This document provides an overview of business principles including marketing, sales, financial management, and innovation. It discusses key topics such as defining business markets, organizational goals and factors that influence innovation, different business structures, marketing mix and techniques, importance of financial planning and budgets, and principles of market research. The objectives are to help understand customer interactions, external influences on business, legal obligations, and what drives new product development and marketing strategies. Various models of innovation and factors affecting organizational goals are presented.

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