uow4 pt 2

1. Principles of business ,
marketing and sales,
financial management
Afternoon June 16th 2016
Trainers
Bev Gilder and Diane Eaton

2. 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.

3. 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

4. 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

5. 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 ?

6. 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

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

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

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

10. Innovation models

11. 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

12. Linear model

13. Cyclical model

14. New product development (NPD)

15. 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 ?

16. 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

17. 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’

18. 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

19. The Marketing Mix.. The 4 P’s

20. 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.

21. 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.

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

23. 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

25. 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

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

27. 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