#11 & 12 Purchasing

11) Cite the difference between centralized buying and decentralized buying; identify benefits and challenges of each.
12) Describe a six-month plan; identify factors to consider when selecting suppliers and negotiating terms of sale.  Based on findings, write recommendations for adding a new product to the company's inventory.

Purchasing

Introduce the Topic

1. How do items that you purchase in a store get there?
2. What happens when you cannot find a product you need at a store because it is sold out?
3. What does this tell you about the importance of a retail store having knowledgeable buyers?

In the first chapter we discussed two different markets:  consumer market (when you make purchases for your personal use) and the business-to-business (B2B) market (purchases made for use in the business)

We are going to begin a unit specifically learning about "buyers" from the B2B market.  Businesses that make purchases that help them meet their selling goals.  Although there are 4 different markets listed in the reading, we will spend most of our time talking about industrial and reseller markets.

Objectives from Chapter 23.1

• Define the terms used to describe organizational buyers.
• Explain how planning purchases differs between an industrial market and a reseller's market.
• Describe the six-month merchandising plan and explain its calculations.
• Explain the concept of chain-store buying.

Take the next 10 minutes to learn the terms on the flashcards and crossword puzzle linked here.

Read pages 537 to the top of 538 and answer the following questions:

1. What kinds of knowledge must an organizational buyer have?
2. Why does an industrial buyer often have to be directly involved in production planning?
3. In the term procurement manager, what do you think the word procurement means?
4. From what you just read about the industrial market, how do you predict that the "industrial market" is different from the "reseller market"?
5. How would you describe a "master production schedule"?

Read page 538 about the Reseller Market and answer these questions:

1. What two operations are included in the reseller market?
2. From the "Hot Topic" insert what 4 major roles to "buyers" perform?

Visual Literacy

Read the "Buy to Sell" caption at the bottom of page 538.

1. What can happen if this dress shop runs out of a popular dress just before prom season?
2. Has this, or a similar situation ever happened to you?  What did you do?
3. Have you shopped at the store since that time?  If not, what might it take to get you back?

Class Project -

Read about the Six-Month Merchandise Plan (page 538-541) to work through the packet on buying calculations.

Extension - Researching Trade Shows

Many wholesale and retail buyers keep up with their markets by attending trade shows.  

• Choose a retail market in which you are interested and research trade shows aimed at that market.
• Create a list of 5 major trade shows from that industry scheduled in the next 18 months.
• Each trade show listing should include: 

1. The name of the trade show
2. a brief description of the show
3. the location of the next show
4. the date(s) for the next show

Reflection

Buyers need to understand their customers and the products they sell in order to make purchasing decisions.
How can the knowledge of a company's  customers and products improve a buyer's purchasing power?

#8 Marketing Plan

Standard 8  Create a six-month marketing plan aimed at increasing business profitability...for a local business.  Include:  Executive Summary, Situation Analysis with SWOT and PEST factors, Marketing strategies, Cost analysis, implementation plan, marketing audit and evaluation instrument.

The Marketing Plan

Every time you leave school toward home you have a plan.  On a sheet of paper draw and map or write step by step instructions from the school to your home.

When finished, get a text book and read pages 37-41 about the marketing plan.  Take notes of the sections of the plan as you read.

Class Discuss

Discuss the value of having a plan to achieve your desired goals.

Elements of the Marketing Plan

1. Executive Summary
2. Situation Analysis
3. Objectives
4. Marketing Strategies
5. Implementation
6. Evaluation and Control
7. Appendix 

Group Application 

1. Work with a partner and create a marketing plan for a local business.  
2. Confirm with your teacher the business for which you are creating a marketing plan.
3. Create a Google Doc that you can use to give your presentation.
4. All sections from the textbook (above) must be addressed. (5 points each point, appendix optional for up to 5 bonus points, 5 points grammar and spelling, 5 points layout and neatness, 5 points effort = 45-50 points total)
5. Be prepared to present/sell your marketing plan to the class next time.
6. There is a written part and presentation part to this project.

Helpful Resources

• Click the link to see an actual sample marketing plan.  Yours may not be this in-depth but you should cover the same sections. 
• Click on the link to use a questionnaire to complete a strong marketing plan. 
• This is a good sample from University of Tennessee.  Check it out.

Marketing 1 Lesson

Review:

What is a SWOT Analysis?

Today's Objective:  Explain the basic elements of a marketing plan

What is a Marketing Plan?

Read pages 37-41:
Visual Literacy:  Look at Figure 2.2 on page 38.

Compare:
1.  How is a marketing plan similar to a road map?
2.  How can a small business benefit from writing a marketing plan?

What are the elements of a Marketing Plan?
Recall:
3.  What is the advantage of reading a marketing plan's executive summary?

List:  4. What criteria is necessary in composing a marketing objective?
Analyze:  5. Why must marketing objectives align with an organization's mission statement?
Analyze:  6. Why do you think that the company's mission is the first component under Objectives?

Recall:  7. What goes into the situation analysis?

Read about Marketing Strategies on page 39:
A marketing strategy identifies target markets and sets marketing mix choices that focus on those markets.
Recall: 8. What does the term key point of difference mean?
Apply:  9. What do all marketing strategies need to take into account?

Read about Implementation and Evaluation and Control on page 40:
Explain:  10. What is the meaning of implementation in the context of a marketing plan?
Analyze:  Refer to Figure 2.2.
11. How are items B and C under implementation related to one another?

The Marketing Audit:
Evaluates a company's marketing objectives, strategies, budgets, organization, and performance.
Can be visualized as a circular pattern that continues through the three phases  of the marketing process of planning, implementation, and control.
Ask yourself:  Did we accomplish the objectives listed in the the marketing plan within the boundaries of the plan?
Because of the important feedback that a marketing audit provides, a company that regularly conducts marketing audits can be more flexible and responsive than a competitor that reviews its processes only every now and then.
Recall:  12. When does a marketing audit take place?
Analyze:  13. Why is it important for the audit to cover both areas that seem to be functioning well in addition to those that are not?
Synthesize:  14. How might a marketing plan go outside its boundaries?

Review Key Concepts

Complete questions 1-5 on page 41 using complete sentences and appropriate vocabulary.

Group Project

In groups of 2-3 people, research marketing plans for real businesses online.  Be prepared to talk about the elements of how their marketing plan is similar to the template that we discussed today.

Sample Marketing Plans

SBA/ J&K Auto Repair

Mobile News Games

Crossfit