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
Standard 9: Explain how economic indicators are used in a market economy for business analysis and marketing decisions. Demonstrate the ability to retrieve and interpret figures from public websites.
Opening Assignment
On your own paper answer the following questions: (20 minutes)
How would you describe a healthy teenager (physically, habits, etc)?
Which, if any, are personal goals you have made for yourself? (you won't have to share aloud)
How do teens actions affect their health?
In your opinion, why do so many of us act in ways that are not healthy?
Do you think the economy in the United States today is healthy?
How can we measure the health of our nation's economy? Read pages 70-74 and be prepared to discuss in class.
Class Connection
Take vitals of volunteer students. (optional, 7 minutes)
Today we are actually going to be asking if our economy is healthy. Much like looking at different factors of your personal health, there are measurements in 5 different areas that we can check to see how are economy is faring.
Name a period in U.S. history of which you would not want to be a part.
Video 1
Objectives:
List and define the goals of a healthy economy
Explain how an economy is measured
Use online data resources to measure U.S. economy health
Goals of a Healthy Economy
increased productivity
decreased unemployment
maintain stable prices
Economic Measurements
1. Labor Productivity
invest in new equipment for more efficient work
additional training or financial incentives
reduce workforce
specialization and division of labor (ex: assembly line)
What government agency is responsible for reporting the U.S. GDP?
Why do you think the United States government switched from using the GNP to the GDP?
Inflation refers to rising prices. Give an example of economic inflation with a product that you purchase?
Why and how does the government sometimes try to discourage borrowing money?
Click on the following link to determine the U.S. inflation rate for 2015. U.S. Inflation Rate
Is the most recent year's inflation rate higher or lower than the previous year?
Is that good or bad?
Is the trend getting better or worse?
5. Unemployment Rate
The lower the unemployment rate , the greater the chances are of economic expansion.
More people working = more people spending money, paying taxes (less social services)
Click on this video link from 2012 as it brings up the idea of under-employed workers and how they skew the unemployment rate. Interesting to think about...
Ask each other the following questions and be prepared to share with the class:
Do you know anyone that is currently unemployed and actively looking for a job (no names please)?
How long have they been unemployed?
How do you think unemployment levels affect tax-payers?
Other Economic Indicators and Trends
The Conference Board (private business research organization)
consumer confidence index
consumer expectations index
job index (consumer's perceptions about jobs available)
consumer polling
retail sales
big purchases (housing, trucks, autos)
wages and new payroll jobs
Review What You've Learned
So back to the question that I posed in the opening assignment...
How can we measure the health of our nation's economy?
Answer the following questions on your paper: (5 points each)
What are the 3 goals of a healthy economy?
What are the 5 key economic measurements?
What indicator would you use to determine if employers were hiring more workers?
What is inflation and what does it tell us about the strength of our economy?
Since 2005 what 3 years had the highest inflation rate (in descending order starting with highest)?
Research Report
Prepare a one page essay over the topic listed below.
Must be typed, DS, 12 pt size font, Times New Roman
Due next class period.
Which of the above
economic measurements need a specific strategy for improvement for our current U.S. economy and why
(cite your reasoning)?
Rubric: 50 points available
10 -Formatting per instructions
10 -Grammar and punctuation
10 -Use of one of the discussed economic measurements (showing understanding of how measurement relates to the health of the economy
10 -Cite U.S. data and source of information in the report and as a footnote
10 - Headings: Title, "Dear Economic Doctor", Labeling of Report (see sample and checklist)
Standard 8: Explain the concept of economy, delineating between
micro and macroeconomic principles, and discuss how scarcity and factors
of production require nations to make economic choices. Compare and
contrast how the various economic systems (traditional, market, command,
mixed) try to answer the questions:"What to produce? How to produce
it? For whom to produce?"
Types of Economic Systems
Read pages 63-69 in textbook.
Nations must answer these three basic
economic questions about how best to use limited economic resources to
get the goods and services the country needs.
1. What goods and services should be produced?
2. How should the goods and services be produced?
3. For whom should the goods and services be produced and distributed?
Based on how countries answer these questions, economists have classified economic systems into three broad categories.
Traditional Economies
What to produce? little choice, what they need to survive using natural resources
How to produce? usually use simple, handmade tools and their ingenuity, learned from ancestors
Produce for whom? for themselves, any excess are traded among residents
Market Economies
Market economies are propelled by the rights of individuals and companies to produce and sell through competition without government involvement.
What to produce? consumers decide by purchases
How to produce? businesses decide by keeping costs low in hopes of producing high profits
For whom? people with money
Command Economies
A country's government decides what, how, and for whom goods and services will be produced.
Student Activity
After reading pages 65-69, with a partner create a PowerPoint presentation (Google Presentation) over one of the Political and economic philosophies listed in the section: capitalism, communism, socialism
Elements of the presentation: (55 points total)
Define the philosophy in your own words. (5 points)
What type of economic system does this fall under? traditional, market, or command economy (5 points)
List 3 countries that fall in that category.
For each country, create a slide that shows where that country is located on a larger map and an additional slides for the following questions (15 points)
What are it's economic resources? (5 points)
What is it's political philosophy and how long has that country practiced this philosophy? (5 points)
Who is it's leader (name) and what is his/her title (include picture)? (15 points)
Now that you've had a look at the different political philosophies and how they impact our economy, write a 1 page essay (+ sources page) about what is great about America from an economic perspective. Due at the end of class tomorrow. Persuasive Essay - Convince Me!
Rubric:
50 points total
15 -Length; Intro, three points, closing
5 -Grammar
5 -Domain-specific language
15 -Three different reasons that make America great
5 -Persuasiveness
5 - Cite 3 sources
Standard 8: Explain the concept of economy, delineating between micro and macroeconomic principles, and discuss how scarcity and factors of production require nations to make economic choices. Compare and contrast how the various economic systems (traditional, market, command, mixed) try to answer the questions:"What to produce? How to produce it? For whom to produce?"
Opening
What do you think is the coolest mascot for a team? Why?
Look at the picture of the bull on page 58.
Now look at DECA students in front of that same bull in the financial district of NYC.
If we are talking about our economy, why would a bull be presented in the financial district?
This goes back to our economy and hopes for our nation. If our economy is strong, who benefits?
Let's look at what creates an economy: Read pages 61-62 to gather some initial information.
What's an economy?
An economy, or economic system, is the organized way a nation provides for the needs and wants of its people. Countries with different economic systems have different approaches when making choices. From their resources available, they must determine how to provide for their own population... through manufacturing, buying, selling, transporting, and investing.
Micro vs. Macro
Micro View
Macro view
Macro View
Micro View
Macro
Micro
Now that you understand the concept of macro vs. micro as a prefix, try to think what how you would explain the concepts of macro-economics vs. micro economics...
Microeconomics vs. Macroeconomics: See the short video below to understand the difference between the two perspectives.
What are economic resources?
Economic resources (factors of production) are all the things used in producing goods and services. These factors of production include land (natural resources), labor (people who work), capital (goods used in the production process), and entrepreneurship (skills of people willing to invest time and money to run a company).
Scarcity
Scarcity is the difference between wants and needs and the available resources. Think of something that is very valuable. Take diamonds for example. Diamonds are very expensive because they are rare. There are not enough diamonds for everyone to have all they want (or need). They are scarce.
Now, think about a source that is seemingly unlimited, like air. Do we have all the air we need? Air is not as scarce as diamonds are. See the difference?
Now use the concept of scarcity to economic resources. Different economies have different amounts of economic resources. The U.S. has an abundance of entrepreneurs, and many natural resources, but it still cannot meet the needs and wants of all its citizens. Similar concepts are the same for all nations in different degrees.
Types of Economic Systems
Nations must answer these three basic economic questions about how best to use limited economic resources to get the goods and services the country needs.
1. What goods and services should be produced?
2. How should the goods and services be produced?
3. For whom should the goods and services be produced and distributed?
What do you think?
Preventing Green Fatigue - page 66 in textbook
Tired of ads about eco-friendly products? You may be suffering from green fatigue - confusion and skepticism caused by marketing claims about products' green benefits. Some of these claims are true. Others are examples of "greenwashing," or making a product sound more environmentally friendly than it is. In response to the rising tide of greenwashing, the Federal Trade Commission has developed rules about environmental claims. All claims, whether specific or implied (suggested), must be backed by scientific evidence.
On the worksheet labeled Preventing Green Fatigue...
1. select one of the products listed on the front and complete the front side of the worksheet.
2. Identify the (green) scientific evidence the company offers (on the package or its website), to support the claim. List evidence on the back of the worksheet. Explain in one paragraph whether you think the claim is valid. Be prepared to share your findings in class.
