2.2.1 Sales forecasting a) Purpose of sales forecasts b) Factors affecting sales forecasts: o consumer trends o economic variables o actions of competitors c) Difficulties of sales forecasting 2.2.2 Sales, revenue and costs a) Calculation of sales volume and sales revenue b) Calculation of fixed and variable costs 2.2.3 Break-even a) Contribution: selling price – variable cost per unit b) Break-even point: o total fixed costs + total variable costs = total revenue c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis 2.2.4 Budgets a) Purpose of budgets b) Types of budget: o historical figures o zero based c) Variance analysis d) Difficulties of budgeting

1.2.1 Demand a) Factors leading to a change in demand: o changes in the prices of substitutes and complementary goods o changes in consumer incomes o fashions, tastes and preferences o advertising and branding o demographics o external shocks o seasonality 1.2.2 Supply a) Factors leading to a change in supply: o changes in the costs of production o introduction of new technology o indirect taxes o government subsidies o external shocks 1.2.3 Markets a) The interaction of supply and demand b) The drawing and interpretation of supply and demand diagrams to show the causes and consequences of price changes 1.2.4 Price elasticity of demand a) Calculation of price elasticity of demand b) Interpretation of numerical values of price elasticity of demand c) The factors influencing price elasticity of demand d) The significance of price elasticity of demand to businesses in terms of implications for pricing e) Calculation and interpretation of the relationship between price elasticity of demand and total revenue 1.2.5 Income elasticity of demand a) Calculation of income elasticity of demand b) Interpretation of numerical values of income elasticity of demand c) The factors influencing income elasticity of demand d) The significance of income elasticity of demand to businesses

This is a complete lesson which includes a teacher PowerPoint and a student worksheet written by Sarah Hilton for Revisionstation and it covers the following topics: LESSON 1 Pricing methods price skimming price penetration competitive pricing loss leader cost-plus The factors that influence pricing decisions costs nature of the market degree of competition product life cycle. The relationship between price and demand LESSON 2 The benefits and risks of developing new products Importance of product design, image and the needs of the target market Product differentiation USP Brand image The product lifecycle Product portfolio (Boston Box / Boston Matrix) LESSON 3 Promotional methods Advertising PR Sales promotion Sponsorship Social media Factors influencing the selection of promotional methods Reasons for promotion LESSON 4 The different channels of distribution used by business Retailers Wholesalers Telesales E-commerce and M-commerce Integrated nature of the marketing mix Using the marketing mix to inform and implement business decisions

1.5.1 Role of an entrepreneur a) Creating and setting up a business b) Running and expanding/developing a business c) Innovation within a business (intrapreneurship) d) Barriers to entrepreneurship e) Anticipating risk and uncertainty in the business environment 1.5.2 Entrepreneurial motives and characteristics a) Characteristics and skills required b) Reasons why people set up businesses: o financial motives: profit maximisation and profit satisficing o non-financial motives: ethical stance, social entrepreneurship, independence and home working 1.5.3 Business objectives a) Survival b) Profit maximisation c) Other objectives: o sales maximisation o market share o cost efficiency o employee welfare o customer satisfaction o social objectives 1.5.4 Forms of business a) Sole trader, partnership and private limited company b) Franchising, social enterprise, lifestyle businesses, online businesses c) Growth to PLC and stock market flotation 1.5.5 Business choices a) Opportunity cost b) Choices and potential trade-offs 1.5.6 Moving from entrepreneur to leader a) The difficulties in developing from an entrepreneur to a leader