Standard 18: Describe the major modes of transportation involved in the distribution of goods, including advantages and disadvantages of each, and identify the types of products best suited for delivery via each mode of transportation.
Channel Management
Objectives
Describe the nature and scope of physical distribution
Identify transportation systems and services that move products from manufacturers to consumers
Name the different kinds of transportation service companies
Turn in your text book to page 512. Look at the picture and read the text at the bottom.
Having a product people want to buy is only part of being successful in business. You also must be able to get it to them when they want it, and at a reasonable cost.
What factors might affect transportation costs?
What do you think is the most expensive way of shipping an item such as a laptop computer?
What might be the least expensive?
So what is channel management?
How do tariffs affect international trade?
When you have a product to sell, it's going to be important to be able to get your product or service into the hands of the customer. Today we are going to look at some ways to make that happen.
Types of Transportation Systems
On your own paper give the characteristics and types of products transported
of the following systems from the information given in the textbook. (pages 515-523)
Trucking
Common Carriers
Contract Carriers
Private Carriers
Exempt Carriers
Railroads
Marine Shipping
Pipelines
Air Cargo Services
Use the graphic organizer provided to list the advantages and disadvantages of different types of transportation modes.
Alternative: Make a copy of the tables linked here (2 pages) and complete with the above information. Email completed doc to julie6davis@gmail.com with #18 Distribution as the subject.
Objectives Reached?
What is the nature and scope of physical distribution?
What are different transportation systems that move products from manufacturers to consumers?
Can you name the different kinds of transportation service companies?
Standard 20: Explain Feature/Benefit selling. Break down a selected product into the features and benefits most likely to resonate with a target population, and translate five product features into five customer benefits.
Today we are continuing our unit on SELLING! We will be looking at preliminary activities in which a sales person is involved.
Bellwork
Take notes while reading pages 297 through page 302
Feature/Benefit Selling
Who in our class has had a job? Was there a big learning curve to remember all the things you learned in training?
You will need to know about:
Your product
Industry Trends and Competition
Merchandising
Feature/Benefit Selling is matching characteristics of a product to a customer's needs and wants. A customer buys a product because of what it will do for them, how it will make their life better. A good salesperson is able to help the customer see how their life will be improved with the purchase of the product through feature/benefit selling.
Product Features
Basic features
Physical features
Extended product features are what really sells the product as we talked about above. These are the benefits that will improve the customer's life, called selling points. (See the two situations on page 302)
Advantages
Sales personnel must also be aware of the competition so they can emphasize the advantage your product has over the competition.
Customer Buying Motives
Determining the buying motives of potential customers will enhance the features/benefits that should be emphasized when presenting a product.
Rational motives
Emotional motives
Patronage motives
Class Practice: Can we differentiate features / benefits?
Take any product and list 5 features of that product.
Now take those features and come up with ways that those 5 features make a customer's life better.
iphone 6 - Features (5)
Group Practice
In groups of 3 select 1 product and list at least 6 features on chart paper and list the benefits of each feature. Be prepared to share with the class.
Individual Evidence
Complete the worksheet provided. For each product find 3 features and how each feature can benefit a buyer. Be sure to list basic, physical, and extended features for each. Use this format!
Wrap it UP!
Answer questions 1-3 on page 305. Use complete sentences. Label paper clearly and turn in by the end of the period.
Standard 12: Distinguish between price and non-price competition; provide 5 examples of competition for customers. Standard 13: Explain the theory of supply and demand by diagramming a recent purchase of both an elastic and non-elastic product.Use the price paid at the time of the purchase as the equilibrium price; show the impact on price due to an increase or decrease in demand or supply.
Introductory Concept
Distinguish between price and non-price competition from page 116 in your text book.
On your own sheet of paper provide five non-price examples of competition for customers.
When you finish your paragraph, read pages 119- 121 in your text book.
What's It Worth To You?
What would you pay for the price of this candy? .25, .50, .75, $1, $1.25?
Review
Economies are created as nations provide for the needs and wants of its people through economic resources (factors of production)
What are the different types of economies?
Who determines what goods/services are made and sold?
What economy best describes the U.S.?
Last lesson we leaned that a market economy is generated by the free enterprise system (competition)
Monopolies
Examples of price competition
Examples of non-price competition
Standard/ Objectives for Today
Explain the theory of supply and demand
Diagram both elastic and non-elastic products
Understand the impact on price due to increase or decrease in demand or supply
What is Tulip Mania?
Have you ever heard the term "tulip mania?" Watch this video and find out about what happened in the 1600's in the Netherlands that generated this title.
Class Discussion
Since we have been learning about our free enterprise system, it might be interesting to see how prices are assigned to the products that you want to purchase. Remember, in a command economy the government calls all the shots about what, who, and how products are made available.
In a market economy prices are determined by supply and demand.
Let's look at figure 5.1 on page 120 to see how supply and demand works.
What is the theory of supply? (Where did you find that?)
The price of a movie ticket goes from $7.00 to $8.50. What should happen to the demand for these tickets?
Why would an economist say that "Supply and demand are inversely related to one another"?
Surpluses
Businesses try to avoid surpluses and shortages, both of which can lead to problems.
What are some synonyms for surplus?
What are two common causes of surpluses?
Shortages
What is an example of a situation in which a shortage is caused by a change in supply? A change in demand?
How do shortages affect businesses?
You manage a home improvement store. Your area has just been hit by a flood. Building supplies quickly become in short supply. Would you raise prices to profit from this shortage? Why or why not?
Equilibrium
How would you define the equilibrium point?
On your paper draw the demand curve on page 120 from the data at the top of the illustration.
Recap
Remember: In a market economy prices are determined by supply and demand. Let's
watch this instructional video explaining how this occurs in our
economy.
Questions to Think About
What product that you recently purchased could be used as an example of supply and demand in action?
What are the four different types of economies that we learned about in chapter 3?
Does the theory of supply and demand affect all types of economies? Why or why not?
Any questions? Ready to take this concept a little deeper?
Read
the "Supply and Demand" Section on pages 592-593 and be prepared to
explain the difference between elastic and non-elastic demand.
List on your paper the 5 factors that determine demand elasticity on page 594.
Notice how the demand curve looks different for non-elastic (gasoline) vs. elastic (pizza)
Categorize
the following goods and services to tell whether they have elastic or
inelastic demand values (be prepared to attach one of the 5 factors that
helped you determine elasticity:)
You will either be a buyer or a seller depending on which color card you get. The goal is to buy or sell one unit of the product being traded (widget). The price at which you can buy or sell is dictated by your economic situation (maximum or minimum on your card.)
You must trade one unit during each round of the game to see who wins the prize.
KEEP THE INFORMATION ON YOUR CARD A SECRET!
Buyers will make bids on the trading floor anywhere from $0 up to the maximum price on your card. You cannot bid over your maximum price. Your profit will be calculated by taking the difference between your max price and the actual price you paid for the product. To make the most profit, you will want to buy as low as possible.
Remember, each student can only make one transaction per round. After you have settled on a price with a seller, both students will record the sale on the transaction sheets. Bring to me to verify and record each sale, then move off the floor until the next round.
Sellers will be making offers to sell on the trading floor but cannot ask for a price below their minimum price on their card. Each seller's profit is calculated by taking the difference between the minimum selling price on their card and the actual price they sold the product. To make the most profit, sellers want to sell as high as possible.
Remember there can only be one transaction per round. After you have settled on a price with a buyer, both students will record the sale on their transaction sheets, then bring to me to verify and record each sale. Students should then move off the trading floor until the next round.
At the end of each round, students will calculate their total profit.
The student with the most profit at the end of the game receives the winner's prize.
Exit Ticket
(Using the same paper that you used for your bell work on Tulip Mania), draw two different demand curves:
Standard 27: Identify the main components of a print advertisement
What is a press release?
Can news reporters always be present when something "news-worthy" happens?
Who will report if the newsperson is not available?
In any business or organization there may be some news-worthy happenings that you may need to write yourself and email to the media to see if they believe their audience would be interested in what you have reported on.
For Example: If I own a dentist office and we get hire an extra dentist to our staff, the community might be interested in this information.
Or, if my company or organization collected warm coats for school children that needed them, that might be the kind of positive news that media might want to print or broadcast.
Writing press releases is part of the job description of public relations.
Remember! Due to the ease of sending press releases via email,
publishers receive an abundance of press releases, so yours needs to
really stand out and grab their attention from the beginning!
Who produces a press release?
Who uses the press release?
Assignment:
Time to create your own press release!
Create a press release for one of the following topics...
Summer Experience
Start of School
An event of your choice (confirm topic with Mrs. Davis)
Create on a Google Doc and send as an attachment in an email to julie6davis@gmail.com
Grading Rubric for Press Release: 30 points Total
2 Points - FOR IMMEDIATE RELEASE/Formatting
2 Points- Headline
2 Points - Location/Date
Lead Paragraph: Be sure to shade each in your beginning paragraph! See the example here.
2 Points- Who?
2 Points- What?
2 Points- Where?
2 Points- When?
2 Points-Why?
2 Points- How?
Standard 20: Explain feature/benefit selling. Break down a selected product into the features and benefits most likely to resonate with a target population, and translate five product features into five customer benefits.
Opening Assignment
For the next few lessons we will be digging deep into the selling process. You have been on the buyer side of selling. Let's look at the seller side of selling.
You will need a sheet of paper to take the personality test by clicking on the link.
Follow steps 1, 2, and 3 to determine what your MBTI score says about you.
On that same sheet of paper make a list of your personal strengths and weaknesses that would be necessary (helpful) in a sales career. Be prepared to share with the class.
Open your book to page 297. As you read through page 303, take notes over terms and concepts in the reading.
Essential Questions
Do you think selling is a learned or a natural skill? Why?
How could knowing your personal strengths and weaknesses serve to make you a more effective salesperson?
What other aspects of business also use the same skills that make you a successful salesperson?
Why is it important to be knowledgeable about the product that you are selling and its competition?
How important is the sales process for a business?
In this unit students will analyze skills needed to be successful in a sales career, understand the steps involved in the selling process, and develop and deliver a sales presentation.
Selling Overview
Chapter 12.1 (page 277)
Purpose and Goal (quote)
Sales Management (280)
Chapter 12.2 (p 285) Personal Selling
Types of Sales Positions
Steps of a sale (286)
Customer Decision Making (287) - Extensive, Limited, Routine
Chapter 13.1 Getting Ready to Sell
Product Knowledge (297)
Industry Trends and Competition
Merchandising (298)
Feature-Benefit Selling
Today will be focusing on feature/benefit selling. In feature benefit selling, you recognize the features of your product and determine how these features will "benefit" the customer.
Caractucus Pott is an inventor that has yet to make his fortune on any
of his inventions. Even the candy that he invented has holes in it
which makes it appear as another mistake. With the right perspective,
hard candy with holes acts as a whistle! Suddenly, the sales pitch to
Lord Scrumptious is all about the fun you can have whistling while
enjoying your candy... Listen to some of the features of the candy called "Toot Sweet" and see if you hear any benefits to the customer as well.
What were the features of the product?
How could those features "benefit" the consumer?
Take a look at this jacket on display. Lets talk about the features of each.
extended features - intangible attributes (reputation of brand, warranties, financing, price, extended service contracts, etc.)
When you are wanting to make a purchase of a new product that you are fairly unfamiliar with, what kind of salesperson do you hope to find?
Exit Ticket
What is feature/benefit selling?
On your original sheet of paper, contrast how basic features, physical features, and extended product features are different.
Standard 11: Explain the characteristics of the free enterprise system. Argue for or against the claim that private ownership, competition, risk, and the profit motive benefit society. Critique the arguments of others and cite evidence to develop original claims and counterclaims.
Traits of Private Enterprise
Bell work
Google "The American Dream." What are the principles behind it? What are some examples of what it looks like? Cite your source/author. Write your answers on your paper and be prepared to share with the class.
What motivates you?
Do you remember when you started caring that you brush your teeth or fix your hair a certain way? What motivated you to start caring? Did you start wanting to be noticed in a positive way by your friends? Maybe you had a crush on someone of the opposite sex and you wanted them to notice you.
Maybe you really wanted a pair of certain shoes and you were going to have to buy them with your own money. Did that motivate you to find a job?
Maybe you want to buy a car, but the cost of the car, plus gas, plus insurance made you get a job.
Today we are talking about private enterprise and how it serves as a great motivator for success.
Quote To Think About
" freedoms found in private enterprise make it enticing to be a business owner."
What are some of these freedoms?
In what ways might owning your own business take away some of your freedom?
Objectives
Explain the characteristics of a private enterprise.
Distinguish between price and nonprice competition.
In a market-oriented economy, people have freedom of choice, freedom to purchase goods and services with income they have earned. People can start a business with the money they earn. People can invest their money in banks to earn interest or in business to earn dividends. All these freedoms are fundamental to the concept of private enterprise, or free enterprise.
The basic elements of the free enterprise system include:
freedom to own property
freedom to compete
freedom to take risks
freedom to make a profit
People are encouraged to start and operate their own business. Prices are determined by supply and demand. The government does not set prices - consumers do. On occasions the government does step in to protect citizens.
Let's look at each of the basic elements of free enterprise.
Ownership
In a free enterprise system you are free to own:
property (cars, computers, homes)
natural resources (oil, land)
And you are free to do with your own property as you want:
sell it, lease it, give it away (most try to earn income from property ownership)
Give examples of something people own that they purchase for the purpose of making money-
Examples of Ownership:
Business ownership (zoning laws) What are zoning laws? Entrepreneurs or Investors
Intellectual Property Rights - Patent, trademark, copyright
Competition
Competition is one of the ways the free enterprise system benefits consumers. Because of competition, businesses must continually find ways to make products better while finding ways to keep prices down so that their customer does not leave them for another company with a superior product/price combination.
Price competition - low price used as competitive advantage (sales, rebates, etc.)
Nonprice competition - stress quality, service, location, financing, reliability, reputation, market knowledge, free shipping, etc.
Monopoly - one firm controls the market for a given product or service; not permitted in market economy system because they prevent competition (utilities deregulated so consumers have choice)
Risk
Business risk - the higher the risk, the higher the payoff (1 out of every 3 businesses fail after one year of operation), lawsuits, bad publicity, natural disasters
as industry develops and profits are growing - more competitors enter the market (competition)
companies that cannot compete face failure
new products are risky and costly - 85% new products fail within the first year
Case study #1
After over 50 years of business, Circuit City filed for bankruptcy. They were the second largest electronics store after Best Buy.
How do you think this company's failure affected its employees, the communities where they were located, and it's competitors?
What advantage did this give Best Buy?
Do you think there might have been any disadvantages? If so, what might they be?
Profit
Profit is the money earned from conducting business after all costs and expenses have been paid.
The range of profit for most businesses is 1-5%. The rest of the 95-99% goes to pay costs, expenses, and business taxes. (What is 5% of $500?)
Profit is the motivator for people to take the risk to start a business.
Profits are good for the economy - encourages people to develop new products and services in the hopes of making a profit.
Profit remains high when sales are high and costs are kept low (efficiency)
Economic Cost of Unprofitable Firms
layoff workers
lower dividends for stockholders lead to selling shares (less resources for firms to do business)
less tax money for government
higher unemployment
Economic Cost of Successful Firms
hire more people
higher incomes, benefits, morale
investors earn (spend or reinvest)
vendors and suppliers make more money
Government receives more taxes from individuals and businesses
If you had just started a small business that was making a profit, what do you think you would do with this money?
How important is it to our economy that most businesses make a profit? How do we all benefit from their success?
Group Marketing Case Study #2
Read the case study on page 115 about The Polaroid Company.
Discuss with a partner: What risk did Polaroid take when it stopped production of the film used in its traditional instant camera knowing it still had a strong following of consumers? Be prepared to share with the class.
Not sure what a Polaroid camera is? Check out the link for a tutorial. Polaroid
Standard 10: Produce a graphic illustration of the business cycle and describe what happens to the economy at each stage of the business cycle.
Objective:
Analyze the key phases of the business cycle.
Wrap Your Brain Around the Concept
What is an example of a cycle in nature?
The business cycle in economic terms is cyclical as well. We have strong
times when people have jobs, are confident, and spend money on luxury
items. We also have times when unemployment increases, people have less
money to spend, businesses struggle to earn the same dollar amounts and
must cut back. Each response affects another part of the cycle (like
amoeba tag).
Read pages 75-77 in the textbook.
Can you answer these questions?
During a recession, what is the average person's fear?
How is a depression different from a recession?
The executives at a television manufacturer increased production because they believed the economy was in recovery. Now they have large quantities of TVs in their warehouses. Why do you think they have this overstock condition?
Review Key Concepts
What are the three goals of a healthy economy?
How does monitoring economic measures help economists achieve the three goals of a healthy economy?
Describe the effect of high unemployment on a nation's economy.
Describe what happens to an employee in each phase of the business cycle.
Partner Project
Work with a partner to produce a graphic illustration of the business cycle (expansion, recession/depression, trough, recovery) and describe what happens to the economy at each stage of the business cycle.
Cite examples of businesses that can flourish in each stage of the cycle (hint: different businesses can flourish at different stages of cycle.) Be prepared to share with the class.
Upcoming Test over Chapter 3
Next class time we will have a test over chapter 3. Use Quizlet to help you prepare.."Marketing Chapter 3 Political and Economical Analysis Quizlet Chapter 3
