The document provides an overview of starting and running a business. It discusses entrepreneurs like Bill Gates and Richard Branson. Reasons for starting a business include making money, having a good idea, and seeing a demand. The marketing mix of product, price, place, and promotion is explained. Market research methods like surveys, interviews, and analyzing secondary data sources are also summarized. The stages of new product development include prototyping products before full production.

1. Unit 2.1 How do businesses start?

2. Today’s Lesson The Entrepreneur Famous Entrepreneurs Reasons for Starting up a Business Innovations & Inventors Tycoons

3. The Entrepreneur What is an entrepreneur? An individual who brings together the factors of production

4. Who is he? This is Bill Gates, the world’s richest man What is he famous for? He owns Microsoft, who created Windows for PCs

5. Who is he? This is Richard Branson, Britain’s most famous entrepreneur He founded Virgin Records and has since moved into airlines, rail, cinema, phones, insurance…

6. Anita Roddick Founder and former owner of The Body Shop

7. Sir Tom Farmer One of Scotland’s richest men Owns Kwik Fit, and Chairman of Hibernian FC

8. Roman Abramovich He is the second richest man in Russia A billionaire who made his money in oil and aluminium Now owns Chelsea FC

9. Reasons for starting up a business To make money To provide a public service Because they see a demand Because they have an idea Because they can do better

10. Innovators and Inventions

11. Tycoon John Paul Getty (1892-1976) was an oil baron . He was at one time the richest man in the world. He was successful in business yet assembled a huge art collection which became a museum in 1974.

12. Today’s Lesson The Marketplace Buyers Sellers Customers & Consumers

13. The Marketplace The Marketplace brings together both buyers and sellers A stall Corner shop Auction Mail order Internet

14. Buyers Buyers use money to get goods and services Buyers can also be from the industrial market

15. Sellers Sellers offer goods and services for money

16. Customers and Consumers What is the difference between customers and consumers? Customers buy the product; consumers use the product Consumers are called end-users of the product

17. Today’s Lesson What is marketing? Product v Market Orientation Introduction to the Marketing Mix

18. Marketing Marketing is not just about selling. Marketing is knowing about and satisfying customer needs For businesses to be successful and market their goods/services they have to consider:

19. Product v Market Orientation Firms which are product orientated focus on making the product/service better, in terms of quality & technical excellence Firms which are market orientated focus on what the customer actually wants

20. The Marketing Mix The 4 Ps: Product Price Place Promotion

21. Product This is the good/service produced Does it satisfy consumers’ needs? Is it good quality? Can demand be met?

22. Price The monetary value offered to consumers Does the price help cover production & labour costs? Is price affordable to consumers?

23. Place This is where the product/service is available to consumers Shops? Direct mail? Online?

24. Promotion This involves letting people know about your product/service Word of mouth Advertising Sales Promotions Public Relations

25. Summary The marketing mix is: Selling the right product At the right price At the right place With the right promotional tool

26. Today’s Lesson Identify Needs Market Research Desk Research Field Research

27. Identify Needs Before we satisfy consumer needs we need to find out what they are! What do people want? Research the market: Ask consumers!

28. Market Research The two main methods are: Field Research Desk Research

29. Desk Research Also called Secondary Information Using info already at hand (Internal info) Using info already published by others (External info)

30. Desk Research Data Internal Data Sales figures Customer records Customer complaints External Data Government publications Media CD Roms, Internet Trade Associations

31. Field Research Also called Primary Research Gathering new info by themselves Can use questionnaires, surveys or interviews to find out about what consumers want

32. Today’s Lesson Surveys & Questionnaires +/- of Post +/- of Phone +/- of Face-to-face interviews

33. Methods of Conducting Surveys/Questionnaires By Post By Telephone Face-to-Face

34. Research by Post Advantages Cheap People can think about answers people may respond rather than personal interview anonymous Disadvantages Low response rate How valid are answers? Limited amount of information

35. Research by Phone Advantages More flexible than by post Response rate higher Quick and easy Disadvantages Person hasn’t time to think Limited info collected expensive

36. Face-to-Face Research Advantages Flexible & allows more control Detailed info collected Can use visual aids Disadvantages Expensive & time consuming People don’t like being stopped in street

37. Today’s Lesson How products are developed Stages in New Product Development Prototypes

38. Product Development

39. Stages in NPD

40. Prototypes Before a new product is released, a prototype is made. Prototypes are working models used to get potential customers opinions on them. There are only a few of them as it is costly to go into full production on a gamble. This is NASA’s Venture Star, the Space Shuttle’s replacement

41. Today’s Lesson Market Segmentation Consumer Behaviour

42. Market Segmentation

43. Consumer Behaviour

44. Marketing Mix

45. Product Life Cycle

46. Branding

47. Pricing

48. Place

49. Promotion

50. Business Support Support is offered in the shape of money or advice The Prince’s Trust Local enterprise companies Local government Business start-up schemes banks

51. Business Plan “ If we fail to plan, we plan to fail!” If a business is to meet its goals and objectives it needs a business plan When do we use it? When starting out for the first time Showing potential investors When planning for expansion

52. Business Plan Format The Background The Personnel Business Activity The Market Trading Summary The Proposal

53. Detailed Business Plan Business Name Company Objectives Location/premises Management/staff Description of product/service Equipment Marketing Plans Financial position/plans Production details Future aims