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Ag Education II Colorado Agriscience Curriculum Section: Intro to Agribusiness II Unit: Entrepreneurial Concepts Lesson Title: Marketing your ideas and products Colorado Ag Education Standards and Competencies Standard 10.2: The student will understand entrepreneurial concepts Competency 2-5: Marketing Your Ideas and/or Products English: Colorado Model Content Standard(s): English Standard 2.2 Conveying technical information in a written form appropriate to the audience English Standard 2.3 Supporting an opinion using various forms of persuasion (factual or emotional) in speaking and writing English Standard 2.4 Students incorporate material from a wider range of sources (for example, newspapers, magazines, interviews, technical publications, books) in their writing and speaking. English Standard 4.2 Using reading, writing, listening, articulate speaking and viewing to solve problems. English Standard 5.5 Students are using available technology to access information, conduct research, and produce carefully documented product. Student Learning Objectives: 1. Students will have a basic knowledge of marketing 2. Students will understanding niche marketing 3. Students will understand the basics of creating a demand for a product Unit 2, Lesson 5: Marketing your ideas and products 1 4. Students will identifying good sales tools Time: 2 - 50 minute periods Resource(s): Entrepreneurship and Small Business Management, ISBN 0-02-644084-9 Instructions, Tools, Equipment, and Supplies: Note: Italicized words are instructions to the teacher; normal style text is suggested script. Equipment: Computer and Projection Unit for PowerPoint Supplies: Hires Root Beer & glasses Article or online video to read/show class. One copy, per student, of niche market examples, from PDF file [See website URL’s under Interest Approach] Interest Approach: Hirestory (not mis-spelled) Lesson http://www.dpsu.com/Brands/HiresRootBeer/tabid/126/Default.aspx (article) http://www.edtecinc.com/nyeint/nyint_mod4.htm (online video) Bring Hires Root Beer to class for everyone to drink during the lesson. Show slide 2 while reading internet article about Hires Root Beer regarding Charles E. Hires’ entrepreneurial spirit or show online video about Hires Root Beer. If you choose to read the article, you can have a student read it or print copies for the entire class and let them all read it. After discussing his story, have a Go Get It e-moment where they “find” the definition of marketing. You can hide the definitions around the room or make them look it up in a dictionary, online, etc. After they turn in a definition to you, let them have a glass of root beer. Teams are OK too. Read some of their definitions and/or Webster’s lengthy definition – “The act or process of selling or purchasing in a market; the process or technique of promoting, selling and distributing a product or service; an aggregate of functions involved in moving goods from the producer to the consumer.” Objective 1: Introduction to marketing. After Interest Approach and reading the lengthy definition of marketing [slide 3], show slides 4- & 5 and discuss definitions. Make sure they understand the difference between marketing & selling. Encourage students to capture the following notes in their notebooks. Concise definition of marketing: The process of matching consumer Unit 2, Lesson 5: Marketing your ideas and products 2 needs with appropriate products or services. Successful marketers give customers WHAT they want, WHEN they want it, WHERE they want it and at an AFFORDABLE PRICE. The difference between selling & marketing: MARKETING is not synonymous with SELLING MARKETING meets the needs of the CUSTOMER. SELLING meets the needs of the SELLER and is just one function of the overall marketing process. So, did Hires market or sell his product? Let students respond. Why? I believe that he marketed his product, as he developed it with the consumer in mind by meeting his needs as a producer and the needs of the customer. Oftentimes, sellers are price takers, and marketers are price makers, setting their own expectations for a profit. Objective 2: Understanding marketing niches. [Show slide 6] A focused, target-able portion of a market - a narrowly defined group of potential customers. Addresses a need for a product or service that is not currently being Addressed by another provider or where there is room for competition. For instance, instead of offering cleaning services, a business might establish a niche market by specializing in blind cleaning services. Ask for extra examples of niches markets. Depending on the size of the class, each student can likely come up with one, or pair/group them to define some. A list is provided for your reference in PDF format. Show slide 7 and discuss the bullet on the left as that is important information to anyone wishing to establish a niche market. Determine if anyone in the class has captured a niche market with their SAE. Using the Party Host e-Moment, assign two party hosts to each group. Next assign each student (except the hosts) a niche market and see if the party host can guess the niche market they represent. Now go back to slide 7 - the bullet on the right will aid in introducing Objective 3. Objective 3: Creating a demand for your product. Ask the class for some reasons why we buy things. The answers you are looking for are things such as convenience, price, status (everyone else has one), quality and perceived need. Others include: fun, efficient/saves time, appearance (it’s pretty), etc. Now read them the following story: One car wash in town costs $6. It is on the busiest highway in town, You can pull right in and get a car wash in about five minutes. Another car wash cost only $5. It is two miles from the main road. You have to drop your car there in the morning Unit 2, Lesson 5: Marketing your ideas and products 3 and pick it up later. Which car wash is likely to do more business? Why? Reinforcement Activity: Have each student fill out the Why People Buy Things handout and check as many reasons as they think apply. Have them add their own category at the end and mark it also. Compare their answers and discuss them. After the activity, show slide 8 to make sure they got all of the reasons in their notes. Then show slide 9 to reinforce the definition of Supply & Demand. Supply is the amount of a good or service available in the marketplace. Demand is the amount of a good or service the marketplace wants backed by the ability to pay. Ask what “supply” they think there is too much of in town or too little of. Then ask what ads have gotten their attention lately. Discuss they ads and why they think they are effective. Be prepared for some examples if they don’t have any. Objective 4: Identifying good sales tools Show slide 10 and discuss sales tools. Good sales tools make good MARKETING!! Q: What do sales tools do? A: Sales tools give your customers information about your product or service. Show slide 11 and discuss. That your product or service exists. Why they should choose your product or service instead of someone else’s Where they can get the product or service How much the product or service will cost (if your sales tool cannot say exactly what the cost will be, it should at least tell the customer where to get the information) Note: Sales tools should give this information in a way that will make customers want to buy from you. Reinforcement Activity: Let students go through magazines and newspapers and find advertisements. Let them dissect the ads and determine if they contain the sales tools necessary to inform customers about the product or service. Use slide 11 as the guideline for a good ad. Review/Summary: Application--Extended Classroom Activity: See Extended Classroom Activity Below. 1. Choose a niche agriculture market you would like to investigate. This could be done in groups. 2. Turn to your local phone book and find out how many other similar businesses exist. Count the number. A large number is not bad. If they are doing well, it could mean there is room for another business. If there Unit 2, Lesson 5: Marketing your ideas and products 4 is a small number, it could mean there is an unmet need. 3. Call, web-search, or visit your “pretend” competitors. Find out if they are meeting the needs of the market. What exactly are they selling? What are they not offering that you might be able to offer? 4. Contact the Chamber of Commerce or local government planning agencies and ask if they have information about trends and community developments that will affect your business potential. 5. Conclusion: Name at least one business in your local area where there appears to be no more room for competition. Name at least one business where there appears to be room for competition. Application--FFA Activity: Repeat the Extended Classroom Activity, but choose a real agriculture market that your chapter could enter into to raise money for the chapter. (For example, many schools have greenhouses and could possibly grow a specific plant or crop to fill a niche market.) Be creative. This could be a huge moneymaker for the chapter. (Example: The Fruita FFA Chapter in Fruita, Colorado sells honey to customers and makes a substantial profit.) Application--SAE Activity: If there is a student who does not have an SAE or needs to expand theirs, they could participate in the Extended Classroom Activity to develop a niche market for their SAE. Evaluation: See attached Quiz Evaluation Answer Key: See attached key Other: N/A Unit 2, Lesson 5: Marketing your ideas and products 5 Marketing Your Ideas/Products Name: _________________________________ 1. Marketing is the process of matching consumer _________ with appropriate products or services. 2. Explain why marketing and selling is not the same thing. 3. If you develop a niche market, will you have a more or less specific customer group? Does this mean there will be more or less customers? 4. List at least 4 reasons why we buy certain products or services. a. b. c. d. e. f. g. h. 5. Describe two things that a good sales tool lets a customer know. Unit 2, Lesson 5: Marketing your ideas and products 6 Marketing Your Ideas/Products ey 6. Marketing is the process of matching consumer needs with appropriate products or services. 7. Explain why marketing and selling is not the same thing. Marketing meets the needs of the CUSTOMER. Selling meets the needs of the SELLER and is just one function of the overall marketing process. 8. If you develop a niche market, will you have a more or less specific customer group? More Does this mean there will be more or less customers? Less 9. List at least 4 reasons why we buy certain products or services. a. Convenience b. Price c. Status d. Quality e. Perceived Need f. Fun g. Efficient (Saves time) h. Appearance 10. Describe two things that a good sales tool lets a customer know. a. Your product or service exists. b. Why they should choose your product or service instead of someone else’s c. Where they can get the product or service d. How much the product or service will cost (or how to obtain the cost) Unit 2, Lesson 5: Marketing your ideas and products 7