Functional Areas
This is also known as the different
departments within the business
What different functional
areas/departments do think
most businesses have?
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Marketing
Finance
Sales
Human Resources
Administration
Research and Development
Production
Customer service
What do you think each of the
following departments do?
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Marketing
Finance
Sales
Human Resources
Administration
Research and Development
Production
Customer services
Marketing and sales
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The processes designed to meet the needs of
the consumer
Market research both primary and secondary
research
Primary – collecting information first hand
e.g. questionnaires
Secondary – analysing information which has
already been gathered e.g. company reports
Marketing and sales
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Marketing also deals with what is
commonly known as the 4 Ps: product,
price, place and promotion
Most well known is promotion – deals
with advertising, sales promotions and
PR (public relations) and publicity
campaigns.
Sales
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Businesses can sell in many ways
Sell through retailers
Personal selling – through sales reps
e.g. insurance
Mail order
Internet selling
Customer service
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Customers expect- knowledgeable staff,
prompt attention/service, polite and helpful
staff
Duty to provide a positive shopping
experience – to make the customer feel
important
The type of information provided to
customers varies and the member of staff
may not know the answer but it must be
dealt with correctly
Customer service
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The type of information provided to
customers varies and the member of
staff may not know the answer but it
must be dealt with correctly
Staff must also be able to give advice
which is appropriate to the individual
customer
Customer service
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Provide credit facilities
Deliver goods
After-sales service – returned goods,
repairs service, technical queries,
maintenance service, complaints
Research and development
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This function deals with
Developing new products
Making improvements to existing
products
Often the result of research carried out
– products developed with designers so
that they are useable
Activity
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Make a poster which includes the following:
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The various functions of business
Give a brief explanation of what each function
does
On the back poster:
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Explain how the different departments work
together. Give examples.
Explain how the different functions help a
business to achieve it’s overall aims.
Task
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Consider Tesco and decide which of the
functional areas they have and exactly what
each functional area does?
Give one example of how each functional
area is reliant on others to support its
activity.
Explain and evaluate how these functions
contribute towards achieving the business’s
aims and objectives.