# Purchasing Lesson Plan Practicum in Marketing Dynamics Marketing

```Purchasing
Practicum in Marketing Dynamics
Marketing
Lesson Plan
Performance Objective
The student knows that the purchasing process occurs in a continuous cycle. The student knows that businesses
need goods and services for daily operation, and the student knows that a buying plan identifies products to be
offered for sale for a particular period of time. .
Specific Objective
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The student can explain the process of identifying needs.
The student can describe the process of selecting suppliers and sources.
The student can explain the negotiation process
The student can explain how goods and services are ordered.
The student can distinguish strategies used in evaluating purchases
The student can analyze the selection of goods and services based on a business’ operation needs
The student can compare and contrast terms offered by suppliers
The student can describe and calculate merchandising-related discounts
The student can interpret vendor terms and policies
The student can calculate the final cost of a product.
The student can make accurate estimates and projections
The student can interpret data found in financial reports.
Terms
Six-month merchandize plan – six month plan that estimates planned purchases.
Centralized buying – purchasing decisions are made by a few people for entire departments.
Decentralized buying – purchasing decisions are made from lower levels in the organization
Special buying arrangements - Suppliers may have special policies regarding merchandise
returns and sales arrangements.
Buying terms – terms negotiated with suppliers before purchases are made.
Discounts – Reduction in final price if paid by a per-set time frame.
Dating terms – time frame a bill must be paid in order to get the pre-negotiated discount
Time
When taught as written, this lesson should take two to three days to teach.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may
result in the elimination of any or all of the TEKS listed.
1
&sect;130.348. Practicum of Marketing Dynamics
(c) Knowledge and Skills
7) The student applies mathematical concepts in management. The student is expected to:
(A) make accurate estimates and projections; and
(B) interpret data found in financial reports.
26) The student knows that the purchasing process occurs in a continuous cycle. The student is
expected to:
(A) explain the process of identifying needs;
(B) describe the process of selecting suppliers and sources;
(C) explain the negotiation process;
(D) explain how goods and services are ordered; and
(E) distinguish strategies used in evaluating purchases.
(27) The student knows that businesses need goods and services for daily operation. The student
is expected to:
(A) analyze the selection of goods and services based on a business' operational needs;
and
(B) compare and contrast terms offered by suppliers.
(28) The student knows that a buying plan identifies products to be offered for sale for a
particular period of time. The student is expected to:
(A) describe and calculate merchandising-related discounts;
(B) interpret vendor terms and policies; and
(C) calculate the final cost of a product.
Interdisciplinary Correlations:
&sect;110.47. Reading I, II, III
(b) Knowledge and skills.
(1) The student uses a variety of word recognition strategies. The student is expected to:
(A) apply knowledge of letter-sound correspondences, language structure, and context to
recognize words;
(B) use reference guides such as dictionaries, glossaries, and available technology to
determine pronunciations of unfamiliar words;
(2) The student acquires an extensive vocabulary through reading and systematic word study.
The student is expected to:
(A) expand vocabulary by reading, viewing, listening, and discussing;
(B) determine word meanings through the study of their relationships to other words and
concepts such as content, synonyms, antonyms, and analogies;
(4) The student comprehends texts using effective strategies. The student is expected to:
(A) use prior knowledge and experience to comprehend;
(B) determine and adjust purpose for reading; and
(D) summarize texts by identifying main ideas and relevant details.
&sect;111.32. Algebra I
(b) Knowledge and skills.
(1) Foundations for functions. The student understands that a function represents a dependence
of one quantity on another and can be described in a variety of ways. The student is expected to:
2
(E) interpret and make decisions, predictions, and critical judgments from functional
relationships.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: Purchasing Managers
O*Net Number: 11-3061-00
Reported Job Titles: Commodity Manager, Director of Materials, Director of Purchasing, Director of Strategic
Sourcing, Materials Manager, Procurement Manager, Procurement Officer, Purchasing Director, Purchasing
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Represent companies in negotiating contracts and formulating policies with suppliers.
Direct and coordinate activities of personnel engaged in buying, selling, and distributing
materials, equipment, machinery, and supplies.
 Interview and hire staff, and oversee staff training.
 Locate vendors of materials, equipment or supplies, and interview them to determine product
availability and terms of sales.
 Prepare and process requisitions and purchase orders for supplies and equipment.
Soft Skills: Speaking, Active Listening, Critical Thinking, Judgment and Decision Making, Social Perception
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
 Review and familiarize yourself with the terminology,
 Have materials ready prior to the start of the lesson.
References:
Textbooks:
Kimbrell, G., &amp; Woloszyk, C. A. (2005). Marketing Essentials. Woodland Hills: McGraw-Hill Companies.
Online:
http://www.onetonline.org
Instructional Aids
 Textbook
 Lesson Presentation
 Instructor Computer/Projection Unit
 Online Websites
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Introduction
The main purposes of this lesson is to help students understand:
 The process of identifying needs
 The process of selecting suppliers and sources
 The negotiation process
 How goods and services are ordered
 Strategies used in evaluating purchases
 The selection of goods and services based on a business’ operation needs
 Terms offered by suppliers
 How to calculate merchandising-related discounts
 Interpret vendor terms and policies
 How to calculate the final cost of a product
Ask students what steps they think are involved for a company to purchase products?
Ask students if they think large companies pay full price for products?
Outline
MI
Outline
Instructor Notes
I. Terms
 Six month merchandize plan
 Discounts
 Dating terms
Use presentation as visual aide
A. Six-month merchandise plan
B. Planned sales
C. Beginning inventory
D. Ending inventory
Have students write vocabulary
terms and meanings
Discuss using the presentation
and resources listed
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V. Negotiation Terms
A. Discounts
B. Dating terms
VI. Selecting suppliers
A. Production capabilities
B. Past experiences
D. Special services
VII. How goods are purchased
A. Internet
B. Electronic exchanges
C. Online auctions
Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice
Students will list individually on a piece of paper all of the products they think they would need to open
a retail store. Once they have completed the list lead a discussion about where these products could be
purchased.
Independent Practice
Students will calculate the discounts taken on purchasing invoices.
Summary
Review
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7.
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The process of selecting suppliers and sources.
The negotiation process
How goods and services are ordered.
Strategies used in evaluating purchases
The selection of goods and services based on a business’ operation needs
Terms offered by suppliers
How to calculate merchandising-related discounts
Interpret vendor terms and policies
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9. How to calculate the final cost of a product
Evaluation
Informal Assessment
Informal assessment will be made as the student participates throughout the discussion process and contributes
to the guided practice activity. Teacher will observe students by walking the classroom during each activity.
Formal Assessment
Students will complete a worksheet to calculate the final cost of goods.
Enrichment
Extension
Integrate writing skills: Assign students write a research paper based on the lists that they produced in
the guided practice. Students will use those lists to find vendors to purchase those products. They are
to find the vendors terms, discounts offered, shipping costs and final cost of goods. They will compare
and contrast at least two different vendors and make a recommendation on which vendor is best.
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Product Cost Calculation
Directions:
For each of the following invoice that offers ordinary dating terms, determine the discount date, amount
of discount, amount payable if discount is taken, and final date for payment of invoice.
Inv.
No.
Amt of
Invoice
Dating
Terms
Date of
Invoice
Disc
Date
Disc
Amount
12.
\$1000
13.
Net
Amount
Final Date
for payment
2/10,N45
5/18
_____
_________ ________
_________
\$8500
4/20,N60
1/22
_____
_________ ________
_________
14.
\$2000
2/10,N30
Extra 30
5/27
_____
_________ ________
_________
15.
\$1150
3/15,N45
ROG
6/20
_____
_________ ________
_________
16.
\$7500
4/20,N30
EOM
4/12
______ _________ ________
_________
17.
\$1500
3/10,N45
6/8
as of July 14
______ _________ _________ _________
18.
\$6430
4/15,n30
ROG,EOM
12/8
______ _________ _________ _________
19.
\$2500
2/10,N30
2/14
______ _________ _________ __________
20.
\$1000
3/20,N45
7/17
______ _________ _________ __________
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Product Cost Calculation KEY
Directions:
For each of the following invoice that offers ordinary dating terms, determine the discount date, amount
of discount, amount payable if discount is taken, and final date for payment of invoice.
Inv.
No.
Amt of
Invoice
Dating
Terms
Date of
Invoice
Disc
Date
Disc
Amount
Net
Amount
Final Date
for payment
12.
\$1000
2/10,N45
5/18
5/28
\$20
\$980
3/27
13.
\$8500
4/20,N60
1/22
2/12
\$340
\$8160
6/19
14.
\$2000
2/10,N30
Extra 30
5/27
6/6
\$40
\$1060
7/26
15.
\$1150
3/15,N45
6/20
7/5
\$34.50
\$1115.50
8/4
16.
\$7500
4/20,N30
EOM
4/12
5/2
\$300
\$7200
5/30
17.
\$1500
3/10,N45
6/8
as of July 14
6/18
\$45
\$1455
8/28
18.
\$6430
4/15,n30
EOM
12/8
12/23
\$257.20
\$6172.80
1/7
19.
\$2500
2/10,N30
2/14
2/24
\$50
\$2450
3/16
20.
\$1000
3/20,N45
7/17
8/6
\$30
\$970
8/31
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