Isfeld Marketing/Entrepreneurship: September 2023

Wednesday 27 September 2023

New Tech Inventions

Why work in groups?

If you’re in business school, you will almost certainly find yourself engaged in team-based activities. And, “in the real world, you have to work with people. You don’t always know the people you work with, and you don’t always get along with them. Your boss won’t particularly care, and if you can’t get the job done, your job may end up on the line. Life is all about group work, whether we like it or not. And school, in many ways, prepares us for life, including working with others.”

Working in Groups

“The whole is greater than the sum of the parts.” A phrase attributed to Aristotle. The phrase is also used to explain the importance of Synergy.

Teamwork brings people together to work towards a common goal. The importance of teamwork and collaboration does not go unnoticed in a real world work environment. When people work together, they can feel like they are part of something bigger.

Working together entails all of the following, plus more:

Leadership: Leaders emerge in teams. They help to motivate team members and keep everyone aligned on the path to success.
Communication: When working together, you open up lines of communication. In this way, you can share your ideas and express your concerns.
Benefit Of Different Skill Sets: People can definitely work alone. But when you bring people from diverse backgrounds together, you get the added value of mixed skill sets. This can create better outcomes.
New And Creative Skills: Through communication, team members can come up with creative ideas.
Problem-Solving Is Maximized: Since everyone approaches a problem with a different perspective, working together makes problem-solving easier. Your teammate may see a solution that you otherwise wouldn’t think of!
Following these steps will help you and your group to work effectively together.

Set clear objectives. At each stage you should try to agree on group goals and objectives
Set ground rules. ... ( everyone has a role and participates)
Communicate efficiently. ( everyone should have a say, the loudest person should not control the group) ...
Build consensus. ... ( this means all people should agree on the plan)
Define roles. ... ( each person has a job to do, play to your strengths)
Clarify. ... ( make sure everyone understands the assignment and expectations)
Keep good records. ...

Working on Chopstick Assignment

Group Chopstick Assignment

DAY #1

The challenge is to transform the chopsticks in order to create a new product to sell.

Materials: tape, glue, paint, paper etc.

Step #1: Working for 10 minutes on your own, research as many ideas as you can find to bring to your group.

Step #2: Get together with your group of 3-4 people and brainstorm your ideas. Remember not to judge ideas and accept all ideas at this point. (10-15 min)

Step #3: Decide on an idea as a group, gather the materials to create the new product.

DAY #2

Product Production: 2 members of the group will create the product and possibly the product packaging, making it look as professional as possible.

Product Description: 2 members will write up the details of the product and should include the following:

A full description of the product and how it would be used
Target market for the product, also explaining why they would want to buy the product
Answer the question, What problem does this product solve?
Estimated price of the product and why you chose that price
Where you would plan to sell the product.

Decide who is going to write the pitch and who ( can be more than one person) is going to give the pitch or present the new product in a creative way to the class. Make sure you explain or show how the product will be used.

DAY #3 Class presentations and evaluations.

Evaluation

ability to work cooperatively and collaboratively within a group environment
ability to work together to make a decision
quality and creativity of your product
communication of the details of your product
practicality of the product working in the real world

Monday 18 September 2023

New Product Development
The small business environment today is very dynamic and competitive, and new product development is a crucial process if you want to survive. For small enterprises to withstand competition from multinationals, they have to continuously update their products to conform to current trends. The new product development process is the cycle that a new product has to undergo from conceptualization to the final introduction into the market.

Phase One: Idea Generation
Phase Two: Screening
Phase Three: Concept Development
Phase Four: Product Development
Phase Five: Commercialization and Rollout

https://www.kickstarter.com/

Example: It's a bag!

https://www.indiegogo.com/

Indiegogo/Kickstarter Assignment ( individually or in pairs) Presentation project

1.Choose and describe your product. Include a photo of your product.

2.What problem is your product solving?

3. Who do you think is your target market?

4. List the positives of the product and explain why you think it would be successful.

Tuesday 12 September 2023

Product Life Cycle

A Product Life Cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product's life cycle is usually broken down into four stages; introduction, growth, maturity, and decline.

Link to further Information: Product Life Cycle

Creative Challenge: Come up with as many ideas as you can for new product ideas for 100,000 frisbees that will not fly. You can transform in any way you like but it may be more costly to trasform the product. Remember you are trying to save your company money.

Dragon's Den S14 E4

More about the Dragons: Dragons: Jim Trelving, Arlene Dickinson, Manjit Minhas, Lane Merrifield, Vincenzo Guzzo, Michelle Romanow, Wes Hall.

Dragon's Den

Purpose: to learn about new products, new businesses, how entrepreneurship works, understanding the pitch and how to find investments for your business. What works, what doesn't work in business

Here’s a list of terms/definitions that are frequently used in “Shark Tank and Dragon's Den”:

Equity: when participants present their businesses to the sharks, they start by saying something like “I’m looking for $250,000 for a 25% stake in my business”. The 25% stake is the equity that the shark would get if they agreed to that deal. Equity represents ownership of the company. So in this example, 25% equity means that the shark would own 25% of the business.

TARGET MARKET: THE GROUP OF PEOPLE THE COMPANY IS TRYING TO GET TO PURCHASE THEIR PRODUCT OR SERVICE.
VALUATION: THE EQUITY STAKE HELPS TO FIND THE VALUATION OF THE COMPANY. THE VALUATION OF THE COMPANY TELLS YOU HOW MUCH THE COMPANY AS A WHOLE IS WORTH. YOU CAN FIND THIS VALUE BY DIVIDING THE INVESTMENT BY THE EQUITY STAKE. GOING ALONG WITH THE PREVIOUS EXAMPLE, DIVIDE $250,000 BY 25%. THIS WOULD GIVE THE COMPANY A $1 MILLION VALUATION (BECAUSE $250,000 DIVIDED BY 25% EQUALS $1 MILLION). IN OTHER WORDS, THIS MEANS THAT THE COMPANY IS WORTH $1 MILLION.
GROSS SALES: THIS IS THE TOTAL AMOUNT OF MONEY EARNED FROM A COMPANY BY SELLING THEIR PRODUCT/SERVICE. FOR EXAMPLE, IF A COMPANY SELLS 1000 UNITS OF ITS PRODUCT AT $5 APIECE, THEIR GROSS SALES WOULD BE $5,000.
NET SALES: THIS IS THE GROSS SALES MINUS RETURNS, ALLOWANCES, AND DISCOUNTS (SEE WHAT THESE DEDUCTIONS MEAN BELOW). NET SALES ARE USUALLY COMPARED TO GROSS SALES TO DETERMINE THE QUALITY OF THE PRODUCTS (I.E. A LARGE DIFFERENCE BETWEEN GROSS AND NET SALES COULD MEAN A QUALITY ISSUE SINCE MANY PEOPLE MAY BE RETURNING THE PRODUCT).
ALLOWANCES: PRICE REDUCTIONS FOR DEFECTIVE/DAMAGED GOODS (PARTIAL REFUND)
DISCOUNTS: A PRICE REDUCTION FOR CUSTOMERS IF PAYMENTS ARE MADE BY A SPECIFIC DATE
REVENUE: ANY INCOME SOURCE FROM A COMPANY’S BUSINESS MODEL.
PRE-REVENUE: THIS IS A FANCY TERM THAT MEANS THAT A BUSINESS HASN’T STARTED SELLING OR HASN’T MONETIZED THEIR BUSINESS YET.
MARGIN: THIS IS A MEASURE OF HOW PROFITABLE A PRODUCT IS (IT’S ALSO REFERRED TO AS “PROFIT MARGIN”). IN OTHER WORDS, IT SHOWS HOW MUCH MONEY FROM EVERY SALE OF A PRODUCT THAT THE BUSINESS KEEPS. THE MARGIN IS EXPRESSED AS A PERCENTAGE. FOR EXAMPLE, IF A PRODUCT SELLS FOR $5 AND COSTS $1 TO MAKE, THE PROFIT MARGIN WOULD BE 80%. THIS IS FOUND BY SUBTRACTING $1 FROM $5, THEN DIVIDING BY $5. THIS MEANS THAT THE BUSINESS MAKES $4 FROM EACH SALE (SO 80% OF THE SALE GOES BACK TO THE COMPANY).
OVERHEAD: THESE ARE COSTS THAT AREN’T DIRECTLY RELATED TO THE PRODUCTION OF THE PRODUCT (I.E. OVERHEAD DOESN’T INCLUDE LABOR, MATERIALS, ETC. RELATED TO THE PRODUCT). I SPECIFICALLY USED THE WORD “DIRECTLY” BECAUSE SOME OVERHEAD COSTS ARE ALSO REFERRED TO AS INDIRECT COSTS. EXAMPLES OF OVERHEAD COSTS INCLUDE RENT, UTILITIES, INSURANCE, LEGAL FEES, ETC.
ROYALTY: PAYMENTS MADE TO AN INVESTOR/OWNER OF A PRODUCT OR PROPERTY IN ORDER FOR ANOTHER PARTY TO USE/SELL IT. THE PROPERTY COULD BE IN THE FORM OF A PATENT, COPYRIGHT, OR TRADEMARK. FOR EXAMPLE, THE INVESTOR MAY BE PAID A ROYALTY OF $2 PER PRODUCT SOLD. IF THE PRODUCT SELLS FOR $10, THEN THE INVESTOR WOULD RECEIVE $2 EACH TIME SOMEONE BUYS IT.
CONTINGENCY: AN AGREEMENT TO DO SOMETHING AS LONG AS ANOTHER THING HAPPENS. FOR EXAMPLE, IT’S COMMON TO HEAR THAT A “DEAL IS CONTINGENT ON ABC HAPPENING”. THIS MEANS THAT THE DEAL WILL NOT HAPPEN UNLESS ABC HAPPENS. IF ABC DOES NOT WORK OUT, THE DEAL WILL FALL THROUGH.
SCALABILITY: THE ABILITY FOR A COMPANY TO GROW. REFERS TO A BUSINESS’S ABILITY TO HANDLE INCREASING SALES VOLUMES, MAINTAINING PROFITABILITY, MEETING MARKET DEMANDS, ETC.
PURCHASE ORDER (PO): A DOCUMENT FROM A BUYER AGREEING TO PURCHASE X NUMBER OF PRODUCTS FROM A SUPPLIER.
PATENT: A FORM OF INTELLECTUAL PROPERTY ON AN INVENTION. THIS MEANS THAT THE OWNER OF THE PATENT CAN EXCLUDE ANYONE ELSE FROM MAKING, USING, SELLING, AND IMPORTING THAT INVENTION. NO ONE CAN COPY THE PATENTED PRODUCT!
TRADEMARK: ANOTHER FORM OF INTELLECTUAL PROPERTY BUT FOR A RECOGNIZABLE WORD, SYMBOL, SIGN, OR DESIGN THAT IDENTIFIES A PRODUCT OR SERVICE. THESE COULD BE A BRAND NAME LIKE APPLE OR MCDONALDS, A PRODUCT NAME LIKE IPOD OR BIG MAC, A COMPANY LOGO LIKE A BITTEN APPLE OR GOLDEN ARCHES, OR A SLOGAN LIKE “THINK DIFFERENT.” OR “I’M LOVIN’ IT”. WITH A TRADEMARK, NO OTHER COMPANY CAN USE YOUR BRAND NAME, LOGO, PRODUCT NAME, SLOGAN, ETC.
COPYRIGHT: ANOTHER FORM OF INTELLECTUAL PROPERTY BUT FOR BOOKS, MOVIES, PICTURES, SONGS, WEBSITES, ETC.
PROPRIETARY: A TERM REFERRING TO OWNERSHIP IN AN IDEA AND THE FACT THAT NO ONE ELSE CAN COPY YOU. IF YOU HAVE A PATENT, TRADEMARK, OR SOME OTHER INTELLECTUAL PROPERTY, YOUR IDEA IS PROPRIETARY BECAUSE NO ONE ELSE CAN COPY YOU.
PERPETUITY: ANOTHER WORD FOR FOREVER. AN INVESTOR MAY SAY THAT THEY WANT “A $2 ROYALTY IN PERPETUITY”. THIS MEANS THEY’LL GET $2 FROM EACH PRODUCT SOLD FOR AS LONG AS THE PRODUCT IS BEING SOLD.
WHOLESALE PRICE: THE PRICE CHARGED TO A DISTRIBUTOR (SUCH AS A STORE) FOR BUYING THE PRODUCT IN BULK. THE WHOLESALE PRICE IS EQUAL TO THE COST TO CREATE THE PRODUCT PLUS A PROFIT MARGIN SO THE MANUFACTURER OF THE PRODUCT CAN MAKE MONEY. FOR EXAMPLE, LET’S SAY THAT THE MANUFACTURER MAKES 1,000 UNITS OF PRODUCT FOR $2,000 AND WANTS TO MAKE $500 FOR EACH THOUSAND UNITS SOLD, THEN THEIR WHOLESALE PRICE TO THE DISTRIBUTOR WOULD BE $2,500 PER THOUSAND UNITS.
RETAIL PRICE: THE PRICE THAT CUSTOMERS PAY AT A STORE. GOING ALONG WITH THE PREVIOUS EXAMPLE, THE DISTRIBUTOR BOUGHT 1,000 UNITS FOR $2,500. THIS MEANS THAT EACH UNIT COSTS $2.50. LET’S SAY THE DISTRIBUTOR WANTS TO PROFIT $1 FOR EACH UNIT SOLD. THIS MEANS THAT THEIR RETAIL PRICE WOULD BE $3.50 AND EACH PERSON THAT BUYS THE PRODUCT WOULD PAY $3.50 FOR EACH UNIT THEY BUY.
MARKET VALUE: THE HIGHEST AMOUNT THAT SOMEONE IS WILLING TO PAY FOR A PRODUCT (AS WELL AS THE LOWEST AMOUNT THAT A SELLER IS WILLING TO SELL AT).
CUSTOMER ACQUISITION COST: THE AMOUNT OF MONEY REQUIRED TO GET SOMEONE TO BUY YOUR PRODUCT OR USE YOUR SERVICE. IN A VERY SIMPLE EXAMPLE, IF YOU RUN AN AD FOR $1,000 AND 100 PEOPLE BUY YOUR PRODUCT, YOUR CUSTOMER ACQUISITION COST WOULD BE $10 PER CUSTOMER.
FRIENDS AND FAMILY ROUND: WHEN FRIENDS AND FAMILY GIVE MONEY TO THE FOUNDER(S) OF A BUSINESS TO FINANCE THEIR PROJECT. AS THE NAME SUGGESTS, THIS MONEY MAY COME FROM PARENTS, GRANDPARENTS, CLOSE FRIENDS, ETC.
LINE OF CREDIT: THIS IS BASICALLY FINANCING THAT YOU NEED TO PAY BACK AT A CERTAIN INTEREST LEVEL. FOR EXAMPLE, IF YOU HAVE TO MANUFACTURE $100,000 WORTH OF PRODUCT, THE LINE OF CREDIT MAY BE $100,000 WITH 5% INTEREST. THIS MEANS THAT ONCE YOU CREATE AND SELL THE PRODUCT, YOU HAVE TO PAY THE ORIGINAL $100,000 BACK WITH $5,000 (TO COVER THE 5% INTEREST). A LINE OF CREDIT CAN BE REUSED AS LONG AS THE ORIGINAL SUM AND INTEREST ARE PAID BACK. THE INVESTOR/LENDER DOES NOT NECESSARILY GET EQUITY FOR LENDING THIS MONEY BUT IT MAY BE INCLUDED IN THEIR DEAL. A LINE OF CREDIT ALONE DOES NOT GIVE THEM EQUITY IN THE BUSINESS. AN INVESTOR MAKES MONEY FROM A LINE OF CREDIT THROUGH THE INTEREST ATTACHED TO THE LOAN.
CONVERTIBLE LOAN: A LOAN THAT IS EXTENDED TO A BUSINESS THAT COULD BE CONVERTED INTO EQUITY.
ADVISORY SHARES: SIMILAR TO REGULAR SHARES (OWNERSHIP) OF A BUSINESS, BUT GIVEN TO ADVISORS OF COMPANIES RATHER THAN EMPLOYEES. IT’S EASIER TO GIVE ADVISORY SHARES TO INVESTORS BECAUSE THIS EQUITY CAN BE USED IN PLACE OF CASH AND HELPS MOTIVATE INVESTORS TO CONTRIBUTE.
ACQUI-HIRE: BUYING A COMPANY IN ORDER TO RECRUIT THEIR EMPLOYEES TO WORK FOR YOU. THIS IS COMMON IN THE TECH INDUSTRY WHERE BIG COMPANIES WILL BUY TINY STARTUPS IN ORDER TO HIRE THEIR FOUNDERS/TEAM.

Monday 11 September 2023

3 Essential Sales Skills

“IF YOU REALLY LOOK CLOSELY, MOST OVERNIGHT SUCCESSES TOOK A LONG TIME.” – STEVE JOBS

We only see the success after it’s been reached. Like a tree that reaches the clouds, the roots that hold it up are invisible. They’re beneath the ground, having spent years digging through the hard ground to stabilize and feed the tree’s growth.

SELLING: an art and a science

Without knowing how to actually do a sales pitch, you were asked to sell a pencil to your customer based on what we have learned so far.

Things we have learned about why people buy.

customers want to feel significant
find out what problems they have and solve them
provide value
meet any one of their needs (Maslow)
Give them more than any other company

Who is Dan Lok? He is an award-winning multi-millionaire who was born on the 24th of November 1981 in Hong Kong, China. Today, the 37-year-old man is a mentor, author, YouTuber, copywriter, entrepreneur, business coach, and marketer who resides in Vancouver, Canada. His nationality is Chinese-Canadian.

The 4 P's of Marketing: An introduction.

Following the Marketing Mix 4 P’s you will find a product in the market that it already exists. Once you select one, you will describe and analyze the 4 P’s of the products’ marketing.

Towards a definition of Marketing and Entrepreneurship

Marketing: A Definition

Marketing refers to activities a company undertakes to promote the buying or selling of a product or service.

Marketing is the activity, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Entrepreneurship: A Definition

Entrepreneurship is the activity of setting up a business, taking on financial risks in the hope of gaining profit.

entrepreneurship as the process of designing, launching and running a new business.

A person who undertakes the risk of starting a new business venture is called and entrepreneur. An entrepreneur creates a business, which secures capital and labor in order to produce goods or services for profit. Entrepreneurship is an important driver of economic growth and innovation.

Creative Challenge: You work for a company who made a very big mistake when they produced 1million pieces of stale, hard bubblegum. As a group think of as many ways you can salvage the bubblegum to help the company save money.

transform the product into something new
create something from the original product
repackage the product to sell it somehow
combine it with something to resell

Be creative, think outside the box. do not judge ideas, no idea is a bad idea.

As a group decide on your top idea and explain why you chose the product you did.

Link to uses for bubblegum

Bubblegum sculptures

How Bubblegum is made.

Hand in Buying habits sheet and include group questions as well.

Thursday 7 September 2023

Maslow's Hierarchy of Needs

Wrap up from yesterday and review
Anthony Robins take on why people buy
Anthony Robins
Maslow's Triangle: Maslow's Hierarchy of Needs

What Is Maslow's Hierarchy of Needs? Maslow's hierarchy of needs is a theory of motivation which states that five categories of human needs dictate an individual's behavior. Those needs are physiological needs, safety needs, love and belonging needs, esteem needs, and self-actualization needs.Jun 7, 2021

Under each need write down products or services people buy.

Selling a product

Solve a customer pain point.
Appeal to a need or want
Tie in to an emotion
Tell a story

Pencil assignment: You will do this in a group of 3. You are to create a sales pitch to sell a pencil to the student market. Keep it short. Try to integrate what you have learned so far.

How to Make a Sales Pitch

Keep it short.
Make it clear and concise
Explain who your customers are.
Explain the problem they're facing.
Explain how your product addresses their needs, solves a problem.
Describe what success will look like as a result of using your product.

Why people Buy.

Review of what you buy/Girls/Guys. Why marketer's love the teenage market.

Article Read and make notes $ Reasons People Buy

The Science Behind Buying: Buying Science

Anthony Robins take on why people buy

Anthony Robins

Tuesday 5 September 2023

Introduction to Marketing

What motivates people to buy?

It is important to figure out buyer motivation. Are they buying because of a need, want or a combination of both. Here is a list of some other reasons why people buy.

to enhance status
to make a dream come true (disney vacation, dream car)
to make amends
to be defiant
to feel good
to feel safe
to forget problems
to make a statement
to reward ourselves ***

Towards a Definition of Marketing ( Video we watched in class)

Towards a Definition of Marketing

From the video: Marketing is communicating value to the customer!

“The aim of marketing is to know and understand the customer so well the product or service fits and sells itself.”

~ Peter F. Drucker

Marketing is about deep psychological understanding of customer needs. Steve Jobs had this gift better than almost any. Every innovation in the history of the world combined an uncanny understanding of human needs and the innovative vision to deliver it.

If business is composed of marketing and innovation, and marketing is about deep customer insights, then marketing is the job of every employee.

The brands who win more customers are the ones who put their customers ahead of their desire to sell more stuff.

When given a choice, we only buy from brands we know, like and trust!

Marketing Yourself

Marketing Yourself a definition

Knowledge Skills and Attitudes transferable skills

On your own....reflect on your knowledge, skills and attitudes. Make a list of how you can market yourself. Start promoting you!

On Your own...

How much expendable money to you have available to spend in a month? How much money do you save in a month?

What do you spend your money on? List as many things you can think of.

Using the list above, what motivates you to buy?

In a group...

In a group of 3, what do you think are the top three things teens spend money on?

Are their differences between what guys and girls spend money on?

Why do you think companies want to target your generation to market to?

Isfeld Marketing/Entrepreneurship