Event

Use

d X Performance indicators for FMS

FMS Acquire product information for use in sellingKnowledge of product means and includes details of use, its utility, its composition, service offered, and so on. To be more clear, knowledge of the product means a thorough knowledge regarding the probable information about the products which the customers generally inquire about. A salesperson or marketer needs this knowledge in order to describe product features or service advantages, to overcome objections, to answer questions, and to acquire confidence in the merit of his offeringsMethods:Sources of product knowledge are many and varied. However, these sources can be classified as basic and subsidiary. The fundamental sources are called basic sources; whereas collateral are called subsidiary sourcesGeneral Education is a must for all sales staff. When joining a sales organization, he/she is given special training so become an expert. Some firms have their own institutions for training, whereas others send their staff to technical institutions. Training increases the knowledge of sales staffExperience is the most important source of information. Initially he/she works under the guidance of a senior salesperson. As an independent salesperson, he comes in contact with hundreds of customers of different types. Contact with every new customer enriches his knowledge and experience institutionUse of the product enables a salesperson to know its real worth. By using the product, he knows all the advantages of it; and also the gap between its description and actual useAdvertisements contain all the salient features of the products. A salesperson, therefore, should study the advertisements of his own firm to acquire valuable information about the features and selling points of productsSales meetings and conferences are also important sources of product knowledge. Manufacturers arrange meetings and conferences of salesperson at regular intervals. In these meetings, senior sales staff and sales managers deliver lecturers and demonstrate important features of the productVisit to factories / showroom are arranged to many factories, which is a rich source of information about the production process, raw materials used, quality control system, method of packing etcSales literature Sales manuals are books published by the manufacturer. This book contains information about products, the procedure to be followed in selling goods, maintaining stock, maintaining the expense accounts, selling reports, credit facilities, discounts, delivery facilities and so onTrade Journals are technical journals containing technical points and details about the products. Companies manufacturing drugs and medicines publish monthly journals and send them to customers. Trade associations publish their own monthlies. The members give advertisements to them emphasizing the main features and selling points of their products. Thus, these journals can serve as a good source of information for acquiring product knowledge

Sales bulletins are published periodically to provide additional and up-to-date information regarding products. It is supplement to the sales manuals. It contains new information regarding product, its selling points, its improvements or additions etcSales portfolios are meant to retailers and wholesalers. It contains actual photographs of the product, instructions and advises regarding method of display, clippings, and names of users in a book form.

FMS Advertise to communicate promotional messages to targeted audiences. FMS 2 Analyze company resources to ascertain policies and procedures

A set of policies are principles, rules, and guidelines formulated or adopted by an organization to reach its long-term goals and typically published in a booklet or other form that is widely accessiblePolicies and procedures are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization. Together, policies and procedures ensure that a point of view held by the governing body of an organization is translated into steps that result in an outcome compatible with that view

Does the student consider media policies? Is their plan realistic? Participant demonstrates and adheres to the following policies and procedures

as stipulated in the case study:o Customers can make special orders for an extra fee; and,o When signing an order form, customers are told that the delivery date

can fluctuate 7-10 business days Given these policies, the participant might acknowledge that the store should

have informed the customer (judge) immediately when the customer called to make the change of wedding date, as an act of good customer service

The participant may be innovative in devising solutions or new policies for the store insofar as they do not contradict any of those already mentioned. Examples of such policies are:

o For deliveries that are late at the fault of the store, the customer may choose another item to be express delivered for their occasion

o Customer may pay an additional fee for express delivery on the existing order

o Customer may pick up the item directly from the wholesaler FMS 5 Analyze employer expectations in a business environment

Employer expectations are communicated in the job description and in detail through the job training process. They form the basis of performance evaluations which may be used to determine performance bonuses and/or promotions. Both the employer and employee are responsible for ensuring communication of these expectations are clear and understood so they can rely on each other to achieve common goals. Expectations may include professional development for employees to upgrade and stay on top of the latest trends in the industryDid the participant explain their expectations of their employees in terms of:

Job performance Customer service

Professionalism Ability to handle conflict To be on the job as required To be punctual To be reliable To be honest and ethical To take initiative

FMS Apply effective listening skillsFMS 2 Assess appropriateness of marketing research for the problem/issue

Participants should make the connection between business records and business decisions based on those records. Points to address this may include:

Inaccurate records could lead to an under or over projection of the business’s financial position in its

financial statements Since these statements are used to make business decisions by management

and investors, it can lead to misinformed business decisions as well as billing and delivery errors Business records are also used as reference points if and when the company is

audited, thus these records must be accurate and maintain for future use.

FMS Assess information needs Determining who users of the information will beWhat type of information is needed and what they plan to do with the informationWhat type of information is already available?Costs involvedTimelines (how soon do they need the information?)

A needs assessment is a systematic process for determining and addressing needs, or "gaps" between current conditions and desired conditions or "wants". The discrepancy between the current condition and wanted condition must be measured to appropriately identify the need. The need can be a desire to improve current performance or to correct a deficiency. A needs assessment is a part of planning processes, often used for improvement in individuals, education/training, organizations, or communities. It can refine and improve a product such as a service a client receives. It can be an effective tool to clarify problems and identify appropriate interventions or solutions. By clearly identifying the problem, finite resources can be directed towards developing and implementing a feasible and applicable solution. Gathering appropriate and sufficient data informs the process of developing an effective product that will address the group’s needs and wants. Needs assessments are only effective when they are ends-focused and provide concrete evidence that can be used to determine which of the possible means-to-the-ends are most effective and efficient for achieving the desired resultsIn this case there are 2 sets of needs to be assessed. The needs of those seeking information on the companies through the evaluations of others, and the needs of those companies in wanting fair and ethical assessments.

FMS 5 Assess product-packaging requirements

Some of the requirements might include: a box large enough and strong enough to hold the deep dish style pizza (since

it is heavier than the average pizza) careful placement of the logo so that customers are able to recognize the brand clear instructions for cooking and storage Participants may include a visual created during the prep time of what their

ideas are for the package Green packaging – compostable, reusable, recyclable – sustainable resources

used in packaging – minimal packaging where possible Full disclosure in labeling – labeling as a means of promotion and branding –

use the label to sell the unique nature of this product line Packaging – must give impression of quality – will enhance contents

FMS Bag merchandise. FMS 2 Communicate core values of product/serviceFMS 4 Coordinate activities in the promotional mix

The four elements of the promotional mix are: advertising, sales promotion, publicity, and personal selling. All elements used should be coordinated to achieve the company’s goals. All initiatives should be coordinated to target the identified markets, clearly communicate the same underlying message.

Advertising includes any paid presentation and promotion of ideas, goods, or services by an identified sponsor (Ex. Print ads, radio, television, billboards etc) Place advertisements that would appear locally promoting the award-winning coffee in newspapers, direct mail, posters/billboards Recognize that TV ads would be created for national chain by the national chain itself

Sales promotions Incentives designed to stimulate the purchase or sale of a product (Ex. Coupons, sweepstakes, contests, rebates etc. Offer sample coffee taste cups at popular local events and venues) . Sales promotion includes media and non-media marketing communication in order to increase consumer demand, stimulate market demand or improve product availability

Public relations includes paid intimate stimulation of supply for a product, service or business unit by planting significant news about it or a favourable presentation in the media and sometimes include direct marketing and sponsorship Contact newspapers and radio stations to come review or feature the restaurant or Sponsor local events

Personal Selling is a process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation (Ex. Sales presentations, sales meetings, sales training) Each waiter should up sell by recommending products, especially our award-winning coffee

Participants should describe a variety of creative ideas that address all areas of concern.

FMS Create promotional signsFMS 2 Defend ideas objectively

Support ideas with facts

Leave opinion and emotion out Be conscious of tone of voice The company must answer complaints quickly and to the customer’s

satisfactionThe participant may indicate defending ideas objectively:

Supporting their ideas and answers with facts and business terminology Answer questions effectively and in detail.

FMS 5 Demonstrate a customer service mindsetA service mindset is an outlook that focuses on creating customer value, loyalty and trust. A business with this outlook wants to go beyond simply providing a product or service. It wants to create a positive and indelible imprint in the customer's, or even in the prospect's mind. To do this, a business has to care about the customer or prospect experience and work continuously at enhancing it Listen carefully to the customer’s complaint and acknowledge that you are there to

help—in this case that the business meeting has been disrupted Explain that you appreciate and value the business that the customer has given you

and that you would like the relationship to continue Provide customer surveys to get feedback from the customers. This could be done

by a card with the bill, a website address or a phone call to important customers. There could be an incentive such as a discount or free dessert if they fill out the survey

Use interpersonal skills to handle customer requests and questions, Understand management’s role in customer relations, understand procedures for handling difficult customers, explain business policies to customers and handle customer complaints.

you should view negative customer interactions as opportunities to learn even more about the customers’ needs and expectations

FMS 7 Demonstrate appropriate creativityCreativity in the workplace is the next step up from problem solving. It is a real asset to employers hunters, if they can show how they bring additional value to the employer, and preferably prove a dollar value to that creativity. Initiative and good ideas are now much more appreciated than they were in the old hierarchical corporate jobs. Ideas are valuable, and so are employees who can get more value out of the endless possibilities of new systems.Some people actually make much more of a career out of ideas, rather than just doing a job. The opportunities are always there. Everybody, on any job, soon figures out a better way of getting things done. Most value adding is about dealing with volumes of work. Just as well, too, because that's how efficiency is achieved. It's a natural use of skills to make work easier and more productive. That's also why many people who are quite efficient in organizing their own work don't even recognize why they're efficient. They think it's common sense, but it's actually part of the creativity in the workplace effect. Think about how you've organized your own work to suit your own needs. There will be something. You may not have redesigned the whole workplace, but you will have done something to make yourself work more efficiently.Now comes the rest of the question, how to show value in your creativity.

Work value is measured by: Profit Savings Improved time frames Increased efficiency in your own work Increased efficiency which carries through up the work chain to others from

your own workThis is what is meant by improving productivity. It's productive in that it generates income, saves time and therefore money, and improves the efficiency of yourself and others. In whatever sense it's done, it's valuable to the employer.So you have to express the value of your creativity in those terms, to the judges, and show them why it's valuable. If you've come up with a better way of doing things, or a more efficient or obviously quicker way of doing your work, you've answered the question effectively, and made your point.As with all interview questions, you must structure your answer so the interviewers can see the processes involved, and the value of your work.In this case, creativity is a very broad range of possible subjects, but you can simplify and clarify your answer:

Explain the work, and the processes. Explain your idea and its benefits in terms of the productivity criteria.

Tell the judges what you've achieved with your creativity. Also tell them your manager or supervisor's reaction to your work if you can tell them about a positive response from them. That's proof of achievement.

FMS 4 Demonstrate connections between company actions and resultsMost companies will compare their actions and results by having set some specific objectives and seeing how closely they are meeting them. In this case, the company will probably be setting goals involved with an increase in revenue and/or an increase in profit. They would want to have the results of the catering function kept separate from the results of the regular restaurant activity although there would be some carry-over of fixed costs between the two practices. They might even separate the activities into two separate companies. In any case there should be a measureable difference in the company in terms of profit.Brochures, ads and web pages are not results. A marketing department needs tangible objectives and deliverables. But it is easy to fall into the trap that looks at these deliverables as ends in themselves. A new department in the store means nothing if it doesn’t in some way contributes to improving the state of your business. Similarly, brand awareness isn't a result. It is also a means. Building brand awareness may be a reasonable objective but only if your marketing team can articulate how it drives results. . Opening a coffee shop is not a result. That's all the more reason that your marketing efforts need to be focused on the right results. Because it is difficult to measure directly the effects of many marketing tactics, it is important to design those tactics with appropriate end results in mindWhat are your most influential economic engines, and are your marketing efforts focused on them? Do you make significantly more profit on a small number of loyal customers than you do on a large number of transactional customers? If so, do your marketing efforts focus appropriate energy on building customer loyalty, or is the

lion's share of your efforts focused on finding new customers? Does opening a coffee shop add significantly to the profitability of product sales?

FMS 5 Demonstrate problem-solving skillsIdentify the issues

Be clear about what the problem is. Remember that different people might have different views of what the issues

are. Separate the listing of issues from the identification of interests (that's the next

step!). Understand everyone's interests

This is a critical step that is usually missing. Interests are the needs that you want satisfied by any given solution. We often

ignore our true interests as we become attached to one particular solution. The best solution is the one that satisfies everyone's interests. This is the time for active listening. Put down your differences for awhile and

listen to each other with the intention to understand. Separate the naming of interests from the listing of solutions.

List the possible solutions (options) This is the time to do some brainstorming. There may be lots of room for

creativity. Separate the listing of options from the evaluation of the options.

Evaluate the options What are the pluses and minuses? Honestly! Separate the evaluation of options from the selection of options.

Select an option or options What's the best option, in the balance? Is there a way to "bundle" a number of options together for a more satisfactory

solution? Document the agreement(s)

Don't rely on memory. Writing it down will help you think through all the details and implications.

Agree on contingencies, monitoring, and evaluation Conditions may change. Make contingency agreements about foreseeable

future circumstances (If-then!). How will you monitor compliance and follow-through? Create opportunities to evaluate the agreements and their implementation.

("Let's try it this way for three months and then look at it.") Effective problem solving does take some time and attention more of the latter than the former. But less time and attention than is required by a problem not well solved. What it really takes is a willingness to slow down. A problem is like a curve in the road. Take it right and you'll find yourself in good shape for the straightaway that follows. Take it too fast and you may not be in as good shape. Working through this process is not always a strictly linear exercise. You may have to cycle back to an earlier step. For example, if you're having trouble selecting an option, you may have to go back to thinking about the interests.

FMS Describe crucial elements of a quality culture

Creating a quality culture within your business is not as difficult as it may seem but it can require a shift in thinking. Quality can no longer be defined by international standards or statistical measures of defects alone. Today quality is defined by the customer and making the customer happy must be the focus of a quality culture. Traditionally quality has been defined by statistical measures of error rates and quality improvement has been focused on reducing variation in linear processes and eliminating errors in production.These measures of quality have been imposed from the top down with little input from front line staff. Producing a perfect product according to internal standards however does not guarantee the product will meet customer expectations of quality.Any cultural change requires engagement and ownership by all levels of staff within an organization. When the customer perspective is made central to the definition of quality it makes sense to use front line staff to be the architects of a quality culture

Respect for individual Balance – work/life Pride in work – identification with ideals of the firm/shared goals Understanding of each individual's role in organizational structure –

contribution to success Recognition for performance Honesty in all transactions/positive attitude Inclusive policies Communication channels – formal and informal Freedom to develop/career paths/career planning/promotion potential Opportunity for "whistleblowing"

Creating quality culture in relationships A business house should have commendable quality culture when it comes to

relationship with the management and staff, with the sub-contractors and suppliers, customers and any other stakeholders with the organization.

A good quality culture in relationship with suppliers can be ensured by transparent policies, by paying proportionately for the quality of supplies and not by squeezing the suppliers’ profit margins adamantly. Cut-throat behavior should be avoided in the dealings with all stake holders. Relationships should be aimed to last long with each other for the well being of both the

involving everyone Breaking down barriers among employees and management Eliminating numerical quotas Instituting training Developing leadership Recognizing employees’ contributions to quality Communicating the quality policy/message, etc. A business house should have commendable quality culture when it comes to

relationship with the management and staff, with the sub-contractors and suppliers, customers and any other stakeholders with the organization.

To sum up, the quality culture in an organization can be developed only through a total moral commitment to quality by the top management. Through transparent policies, education, training and visibly practicing what is

preached, the quality culture has to be nurtured in the organization on a continuous basis.A good quality culture in relationship with suppliers can be ensured by transparent policies, by paying proportionately for the quality of supplies and not by squeezing the suppliers’ profit margins adamantly. Cut-throat behavior should be avoided in the dealings with all stake holders. Relationships should be aimed to last long with each other for the well being of both the parties. To sum up, the quality culture in an organization can be developed only through a total moral commitment to quality by the top management. Through transparent policies, education, training and visibly practicing what is preached, the quality culture has to be nurtured in the organization on a continuous basis.

FMS Describe current business trendsThere are many correct answers to this question. Examples could include:

Economic recession Credit crisis Companies focusing on being more environmentally friendly Double income families or single parent families that need and are willing to

pay for services because of their busy lives Big box stores Increase in discounts to encourage sales Lower profits, maintenance of sales Competitive market React / respond to economies of scale

FMS Describe data collection methodsData collected may be secondary or primary and may come from sources within or outside the business. Once new information and data are obtained it must be analyzed for the business to use.

Data can be collected in various ways including: Surveys – on paper, via email, phone, asking questions as customers leave the

store, etc interviews experiments (eg. selling a couple of the new items in store and assessing how well

they do) focus groups Participants may also include the importance of ensure that any sample group is

representative of the population that they are studying A large amount of data is also collected through points cards and credit and debit

cards, and sold to marketing firms. FMS Describe data collection methods

Data collected may be secondary or primary and may come from sources within or outside the business. Once new information and data are obtained it must be analyzed for the business to use.

Data can be collected in various ways including: Surveys – on paper, via email, phone, asking questions as customers leave the

store, etc interviews

experiments (eg. selling a couple of the new items in store and assessing how well they do)

focus groups Participants may also include the importance of ensure that any sample group is

representative of the population that they are studying A large amount of data is also collected through points cards and credit and debit

cards, and sold to marketing firms. FMS 4 Describe factors used by businesses to position corporate brands

Branding is all about creating unique identities and positions for products and services, hence distinguishing the offerings from competitors. Hence a corporate branding strategy can enable the corporation to further leverage on its tangible and non-tangible assets leading to branding excellence throughout the corporationThe main factors that go into defining a brand position: Brand Attributes: What the brand delivers through features and benefits to

consumers Consumer Expectations: What consumers expect to receive from the brand? Competitor attributes: What the other brands in the market offer through

features and benefits to consumers Price: An easily quantifiable factor – Your prices vs. your competitors’ prices Consumer perceptions: The perceived quality and value of your brand in

consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.?)

Quality image/products – Logo, slogan, unique storefronts/layouts Product appeal Control - promotion

FMS 6 Describe factors used by marketers to position products/businesses Students may define the term positioning in light of the case – they will define

the characteristics of the good/services being offered by the bookstore Marketers must determine whether or not they will take a stand and position

their products Marketers must determine who they will position the store to and what

goods/services will be offered to the target group Determine why their positioning is relevant for their target consumer Ensure that their positioning is clear so that the target consumers will

understand Marketers must also position their product in a way that is distinctive – without

a unique position, consumers do not have a reason to choose their productFMS 6 Describe factors used by marketers to position products/services

Differentiation in the context of business is what a company can hang its hat on that no other business can. The positioning concepts focus on the rational or emotional benefits that buyer will receive or feel by using the product/service. Products/services should be positioned based on their comparative advantagesFor example, for some companies this is being the least expensive. Other companies credit themselves with being the first or the fastest. Whatever it is a business can use to stand out from the rest is called differentiation. Differentiation in today’s over-

crowded marketplace is a business imperative, not only in terms of a company’s success, but also for its continuing survivalPositioning is also defined as the way by which the marketers attempt to create a distinct impression in the customer's mind. Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. Products/services should be positioned based on their comparative advantages. A company can positively influence the perceptions through enlightened strategic actionsMarketers often use a Product Positioning Map to “map” out the position that their products occupy in comparison to the completionThese positioning maps are based on 2 dimensionsThe most common dimensions are price and qualtitySo, for example, Rolex may be categorized as high price, high quality. Timex may be categorized as low price, high quality..Some possible positioning strategies:

Focus on healthy low calorie snack (< 200 calories) Price and quality Positioning by features and benefits Positioning relative to competition

FMS 2 Describe how courtesy services are promotedFMS 3 Describe marketing functions and related activities

Nine functions of marketing: Purchasing- buying goods and services for a business’ operation

(manufacturers purchase cloth and thread; retailers buy the finished shirt for resale in their stores)

Selling- providing customers with goods and services they want to buy (to the end user and in the industrial market as materials for business operations)

Pricing-deciding how much to charge for goods and services (takes competition into consideration & how much a consumer is willing to pay)

Product planning - all the decisions a business makes in the production and sale of its goods and services (products to carry, branding, labelling, packaging, etc.)

Marketing information management – the process of getting the marketing information needed to make sound business decisions (marketing research)

Promotion-any form of communication used to inform, persuade, or remind people about a business’ products OR to improve a firm’s public image (TV and radio commercials; specially designed perks as gifts with purchase-McDonald’s toys/glasses)

Financing-getting the money needed to finance the operation of a business (obtaining a bank loan; offering credit to consumers)

Distribution- making decisions about where to sell your product (method of transportation-truck; rail; ship or air) (storage of items is also part of

distribution) Risk management- preventing or reducing business loss (one risk that is out of

a business’ control is high local unemployment rate; business competition; natural risks)

FMS Describe progressive work environmentsFMS Describe sources of secondary data

There are plenty of raw data sources like the Census, Data.gov, the stock market, and countless others.  Internal company data like customer details, sales figures, employee timecards, etc. can also be considered secondary data.  Published articles, including peer-reviewed journals, newspapers, magazines, and even blog postings count as secondary data sources.  Don’t forget legal documents like patents and company annual filings.  Social media data is a new source of secondary data.  For example, the New York Times collected Twitter traffic during the 2009 Super Bowl and produced a stunning visualization of comments throughout the game.  Secondary data is all around us and is more accessible than even.  It is increasingly possible to obtain behavioral data from secondary sources, which can be more powerful and reliable than self-reported data (via surveys and focus groups).

FMS 2 Describe techniques for processing marketing informationThe gathering of relevant and up-to-date information is a key business process. Information consists of organised facts and figures that have meaning within the context that the information is intended to be interpreted by people. Information is thus a valuable business commodity, and frequently businesses pay money for up-to-date and relevant information.Businesses buy:

Market research information Information about the financial performance of other companies Information about economic trends, and the economies of other countries Product research and development information.

The more up-to-date, accurate and complete is the information, then the more valuable it will be.Increasingly there are market opportunities for companies to provide information on websites that users can pay to access - e.g. information about share prices, market movements, and potentially good investments.Information is gathered:

Internally within an organization - e.g. about production performance, sales performance, standard operating procedures, manufacturing systems, etc.

Externally i.e. outside the organization - e.g. information about customers and markets. The firm may contract out the collection of such information to an appropriate organization such as a market research company.

Information can then be analyzed by using computers or by manual methods. Databases and spreadsheets make it very easy to analyze information. For example, information about the market e.g. market growth, market share, etc. can be entered using a spreadsheet package. This information can then be presented in line graphs, histograms, bar charts, pie charts etc so that it is easy to quickly make sense of the information.Information processing refers to the collection, storage, manipulation, distribution and

presentation of data, usually by electronic means. Computers are used widely in business for information processing.

FMS Describe the concept of price Price is the amount the consumer must pay for a product Influenced by costs, competition, demand, and supply Cost—all costs are calculated and then a mark-up is applied to achieve the price Competition—set the price in relation to competitors Demand—apply the concepts of supply and demand, the greater the demand for

the product, the higher the price charged Supply—a product in short supply will have a greater demand

If the product is a luxury product, a pricing strategy of skimming or prestige should be used. People will be able and willing to pay a higher price because it is located in an affluent neighbourhood

FMS 2 Describe the factors that affect the types of customer services offered by supermarketsFMS Describe the maintenance considerations for displays. (can’t find; will this be a new

one)FMS Describe the nature of managerial control (control process, type of control, what

to control)Participants should demonstrate an understanding of the importance of managerial control measures to ensure the integrity of the business. Having more than one person reviewing financial records avoids any abuse of positional power by employees to influence records or overlook errors. Control:

the process of measuring performance and taking action to ensure desired results

Make sure that plans are achieved Make certain that actual performance meets or exceeds specific performance

Control process: Establish objectives and standards Measure actual performance Compare results with objectives and standards Take corrective action—fix if below standard, and learn how to repeat if

above standard Managers are responsible for planning, organizing, leading and controlling Control refers to measuring how well the organization/their area of responsibility

is performing with respect to organizational goals and then taking action to ensure goals are met

In this case, managerial control would require the supervisor/manager to monitor hours worked, ensure that employees are working the required number of hours, ensure that employees are properly added to benefits for which they qualify and taking corrective action if requirements are not met

It would appear that managerial control was lacking in this case and now the manager must take corrective action

FMS Describe the nature of organizational conflictFMS 6 Describe the nature of product bundling

Product bundling is the process of securing two or more necessary goods or services from a single vendor. This strategy usually provides several advantages, including saving a great deal of money. Long a practice among businesses, the concept of product bundling has expanded to include residential customers over the last twenty years, especially in regard to various types of communication servicesThe basic nature of product bundling involves the willingness of a supplier or vendor to provide two or more services to a customer for basic rate. This rate normally provides significant savings over purchasing the products individually. For example, a grocery store last Canada day offered a Meal Deal which included a barbeque Chicken, a family sized salad kit, stick bread and a block of ice cream coloured with the Canadian flag in the block. The savings over offering each item individually was over $10Along with saving money, product bundling also provides other benefits for the customer. One has to do with sheer convenience. In many cases, the cost and convenience created by product bundling go a long way toward promoting customer loyalty. This makes the client less likely to switch to another vendor for any of the services, especially if the price for the bundle is competitive. Vendors also benefit from providing various types of bundled packages to their clients. In many cases, the cost and convenience created by product bundling go a long way toward promoting customer loyalty. This makes the client less likely to switch to another vendor for any of the services, especially if the price for the bundle is competitive. Product bundling also simplifies the billing process for the vendor, since all services and products are usually billed on one invoice, rather than several different ones

FMS Describe the nature of sampling plansThe sampling plan outlines the data that is to be collected, how the data will be measured and how the data will be used in the research by the company.Participants should outline their ideas and how it relates to food marketing and the business industry

FMS 2 Describe the need for marketing informationWithout marketing information, businesses are left with no ability to anaylse customer profiles. Marketing information is needed to understand the consumer and to therefore improve the product or the service in ways that will satisfy consumers. Marketing information is also crucial in order to plan and carry out successful and cost effective Promotional efforts – how do you advertise if you don’t know who you are trying to reach? Marketing information informs businesses about sales trends and patterns and helps perfect the timing of re-ordering or discontinuing products. Marketing information can inform businesses about pricing levels and a customer’s perception of valueMarketing information management is a fancy term for managing data and information about customer attitudes and development of new products. Marketing research can be done of a formal or informal basis within small and large companies. For large businesses that utilize formal research, the procedures and outcomes must be organized so the business can make sense of the findings and benefit from the researchStudents should mention the importance of collecting information about customers.

The more a business knows about its customers, the better it can tailor its products and services to them. It can deliver products and services to meet and exceed customer expectations. This information also helps the business reach out to potential customers because it informs them about the customer profile of the target market

FMS Describe the role of business ethics in promotion e.g. business must be truthful in their disclosures in any advertisement.

o Attention to business ethics is on the rise across the world and many companies realize that in order to succeed, they must earn the respect and confidence of their customers. Like never before, corporations are being asked, encouraged and prodded to improve their business practices to emphasize legal and ethical behavior. Companies, professional firms and individuals alike are being held increasingly accountable for their actions, as demand grows for higher standards of corporate social responsibility

Important to conduct business in an ethical mannero For the business’s long term sustainability o Customers appreciation of good business practices Businesses should not put down their competitors but rather focus on

promoting their own products and serviceso The company should not partake in false advertising or promote

anything that would mislead their customersFMS 2 Describe the role of promotion in marketing.FMS Describe the scope of the Internet

The Internet, is a global network that facilitates the exchange of data and information between users around the world. People can access the Internet through a wired, wireless, or cellular connection from a variety of devices including desktop and laptop computers, tablet devices (such as iPads), as well as smartphones and many other types of cell phonesThe Internet is used to access and exchange information, through such tools as websites, e-mails, blogs, news sites, social media sites, etcIn this case, the participant may point out that in the hotel industry, the Internet is used by customers for: Finding a hotel and making room reservations Providing comments and ratings with positive or negative experience about their

experience at a hotel FMS Describe the use of technology in customer relationship management

Participant may discuss how technology will play a role in the new rewards program (i.e. via an app for the customer)

How will technology be used to monitor sales and determine success of the program

Email messages re sales and product promotionFMS Describe the uses of grades and standards in marketing FMS Describe types of businesses in the food-marketing industry FMS Describe types of display arrangementsFMS Determine customer/client needs

The participant should use the following strategies to indentify out what a customer/client needs are:

Questioning Observing Listening After carefully doing all of the above, vendors should continue to observe and

listen carefully while making suggestions of merchandise to the client They should listen for verbal and non-verbal clues and respond / alter their

responses appropriatelyFMS Determine economic utilities created by business activities

Economic utility—a measure of satisfaction Most people will do things that will improve their utility In this case, the owner needs to convince the employees that this 4-day work week

is in the employees’ best interest and will improve their utility For example: o the employees can save time by only commuting 4 days instead of 5o the employees will have more leisure timeo the employees will be able to spend more time with their children on their day off

—80% have children under 14o save money on child care and gas

FMS 3 Determine factors affecting business risk Business risk is the potential for business loss or failure 3 kinds of business risk: economic, natural and human

Economic- occur from changes in overall business conditions (competition, changing consumer lifestyles, population changes, limited usefulness or stylishness of some products, product obsolescence, government regulation, inflation or recession)

Natural- result from natural causes (weather conditions-floods, fires, hurricanes, etc.)

Human-caused by human mistakes and the unpredictability of employees or customers (dishonesty, carelessness, incompetence, accidents, illness, non-payment of accounts)

o In this case, the business risk would be economic as a result of the declining sales

There are many types of risks businesses face—political, financial, social, economic, legal, theft, safety, etc

There are many types of risks faced in the restaurant industry—alcohol, underage drinking, fire, burns, food poisoning, spills, broken glass, etc

It is important that businesses anticipate possible risks and create plans to deal with these risks

If possible, businesses should find ways to make certain that the risks are prevented before they occur

FMS 2 Determine the relationship between government and business. FMS Determine ways of reinforcing the company’s image through employee

performanceThe participant should identify the need for positive employee performance and mention some of the ideas listed below: Employee performance can reinforce a company’s image through suggestion

selling, order processing and fulfillment, and effective selling skills Suggestion selling is useful for making the customer happier with his/her original

purchases Sales employees can improve customer satisfaction by the speed and care in which

they handle orders, returns and refunds Selling skills, such as an appropriate, pleasant greeting and a reassuring departure

are useful tools in maintaining a good image Offer helpful comments during and after a sale and always thank the customer in

order to build a good relationship Follow up on all promises made to a customer, and check on their level of

satisfaction after a purchase Positive customer-client relations require compassionate and immediate action

when dealing with complaints and inquiriesParticipants should mention that particular attention should be made to the needs of male customers and they should focus on responding to their needs to ensure that they have a positive shopping experience. They should also mention that an effective sales presentation, to either male or female customer, will have a positive effective on the buying experience, the overall image of the store and will likely lead to repeat business from the satisfied customer and an increase in future customer sales.

FMS Develop a plan for effective communications in a food marketing businessFMS Develop a project plan

Recognize that incremental improvements are not always sufficient to address the (fundamental) problems in a business

Identify clear objectives for what the project will be about; improving the way the store is operated from the customer’s perspective from the staff perspective, and from management perspectiv4e

Identify steps that will need to be taken to achieve the desired resultsFMS 2 Develop a promotional planFMS Develop policies and procedures for preventing vendor theftFMS 6 Develop positioning concept for a new product

Positioning refers to the process by which marketers try to create an image for their product in the minds of their target audience. The participant should develop a creative, business-related solution on how to make Old Towne Frozen Pizza stick in the minds of their target market. Some ideas include (but are not limited to): how the product can enhance family life by bringing the family together to dinner

table how the product can benefit the customer by allowing them to spend more time

with their family/friends with the same food instead of waiting at the restaurant the product brings “gourmet food” into the home (“Straight from our oven to

yours.”) Target market – position product to attract consumers who are environmentally

conscious and concerned about nutrition and animal welfare

Consumers want to choose products which suit their “ethical” view of life – disposable income at level to be able to choose more expensive alternatives in food products

Niche market – green marketing High quality – higher price Convenience food – portable

FMS Develop procedures for safeguarding cashFMS Develop procedures to prevent security problems in food marketing businessesFMS Develop promotional plan for a businessFMS Discuss internal and external audiences for public relations activities

Public relations activities are designed to influence the perceptions of a specific group of people. Activities can be created for Internal or External audiences. An internal audience is a company’s employees. For example, a company may create a public relations campaign to change attitudes or create awareness of policies for employees. In this case, the participant should discuss the importance of creating a campaign that demonstrates: Measures the company is taking to ensure future employee safety That the company cares about the employees welfare

An External audience is a market of consumers. In this case, the participant will want to discuss ways that (and the importance of) Venture can create a public relations campaign to improve the company’s image for this group. It would be important for the company to demonstrate: It is taking responsibility for the accident It is assisting in cleaning up or reversing any environmental damage It is helping those in the community who may be affected by the accident

FMS 2 Discuss motivational theories that impact buying behaviorConsumer motivation is linked to Maslow's "hierarchy of needs." According to this model, motivational drivers have different levels of importance. The most common needs are physiological and concern basic survival--the need for food, shelter and safety. Higher-level needs include social ones (for relationships and love), esteem needs (recognition and status) and self-actualization needs (fulfillment of self). According to Maslow, an individual must meet lower-level needs before being motivated to fulfill higher-level needsMotivational Levels Depending on how important a purchase is to an individual, his motivational levels

may vary from low to high. Influences include familiarity with the purchase, status factors and overall expense and value. Where fulfillment rewards are low, as with groceries, motivation levels are also relatively low and involve little decision-making behavior

The behavioral aspect of consumer motivation concerns the actions someone takes before purchasing and consuming goods or services. A person might do a lot of research--evaluating alternatives, testing and sampling--before making a selection. She might decide to buy something based on which goods or services most closely meet and satisfy motivational wants and needs. Marketers aim to gain the most impact and eventual sales by linking their products and services to clearly defined consumer needs and by understanding what motivates people to buy

Motivational levels differ greatly between individuals and are influenced by many external variables. These include the social value of making the "right" decision, beliefs about brands and alignment of brand values and personal values. If other people are involved in the decision, their motivation also affects the behavior of the primary consumer

They may also identify categories of buying motives such as rational or emotional reasons why people eat out and choose one restaurant over another. The key to any business is that they must have a plan to try and understand what consumers are willing to pay for and to try and satisfy their needs. It is not enough to simply open a restaurant and hope customers will come. You have to give them a reason. Maslow is the obvious choice given its popularity in business textbooks. Participant could mention the factors that motivate consumers to purchase without actually naming a theory or theorist. What needs are satisfied when consumers save money on special deals – needs/benefits.

FMS Discuss product categories and classifications of products in food marketing departments

FMS 3 Discuss the impact of cultural and social environments on world trade Understanding different cultures and social norms – better understanding of

customers – better marketing efforts Understanding of different cultures and social norms helps to establish better

supplier/buyer relationshipsFMS Discuss the nature of customer relationship management

The key word in “customer relationship management” is management. If you want satisfied customers, an effort must be made to find what they want. Initially, they are facing some dissatisfaction at the implementation of their new marketing plan. Two things should have happened or must still happen The new plan is causing some concern with both the new and old customers. It is

time to evaluate the plan to see what possible adjustments could be made (see question 3). Unless these issues are solved, there will continue to be complaints from both customers (and staff) and the situation will be expected to deteriorate. A plan must be formulated

Training sessions are necessary for the staff. Food preparers will have to find ways of getting the food out faster. Wait staff should discuss the implications of dealing with younger clients. Shift managers could be more aware of seating customers in certain areas and possibly of adjusting work schedules to have certain staff on or off shift during the promotion

The owners must truly want to improve relationships with their customers and must take the lead and set the example

FMS Discuss the nature of marketing research problems/issuesParticipants can cite problems including; the difficulty in properly assessing or measuring the results of spending on promotion (how do you know if your sale worked, or if your commercial was impactful), the difficulty in finding willing survey participants, the reliability of responses to questionnaires and surveys, the expense incurred in conducting primary research, as well as various issues with privacy of personal information that consumers may have

FMS Discuss the nature of sampling plans

A sampling plan is a detailed outline of what data will be collected, when will it be collected, how will it be collected, who will collect it, where it will be collected and why or for what purpose will it be collected.

Students should have a plan for the collection of the marketing information and should be able to describe the staging and sequencing of their proposed solution

FMS Distinguish between economic goods and servicesAn economic good is a physical object or service that has value to people and can be

sold for a non-negative price in the marketplace Economic goods are tangible items such as products or materials that satisfy

consumer wants or needs Economic services are intangible and satisfy consumer wants or needs such as

haircuts, dry cleaning, or massages. Services cannot be owned or returned by someone as could be with a good. Services are delivered by a service provider who is paid to do so by a consumer

In the case of a food court, businesses provide both a good (the food) and a service (the act of preparing and serving the food) to the consumer

FMS Distinguish between merchandising and marketingFMS 2 Establish policies/procedures for preventing internal theftFMS 2 Evaluate effectiveness of advertisingFMS 2 Explain components of advertisements

Text, image and the organization of the elements Student should explain that advertisements should be appealing, clear and

concise Different mediums of advertisements require different focuses Different mediums of advertisements are: print, radio, television, direct mail,

internetFMS Explain consequences of unprofessional and/or unethical behavior in marketingFMS Explain customer/client/business buying behavior

Buying behaviour deals with the reasons or motives customers have for their buying habits, such as where to eat and what to eat when they go there. Eating out is a choice, not a necessity and customers will have to prefer what one establishment is offering more than another. This could include the prices being charged, the quality and type of food offered, the atmosphere inside the restaurant, the locations, even the commitment of the restaurant to issues like sponsoring local teams. Sometimes, customers may not even be able to explain why they choose one place over another other than the fact that they simply feel more comfortable thereParticipants may ask a number of the following questions to determine the buying behaviour of customers:

Who are the customers for electric versus non-electric vehicles? Create a profile of the customer buying process? How do the customer groups differ from one another? What, when and where do customers buy? How do customers rate the NISSAN on quality, service, and value? How satisfied is each customer segment? What customer segments are not having their needs met?

Is your customer base increasing or decreasing? Why?The participant may discuss some/all of the following ideas:

need of product/service availability of product/service cost/affordability evaluation of alternatives internal conditions ie. demographics, psychographics, personality etc.

FMS 2 Explain employment opportunities in businessFMS 2 Explain how supermarkets and other organizations cooperate to provide customer

servicesFMS Explain how to clean service and work areasFMS 3 Explain key factors in building a clientele

People eating in a restaurant are making a choice. This is normally not a matter of necessity. Therefore, they will choose to eat at this restaurant if their needs are being met. Some of the more obvious reasons they would have are:

The food is good The prices are right They enjoy the ambiance and feel welcome They know the owners They respect and support the restaurant as a member of the community They want their children to be exposed to different dining situations They don’t feel like cooking themselves

If the restaurant owners and management want to rebuild their clientele, they must address these (and perhaps other) issuesStudents need to demonstrate an understanding of why customers will patronize a business; ie, what can the business do to continue attracting and keeping customers. It will not be enough to advertise to attract new customers, it is also necessary to satisfy them in order to keep them coming back frequently. Eating out is not a necessity. Consumers have a choice as to where to spend their money and they will generally do so in a place they enjoy.

The market (consumer attitudes) could be changing, and what has worked in the past is no longer popular.

The demographics (types of customers in the area) may be changing (aging?) There will likely be new competitors that may be trying to copy your success

Ensure every customer has a pleasant experience at the restaurant Relate to creating brand loyalty by providing an excellent product with supreme

service in an amazing atmosphereStudents could also be more specific and include examples of different types of events or promotions the restaurant could use. Just like retail stores change their window and interior displays, even a restaurant has different things they can do to give the customers a new look or feelThis case tries to deal more specifically with having the proper menu items.

Did the student explain and develop a defined plan for building and keeping customers?

Did the student address issues related to competition and competitive advantage?

FMS Explain marketing and its impact in a global economy Need to take socio-cultural environment into consideration Importance of language use and context – useful for advertisements What are acceptable marketing norms in certain countries – do’s and don’ts Understanding other cultures so marketing tactics can be strategically applied

o Acceptable marketing tacticsFMS 2 Explain marketing and its importanceFMS Explain marketing and its importance in a global economy

Need to take socio-cultural environment into consideration Importance of language use and context – useful for advertisements What are acceptable marketing norms in certain countries – do’s and don’ts Understanding other cultures so marketing tactics can be strategically applied Acceptable marketing tactics

FMS 3 Explain new product-development processesFollowing is a 7-step process. Different versions exist with more or less steps. Companies will generally adapt their own version of the processStep 1 – Idea Generation

Gather ideas to be evaluated as potential product options Many market research techniques are used to encourage ideas including:

running focus groups with consumers, channel members, and the company’s sales force; encouraging customer comments and suggestions via toll-free telephone numbers and website forms; and gaining insight on competitive product developments through secondary data sources

New product ideas may come from brainstorming, responding to some observed need or even by chance

Step 2 – Screening Critically evaluate ideas generated by step 1 Ideally, screen products based on an established set of evaluation criteria Select the most attractive options

Step 3 – Concept Development and Testing Obtain feedback from customers, distributors, employees on selected ideas Market research may be done with focus groups, based on concepts of a

product, story boards, or non-functioning “mock-ups” of the productStep 4 – Business Analysis

Analyse the likely success and viability of the new idea Analysis may include - target market size, operational costs, financial

projectionsStep 5 – Product and Marketing Mix Development

Begin working on actual product design Begin formulating a marketing plan and addressing other elements of

marketing mix (pricing, promotion, place / distribution)Step 6 – Test Marketing

Test the actual product May include offering product to a selected small segment of the target market

(Windsor and London are often selected as test markets for large companies)Step 7 – Commercialization

Introduce product to wider market May be done in waves or all at once

FMS Explain policies/procedures for handling shopliftersFMS Explain possible advancement patterns for jobs

participant may indicate possibility for employees to move through the system and become assistant managers/managers

path should be transparent FMS Explain procedures for handling accidents

Hire staff with the proper qualifications—first aid, CPR, customer service certifications, alcohol handling

Staff need to be thoroughly trained to handle accidents in the restaurant Create a procedures manual to teach staff how to deal with a variety of risk

situations Train the staff on the manual When an accident has occurred, help the customer, contact the manager, solicit

whatever help is necessary—ambulance, follow up to make sure the customer is fine, fill out an accident report, discover what can be done to make certain that this type of accident does not occur againa) According to the WSIB (Workplace Safety Insurance Board):

i. Get first aidii. Inform employer and ensure payment for transportation and

immediate medical careiii.Pay workers wages for the day of the injury iv.Report injury to the WSIB

- An ‘exceeds expectations’ answer will include preventative measuresThis needs American terminology as well

FMS 4 Explain promotional methods in food marketing Did the participant discuss the importance of food sampling in food

marketing? Did the participant provide a promotional theme/campaign that complements

the companies values? Has the participant identified a target market for Harvest-to-Home? Did the participant provide a comprehensive plan to promote Harvest-to-Home

to both new and current customers?FMS Explain routine security precautions

Most stores now incorporate magnetic tags and doorway sensors. Many also now search their employees bags as they exit the store after a shift. The key here is that it must be done for all items, and for all employees. (This however won’t be effective when the manager who is checking is part of the theft problem.)

Regular rotating inventory checks will find specific areas with shrinking inventory.

Security cameras are also an option In this case it would be wise to inform staff of the situation, that jobs have been

lost and that the specific staff who have been fired are not welcome in the store anymore.

Hotel security departments usually use preventative tasks such as patrolling,

monitoring, and investigating in order to prevent problems Employees’ are properly screened to ensure that they are trustworthy

Guests are offered storage vaults or boxes to store valuables Adequate lighting is provided in the surrounding environs to ensure that guests

and their property are safe from intruders All staff should be trained in safety and security issues and to consider privacy of

information eg. What room a guest is inFMS Explain security considerations in retail food marketing businesses. FMS Explain the components of advertisements

Students should reference the major components of ads – the body or copy (the main message which is written if print), the tag line (slogan or short phrase associated with the product), the artwork (graphics and colour), the titles (including the main headline) and the contact (which includes branding – logo- and URLs, phone #s, etc). Students should provide an answer that is descriptive of all of these components

FMS 2 Explain the concept of competitionThe rivalry between two or more businesses to gain as much of the total market sales or customer acceptance as possible Helps to maintain reasonable prices, provides consumers with new and improved products, and results in a wide selection of products from which to choose. Forces businesses to operate efficiently. In this case there is a competition between the companies being evaluated, and the evaluations can have a great effect on competition

Competition Did the student discuss the pros and cons of competition? Did the student address issues related to competitive advantage?Competitors Who are the direct/indirect competitors?

What target market are they competing for?.FMS 5 Explain the concept of Market and Market Identification

Market is the term which makes reference to your actual and potential customer base

Market identification is the process of identifying existing or potential customers Market segmentation – target a specific group of potential customers – divide the

total market into smaller groups of people who share specific needs and characteristics Geographics – segmenting a market based on where people live – locally,

regional Demographics- characteristics of a population – age, gender, income,

ethnicity, education and occupation Psychographics- study of consumer’s lifestyles and the attitudes / values that

shape it Product benefits- features built into products to suit the needs/wants of

consumers Niche Market (very high end users) and Micromarket (local and individual) are

two additional means of segmenting the marketFMS 5 Explain the concept of marketing strategies

An organization's strategy that combines all of its marketing goals into one

comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a marketing planYour marketing strategy is an explanation of the goals you need to achieve with your marketing efforts. Your marketing strategy is shaped by your business goals. Your business goals and your marketing strategy should go hand-in-handA marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goalA marketing strategy is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena, corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statementBottom line: think of the definition of marketing strategy as the high-level rules that direct your marketing activities. For example, if there’s a single influencer who touches all your customers and has a significant impact on the way those customers try to solve their problem... one of your strategies may be to focus on building a strong relationship with that influential individual or companyMarketing strategies are the chosen mix of short-term and long-term marketing activities coordinated to achieve the goals of the business. The strategies used vary depending on the stage of the product life cycle, nature of competition, and availability of resources to commit to marketing efforts. Examples of strategies include but are not limited to:

- Market Introduction Strategies – the primary goal of these strategies is to increase awareness of the product and entice potential customers to try it

- Market Growth Strategies – the primary goal of these strategies is to encourage continued use of the product and increase new sales

- Differentiation Strategies – the primary goal of these strategies is to emphasize competitive advantages over competitors to sway the potential customer in the company’s favour

Market Dominance Strategies – the primary goal of these strategies is to emphasize the organization’s leadership in the market and aggressively maintain that position

FMS 7 Explain the concept of product mixA product mix is a range of related products that when sold together yields larger sales. For example, selling a chicken burger in a combo as opposed to individually A product mix is the full list of all products offered for sale by a company. In this case, the product mix will also include the service of catering. A product line is a group of goods/services in the product mix that have some kind of similarity. A product is the individual unit. The product mix can have both width (variety of products or product lines) and depth (the assortment of items offered within the product mix). Width – what are we offering? Do customers pick up the food or do we deliver? Will serving the food be done by the customers or do we provide staff? Depth – what food will be offered: current menu, additional items (party favours, napkins, cutlery). These decisions will also include the types of functions (dinners, parties, company meetings or picnics)All the different products a company sellsProduct line – group of related products – in this fast food restaurant – the burger line Depth – adding Tasty Pork is an example of product depthParticipant should identify Pork Tastyas product depth – and indicate whether or not it is consistent with the company image and other products in the lineLikely, participant will mention R&D requirements, surveys, branding, etc. – all factors to be considered when adding to product offeringsStudents would be expected to give a definition of product mix, and perhaps some related terms such as product line. A product mix is the full list of products offered or sale by a company while a product line is a group of similar products. There are certain economies of scale in keeping the number of items offered for sale to a minimum (McDonalds originally only sold 9 separate items), but today’s customers are more sophisticated and demanding. The addition of other product lines (healthier foods) would attract more customers (especially from their competitors)Product mix is a specific marketing term that is defined as all of the different products that a company makes or sells. This will include not only our food, but other items that will reflect on our image; for instance, customers that would be interested in low-fat foods might also be interested in using containers that didn’t harm the environment. This would include washable cups, plates and silverware along with recyclable products for take-out items. It would also be important to provide a mix of goods that reflects the preferences of consumerse

FMS 2 Explain the concept of productivity. FMS 2 Explain the concept of promotional mix.FMS Explain the effect of international trade on the food marketing industry

food bans – i.e. mad cow disease Food inspection/standards – different for each country

FMS 2 Explain the employee’s role in expense controlParticipants’ should begin with an explanation of the importance of expense control as it relates to this case. Points may include:

If employees are trained on safety precautions and procedures and feel that they are supported with a safe work environment, there will be less personal injuries, more awareness of their surroundings and therefore less damage to inventory

Less injuries leads to less employee absenteeism and a salary expense that is reflective of a productive workforce

Less damage to inventory leads to controlled expense of damaged inventoryIt is the company’s job to train these employees, and it is the employees’ responsibility to use the skills and know-how to help control such expenses

FMS Explain the importance of company involvement in community activitiesParticipants should indicate that effective businesses need to be active participants in their communities. Although the primary aim of community relations work is to promote civic pride and to help the local residents, these events also help create goodwill for their business participants. Customers and the general public pay attention to the sponsors of community-wide activitiesParticipant may discuss, but are not limited to, some of the following ideas:

Promotion of company’s civic consciousness and empathy Support for company’s workers living in the community Strategic positioning and promotion

FMS Explain the nature and scope of product/service management function participant may discuss that manager must make decisions based on products,

pricing, distribution and promotions provide customers with the best service possible by providing desired products at

reasonable prices as well as maximize sales and profit marginsFMS Explain the nature and scope of the pricing function

Pricing involves the value of money placed on a product or service. The function of pricing involves the strategies used to set prices of products, pricing computations such as discount and markups, and the overall relationship between pricing and the company’s profitability

Participants should be able to identify and explain factors affecting pricing in this situation. The participant’s answer may include (but is not limited to): overhead costs market value of goods (meats, vegetables, seasonal items, etc.)

Integral part of the 4 p’sDetermines ultimate success of restaurant and customer loyaltyMust cover costs, be competitive and offer a profit

Participant should some mention of the above information and how it relates to pricing of specials in this case. The discount price is likely a loss leader and must be managed if the restaurant is to be viable in the long run.

FMS Explain the nature and scope of the product/service management functionProduct management includes developing a product plan, which includes defining goals and objectives, specifying tasks or how goals will be achieved, what resources are needed, and associating budgets and timelines for completion. It also includes implementing the plan along with careful controls to stay on the “critical path”, that is to ensure the plan is being managed according to plan. Product management usually follows major phases with various titles for these phases, including feasibility study, product planning, implementation, evaluation and support / maintenance

Service manager is responsible to make sales and maximize profit margins Respond to customer requests Provide customers with best service possible

Determine products needed for customers Responsible to manage the other staff Report to the owner Decisions based on products, pricing, distribution and promotions

FMS 2 Explain the nature and scope of the selling functionParticipants should identify that the selling function provides consumers with the products or services that they want or need. They should also mention that this includes all members of the distribution channel. Participants should explain that the selling process is a personalized communication and influences the purchase of a product or service and future salesParticipants should identify the various levels of personal selling in the apparel industry as it relates to the level of interaction with customers: Stores that promote a discount image – may have limited sales staff who offer

little service beyond checking out at the cash register Stores that attract customers interested in exclusive, ‘pricey’ items have sales

personnel to not only help customers make buying decisions, but also make customers feel important

Participants should identify that the selling function is not necessarily the same for male and female customers in a female clothing store and that differences should be present to ensure that all clients are being served and all receive the same level of quality from the sales experience

FMS 5 Explain the nature of a promotional plan Detailed plan for delivering your promotional mix identifies all the potential promotional activities in promotional mix, who will

carry them out, the costs, etc Calendar based, and is tied in to the buying plan (media, products, etc) It is coordinated with all the different aspects of promotion, with distribution

and inventory, staff being ready, store being set up properlyThe participant should recognize most or all of the following components of a

promotional plan: description of promotional methods associated costs and budget explanation of how promotions relate to objective measure of success; maximizing return on promotional efforts

An outline of the marketing tools, strategies and resources that a company intends to use to promote a product or service. A promotional plan is usually considered a vital planning tool by most business managers that helps contribute toward the successful launch of a new product or service or its expansion into a new market

Promotion is one of the market mix elements or features, and a term used frequently in marketing. The marketing mix includes the four P's: price, product, promotion, and place.[1] Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. Promotion is also found in the specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[2] A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan

can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, there are three basic objectives of promotion. These are:[3]

To present information to consumers as well as othersTo increase demandTo differentiate a product

There are different ways to promote a product in different areas of media. Promoters use internet advertisements, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts (i.e., coupons), free items, or a contest. This method is used to increase the sales of a given product

FMS 2 Explain the nature of brandingFMS Explain the nature of channel-member relationships

For marketing channels to succeed in a competitive marketplace, independent organizations should combine resources to pursue common goals. Channel members often view each other as partners in delivering value to consumers. Channel member relationships can be strengthen by doing things that are mutually beneficial.

FMS 2 Explain the nature of corporate brandingCorporate branding is the practice of using a company's name as a product brand name it creates product brand recognition by use of the familiarity of the brand name. One advertising campaign can be used for several products, all under the brand name. It helps with new product acceptance because customers are already familiar with the nameDorm Outfitters has already established their company’s name with their existing clientele. They should continue to use this corporate branding as it has favourable recognition with their clients. New products, services and clientele that they develop and introduce to their customers should be branded under the existing corporate brand as the brand is already established and has positive recognition in the market. Whichever retailer they choose has to meet the same standards.

FMS Explain the nature of effective communicationStudent answers can be vary however they should indicate that communication is effective when it is clear, easy to understand and consistent. Communication is also effective if it is well matched to the target market or target audience of the particular product or message – it should “speak to” the target audience in a clear and interesting manner. Effective communication should also include consistency between communication methods. Communication is the process of exchanging messages between a sender and a receiver Effective communicators need to understand channels of communication and

media, effective listening skills, barriers to communication, and non-verbal cues. In addition, one must be prepared to read for meaning, speak properly, and write effectively

Channels (or media) are the avenues through which a message can be delivered. The choice of medium depends on the nature and importance of the message

Effective listening allows a person to identify the purpose of the speaker, give feedback, and evaluate the speaker’s message

Communication may be impeded by a number of barriers, including physical such as distance and position from the speaker, and verbal as in using vague or unclear language

Lastly, a person’s non-verbal cues—such as his or her tone of voice, emphasis, and body language—are critical because they often communicate as much as the speaker’s actual words

FMS Explain the nature of international trade to trade with communities, often in remote areas, who wouldn’t normally have the

opportunity to do businessFMS 4 Explain the nature of marketing management

"Marketing Management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target audiences for the purpose of personal and of mutual gain. It relies heavily on the adoption and coordination of product, price, promotion and place for achieving responses."

As the name implies, marketing management combines the fields of marketing and management. Marketing consists of discovering consumer needs and wants, creating the goods and services that meet those needs and wants; and pricing, promoting, and delivering those goods and services. Doing so requires attention to six major areas - markets, products, prices, places, promotion, and peopleManagement is getting things done through other people. Managers engage in five key activities - planning, organising, staffing, directing, and controlling. Marketing management implies the integration of these conceptsMarketing management decisions are based on strong knowledge of marketing functions and clear understanding and application of supervisory and managerial techniques. Marketing managers and product managers are there to execute the processes of marketing management. We, as customers, see the results of such process in the form of products, prices, advertisements, promotions, etcParticipants should be able to identify and explain marketing management as it applies to this situation. The participant’s answer may include:

Marketing management includes the use of practical marketing techniques to manage resources and activities

Tracking and review of a company’s marketing resources and activities Effective marketing management will use a company’s resources to increase

it’s customer baseFMS 2 Explain the nature of marketing planning

A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. A marketing process can be realized by the marketing mix. The last step in the process is the marketing controllingA marketing plan is the company’s strategy for positioning the product and encouraging sales. It includes a determination of the product, price, place and promotion to be used. This expectation is linked to the previous with the identification of the target market. The marketing plan that is used should make sense given the target market that was previously identified for each line. The product launch time should also be included in the marketing planSome considerations for the marketing plan might include:Product: May include identification of each product’s features and benefits: quality,

fashion, trend-setting, etcPrice: The price range has been given in the case for each line. Students may link the

price range to the target market they have identifiedPlace: can involve the positioning of each line within the shoe department of the

store. Solutions should be logical for the image created for each brand and may include merchandising methods used

Promotion: refers to the combination of all methods used to attract and create desire of the customer. This includes advertising, sales promotions, personal selling, etc.

Solutions must be tied to target market and be reasonable for the targeted market and image to be created

FMS Explain the nature of marketing plansA marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. A marketing process can be realized by the marketing mix. The last step in the process is the marketing controllingA marketing plan is the company’s strategy for positioning the product and encouraging sales. It includes a determination of the product, price, place and promotion to be used. This expectation is linked to the previous with the identification of the target market. The marketing plan that is used should make sense given the target market that was previously identified for each line. The product launch time should also be included in the marketing planSome considerations for the marketing plan might include:Product: May include identification of each product’s features and benefits: quality,

fashion, trend-setting, etcPrice: The price range has been given in the case for each line. Students may link the

price range to the target market they have identifiedPlace: can involve the positioning of each line within the shoe department of the

store. Solutions should be logical for the image created for each brand and may include merchandising methods used

Promotion: refers to the combination of all methods used to attract and create desire of the customer. This includes advertising, sales promotions, personal selling, etc.

Solutions must be tied to target market and be reasonable for the targeted market and image to be created

FMS 3 Explain the nature of overhead/operating costs Fixed costs that are “sunk costs”, i.e. already spent and not material in decision

making Arbitrarily assigned on a per unit basis for accounting reasons Will decrease on a per unit basis as unit produced increases; this will have no

real impact on business Explain the difference between fixed and variable costs Fixed costs do not fluctuate due to the number of items sold Variable costs fluctuate depending on the total number of items soldOverhead costs and operating costs deal with different types of company expensesOverhead costs generally relate to expenses necessary for the functioning of the business but which do not help to directly generate profits. Typical of these would

be rent, gas/electricity, indirect wages). Examples of rising overhead costs would be for the installation of security cameras or more expensive cash registers that would reduce employee errorsOperating costs are the recurring expenses which are related to the production and sales of a business, and therefore directly related to profits. These include direct wages, advertising, and food preparation, such as our food preparers using too much of the inventory to make our menu items. If too much food is put on a plate, or too much food is wasted in making the food, our operating costs will rise compared to sales. Since all costs will eventually reduce the amount of profit a business has, any expenses the business has related to inventory control systems and shrinkage are importantIdeally, the money spent to install and implement these systems would more than make up for the amount of shrinkage a company faces, but it still has an impact on the efficiency of a business when one includes the additional time necessary to monitor and administer these procedures. Overhead and Operating costs combine to add up to the costs of operating the

business These costs can either be fixed (overhead) or variable (operating) Overhead costs (fixed) must be paid regardless of the level of production or

saleso costs that remain the same for a period of time (insurance, rent, hydro,

water, heat, wages, taxes) Operating costs (variable) are dependent on the business’ level of production

or saleso can change monthly depending on the needs of the business

(advertising, office supplies, utilities, packaging, labour salaries)FMS 6 Explain the nature of positive customer/client relations

The participant should demonstrate an understanding of this concept through examplesA positive customer relations mindset means believing that your customers:

Deserve the very best Are your employers Deserve your focused attention Have the right to expect things of you Have important problems and complaints

Positive customer relations yield benefits to the: Business Employees Customer

Businesses benefit by being: Employees may receive: customer compliments perhaps a raise or promotion for good customer service skills

Customers may benefit from: a more pleasant, satisfactory buying experiencePositive customer relations need to be demonstrated when speaking to customers

in person, over the phone, or online. It should also be evident while handling customer complaints, inquiries and requests. Demonstrate good customer relations by doing the following: considering and attempting to meet their needs concentrating on the without distractions follow up with them following through on what you say you are going to do

being efficient in handling issuesFMS 3 Explain the nature of product/service branding

In an ever-competitive world, branding is one way of helping you increase sales and at the same time protect and extend the uniqueness of your service or product. Your uniqueness is the very reason why it’s important to develop your brand, and your brand is not your logoYour brand helps customers and prospects, understand and remember what’s unique about you. It tells your story and helps attract new customers and keep the ones you already have. Your brand is the definition that identifies your business, and makes specific promises: Walmart’s brand is about saving money (Save Money, Live Better). Mazda’s brand is about having fun while driving (Zoom-zoom)Branding is just as important for small business as for large ones. For example, there are hundreds of coffee shops in Vancouver, several per block in some neighbourhoods. Why do some thrive while others fail? Is the coffee better? Is the atmosphere friendlier? Is the service faster? Is the price lower? Is one the go-to location for business meetings, where another is the neighbourhood hang-out? A good brand speaks clearly to its audience about the nature of the product or service, and the people behind itA well-branded business knows the one or two things it’s best at, and uses those to create a brand message. A good brand:

delivers its message clearly confirms the credibility of the message connects to its audience emotionally motivates the buyer reinforces loyalty

A brand isn’t “different for the sake of being different.” A strong brand is clearly differentiated by its own unique story

FMS 2 Explain the nature of staff communicationStaff communication refers to the sharing of information within an organization. This can involve communication from management to other staff members (top-down communication), communication from staff members to management (bottom-up communication), and communication among staff membersStaff communication is an important way to keep staff up-to-date on information that affects the business and that is necessary for them to effectively do their jobs. The student should explain the role does staff communication plays in workplace

safety What is the purpose of changing the current staff communication structure

o Improve productivityo Cut costs

o Ensure congruency of information relayed to customersFMS Explain the nature of stress management. FMS Explain the need for professional and ethical standards in marketing

The participant should identify what ethical and professional behaviour is and why this type of behaviour and standards are needed in marketing. Companies are encouraged to set standards for their employees to follow when marketing their products. Marketers have a responsibility for ethical behaviour as it relates to advertising and sales Marketers should avoid false or misleading advertising for products or services Marketers should not pressure or mislead consumers with their sales tactics or

promotionsWithout professional and ethical standards, companies may be tempted to engage in deceptive marketing practices. Deceptive practices include, misrepresentation, omission, or misleading practice. Consumers may also encounter deceptive pricing practices or false comparative information. All of these practices may lead the consumer to be unhappy and ultimately stop relying on marketing information from companies. This will make it more difficult for all companies to sell their products

FMS Explain the rights of workers Participant may discuss the following rights of workers: To be treated fairly and ethically To be compensated for work done To receive benefits as outlined in company policies and procedures To vacation as per provincial laws and company policies To work without harassment

FMS 2 Explain the role and responsibilities of retail merchandisers Did the participant explain the importance of providing its employees with a safe

and positive working environment? Did the participant outline the responsibilities the merchandiser has to the

customer? Did the participant discuss the role a retail merchandiser has to the society within

which it does business?FMS Explain the role of business in society

Businesses provide employment opportunities for people in society. These people become trained, skilled workers through their work experience thereby increasing their work capacity and potential to contribute to the business and the economy. As workers develop, they are paid reflective of their skills, experience, and contributions

Some of the compensation earned by working is spent on consumables purchased from other businesses. This revenue generation allows the businesses to continue to afford to employ more people

The government taxes business income, personal income, and purchases. This money is then reinvested into programs such as health care, education, and infrastructure for the maintenance and betterment of our standard of living

Businesses also have a responsibility to the environment and sustainable practices such that future generations’ quality of life and standard of living aren’t compromised for today’s society

Provide employment to people and therefore compensation and a means of achieving a standard of living

Contribute to the improvement of society through the development of inventions and innovations

Offer essential services to people via public sector businesses Offer luxury services and allow for the consumption of entertainment, the arts,

sports, etcFMS 4 Explain the role of customer service as a component of selling relationships

Selling relies on repeat business – customer service drives repeat businessIntegral to successful selling is good customer contact. Service extras are what the customer will remember and cause him/her to returnProduct knowledge is part of customer serviceParticipant should mention specifics of customer service as it applies to The Shed – product knowledge, speed of service, acknowledging customer concerns. In this case, acknowledge should be made of the fact that the server was likely at fault and that the table in question could have been offered the discount, or some other incentive to return to the restaurant. Ensuring customer satisfaction must be the goal.

FMS 5 Explain the role of promotion as a marketing function Promotion is part of the marketing mix Promotional mix includes personal selling, advertising, sales promotions and

public relations/publicity Talk about promoting brand image and creating brand identity and loyalty Increase awareness Increase sales Persuasive communication Informs people about products and services Used to enhance public image, reputation and to persuade people that the

company’s products are valuable Goals of promotion = AIDA – first attract Attention, then build Interest and

Desire and finally ask for Action Promotion used to convince prospects to select ABC services instead of the

competition Promotional activities explain the major features and benefits of the

product/service, identify where it is sold, advertise sales, answer customer questions and introduce new offerings

Product promotion helps companies to foster good relations with existing customers and creates loyalty

FMS Explain the role of situation analysis in the marketing planning process SWOT analysis: measure of Strengths, weaknesses, opportunities and threats SWOT analysis should distinguish between where your organization is today,

and where it could be in the future Once key issues have been identified with your SWOT analysis, they feed into

marketing objectives Study of the internal and external factors that affect marketing strategy SWOT Examination of the overall market – opportunities and threats, competition

Participant could perform SWOT analysis and determine that the opportunity is ripe for a new product launch – this is the expectation of the owner

FMS Explain the role of training and human resource development. FMS 3 Explain the selling process

Basic selling process: identify need/want, find information on alternatives, evaluate alternatives, purchase, evaluate post-purchase satisfaction

Many customers need help in determining the correct products to solve their problems

Store personnel have the opportunity to up-sell and cross-sell other products while the customer is there

FMS Explain the types of advertising media Mail Print Advertising – Newspapers, Magazines, Brochures, Fliers Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events Broadcast advertising – Television, Radio and the Internet Covert Advertising – Advertising in Movies Celebrity Advertising

FMS 2 Explain the types of economic systemsFMS 3 Explain the types of promotion

Promotion itself has its own elements called the promotional mix, namely, advertising, sales promotion, public relations, and personal selling Emphasize the perceive value offered to customers. Customers more likely to believe prices are fair if they perceive value in the product

Advertising Personal Selling Sales Promotion Public Relations

FMS 2 Explain the use of visual merchandising in retailing.FMS Explain types of accidents in retail food marketing businesses. FMS Explain types of business riskFMS Explain types of display arrangementsFMS Explain ways that technology impacts food marketingFMS 7 Foster Positive Relationships

Answers will vary and should include methods of creating good working relationships among all employees of an organization

Answers may also include benefits to the organization of positive working relationships.

Ensure that employees keep personal problems with other co-workers out of work time so that job performance and customer service is the main focus

Ensure that employees are happy and courteous to fellow employees even if they did not have a good day. A negative attitude sets everyone off in a bad way

Make work fun – arrange social events for employees to establish a more personal relationship, not just working relationship (i.e. team sports, get togethers, drinks after work, etc.)- create a bond between workers

o Establish team member roles and responsibilitieso Determine a common goal and strategies to achieve ito Lay out employee expectationso Weekly meetingso Strategically match workers by skill, experience, education, interests,

etco Open communication – allow employees to approach leader about any

issues they are experiencingo Have fun – plan a social so members can bond on a more personal

level and not just business (i.e. drinks after work, lunch with the team, etc)

The company needs to celebrate the success of the new schedule Organize a company picnic or other social event for all of the families that

recognizes that the entire family, not just the employees, has had to make adjustments because of the changes

Perhaps 5% of the 23% cost savings could be passed on to the employeesThere are several characteristics that make up good, healthy working relationships:

Trust – This is the foundation of every good relationship. When you trust your team and colleagues, you form a powerful bond that helps you work and communicate more effectively. If you trust the people you work with, you can be open and honest in your thoughts and actions, and you don't have to waste time and energy "watching your back."

Mutual Respect – When you respect the people that you work with, you value their input and ideas, and they value yours. Working together, you can develop solutions based on your collective insight, wisdom and creativity

Mindfulness – This means taking responsibility for your words and actions. Those who are mindful are careful and attend to what they say, and they don't let their own negative emotions impact the people around them

Welcoming Diversity – People with good relationships not only accept diverse people and opinions, but they welcome them. For instance, when your friends and colleagues offer different opinions from yours, you take the time to consider what they have to say, and factor their insights into your decision-making

Open Communication – We communicate all day, whether we're sending emails and IMs, or meeting face-to-face. The better and more effectively you communicate with those around you, the richer your relationships will be. All good relationships depend on open, honest communication

FMS 2 Handle customer inquiriesFMS 2 Handle customer/client complaints

Similar to handling difficult customers – remain calm Follow a step by step process Listen to the complaint Apologize for customer feeling this way Try to explain why this situation may have occurred, If possible rectify it, or call

someone more superior (manager) who can Acknowledge the frustration and disappointment that the customer must be

experiencing Admit that this was a human error on behalf of the staff and that errors do happen

and you will do everything you can to locate another watch for the customerFMS Handle situations when the customer is at faultFMS Identify career opportunities in retail merchandisingFMS 2 Identify communication channels used in sales promotion

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands that they sellTraditional methods can be covered (print, television, radio) as the target market is an older audience who may/may not use social media (the target are those who are purchasing the gift cards, not the graduates themselves)Communication channels used in promotion may include: Print media – newspapers, magazines, direct mail Broadcast media – radio, television Display media – billboards, signs, posters Electronic media – internet, mobile web Social media – Facebook, Twitter, Instagram, etc.

The participant should demonstrate an understanding of the target market and select the appropriate promotional medium (i.e. print, broadcast, etc.)

FMS 2 Identify company’s brand promiseParticipants should make the connection between the company’s slogan, “A positive place for positive results” and the mindset of the employees. Brands are names, terms, designs, or symbols that distinguish a product from their competitors and they communicate features, benefits, qualities and value. Effectively using the slogan will help build product recognition, customer loyalty and ensure consistent qualityIn this case the company’s brand promise is delivered through their brand name (the name of the company), and their slogan to build that into their entire business through employee behaviour and customer’s expectations and the importance of living up to it to maintain their image

FMS Identify desirable personality traits important to businessStudents may cite the “7 habits of highly effective people” (Independence – proactive, begin with end in mind, putting first things first, Interdependence – think win-win, seek first to understand then to be understood, synergize, continuous improvement – Sharpen the saw) or they may simply discuss desirable traits such as: confidence, flexibility, motivation, enthusiasm, creativity, intelligence, emotional intelligence, etc

FMS Identify elements of promotional mixAdvertising

Newspaper, television ads Billboards and in-store displays

Personal Selling Samples In-store face-to-face advertising

Tele-marketingSales Promotion

Coupons, Sweepstakes/contest (Enter to win with purchase…) and RebatesPublicity/Public Relations

Holding a charity event on behalf of the store/new department Host competition Host community event (Barbecue, Bake Sale etc.)

FMS 2 Identify elements of promotional mixAdvertising

Newspaper, television ads Billboards and in-store displays

Personal Selling Samples In-store face-to-face advertising Tele-marketing

Sales Promotion Coupons, Sweepstakes/contest (Enter to win with purchase…) and Rebates

Publicity/Public Relations Holding a charity event on behalf of the store/new department Host competition Host community event (Barbecue, Bake Sale etc.)

FMS 6 Identify factors affecting a business’s profitProfit is the monetary return a business` owner receives for taking the risk of investing in the business. Profit equals income less expenses. There are two types of profit: gross – the money left over after the cost of goods is subtracted from sales, and net – the money left over after the operating expenses are subtracted from the gross profitFactors that affect profit include: the demand for the good/service, expenses, prices, the economy, and chance. To increase profit, a business can increase worker efficiency, increase sales or decrease expenses Revenues: number sold * sales price per ruler Expenses: Fixed costs + (variable costs * number produced) 4 P’s of marketing – Product; Price; Place; Promotion 4 C’s of marketing – Consumer wants/needs; Cost to satisfy; convenience to

buy; Communication The amount of sales The cost of the merchandise Price merchandise is being sold for Amount of overhead Cost of sales Competition Success of an advertising campaign Merchandise that is being sold Ability of the sales staff Ability of staff to close sales and to add on sales once an initial sale has been

closed

Revenues: rentals Expenses: advertising, salary, rent, utilities expenses

FMS 2 Identify forms of economic utility created by marketing activities.FMS 2 Identify information monitored for marketing decision-making

Target and segment markets for a new endeavor need to be explored thoroughly. It is possible to identify the type of customer that would be more likely to eat in each of the two styles of restaurant. The majority of the information required would involve determining the demographics and psychographics of the potential customers in each city. Demographics are the finite or definitive characteristics of a group of people in an area and would include a combination of age groups, incomes, education, occupation, type of dwelling, living downtown or in suburban areas, size of the family, etc. Psychographics deals with is their attitudes and interests

The company would also have to determine the competition already in each market to determine if there are enough customers to support an additional restaurant how often customer frequents establishment revenue per customer area that customers come from demographic characteristics revenue per customer

FMS Identify issues and trends in retailing. FMS 2 Identify major product categories and classifications of food products in grocery

stores.FMS Identify market segments

Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.A market segment should be:

Easily and clearly identifiable Measurable Accessible by promotion, communication and distribution channels Different in its response to a marketing mix Stable (not changing too quickly) Appropriate for the company’s policies and resources Substantial enough to be profitable

Segments may be Geographic, Demographic, Psychographic or BehavioralFMS Identify new product opportunities

Consumers have more and more education – demand higher quality goods that meet “green marketing/ethical” standards

Microwaveable meals to begin with – adult consumers Expansion of product line to include infant and children’s food products;

snacks, etc. – all meeting quality standards of the brandFMS 5 Identify product opportunities

Need to identify appropriate target markets and further develop their individual needs

and wants. This would be preferable to simply advertising a general service. Many of the answers will be based on the specific location and demographics we deal with. Requires market research, market segmentation, product research etc

FMS 6 Identify product’s/service’s competitive advantageAn advantage that a firm has over its competitors; allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer supportCompetitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. It is the reason behind brand loyalty and why you prefer one product or service over another. There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategiesCost is not going to change in terms of the service provided, except that for the customer it provides convenience in still being able to get to work easily, To add product service differentiation, providing transportation to work would be an added value for the customer. Being the only service centre close to the place of employment of so many people is a niche strategy and making special offers to these customers will create a brand loyaltyWith the advent of product differentiation and niche and direct marketing, that reality has changed, and now there are niche markets in which both individual and wholesale buyers are looking for products with very specific characteristics or special services. These characteristics often use strategies that don’t focus on costs and volumes exclusively; rather the product or service may be of premium quality, be differentiated from other products and services available in the market (such as organic, natural, or humane production), or have a value-added component (i.e. flavored meats, pre-washed salad mixes, etc.)

FMS Identify quality-control measuresA business builds a loyal clientele and many people in other cities would be aware of their name and image. Customers will have an idea of what to expect when they go to any location with the same name, and therefore, it is very important that the quality, presentation, product is carefully duplicatedIt should be relatively easy to use the same suppliers for all locations. The bigger and more flexible issue will involve consistent presentation. In the case of a restaurant each cook usually develops their own particular “touch” with the food they are preparing, and extensive training or rigid guidelines will have to be in place to ensure consistent quality among locations. This will even involve the presentation and serving of food to the customersThe Head Office should also consider having area supervisors who would travel from location to location to ensure the consistency was being maintained.

FMS 2 Identify routine activities for maintaining business facilities and equipment Better organization of merchandise for the customers to purchase Assigning responsibility for cleaning and restocking merchandise areas Management supervision to ensure ongoing maintenance of area Asking for customer feedback on service levels provided

The student should be addressing the customer service needs and desires. If their

wait is going to be long, they either need to get to the stores or have a good experience in the waiting room. Maintaining the customers in the service area will be much easier for the staff, and the business.

FMS Identify skills needed to enhance career progressionFMS Identify sources of career preparationFMS Identify the effects of international trade on buying and merchandising

Export/import laws Tariffs Economic conditions of trade countries Human Rights issues

FMS 2 Identify the elements of the promotional mixThe combination of personal selling, advertising, sales promotion, direct marketing and public relations make up the promotional mix. Each plays a vital role in promoting businesses and their productsReference:

o Personal Selling – Personal selling requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers. It is one of the costliest forms of promotion. Direct contact can take the form of personal meetings, telemarketing, email contact and correspondence

o Advertising – is a form of nonpersonal promotion. Companies pay to promote ideas, goods or services in a variety of media outlets. Advertising can be found everywhere from magazines, newspapers, televisions and web sites to gymnasiums and city buses. With advertising a company engages in one-way communication to the prospect or customer

o Sales promotion – represents all marketing activities – other than personal selling, advertising and public relations that are used to stimulate purchasing and sales. The objectives of sales promotions are to increase sales, inform potential customers about new products and create a positive business or corporate image

o Direct marketing – advertising directed to a target group of prospects and customers rather than to a mass audience. The two forms of direct marketing are printed direct mail, which is information sent via regular mail to home or business and electronic direct mail. The goals of direct marketing are to generate sales or leads for sales representatives to pursue. Generally direct marketing generates a response from the targeted customer i.e. special offer coupon. Direct marketing gives recipients an incentive to respond

o Public Relations and PublicityPublic Relations (PR) – activities enable an organization to influence a target audience. Often public relations campaigns try to create a favourable image for a company, its products, or its policies. However, companies can rely on public relations strategies and techniques for many reasons. One of the goals of a public relations program is to cultivate media relations with reporters who cover a specific industryOne of the most important media tools is the news release. A news release is

an announcement that is sent to the appropriate media outletsPublicity involves bringing news or newsworthy information about an organization to the public’s attention. This process is known as placement. The main function of publicity is to develop a positive perception or awareness of the organization in the marketplace. The right kind of publicity can create and maintain a company’s image; negative publicity can devastate it. People like to do business with respectable companies. Placement of publicity is free. A news story on the evening news is free while advertising can cost thousands of dollars. News reporters are usually viewed as more objective than advertisers. The disadvantage is that you cannot control the content of publicity

FMS 2 Identify the elements of visual merchandisingFMS 2 Identify the market segments that are most likely to use servicesFMS Identify the reasons for changes occurring in retailingFMS 2 Identify the types of promotionFMS Identify ways that technology impacts business

Computer software and hardware provide a manager with the means for capturing, storing, and analyzing information regarding the operations of the businessBetter technology makes the job of managing easier because it improves the accuracy, timeliness, and usefulness of the information producedExample: computer scanning of UPC codes when receiving eliminates errors made in identifying part numbers, which is an important factor in managing inventoryExample: linking the sales processing and invoicing system to the inventory management system also improves accuracy and reduces loss.The legal field has expanded due to the impact technology as had on society. Today technology is a term referred to daily in every business. It may be relating to ticket sales in the entertainment business or on-line shoe sales in retail. It may be related to a new phone system being installed or new data entry software. There is no end to the impact technology has on communication, productivity and the overall nature of today’s business culture. With this new powerful innovative tool, come concerns and cautions that create a need for counsel in terms of confidentiality, on-line security, trademark and copyright protection, cross- culture issues, and more. Technology has also created concerns for ethics, but the benefits from profits and savings in productivity outweighs these concerns and commerce demands that technology keep rolling in a fast and aggressive manner

Can make it more effective and efficient Easy to organize information and keep track of it Can reduce costs for organization (automated payroll, bookkeeping etc.) Can create a secure environment to maintain sensitive business or consumer

information Can improve company communication processes within organization and with

customersFMS 2 Identify what customer services are offered by supermarkets.FMS Maintain appropriate personal appearanceFMS Maintain customer records

Demonstrate how records will be maintained for easy accessEnsure that cost of maintaining records is manageable

FMS 2 Maintain product qualityFMS 2 Make decisionsFMS Monitor and maintain food-holding temperaturesFMS Monitor internal records for business information

Information is the foundation of control The emails and phone calls should be monitored. The results should be

communicated to the employees that are not adhering to the policy and their managers. Employees that are not following the policy should be disciplined. This would entail being warned verbally once, written up at the second offense, suspended without pay at the third and fired at the fourth offense. This process may vary based on how the employees deal with these steps

Employees that adhere to the new policy should be acknowledged This is a company that makes money by dealing with secure credit card

information. All of the internal records (beyond emails and phone calls) should be monitored on a continual basis

Proper inventory control is necessary to prevent loss Inventory is an asset of the business that needs to be protected Internal records provide the history of the business which helps to predict and

plan for the futureFMS 3 Orient new employees

When new employees are hired, it is important they complete an orientation process. This is used to introduce them to the business’s culture, brand and ways of working. It is also an opportunity for the business to communicate its expectations based on accountabilities, customer service, quality, etc. Orientation also involves training new employees on how to do their jobsThe participant may discuss the role of the assistant manager in training new employees. They may also point some specific aspects of new employee orientation that will be important, such as: Giving new employees a tour Providing new employees with an opportunity to shadow other employees doing

the same job Providing new employees with training on any equipment they are required to

operate including POS systems, computer-based systems for entering customer orders and making table reservations, etc

The participant may also provide additional examples of what will be included in new employee orientation at this restaurant Once a candidate is selected, the most basic part of training is employee

orientation through which employees get acquainted with company policies and programs, personnel with whom they will interact, and the nature of the job

This probationary period can last between 2-4 weeksMentors may be assigned within a relevant department to assist the new employee through this process

FMS Participate as a team member

FMS 3 Persuade othersFMS Plan holiday food promotionsFMS Plan special events

Participant should incorporate the following elements into their plan for the special event: Advertising, including where it would be placed Stock levels on hand Number of employees required Hours of the special event Whether rain checks will be available Security personnel Description of the event – what are the specifics of the sale, which departments,

what prices/promotions, etcFMS 2 Plan stockFMS 2 Plan/Schedule displays/themes with managementFMS Prepare store/department for special eventFMS Provide directions for completing job tasks

The participant as human resources manager is to outline a set of directions to complete the job tasks. This might include:

Instructions to assess employees needed to work the event Hiring process Instructions for orientation and training of new and existing employees Instructions to evaluate and to reward employees Instructions to identify employees the company may wish to hire for other

events in the future Give clear directions Be consistent Treat employees fairly Be firm when necessary Set a good example Delegate responsibility Foster teamwork Be ethical

FMS Reinforce service orientation through communicationService orientation refers to a focus on service. In communication, service orientation can be maintained by demonstrating emphasis on customer service in all communication. Similar to handling difficult customers, communication with a service orientation should demonstrate empathy and a focus on finding solutions that will satisfy the needs of the customer

staff to be trained in proper customer service techniques, including greeting customers, asking to assist them, wishing them a good day when leaving, etc

customer service training, tips and messages to take place on on-going basis in staff meetings, employee newsletters, employee bulletin boards

training to include role plays of customer service situations thanking customer to be part of role plays concluding transactions at cash

employees must make it clear to customers that we want to help them; the whole experience in our store must be positive

open communication from customer – employees – management (full circle) customers can be given opportunity to fill out comment cards/on-line surveys,

perhaps with chance to win something/discountsemployees also be given chance to fill out feedback forms, surveys, suggestions

FMS Respond to customer inquiriesFMS Select target marketFMS Show empathy for others

Empathy is defined as the ability to understand and share the feelings of another. Thus, an empathetic student will try to directly relate to the customer’s feelings considering the sensitivity and importance of the event – the customer’s wedding. The company should provide an opportunity for employees to voice their grievances, have input into the schedule and be a part of the decision-making process. Perhaps a few employees could sit on the committee to determine how the new schedule will work. Empathetic comments might include: I understand how important this event is and how hard it must be to plan

everything in time I understand that you are upset and worried about your event Acknowledge the frustration that the customer must be feeling Explain that you too would be frustrated and upset if this happened to you It is important that businesses anticipate possible problems and explain to the

customer the steps that they can take to resolve the issue Present in a positive way all of the things that the store will do to resolve this

issueFMS 2 Use appropriate assertiveness

To be able to handle conflicts the proper way you must be assertive. Assertiveness is when you make your feelings known and make changes that will reduce your stress without making you feel guilty. When you are assertive you reduce the anxiety in conflict situations. Finally, assertiveness can bring you increased respect from others, allow you to get rid of negative or hurtful feelings and help you achieve your goals Describe the other person's behavior. – The client made a reservation through

a third party site rather than the more trusted hotel itself Express your feelings (use "I" statements) Focus on the action, not on the

person as being a problem. I am very sorry, but I cannot make changes to the fact that all of the suites are already booked. I don’t know how CheapCheap

Specify what you want changed Offer a reasonable solution. Make an offer, with explanations, perhaps a chart, showing that you are meeting the client half way, and offering them paper documentation about the discrepancy between the special rate offered by the hotel and that offered by the 3rd party web site for their pursuit of compensation from CheapCheap

Consequences Outline clearly and calmly what will happen if nothing is changed. Obviously there cannot be a suite made available, so either the 2 standard rooms adjoining are accepted, or assistance could be offered to find a similar suite at another hotel nearby.

FMS Use proper grammar and vocabularyFMS 2 Write promotional messages that appeal to targeted markets