Marketing

1. How do you set prices? Is there a demand for the product? Marketing Who are the customers? Who is the competition & what are they doing? Financial implications

2. Demand – need to research what customers want, how much they will pay and how often will they buy it. Customers – target groups Gender Age Occupation/Income group Repeat sales Hobby Location Competition - their products their prices their promotions is the market saturated? is there room for you?

3. Pricing Strategies: • Market-led same level as competition • Penetration low price to enter market, then increases as the product becomes more established • Destruction price wars – knocking out competition through having a price war • Added Value charge more for extras i.e. packaging

4. Health & Safety Skills Facilities Human Resources Training Recruitment Legal issues Retention Wages

5. Legal aspects for human resources: • Age limits • Minimum wage • Contract terms and conditions • Discrimination – sex, age, race, religion • Health and safety • Payroll records

6. Physical Resource Planning • Premises Planning • Machinery and Equipment Planning • Materials and stock

7. Premises Planning • Where? • High street • Work from home • E-commerce • Buy or rent? • Insurance High Street – passing trade or need for offices Home – i.e. photographers, designers, etc E-Commerce – online business; can replace a shop, need storage space for goods; reliable postal/courier service • Insurance: • Fire • Theft • Business interruption • liability • Laws: • Planning permission • Licences • Environmental restrictions

8. Machinery and Equipment Planning • Machinery needed • Equipment needed • Fixtures and Fittings • Buy or lease: machinery i.e. engraver • equipment i.e computer, photocopier • vehicles i.e. van, size • telephone i.e mobile/landline Technology is constantly changing, do you lease or buy??? Think about suppliers and their payment terms

9. Managing materials and stock Regular Suppliers: discounts money off for buying in bulk money off for early payment reliability payment terms – 30/60 days; interest free Regular Purchases: quantities quality timing Right supplier (reputation) price

10. Managing Quality • Quality chains – in the production process, staff looking at their own work • Quality Circles – meetings to monitor quality and discuss problems, improvements are suggested. • Quality Control – inspecting finished products • ISO 9000 – International quality standard; has to achieve rigorous procedures; can use BSi kite mark

11. Monitoring quality • Statistical Number of faults • Sales figures • Repeat customer orders • Customer feedback Questionnaires • letters of complaint • Targets and achievements – monitoring the business performance

12. COSTS Start up costs “one off costs which have to be met before the business starts trading” Running costs day to day costs incurred in the running of the business”

13. Start up costs • Premises buying and getting a mortgage • renting (no major start up cost) • Equipment depends on the type and size of the business, i.e. • computers • telephone • furniture • vehicles • Fixtures and fittings carpets • shelving

14. Running Costs (A.K.A. Expenses) • Production costs raw materials • packaging • wages • Marketing costs market research • promotion/advertising • website design and operation • sales reps/direct mail • Human Resources staff wages • recruitment & training costs • health and safety requirements • Administration insurance • rent and rates • utilities and telephone • postage • stationery