Maths warm-up suggestion
An introduction to making assumptions may be beneficial to students.
Practice reading a demand/ cost graph.
- Students have been drafted into the marketing department for the day. They have £100,000 to cover all the marketing. They must include TV, radio, billboards and leaflets. The cost and number of viewers is stated on the spreadsheet. There are three options for each of TV, radio and billboards for them to choose from.
- Students must make assumptions about each form of advertising, e.g. if 2,000 people drive past a billboard, what percentage will actually look at the billboard. Discuss these assumptions and ways to tackle this when estimating viewing figures and effectiveness of each form of advertising.
- Students will look at ways to determine which of the three options in each form of advertising is the most effective; they will then go on to create a spreadsheet showing how they plan to budget the £100,000 across all four forms of advertising.
Steps to success
- Students must spend all £100,000, include all four types of advertising and aim to reach as many customers as possible.
- Students must ensure they state what assumptions they have made.
Demand/ cost curves
- Students must decide on the selling price of their phone.
- Students will have to take into account the demands and costs which are given on the demand/ cost graph (supplied).
- Encourage students to then discuss what the graph shows and how to read it accurately.
- Students then fill in a spreadsheet reading the information from the graph and calculating the profit; then decide upon the best selling price for the phone to make the most profit. An outline of a spreadsheet should be provided.
Steps to success
- Step 1: Complete the spreadsheet to determine the best selling price for the phone, to create the most profit. Remember the more phones we make, the more money will need to be spent on manufacturing
- Step 2: Create a price/ profit curve showing this information.
- Step 3: Create a number of sales/ profit curves showing this information.
Students who may struggle with this task may benefit from having a suggested layout for the Spreadsheet and some formulae already completed.
Outline spreadsheets can be provided.
Create graphs to show profit/ price and profit/ numbers sold curves.