1. finance
2. investing
3. venture capital

GCSE Business Studies Unit 1 Introduction To Small Businesses
GCSE Business Studies
1.4 Making the Start- Up Effective
• To understand that a focus on the needs of
the customer is essential to business
success.
• To recognise the main elements of the
marketing mix.
• To be able to identify key elements of the
marketing mix in different contexts
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Lesson Objectives
• Joe has just opened a new restaurant in
York city centre.
• List the 3 MOST IMPORTANT things that
Joe can do in order to make his business
the most successful
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Starter activity
The Consumer is King
(or Queen)
• In order for a business to survive it must
provide what the customer wants.
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
A business must always remember
that…
Customer Focus
Anticipating needs
How will customers
needs change?
Businesses must
anticipate how fashions
and trends will alter
customers needs
Meeting Customers
Needs
Identifying and
anticipating is not
enough. Businesses
must actually meet the
needs of the customers
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Identifying need
Businesses must
understand what their
customers wants from a
product
• Complete the table in your booklets.
• Explain, as a business person, why these
three factors are important.
You have 7 minutes
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Task 1:
In order to meet customers needs, a
business must:
–
–
–
–
Sell them PRODUCTS that they want
Charge a PRICE they are willing to pay
Make them available in the right PLACE
Make them aware by using PROMOTION
These 4 elements are known as the “4 Ps of
the marketing mix”
–
–
–
–
PRODUCT
PRICE
PLACE
PROMOTION
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
The Marketing Mix
• Products must be available to buy at locations
convenient to customers.
• Examples include
–
–
–
–
–
–
Online
High Street
Shopping centre
Industrial Estate
Catalogue
Wholesaler
• The suitability of a location will depend on
the product or service.
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Place
GCSE Business Studies Unit 1 Introduction To Small Businesses
• Jack has just opened a new Mexican
Restaurant called Tequila
1.2 Making the start-up effective
Jack’s Restaurant
• In your booklets match the product to the location.
Ensure you explain WHY you have made this
decision
• You may match more than one product to the
same location
A/B Extension: Jack has opened his new restaurant in
the middle of York City Centre. Justify why you think
this is a good location for his business
Remember for JUSTIFY questions you must analyse
both sides of the argument.
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Task 2:
• Consumers often have lots of choices as to
which products they can buy
• When you think of Baked Beans, which
brand do you think of?
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Product
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Product
• Because the consumer has lots of choice,
the business needs to make their
product/service the one that people think
of first.
• This can be done using different
techniques
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Product
To attract a new audience,
Example: Coca Cola brought out Coke
Zero to appeal to men, as Diet Coke
was seen as too feminine
Improvements
“New Improved Flavour”
Example: Herbal Essence shampoo
recently brought out an advertising
campaign to promote the new formula
Changed
Packaging
To alter the brand image, or make the
product look more current
Example: When smarties went from
being in a circular tube to a hexagonal
tube
New
Technologies
Used all the time with electronics
Example: Retina displays on smart
phones
Widening the
product range
Branching out into other markets
Example: A lot of chocolate bars are
now drinks/milkshakes and yoghurts
In your booklets write down your OWN definition of each
of these strategies and come up with your OWN example
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Specialised
Versions
• Jack’s restaurant sells authentic Mexican food
such as fajitas, nachos, burritos and tacos. He
wants to attract new customers. Using the
strategies above, suggest ways in which Jack
could alter his product in order to increase
sales.
A/A* - Suggestions for each strategy
B – Suggestions for at least 4
C – Suggestions for at least 3
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Task 3: Suggestions
• Promotion involves telling consumers about your
products or services
• There are 5 main methods:
Packaging
Types of Promotion
Advertising
•TV
•Radio
•Posters
•Billboards
•Newspapers
•Magazines
Direct
Mailing
Sales
Promotion
•Special Offers
•Price
Discounts
•Vouchers
•Free gifts
•Prize
Competitions
•Also known as
JUNK MAIL
• Involves
sending mail to
targeted
customers
Public
Relations
•Press Release
•Organising
Sponsorships
•Damage
Limitation
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Promotion
•Must protect
the product
•Right size and
shape to allow
stacking for
distribution
•Have
consumer
appeal
•Create
seasonal looks
• Jack has found that business for his
Mexican Restaurant is slow during the
week.
• He wants you to suggest a way for him to
boost business during a week day.
• In your booklets, suggest one way in which
you think Jack could increase sales on a
week day
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Task 4:
• A product or service needs to be the right price in
order to attract customers. Ways of ensuring this is
called PRICING STRATEGIES
Strategy
Cost-Plus
Competition
Penetration
Skimming
Promotional
Definition
Advantages Disadvantages
Add % profit to the Ensures a profit May not be able
actual cost
is made
to sell product!
Charge a price
Price will be
Price may not
similar to competitors competitive
be profitable
Start with a low price
Encourages
Cannot last
to attract customers
people to try
long
Start with a high price
Allows extra
for a unique product profits to be made
Special price for a
limited time
Useful to get rid
of old stock
Only lasts while
there is no
competition
Only useful for a
limited time
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Price
• Must reflect the value placed on the
product by customers
• A high price usually = high quality
• Determines how much entrepreneurs earn
from their work.
• Price set must allow you to make a profit
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Price
• It is called a Mix because in order for a
business to be successful it must have the
right balance of Price, Product, Place and
Promotion.
• It’s all about getting the mix right.
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
The marketing Mix
Why may customer focus be easier in a small business
than a large one?
Students must explain why it might be easier in the small
business (1 mark) and why it might be more difficult in
the bigger business (1 mark)
“Customer focus might be easier in the small business
because they are likely to have a smaller customer base,
therefore recognising the customer needs will be easier.
In a larger business there will be more customers
therefore it will be harder to understand what they want
on mass”
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Exam style questions
• 1 mark per benefit (max 2)
• 1 mark per explanation (max 2)
Possible benefits
• They can see what its like to work for Tesco,
therefore understanding their employees needs
more
• They experience it first hand, and can therefore
identify weaknesses in the business
• They can talk to customers, and can therefore
identify their needs
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Outline 2 possible benefits to Tesco from getting all their
directors to spend one week a year as shop floor employees
•
•
•
•
•
Identify the pros of selling in Superdrug (1 max)
Explain pros (1 max)
Identify the cons of selling in Superdrug (1 max)
Explain the cons (1 marks)
Justify your final decision (2 marks)
1.2 Making the start-up effective
GCSE Business Studies Unit 1 Introduction To Small Businesses
Superdrug wants to start selling Chanel products in their stores in the
UK. Explain why Chanel might be right or wrong in trying to stop
Superdrug selling its products. Justify your answer