Distribution, Promotion, and Selling
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Transcript of Distribution, Promotion, and Selling
Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Chapter Chapter Chapter 66
Distribution, Promotion, and Selling 6.1 The Marketing Mix6.1 The Marketing Mix──DistributionDistribution
6.2 The Marketing Mix6.2 The Marketing Mix──PromotionPromotion
6.3 Selling and Promoting 6.3 Selling and Promoting
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 2
Lesson 6.1
The Marketing Mix─Distribution Goals Describe the four basic options of
channels of distribution. Apply channels of distribution to the
specific needs of various types of businesses.
List factors to consider in the physical distribution of products.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 3
Vocabulary supply chain management distribution channels of distribution direct channel indirect channel physical distribution
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Supply Chain Management
supply chain management the coordination of manufacturers,
suppliers, and retailers working together to meet a customer need for a product or service
Chapter 1Slide 4
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 5
involves the locations and methods that are used to make products available to customers
channels of distribution the routes that products and services take
from the time they are produced to the time they are consumed
distribution
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 6
Direct and Indirect Channels
direct channel moves product directly from the
manufacturer to the consumer
indirect channel uses intermediaries
people or businesses that move products between the manufacturer and the consumer
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Chapter 6Slide 7
Channel Options
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Chapter 6Slide 8
sales methods may include: the Internet direct mail television shopping channels
no intermediaries most cost-effective limited sales opportunities
Manufacturer to Consumer
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 9
sales force sells goods to retailers retailers sell goods to consumers offers more sales opportunities
Manufacturer to Retailer to Consumer
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Chapter 6Slide 10
manufacturer sells large quantities to a wholesaler wholesaler stores and sells smaller quantities to
many retailers
lower production costs can lead to lower prices
Manufacturer to Wholesaler to Retailer to Consumer
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Chapter 6Slide 11
The manufacturer delegates the sales function to an agent.
frequently used in international marketing
Manufacturer to Agent to Wholesaler to Retailer to Consumer
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 12
What are the four basic options of channels of distribution?
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Chapter 6Slide 13
Distribute Goods and Services
Distribution channels will vary based on business needs. market size type of product or service customer needs and wants
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Chapter 6Slide 14
Retail Businesses
Retail businesses can distribute products in a variety of ways. offer the product at a convenient location
during convenient times use advertising to reach customers
allow for phone or fax ordering
develop a website for online purchases
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Chapter 6Slide 15
Service Businesses
Most service businesses sell directly to customers. production and consumption of the service
happens at the same time the service needs to be provided to the
customer when the customer needs it some service providers sell through retail
stores
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Chapter 6Slide 16
Manufacturing Businesses
Manufacturers usually sell products to other businesses.
The other businesses sell to the final consumer.
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Chapter 1Slide 17
Why are channels of distribution different for different types of businesses?
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Chapter 6Slide 18
Physical Distribution
Physical distribution transportation storage handling packaging
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Chapter 6Slide 19
Transportation
The best and most cost efficient transportation method should be determined.
The type of product and the destination of the product will help guide the decision-making process.
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Chapter 6Slide 20
Product Storage and Handling
Benefits of efficient storage include: balancing supply and demand of products
Other considerations of storage include: adds to the cost of products increases the risk of damage or theft
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 21
Packaging
The purpose of packaging is to protect the product from the time between production and consumption.
Effective packaging provides value by minimizing product damage.
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Chapter 6Slide 22
Receiving Goods to Sell
All types of businesses must receive goods from suppliers.
Sources that can be consulted to find suppliers include: The American Wholesalers and
Distributors Directory The ThomasNet website Trade magazines
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 23
What factors are important to consider in the physical distribution of products?
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Chapter 6Slide 24
Lesson 6.2
The Marketing Mix─Promotion
Goals List the many forms of advertising and
discuss advantages and disadvantages of each.
Define publicity and describe ways to use publicity as a promotional tool.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 25
Vocabulary advertising publicity press release public relations
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Chapter 6Slide 26
Promotion Strategies
promotional mix advertising publicity personal selling sales promotion
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Chapter 6Slide 27
Advertising
advertising a paid form of communication sent out by
a business about a product or service
Advertising is very important for small and/or new businesses.
Advertising should clearly communicate your message and image.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 28
Online Advertising
Online advertising has increased as Internet usage has grown.
Online technology lets businesses interact with consumers via chat rooms blogs e-newsletters
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 29
Banner Ad Floating Ad Wallpaper Ad Trick Banner Pop-Up Ad Pop-Under Ad
Common types of online advertising include the following:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 30
As it is easier to determine the effectiveness of online advertising than traditional advertising, new methods to charge for online advertising have been developed.
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Chapter 6Slide 31
Cost per Mil (CPM) the advertiser is charged based on the exposure
of the message to a specific audience priced per thousand viewers reached with the
message
Three common ways to charge for online advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 32
the advertiser is charged based on the number of user clicks on the advertisement
viewers respond to the ad by clicking on the hyperlink within the ad
Cost per Action (CPA) the advertiser is charged when a user takes
an action that leads to a sale the publisher of the ad assumes all the risk in
running this type of ad advertisers prefer this type of charge for
banner ads
Cost per Click (CPC)
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 33
In an effort to combat excessive spamming, many Internet users now utilize software that blocks promotions from reaching their computers.
Disadvantages of Online Advertising
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Poll: What are three examples of online advert...
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Poll: What is the difference between CPC and C...
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Poll: An online ad that changes the background...
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Chapter 6Slide 37
Television Advertising
commercials last less than a minute
infomercials last a half hour or more provide in-depth coverage about a specific
product
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 38
the fee paid to the station for airing the commercial based on the length of time the commercial plays
the costs of producing the commercial
Fees associated with television advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 39
it is very expensive the audience is too broad to be effective for
most businesses
Disadvantages of television advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 40
Radio Advertising
less expensive than television advertising
listener demographics are more specific than television easier to reach target audience
pay for air time pay for production costs
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 41
the message is purely audio a visual of the product is not shown
listeners may forget what they hear listeners may “surf the airways” during
commercials
Disadvantages of radio advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 42
Newspaper Advertising
Historically, newspapers were the single largest form of advertising in the U.S.
Advantages of newspaper advertising include: relatively inexpensive targets a limited geographic area reaches a large number of people
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 43
Many people in the audience may not be interested in your business.
Your ad faces a lot of competition from many other ads in the newspaper.
Disadvantages of newspaper advertising include:
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Poll: A radio station will provide a psychogra...
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Poll: What is a major advantage of newspapers ...
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Chapter 6Slide 46
Telephone Directory Advertising Consumers use telephone directories
repeatedly. Ads usually appear close to the listing
and phone number of the business placing the ad.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 47
People only look in the directory when they are already seeking a specific business.
It is hard to persuade a potential customer to use your business instead of your competitor’s business.
Disadvantages of telephone directory advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 48
Direct-Mail Advertising
promotional materials sent to target customers through the mail
Companies that specialize in maintaining targeted mailing lists can provide almost any type of list needed.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 49
Direct-mail is often considered to be “junk mail.” It often gets discarded without being read.
Disadvantages of direct-mail advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 50
Magazine Advertising
Magazines are an excellent way to aim products and services at specific markets.
Local magazines that target a limited geographic area are often the best choice for small businesses.
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Poll: What is an advantage of direct-mail adve...
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Chapter 6Slide 52
National distribution can make some magazines an inappropriate way to advertise a local business.
Disadvantages of magazine advertising include:
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 53
Outdoor Advertising
billboards and signs can be effective as the name of your
business is located where many people can see it
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 54
limited information can be included may not project the image you wish to
convey
Disadvantages of outdoor advertising include:
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Chapter 6Slide 55
Transit Advertising
signs on public transportation can provide more information than a
billboard effective if your target market includes
consumers who use mass transit
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social Networking Sites
Business owners are using social networking sites for business promotion. Twitter LinkedIn YouTube Facebook Blogging
Chapter 1Slide 56
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Chapter 6Slide 57
Budgeting for Promotion
Obtain cost estimates for all advertising that is under consideration.
Calculate a projected budget. Determine whether your advertising
budget, as a percent of sales, is in line with industry averages.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Poll: Why is promotion important to a business...
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 59
Publicity
publicity a nonpaid form of communication that calls
attention to your business through media coverage
can be positive or negative Publicity is free.
Staging the events that generate publicity is usually not free.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 60
a written statement meant to inform the media of an event or product
press release
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Chapter 6Slide 61
Public Relations
public relations the act of establishing a positive
relationship with customers and the general public
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Chapter 6Slide 62
sponsoring a sports team donating to local charities supporting work-based programs at local
educational institutions supporting Big Brothers or Big Sisters organizing community programs
Ways to support your community include:
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Chapter 6Slide 63
Self-Promotion
Self-promotion is a way to keep the name of your business visible and in the forefront of people’s minds.
Self-promotion methods include the distribution of goods with your company’s identifying information on it. t-shirts office supplies
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Poll: What are the advantages and disadvantage...
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Poll: What's one thing a business can do to im...
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Chapter 6Slide 66
Lesson 6.3
Selling and Promoting
Goals Explain the role of selling in a business. Determine how to meet customer needs
and wants. Discuss other types of promotional
activities. Evaluate the effectiveness of promotional
categories.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 67
Vocabulary personal selling rational buying decisions emotional buying decisions sales promotion rebate telemarketing visual marketing
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Chapter 6Slide 68
Selling
Entrepreneurs need selling skills for many reasons. It is necessary to sell business ideas to
potential investors when selling a business.
For many customers, the salesperson is the business. a positive image should be conveyed
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 69
a direct communication between a buyer and a sales person
the sales person tries to influence the prospective buyer’s purchasing decision
personal selling
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 70
features the physical characteristics or capabilities of the
product or service
benefits the advantages that could result from the use of
those features
Product Knowledge
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 71
What are some selling strategies an entrepreneur can employ?
Salespeople should represent company well Identify customers’ needs, issues, & concerns Turn features into benefits Train salespeople well (product, market,
industry)
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Chapter 6Slide 72
Determine Customer Needs and Wants A salesperson must determine what
need the customer is seeking to satisfy. lower-level needs usually do not require
personal selling upper-level needs often require better
selling skills
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Chapter 6Slide 73
Needs Assessment
need satisfying fulfilling the needs of a customer who
knows exactly what they want
problem resolution helping the customer find products or
services when they are not quite sure what they want
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Chapter 6Slide 74
Buying Decisions
rational buying decisions based on the logical reasoning of
customers customers evaluate alternatives purchase after careful thought
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Chapter 6Slide 75
based on the desire to have a specific product or service
little time or thought is used when making the buying decision
emotional buying decisions
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Chapter 6Slide 76
Customer Decision-Making Process A problem-solving approach for helping
customers includes the following steps: define the problem gather information
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 77
evaluate alternatives select the best option take action evaluate the action
identify various solutions
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 78
Why is it important to meet customer needs and wants in the selling process?
Customers purchase goods and services to satisfy needs and wants. If their needs cannot be met, a sale will not be made.
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 79
What are some emotional buying motives?
Fear Protection Appearance Recreation Improved health Comfort
Recognition Pride of ownership Imitation Prestige Popularity
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Chapter 1Slide 80
What are some rational buying motives?
Safety Simplicity Quality Reliability Economy Convenience
Service Durability Knowledge Money gain Ease of operation
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Chapter 6Slide 81
Other Types of Promotion
sales promotion an incentive offered to customers in order to
increase sales
rebate a refund offered to people who buy a product
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Telemarketing
telemarketing using the phone to market your product or
service
Chapter 1Slide 82
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Visual Marketing
visual marketing the use of visual media to promote, sell,
and distribute a product or service to a targeted audience logo signage promotional tools company vehicles uniforms
Chapter 1Slide 83
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 84
What is the purpose of sales promotions?
Sales promotions offer incentives to customers in order to increase sales
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Evaluation Strategies
1. Is the volume of sales increasing? New leads/appointments
2. How are you getting new customers?
3. Does your advertising and/or promotional activity produce direct responses? Are you using the right media for target
market?
Chapter 1Slide 85
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 86
4. Do your networking activities create new opportunities for you? Need to know source of new business
5. Do your marketing tactics make it easier to sell your services?
6. What is your sales conversion rate?
7. Does your plan have a positive return on investment (ROI)?
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1Slide 87
How can you determine the effectiveness of promotional activities?
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What’s Next?
p.176: #4 in groups HW: 6.3 Assessment (1-3)
Chapter 1Slide 88
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 89
PERFORMANCE INDICATORS Demonstrate knowledge and understanding of
entrepreneurship Engage in activities that clarify and enhance
understanding of entrepreneurship Plan and implement presentation/activities to
educate and promote entrepreneurship to targeted groups
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 90
Demonstrate critical-thinking skills Develop a concept from an idea to reality Plan, organize, and conduct a group project Determine priorities and set deadlines
Derive facts from data, findings from facts, conclusions from findings, and recommendations from conclusions
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 91
THINK CRITICALLY
1. What are the benefits of presenting this project to elementary or middle school students?
2. Why is it important to explain risks associated with entrepreneurship?
Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 6Slide 92
4. What are three characteristics of successful entrepreneurs?
3. Who are popular examples of entrepreneurs?