitors and what benefits they provide.

• Promotion – The methods used to communicate the features and benefits of your products or services to your target customers.

Exercise .. How does the University of Westminster market itself ?• Who to ?• How ?• Which channels ?• Who is involved at the university ?

So how do you know your market … market research … why do it ?• Gives focus• Help understand

present and future needs and wants of customers supports decision making

• Minimises risk • Identifies other areas

for research

• Supports pricing.• Can measure existing

customer satisfaction • Shows how you

measure up to the competition.

• Totally supports and drives marketing strategy

Key elements of reliable market research • Specific area to be researched • Covering the 4 P’s Price,Place, promotion and

product• Must be data based and include statistical

analysis • Data should quantitative and qualitative• Managed as a distinct project

Seven Step sales process • Initial contact• Planning the sale • Identifying needs • Assessing needs• Presenting • Dealing with objections• Gaining commitment• Follow up

Short answer questions for Level 3… please • Use the electronic version which is on you stick• Answer each part separately• Read the question carefully and look at the notes• Use the resources from the workshops and links

supplied• Principles of leadership and management (ML 15)• Principles of people management ( ML 24)• Principles of business ( BA 59)• Submit to your assessor for group marking by 8th

September