Public Disclosure Authorized Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Building a Better Tomorrow A Life Skills and Employability Skills Public Disclosure Authorized Training Public Disclosure Authorized YOUTH WORKBOOK LEARNING THEME 4: CREATING VALUE IN YOUR IDEA Public Disclosure Authorized WORLD BANK GROUP WASHINGTON, DC 2016 1|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Disclaimer, rights and permissions This work is a product financed by The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail : pubrights@worldbank.org The training content of the Youth Workbook’s twenty modules was contributed to by World Bank consultants Ryan Novack and Katharine N. Cottrell, the LightHouse Coach SARL, and Dr. Anne Genin. These modules were developed as parts of the life and employability skills training and in the framework of a nation-wide youth volunteerism program in Lebanon sponsored by the World Bank Social Protection and Labor Global Practice and the State and Peace-Building Fund. The National Volunteer Service Program, into which the training is integrated, is implemented under the stewardship of the Lebanese Ministry of Social Affairs and in partnership with NGOs, academic institutions, and the private sector. 2|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Table of Contents MODULE 4.1: SHARING YOUR IDEA & GATHERING SUPPORT ................................................................................................ 5 4.1.1 Learning Objectives .............................................................................................................................. 5 4.1.2 Entrepreneurs and Social Innovators ............................................................................................... 5 4.1.3 Reading: What is an Entrepreneur and a Social Innovator? ......................................................... 6 4.1.4 Why Entrepreneurship and Social Innovation? .............................................................................. 7 4.1.5 What Are the Steps To Successfully Implementing an Idea? ......................................................... 7 4.1.6 Exercise: How Can I learn More? ........................................................................................................ 8 4.1.7 Exercise: True or False? ....................................................................................................................... 8 4.1.8 Exercise: How Long is a Minute? ........................................................................................................ 9 4.1.9 Reading: Elevator Pitch ..................................................................................................................... 10 4.1.10 Exercise: Your Elevator Pitch ....................................................................................................... 11 4.1.11 Exercise: Are You Interested? ....................................................................................................... 12 4.1.12 Learning Journal ................................................................................................................................. 14 MODULE 4.2: IMPROVEMENT THROUGH FEEDBACK ......................................................................................................... 15 4.2.1 Learning Objectives ............................................................................................................................ 15 4.2.2 Quick Response: How Do You feel? .................................................................................................. 15 4.2.3 Reading: The Importance of Feedback ........................................................................................... 15 4.2.4 Exercise: Reflecting on Past Feedback ............................................................................................ 16 4.2.5 Tips for Receiving Feedback ............................................................................................................. 17 4.2.6 Reading and Activity: Rapid Prototyping ....................................................................................... 17 4.2.7 Learning Journal ................................................................................................................................. 21 MODULE 4.3 - FINANCIAL MANAGEMENT ....................................................................................................................... 22 4.3.1 Learning Objectives ............................................................................................................................ 22 4.3.2 Activity: Define “Opportunity Cost” ................................................................................................. 22 4.3.3 Tradeoff ................................................................................................................................................ 23 4.3.4 Exercise: Understanding Your Bills ................................................................................................. 23 4.3.5 Exercise: Financial Decisions ........................................................................................................... 24 4.3.6 Activity: Choose Between Two Options .......................................................................................... 27 4.3.7 Learning Journal ................................................................................................................................. 28 MODULE 4.4 - BUSINESS PLAN: ACTION WORDS/ TARGET MARKET .................................................................................... 29 4.4.1 Learning Objectives ............................................................................................................................ 29 4.4.2 Fill in the Blank with Action Words ................................................................................................. 29 3|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Handout 4.4.1 – Building a Business Plan .................................................................................................. 31 4.4.3 Identify the Target Market ............................................................................................................... 38 4.4.4 Identifying the Imagery of Your Advertisement ........................................................................... 40 4.4.5 Learning Journal ................................................................................................................................. 43 MODULE 4.5: MARKETING & PERSUASION ..................................................................................................................... 44 4.5.1 Learning Objectives ............................................................................................................................ 44 4.5.2 What Does It Take to Convince You? ............................................................................................... 44 4.5.3 Reading: Persuasion; Ethos, Logos & Pathos ................................................................................. 44 4.5.4 Exercise: Ethos, Logos or Pathos? .................................................................................................... 45 4.5.5 Activity: We Deserve the Candy! ...................................................................................................... 47 4.5.6 Reading: Developing a Marketing Plan ........................................................................................... 49 4.5.7 Activity: Checking Your Knowledge. ................................................................................................ 50 4.5.8 Reflection - 5 Minutes ........................................................................................................................ 50 4.5.9 Learning Journal ................................................................................................................................. 52 BIBLIOGRAPHY: LEARNING THEME 4 ...................................................................................................................... 53 4|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas MODULE 4.1: SHARING YOUR IDEA & GATHERING SUPPORT 4.1.1 Learning Objectives − You will define entrepreneur and social innovator. − You will understand the importance of networking to share your ideas and will gain tips to network successfully. − You will develop strategies for sharing your idea and gathering support. − You will understand how important it is to take risk and to dare to fail. 4.1.2 Entrepreneurs and Social Innovators Instructions: When you hear the terms “entrepreneur” or “social innovator”, what comes to mind? Below are a list of activities. For each example, say whether it is an example of entrepreneurship or social innovation, or both. Entrepreneurship Social innovation Opening up a small, family-owned business in the center of town Starting an organization to help youth develop skills and find work Opening a shared work space for individuals and organizations Working in research and development for a multinational organization Designing and selling a new application for cell phones Finding a way to reduce the cost of a live-saving medical device and distributing this new product to countries around the world Believe it or not all of these examples may be examples of entrepreneurship and social innovation. In this module, entrepreneurship and social innovation will be defined. Additionally, you will have the 5|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas opportunity to consider how you could become an entrepreneur or social innovator and what steps you could take to start sharing your ideas and turning them into a career. 4.1.3 Reading: What is an Entrepreneur and a Social Innovator? “Ideas are the lifeblood of innovation. Sometimes they emerge from a deliberate and rigorous process. Sometimes they are a response to an emerging or pressing need. And sometimes they just seem to appear out of thin air.” Centre for Social Innovation http://socialinnovation.ca/innovation − Social innovators are people who find a “novel solution to a social problem that is more effective, efficient, sustainable or just than current solutions. The value created accrues primarily to society rather than to private individuals” (Stanford Graduate School of Business, 2016). Other definitions are as a simple as people who find “new ideas that work” (Mulgan, 2007). − Entrepreneurs are generally recognized as individuals who find ways to turn ideas into a profitable business (Fernandes, 2016), but nowadays the lines are becoming blurred as new definitions of entrepreneurship focus less on the for-profit element and social innovation does not refer solely to the nonprofit sector. “It can be driven by politics and government (for example, new models of public health), markets (for example, open source software or organic food), movements (for example, fair trade), and academia (for example, pedagogical models of childcare), as well as by social enterprises (microcredit and magazines for the homeless)” (Mulgan, 2007). This definition of entrepreneur could apply to social innovators as well: “S omeone who can take any idea, whether it be a product and/or service, and have the skill set, will and courage to take extreme risk to do whatever it takes to turn that concept into reality and not only bring it to market, but make it a viable product and/or service that people want or need” (Fernandes, 2016). The difference between the two is that social innovators or social entrepreneurs are focused on services or products that focus on social problem. Both entrepreneurs and social innovators, however, have to be willing to accept a certain level of risk, feel comfortable going against the grain or the established rules of how things are or should be and must have the courage to challenge the status quo and fail and start over again. 6|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.4 Why Entrepreneurship and Social Innovation? We are living in a rapidly changing world. All these changes require new and creative solutions to unique challenges. Very often established organizations and businesses are not responding quickly enough to these challenges. Additionally, with the technology available today more and more people are able to develop, promote, and implement solutions at lower costs or access investors more easily. Some of the reasons for an increase in entrepreneurship and social innovation include: − Growing diversity of countries and cities. In order to avoid segregation and violence, as diversity grows, new solutions to think about education, housing, and other resource management are more important than ever. − Difficult transitions to adulthood. The rapid changes in our world make it harder for society to respond to the needs of youth in order to prepare them to enter adulthood. Solutions are needed to help youth find careers and lifestyles that fit them and allow them to make valuable contributions to society. − Inequalities. The gap between rich and poor is growing and this trend leads to many other social challenges including violence, drug abuse and mental illness. − Climate change. The changes in our environment require new solutions for how to organize cities and towns in order to make better use of resources and limit carbon emissions (Mulgan, 2007). 4.1.5 What Are the Steps To Successfully Implementing an Idea? The process for turning an idea into a successful service or product that can be sold or provided to society is not a linear one. It requires risk-taking and often failure and the willingness to pick up and try again. It requires being comfortable with being the odd man out at times as well. Still, to truly implement something new and impactful requires a few key elements, some of which will sound familiar as they were presented in the module on transformative action: − Communication of the problem and its solution. As mentioned in the theory of transformative action, to implement an idea requires “shining a light” on the problem and “o ffering a clean glass of water” or the unique alternative or solution to that problem. − Development of alliances. To move forward with the development of your idea into a product or service also requires “social aikido”. Especially with the development of social innovations, cutting across organizational and sectoral boundaries as well as developing new social relationships between individuals and groups that were once separate is essential. It is in these new relationships the new possibilities are created. − Finance and business plan. Once you have support for your idea, service or product, it will be necessary to develop a finance and business plan to fully grow and develop your idea and to acquire investors and support on a larger scale. − Marketing plan. This is your plan for communicating with your customers and selling your service or product. This is also where you may think about how you will expand your services or develop new products (Sherman, 2016; Mulgan, 2007). 7|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.6 Exercise: How Can I learn More? There are many inspirational examples of new businesses and social innovations that have had large impacts on society. Here is one example of an idea that began in Canada and has spread. Is this something that you could implement in your country? What would it take? Centre for Social Innovation: https://www.youtube.com/watch?v=JtrtURiz97Y 4.1.7 Exercise: True or False? 1. Social innovators and entrepreneurs must be comfortable with a FALSE TRUE certain level of risk. 2. New ideas can only be implemented by people with power and FALSE TRUE money. 3. Social innovation is only present in the nonprofit sector. TRUE FALSE 4. Entrepreneurs are only interested in making a profit. TRUE FALSE 8|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.8 Exercise: How Long is a Minute? Instructions: Organize yourselves in pairs. − You must each think of a problem that exists and a solution that you believe would successfully address the problem. − You will then have one minute to explain the problem and solution to your partner and gain the support of the partner in supporting the plan for implementing the solution. Using the 3 main elements in this activity: 1) Problem __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 2) Solution __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 3) Rally support __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 9|youthindev.org Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.9 Reading: Elevator Pitch The first step to getting an idea off the ground is sharing your idea. As you have read, entrepreneurs and social innovators are not always taken seriously when they first get started. Many people believe their ideas are unachievable, crazy or offensive as they g o against the “way things are”. This means that in order to begin developing an idea you must have a quick and compelling message that will draw people in.  This message is known as the one-minute pitch or the elevator pitch , because it is so short that you could say it while riding in the elevator with someone. Entrepreneurs and social innovators begin with an idea. This idea is the unique solution to a problem. To build on this idea and turn into a business or organization first requires supporters. Supporters are not necessarily financial supporters but others who are excited or moved by your idea and believe that the idea is a good one. These supporters may be able to help you through the prototyping phase (the next module) with ideas or technical expertise. These supporters may also have other expertise such as financial planning or business knowledge or marketing experience that will be of great value to you once you have a solid prototype. Other supporters still may be connectors, individuals that can help you build the relationships you need with individuals or groups who you may need in order for your idea to be successful. There is a lot of advice available online explaining how to construct this one-minute pitch, as well as the five-minute, ten-minute and 30-minute pitch when you have the opportunity. But when you are just beginning it is the one-minute pitch that you want to perfect because if the person is not interested you lose very little time and in the beginning you must be prepared to get many no’s before you get any yes’s. Here are the key elements of the Elevator Pitch: 1. Draw them in with empathy and a question. You need to figure out whether the person can relate to the problem that you have identified for your service or product or organization to solve. From the beginning, you need to draw the person ’s interest and make them feel the pain or frustration or concern that this problem creates. 2. Present your solution or USP. Explain your Unique Selling Proposition or idea for solving the problem that you have presented. 3. End with the question. You’re almost there. If they’re hooked, they’ll want to know more. What do you need from the person you are talking to? Are you looking for thought partners, investors, meeting space, experts in technology or business development? Perhaps your question will be different for different people, think about this and develop various versions of your pitch. 4. PRACTICE! Drafting the pitch is the first part, then you must practice it over and over...and over again. The pitch must become second nature so that it flows and that it no longer seems rehearsed. Also, the shorter the better. You will need to edit and re-edit to take out the less important details and construct a concise message that gets to the heart of the problem, your 10 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas solution and your question. If you have a partner already established, you may practice together or ask a parent, sibling or friend to be your audience and give you critical feedback. 4.1.10 Exercise: Your Elevator Pitch Instructions: Developing this pitch is not easy. Take the time to refine your pitch but it will take practice, editing, and re-editing to perfect it. You will have 15 minutes to write your first own elevator pitch. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 11 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.11 Exercise: Are You Interested? Instructions: Below are a series of drafts of elevator speeches or one minute pitches. Read each example and identify the elements that are present. For the missing elements, write out a sentence that could be incorporated into the speech to make it more complete and more compelling. Example 1: So what do you think about the public transportation? How long does it take you to get to work? It seems that every day there are more cars and the buses are going slower and slower because of all the traffic. I know that I get home exhausted many nights. I have been thinking a lot about the situation and believe that a rideshare program would be great for this city. It would mean an alternative to the buses and if enough people began to participate maybe there would be less cars on the road as well, or at least less cars with just one person. I have done some research and got in contact with an organization that successfully started a rideshare program in another city. They have agreed to host an event next Friday at 2 pm at the community center to discuss how they got started and the how the program positively impacted their city. If you are interested, I would love to give you this flyer with the details and I encourage you to invite 5 friends. Can I count on you? ❏ Empathy ❏ Question ❏ Solution ❏ Ask Sentence that could be incorporated into the speech: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 12 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Example 2: Oh hey! I have been meaning to talk to you. You have tech experience. I want to make it easier for farmers to make a living. Will you help me? ❏ Empathy ❏ Question ❏ Solution ❏ Ask Sentence that could be incorporated into the speech: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Example 3: So I finally made a decision to do something about my phone addiction. I am working on designing an app called LIVE. This app will offer incentives and rewards for not being attached to your phone and instead connecting with others. It will include a mechanism that lets you easily turn off all sounds and distractions, unless an emergency. I will be holding a focus group next week on Wednesday night at Taps Bar. Will you come? I would love your feedback and thoughts. ❏ Empathy ❏ Question ❏ Solution ❏ Ask Sentence that could be incorporated into the speech: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 13 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.1.12 Learning Journal Please, write your own personal reflections below. 14 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas MODULE 4.2: IMPROVEMENT THROUGH FEEDBACK 4.2.1 Learning Objectives − You will understand the importance of feedback and how to use it to improve an idea, service, or product. − You will learn the steps for rapid prototyping and will consider the benefits of this process. 4.2.2 Quick Response: How Do You feel? Read each statement and select your general response: Strongly Strongly Appreciate Neutral Dislike appreciate dislike You share an idea and someone tells you it is not possible. ❏ ❏ ❏ ❏ ❏ You share exciting news and another person responds with little to emotion or ❏ ❏ ❏ ❏ ❏ enthusiasm. You make a suggestion or present a solution and another person disagrees ❏ ❏ ❏ ❏ ❏ with you. You tell your parents about something that you want to do and they tell you they ❏ ❏ ❏ ❏ ❏ do not agree or think it is a bad idea. If you responded mostly with strongly dislike or dislike, you are not alone. Rejection or disapproval is not a good feeling. When it comes from your family or your friends, it is even worse. If you responded mostly with strongly appreciate or appreciate, this could mean that you already understand the value of feedback. 4.2.3 Reading: The Importance of Feedback Feedback is essential to creating and successfully solving a problem or challenge with a new idea, product or service. Both entrepreneurs and social innovators work to solve problems that they identify with unique solutions that serve others. This means that feedback is critical to their success. 15 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.2.4 Exercise: Reflecting on Past Feedback Think back onto a time in the past where you received feedback: 1. What was the general message of the feedback that you received? 2. Did you actively listen to the feedback? YES NO 3. Did you ask clarifying questions? YES NO If no, what clarifying questions could you have asked? 4. Did you repeat back or paraphrase the feedback for the person giving the feedback? YES NO If not, what how could you have paraphrased the feedback? 5. Did you thank the person for the feedback? YES NO 6. Did you use the feedback that you received? YES NO If yes, did you follow up with the person who gave you the feedback to tell them how you implemented it? YES NO This is a useful exercise to review every time that you receive feedback to make sure you are following the steps and reflecting on how you can better receive feedback the next time. 16 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.2.5 Tips for Receiving Feedback Kevin Kruse (2014) of Forbes Business Magazine offers these tips for receiving feedback: 1. Listen actively. It can be hard to hear feedback but use body language to demonstrate that you care what the person is saying. Ask clarifying questions when necessary and repeat back what you are hearing. 2. Say thanks. Whether you believe the feedback is useful or not, always thank the person for his or her feedback to communicate that you want to continuously grow and improve. 3. Process it, slowly. Take the time to consider the feedback you receive. Do not make rash decisions, do not react too quickly. Look for the truth in what each person says, beyond the negative feelings that the feedback may stir up for you. At times, you may receive feedback that is not constructive or well-informed and may be okay to dismiss but first try to identify something that you can learn from it. 4. Look for patterns and close the loop. Look for feedback that is repeated and identify things that you should begin to do or stop doing. When you implement a person’s feedback, follow up with that person to let him or her know how you used their feedback. 4.2.6 Reading and Activity: Rapid Prototyping Another option is to seek out feedback, being proactive in your desire to constantly improve your idea, product or service, so that it is more valued by the user. A strategy that can be used to do so, especially in the beginning of the development of your product or service, is rapid prototyping. Rapid prototyping is a part of design thinking, “a human-centered approach to innovation” (IDEO, 2016). In many cases, you may have nearly completed the first round of the process but you can use the prototyping and testing phases to make improvements and adjustments to your idea, product, or service quickly and economically. Here are the steps that IDEO has: a. DISCOVERY: I have a challenge? How do I approach it? Design thinking begins with a challenge that you want to solve. A useful template for your challenge statement is: - How might I help [people] [need verb] in a way that [value]? - Example 1: How might I help youth in my country acquire the skills and knowledge needed for effecting positive change in their communities in way that both motivates and empowers them? - Example 2: How might I help children in refugee camps get up to grade level in school (covering several years of content and skills in one year) in way that is both effective and enjoyable for the children, teachers and families? 17 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Stop and Jot. Consider the problem and solution that you have begun to develop. How could you turn the problem that you identified into a challenge statement? Fill out the blanks below: How might I help ____________________________ _______________________ [people] [need verb] in a way that ______________________________________________________________? [value] b. INTERPRETATION AND IDEATION: I see an opportunity. What do I create? With the challenge statement identified, one can begin to investigate the details of the situation and develop as many ideas as possible on how to address the challenge. This is where the skills learned in the creativity module will come in handy. You will begin by using divergent thinking to generate as many solutions or ideas as possible, with the goal being to generate hundreds of ideas. Here you are avoiding “but” and instead saying “and”. Once you have a large list of ideas, you will use convergent thinking strategies to look for hits and misses, overlapping and related ideas and quickly narrow your ideas down to 1 or 2 that you want to prototype. Stop and Jot. Consider the solution that you have proposed for the challenge that you identified. What other solutions did you consider? 1. List 3 here: ______________________ ______________________ ________________________ 2. How did you decide upon your final solution? ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 18 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas c. PROTOTYPE: I have an idea. How do I build it? For many of you, this is where your work will begin. In this phase you are going to take your idea for a product or service or solution and turn into a thing. This thing may come in the form of a: ● Model ● Diagram ● Advertisement ● Mock- up ● Role play ● Process Diagram It is here that you want to generate something that represents the product or service that you are proposing as your solution to the challenge that you have identified. Stop and Jot. 1. What prototype will best help to turn your idea into a thing? (Select one) Model Diagram Advertisement Mockup Role play Process Diagram 2. Explain in some detail how you will design your prototype ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ 19 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas d. FEEDBACK (TESTING & ITERATING): I have a prototype. What do users think? In this final phase, you are going to invite sample or mock users to react to your prototype. To do so you must do two things: 1. Set the stage. Tell the user, who they are, where they are and what they are doing. Because the user may actually be your mother, father or best friend, these details will help them to understand how they should be thinking and behaving. In an ideal scenario you would use testers who are actual potential users. 2. Question your user. You need to have a clear question or objective to help focus the user. For example, “On a scale of 1 to 10, how likely are you to [insert value]?” After the response of each user, you will review your prototype and consider what changes or iterations you will make to respond immediately to the feedback that you received. You can then repeat the testing phase with the same user or another and repeat the testing and iteration phases. You should continue this cycle until you have a prototype with which you feel satisfied. Stop and Jot. How might the process of testing and iteration improve your idea? ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ Feedback is the key to success and must be welcomed. Sometimes you will seek out feedback and other times it will find you. It both cases you must be prepared to receive it, process and make decisions on how to improve based on what you learn from the feedback. 20 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.2.7 Learning Journal Please, write your own personal reflections below. 21 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas MODULE 4.3 - FINANCIAL MANAGEMENT 4.3.1 Learning Objectives − You will understand how your decisions impact your finance. − You will learn how important it is to manage your finance both privately and/or professionally, and practice good financial management. − You will understand what opportunity costs are and how they relate to decisions and tradeoffs in regards to financial management. 4.3.2 Activity: Define “Opportunity Cost” Keeping a budget will help you remain organized and can help make sure that you will not run out of money. When you run out of money, you will not be able to do fun things like go out with your friends or go shopping. More importantly, however, when you run out of money, you are less likely to have the ability to respond to emergencies or be able to do things like pay bills, rent, and buy food. Therefore, it is important to become aware of how the decisions you make can have an impact on your financial health. Every time you make a decision to spend money, there is something called an opportunity cost. Now this is kind of a hard word, so here is the answer; you have to define it in your own words below. Opportunity Cost: The loss of one opportunity by choosing to take a different opportunity.  Think of it like this: Imagine that you can choose between two things to do tonight, either go to a concert with your friends or help your family paint the house. If you choose to go to the concert, you will certainly enjoy yourself. However, you are losing the opportunity to spend time with your family and improve the house. That opportunity to help your family is gone. It costs you. Your opportunity cost is not being with your family. DEFINE: Now you try. Read the above definition and description. Talk to your friends about the definition. If you have access, look on the Internet and search for other definitions. Then do your best to define opportunity cost in your own words and use it in a sentence. Define OPPORTUNITY COST in your own words: _________________________________________________ ________________________________________________________________________________________ Use OPPORTUNITY COST in a sentence: _______________________________________________________ _______________________________________________________________________________________ ________________________________________________________________________________________ 22 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.3.3 Tradeoff Every day we make important decisions and choose between two or more things. Each of these decisions has an opportunity cost. Envisioning life in this way, every single decision you make is a fork on the road. In making the choice to go down one path, you give up the ability to go down the other. This is called a tradeoff. Define TRADE OFF in your own words:_________________________________________________ ________________________________________________________________________________ Use TRADE OFF in a sentence: ________________________________________________________________________________ ________________________________________________________________________________ Tradeoffs happen every day -- often we don’t consciously acknowledge them. For example, in reading you are making the tradeoff of not being able to use this time to cook. In this case, you might love reading and you do not think ultimately have the time to cook a whole meal, so you feel pretty good about this tradeoff. It is important that you acknowledge the tradeoffs you are making though, and understand that for every single decision you make, there is a tradeoff. Question: But what if you were having to choose between a job which is paid less and you like and an activity that would be paid more but that you would enjoy much less? Describe the tradeoff in this particular situation: ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 4.3.4 Exercise: Understanding Your Bills Every month, you have bills that you have to pay. Some of these bills can include: electricity, gas, rent or transportation. Some of these bills might change every month, because you use more of the service some months, and less other months. However, some of them remain the same every month unless there is a negotiation of the terms of the bill. These bills that do not change, are called Fixed Costs. 23 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas After reading the above description, try and define FIXED COSTS in your own words:__________________________________________________________________________ ________________________________________________________________________________ Give three examples of FIXED COST bills: 1. 2. 3. Among the bills that are listed above (electricity, gas, rent, transportation), which are fixed costs? If you said “rent” and “transportation,” pat yourself on the back, you’re right! But what about the other bills (electricity, gas and rent)? Those are bills that change every month. When you use more gas, you pay more money for it. The cost of gas changes every month...or it “varies.” These costs are called Variable Costs because they change every month. After reading the above description, try and define VARIABLE COSTS in your own words:___________________________________________________________________________ ________________________________________________________________________________ Give three examples of VARIABLE COSTS bills: 1. 2. 3. 4.3.5 Exercise: Financial Decisions Now that you have defined opportunity costs, you can see how your decisions can have an impact on your future life. It is important to think ahead in any situation like this as it is important to understand that each decision has an effect on the future. Below are three scenarios where you will have to decide how your financial decisions impact your future. Scenario 1: Happy Graduation! Today is Saturday. You don’t get your paycheck until Monday. Your friends want to go to dinner at an expensive restaurant to celebrate their graduation. With you, there are 5 people. You have enough money for dinner, but then you will be out of money until Monday. Your family is planning on taking you to dinner at another fancy restaurant next week. You could very well stay at home on Sunday and avoid spending money until you get paid on Monday. But you have not saved any money this month, and if an emergency occurs, you will not have enough money to deal with it. 24 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Will you go to dinner with your friends or will you decide to stay home and save the money? Go to dinner. Decide to stay home and put the money in savings. What is your opportunity cost for the decision you’ve made? ________________________________________________________________________________ ________________________________________________________________________________ Scenario 2: Your New Coffee Shop! You and your friend have opened a coffee shop in town. It is the end of your first week of business and the whole town is talking about how good your coffee is and how much they like the atmosphere. In order to open your business, you and your partner had to spend all of your investment money on the coffee, cups, napkins, and everything else it takes to open a business. You have two types of coffee: the inexpensive kind, which everybody is buying, and the expensive kind, which very few people are buying. On the final day of the week, you realize that you have run out of the inexpensive coffee. If you do not sell the remainder of the expensive coffee, it will go bad and you will lose money. If you lower the price, you will not earn a profit, but rather, you will break even and have just enough money to open your coffee shop next week. What do you do in the future to make sure this does not happen again? Choose one answer. o Buy only the inexpensive coffee in the future, and sell only that. If you do this, you will make profit, but not as much of a profit that you would if you had sold the expensive coffee. o Spend money on an advertisement that promotes the superior flavor of the expensive coffee so you can make more profit. The advertisement costs the same amount as two bags of inexpensive coffee, and there is no guarantee that it will inspire people to spend more money on coffee. But, if it does, you will have a lot more profit and make a lot more money. If it does not sell, however, you will lose money. Explain why you made this decision: ________________________________________________________________________________ ________________________________________________________________________________ 25 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Scenario 3: You recently earned some money from a job that you completed. You are planning on putting it into a savings account and keeping it for the first few months of college, so you do not have to get a job immediately. This is a relief to you because you want to adjust to college life before you get a job and become much busier. Your dad comes to you today and tells you that he needs to borrow some money as the roof has sprung a leak due to the recent rainstorms. He must hire somebody to help him immediately as there is a forecast for rain this evening and, if he does not fix the roof, water will get into the house. Your dad says he will be able to pay you back, but that it might take two months, and he will pay you in installments. You can help him fix the roof which would mean that he does not have to borrow money. However, you have plans to go to dinner to spend time with your friend who is leaving for college. If you do not go to dinner, you will not see your friend for at least another year, and possibly even longer, as traveling from school is very difficult for your friend. If you do not help your dad, you will not have the money that will help you for the first few months in college, and you will have to get a job. Will you go to dinner with your friend or will you stay home and help your dad? Go to dinner. Decide to stay home and put the money in savings. What is your opportunity cost for the decision you’ve made? ________________________________________________________________________________ ________________________________________________________________________________ 26 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Now you think of an example: In the space below, write a scenario that demonstrates a choice that you will have to make in either your personal life or in your business life. Detail the opportunity costs and why making this decision was a good one. Scenario: What would you do and why? ________________________________________________________________________________ __________________________________________________________________________ ______ What is the opportunity cost of making this decision? ________________________________________________________________________________ ________________________________________________________________________________ 4.3.6 Activity: Choose Between Two Options THINK: Think about a time you had to choose between two or more options. This could be anything: a recent decision to spend a bunch of money vs. saving, a personal decision, a decision to talk to somebody vs. not talking to them, a decision to stay up late on a school night vs. getting enough sleep, etc. Think about this scenario for a minute or two, and imagine how you would tell this story to a friend. PAIR: With a partner, take a few minutes to each tell each other your stories about the tradeoff. SHARE: While you listen, pay close attention, as the trainer will be asking for volunteers to tell their partner’s story to the whole group. 27 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.3.7 Learning Journal Please, write your own personal reflections below. 28 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas MODULE 4.4 - BUSINESS PLAN: ACTION WORDS/ TARGET MARKET 4.4.1 Learning Objectives − You will learn the various components of a business plan. − You will learn to identify a target market for a business in order to shape and advertise your business or product more effectively. − You will be able to draft a mission statement to present the main pillars of your business. 4.4.2 Fill in the Blank with Action Words Remember what you previously learned about delivering a message in an appropriate and effective fashion. In certain situations it is important to understand your audience and how to deliver your message across in a concise way. You do this all of the time in your daily life. For instance, you talk to your friends differently than you talk to your boss or your teacher. You probably speak in a more formal way to your boss and in a more casual way with your friends. This does not mean that you are not authentic, it means that you understand that certain relationships require a certain type of language. Instructions: In this exercise, you will replace the bold letters in the paragraphs with one of the five following action words in order to make the paragraphs. As you read cross out the bold word and replace it with one of the action words. If you feel that the sentence has to be written over, feel free to cross out other words as well in order to make each paragraph suitable for an audience consisting of business leaders. Action Words: Accomplish Illuminate Compose Inspire Demonstrate I would like to do a couple of things. First off, I think we should write a plan that makes people want to write their own business plan, rather than simply copying somebody else’s. Second, we should show people how to come up with their own ideas, rather than relying on old ideas. 29 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Action Words: Amplify Master Distribute Perform Encourage Mom, I want to start my own business so I can increase awareness around the issue of homelessness. My business will fulfill two major tasks: First, my business will give some knowledge to the community in order for them to make other people join our cause. Also, since my business will provide education homeless people, we will help them become experts in certain practical career and literacy skills. Action Words: Advance Facilitate Communicate Possess Embrace There is a lot of knowledge about business that I do not yet have. I am open to my lack of knowledge and I hope that college can help in my learning process so I can further my learning in terms of how to talk about what my business can do to help the community. 30 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Handout 4.4.1 – Building a Business Plan You are going to learn how to build a business plan. It is a very important document that you provide to the banks and other funding sources in order to show that you have thought of every last detail about your business.  The business plan is the outline and description of all aspects of your business, including details on how you will get your business started, how you will make and earn money, how you will advertise your business, and to whom you will advertise. Now, a business plan is a huge document that most people spend months and months researching for and drafting. For these activities, we will walk you through the main points and parts of a business plan so you can get a sense of what you will have to do as soon you start your own business! The Mission Statement: A mission statement is a very important statement made up of a few strong sentences that captures the very essence and meaning of your business's main goals and general philosophies. Also, your mission statement tells your customers, employees, suppliers and general community what your business is all about. Your mission statement should show how wonderful and unique your business is. It’s short but it should say a lot. It should talk about your product, the pricing, how it fits into what the market needs, and the general uniqueness of your company. Here are some samples of other mission statements: Example 1: "My Candy inc. is a colorful, creative, customized candy company that offers high quality ingredients and easy-to-use technology that allows anybody and everybody to make their own creatively designed candy at a moderate price. Since 20% of My Candy’s profits go toward local charities, our company aims to fulfill the community’s sweet tooth, while also helping to provide resources and assistance for local people and local causes. We aim to become a regionally recognized brand name, capitalizing on the dual need for whimsical fun, and also an illumination on important social causes that can help the community, the country and the world. Our goal is moderate growth, annual profitability and maintaining our creative, whimsical spirit." Example 2: "Kiddo Video Game inc. is a company devoted to developing video games that teach kids reading and writing skills. Our mission is to help kids understand how reading and writing can unlock potential for their futures and careers. We motivate and encourage students to engage in reading by creating fun and innovative video games. Our motto is: Communicating through joy and engagement" Building Your Mission Statement: Let us build a mission statement for a company that you might one day want to turn into a real business. Of course, this is a fun game at this point, so feel free to dream up any business you would like to have. 31 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Product or Service? First things first: do you want to provide a service for people or do you want to sell a product? ____________________________________ Service: If you chose service, think about what kind of service do you want your company to provide? For example, if you want to start a plumbing company, you will be providing plumbing service. If you want to start a service that helps to provide food for elderly people in the community, then food service is your service. What’s your service? __________________________________________________________________________________ __________________________________________________________________________________ Product: If you are going to sell something, what will this product do? Will you be selling video games? Will you be selling brooms? Will you be opening an ice cream store that sells candy and ice cream? Maybe you’ll be selling computer parts. Maybe you’ll be p roviding a service and a product. For example, you might sell computer parts and provide the service of fixing computers using the parts that you sell! If that is the case, make sure to mention it in the space below. What’s your product? __________________________________________________________________________________ __________________________________________________________________________________ Description: In this next section, you will describe your business by talking about how it will help your customers or the community. For instance, if you are going to open an ice cream store, you should mention that your business will be providing refreshing ice cream for the community, but also a safe and fun place for kids to hang out and socialize. If you are opening a plumbing company, you can mention how your company will provide the best plumbing services to the community with the friendliness and trust that only a local community person can provide. Describe your business: __________________________________________________________________________________ __________________________________________________________________________________ Your Goal: In this next section, you are going to briefly describe the goal of your business. If your plan is to become profitable (making money) in the next 6 months, you can say that. But your goals should not only be financial. You should mention what your larger goals are, such as how your goal is to become a member of the community, the most recognizable plumber in the country, the most reliable volunteer placement service, etc. 32 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas What’s your goal? __________________________________________________________________________________ __________________________________________________________________________________ Name Your Company: This is a major part of your business. Think of what you want your name to be so people will remember it. You should make it short, to the point, descriptive and easy to remember. Think of your favorite companies and businesses and consider how their name enhances their business. What’s your company name? __________________________________________________________________________ Writing Your Mission Statement: Let’s write a mission statement for your business. Take a look at the example mission statements above to get a sense of the structure of your mission statement. Instructions: ● Combine the sections that you created above to make your mission statement. ○ However, just combining those sentences will not be enough. You should also use some action words to provide your mission statement with a sense of confidence and liveliness. ● Please circle 5 action words from the list below and use them in your mission statement. 33 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Action Words for Mission Statements: ● Accomplish ● Compose ● Engage ● Inspire ● Acquire ● Confirm ● Enhance ● Improve ● Adopt ● Connect ● Enlighten ● Integrate ● Advance ● Consider ● Enlist ● Know ● Affect ● Construct ● Enliven ● Launch ● Affirm ● Continue ● Entertain ● Lead ● Alleviate ● Council ● Enthuse ● Light ● Amplify ● Create ● Evaluate ● Live ● Ascend ● Cause ● Excite ● Make ● Believe ● Demonstrate ● Explore ● Manifest ● Bestow ● Devise ● Extend ● Master ● Brighten ● Direct ● Facilitate ● Mature ● Build ● Discover ● Forgive ● Measure ● Choose ● Discuss ● Foster ● Mediate ● Claim ● Distribute ● Franchise ● Negotiate ● Collect ● Draft ● Further ● Nurture ● Combine ● Dream ● Generate ● Organize ● Command ● Educate ● Give ● Participate ● Communicate ● Embrace ● Grant ● Pass ● Compel ● Encourage ● Identify ● Perform ● Compete ● Endow ● Illuminate ● Place ● Compliment ● Possess ● Practice 34 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas My Mission Statement Write your mission statement below. Do not forget to use the above example mission statements as models to create your own. This is meant to be a fun activity, so use language that demonstrates your excitement about opening up your own business! ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 35 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas What Makes My Business Unique? ● What Need does your business fulfill? Think about what your company does for its customers. What is your company doing that other companies are not doing? How will your company serve your customer base in order to provide them with a service or product that is unique? __________________________________________________________________________________ __________________________________________________________________________________ ● Who are your competitors? Consider other companies that provide the same product or service that you do. These can be large corporate companies, and also small, family owned and operated business. But, knowing who your competitors are will help you to design a business plan that illuminates the unique qualities of your business. __________________________________________________________________________________ __________________________________________________________________________________ ● What are the strengths and weaknesses of your competition? Think about your competition (people who are doing the same thing that your company is doing). What are some of their strengths and weaknesses? List as many as you can, as this will help you to understand what you need to do in order to make your company stronger. Strengths Weaknesses ● How is your business different from other businesses who do the same thing? Now that you have identified your competition and thought about their strengths and weaknesses, write a brief statement discussing how your business is different from theirs. What does your company offer that your competitors do not? __________________________________________________________________________________ __________________________________________________________________________________ 36 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Identify Your Customers Now that you have done some more research on your business and made some important decisions, it is time to think about how you will get the word out about your business and how you will advertise to your customers. Who are your customers? Before you can make an advertisement, you must first decide who your target customers are. You want to make sure that your advertisement “speaks to” the age group that you are targeting. Do you envision your customer being kids? If so, how old? Do you see your customers being teenagers? Young children? Or, if you envision that your customers will be adults, you must also consider how old they are. For example, the needs for people in their late 20’s are very different than the needs of elderly adults. What is the age range of your customers? Circle the age range or age ranges that best describe your target customer. 2 years old - 5 years old 6 years old - 10 years old 11 years old - 18 years old 19 years old - 25 years old 26 years old - 35 years old 36 years old - 45 years old 46 years old - 60 years old 60 years old and older 37 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.4.3 Identify the Target Market When a company advertises a product, they make sure to cater the advertisement to appeal to a certain group of people. When a company identifies what certain groups of people like to see in an advertisement, it is called identifying a target market. For example, if a company is trying to sell bottles of wine, they are not going to put unicorns and bright cartoon flowers on the advertisement, as those images are typically reserved for the target market of children. Instructions: Below are descriptions of advertisements that were created for certain target markets. Read through each description and then circle which target markets the advertisement is appealing to. Next, briefly write about which specific imagery lead you to believe that the advertisement was appealing to those specific target markets. Ad 1: SUGAR QUAKE CEREAL In this advertisement for Sugar Quake cereal, there is a puppy in the center of the picture. It is sitting in a field of bright flowers, its big, water blue eyes are sadly gazing out at the camera. The sky behind it is blue, there is a unicorn flying over a rainbow and the white clouds are fluffy, and have big smiley faces on them. The text says, “Sugar Quake, Shaking Up Your Taste Buds!” Circle the age groups does this advertisement appeal to? 5-10 years old 11-17 years old 18-25 years old 26 - 35 years old 36 - 45 years old 46-60 years old What are some specific images that from the above description that lead you to believe that this advertisement is trying to appeal to this age group? ________________________________________________________________________________ ________________________________________________________________________________ 38 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Ad 2: PEACE AND RELAX HOTELS In this advertisement for Peace and Relax Hotels, the scene is a photo of the beach at sunset. There are two people at the shoreline. They are holding hands, and gazing off into the sunset. The woman has her head gently resting on the man’s shoulder. He ha s his arm around her. The colors are muted, and the text is in cursive, saying “Find your Peace” Circle the age groups does this advertisement appeal to? 5-10 years old 11-17 years old 18-25 years old 26 - 35 years old 36 - 45 years old 46-60 years old What are some specific images that from the above description that lead you to believe that this advertisement is trying to appeal to this age group? ________________________________________________________________________________ ________________________________________________________________________________ Ad 3: SHOCK AND ROCK ENERGY DRINKS: In this advertisement for Shock and Rock Energy drinks, the camera focuses on a scene with a pool, filled with young people in their bathing suits. Some of them are in the pool splashing one another; others are sitting on the edge of the pool with their feet in the water, talking and smiling to the others around them. In the background is a concert that seems to be happening about 200 feet away. The stage has three people with guitars and microphones, and the crowd is all leaning in and dancing to the music. In big bold letters that resemble graffiti, the text reads: “GET YOUR ROCK ON WITH SHOCK AND ROCK!” Circle the age groups does this advertisement appeal to? 5-10 years old 11-17 years old 18-25 years old 26 - 35 years old 36 - 45 years old 46-60 years old What are some specific images that from the above description that lead you to believe that this advertisement is trying to appeal to this age group? ________________________________________________________________________________ ________________________________________________________________________________ 39 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.4.4 Identifying the Imagery of Your Advertisement Try and think about the types of imagery, photos, colors, and symbols that somebody in your target age range would enjoy seeing in an advertisement. Do you think a person who is 60 years old or older would enjoy seeing an advertisement with cartoons and bright, neon colors? Probably not, they would be more likely to enjoy seeing advertisements that are geared toward a more serious audience. Briefly describe the imagery you will use in your advertisements. Think of this section as a brainstorm of ideas, and feel free to be as expressive in your language as you would like. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 40 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas ADVERTISEMENT!! In the box below, design an advertisement for your product. This advertisement can be a billboard, or an advertisement that will printed in a newspaper or magazine. You decide. Try to make it as appealing as you can. Even if you are not an excellent artist, please try and be creative and have fun with this. It does not have to be perfect, but rather it is an idea that, when you start your business, you will give to your art team to make a perfect advertisement. Try and maintain the tone and imagery that is appropriate for your customers. 41 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 42 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.4.5 Learning Journal Please, write your own personal reflections below. 43 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas MODULE 4.5: MARKETING & PERSUASION 4.5.1 Learning Objectives − You will learn and practice the role that ethos, logos and pathos play in marketing. − You will identify the main components of a strong marketing plan and start writing one. − You will understand the nature and use of persuasive language by identifying rhetorical devices and how they are used in various mediums. − You will make use of rhetorical devices to persuade an audience. 4.5.2 What Does It Take to Convince You? Think about your favorite ad or radio or TV commercial. What is it that you love about this ad? Brand: _____________________________ Why do you like or remember that ad or commercial? _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ 4.5.3 Reading: Persuasion; Ethos, Logos & Pathos Often times when we think of marketing the first thing we think about are our favorite commercials - the funny ones, the sad ones, the ones that convinced us to go out and buy that thing right away because we were concerned or because we wanted to fit or for all the many reasons that we buy things products and services. But what are the marketers doing in order to persuade us into spending our money?  They are implementing three key concepts of persuasion: Ethos, Logos and Pathos. Ethos When a person, such as a writer or a marketer, employs Ethos, they are showing that the speaker or writer is credible and has the credentials to be relied upon to speak to the topic.  Example: A cardiologist (heart doctor) is cited in an article to talk about the dangers of smoking cigarettes. She is a doctor, and she has done research and worked in the medical field, therefore, she has the credibility (or the ETHOS) to talk about cardiology. 44 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Logos When a person, such as a writer or a marketer, employs Logos, they use facts, statistics, and reason to describe their point. ● Example: A writer is discussing climate change by showing graphs and statistics discussing how the earth’s climate is the warmest in human history. They explain this by discussing that emissions from cars, factories, and other energy sources are causing this climate change. Pathos When a person, such as a writer or a marketer, employs Pathos, they are appealing to the emotions of the audience. ● Example: In order to get his mom to buy him new shoes, the kid begins to cry and tell his mom a sad story about how his friends make fun of him because of his shoes, and that hurts his feelings. 4.5.4 Exercise: Ethos, Logos or Pathos? For each ad, consider which element or elements are being used and then explain why. EXAMPLE 1. Source: Media.cnbc.com PATHOS LOGOS ETHOS Explain: _______________________________________________________________________________ _______________________________________________________________________________ 45 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas EXAMPLE 2. Source: 1985 Michelin Baby So Much Riding on Your Tires PATHOS LOGOS ETHOS Explain: ______________________________________________________________________________ ______________________________________________________________________________ 46 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas EXAMPLE 3. Source: Truth (anti-tobacco) Campaign PATHOS LOGOS ETHOS Explain: ______________________________________________________________________________ ______________________________________________________________________________ 4.5.5 Activity: We Deserve the Candy! You and your partners will be writing a speech to convince the rest of group that you deserve the candy that the trainer has. Only one group can win, so make sure you are as persuasive as possible. Instructions: Using the graph below, write out statements that you will make to persuade the audience that you and your group deserve the candy more than the others. Make sure that you are using the rhetorical devices in such a balanced way that you will be able to persuade every person in the audience. For instance, if you use too much pathos, the audience might need more facts or “logos.” But if you use too much “logos,” the audience might want to understand why they should believe you, and what your credibility is. However, if you use too much “ethos,” the audience might think you are relying too much on your credentials, and not enough on the facts or the human aspect of emotions. 47 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas ETHOS: Credibility of the Speaker LOGOS: Facts and Reason PATHOS: Emotional Appeal 48 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.5.6 Reading: Developing a Marketing Plan A marketing plan is much more than advertisements. In general, it is a document that builds off of your business plan. There is a lot of advice available online about the different components of a marketing plan, along with things to consider for each section. The marketing plan focuses on the actions that will help the company to achieve the mission and goals laid out in the business plan. The key components of the marketing plan are the following: - Situation Analysis. In this section, the strengths, weaknesses, opportunities and threats are identified. The goal here is to distinguish your product or service from your competitors. - Target Audience. Next, you need to think about who you are serving, who are your clients. The more specific you can be the better. It can be easy to say all youth 12 to 24 years old, but this will not help to make for clear decisions in the other parts of the marketing plan. Yes, it may be possible that there are 12 year olds that buy your product and service, as well as 24 year olds but where are you going to focus your energy? What makes the most sense? When you define your target audience some characteristics to consider include: gender, age, personality, interests, education levels, economic levels, etc. The more creative and specific, the better! - Marketing Goals. Write down a short list of marketing goals. These could be number of sales or percent increase in sales, for example. - Marketing Mix. The marketing mix identifies the nitty gritty of your marketing strategy and is made of 4 key components that are often referred to as the 4 P’s: Produ ct, Price Place and Promotion. All of these are designed with the target audience in mind. Product. This is where you communicate decisions about the product or service you are offering or services that will accompany the product. Here you might consider function, packaging, warranty, and more. Price. Here you communicate how you will price the product or service and you will take into account your competitors and how they might respond to your pricing decisions. You can also consider discounts and payment plans. Place. This is where you communicate how you will distribute the product or service and to where you will distribute it. You should think about logistics here. Promotion. This is where you explain how you will communicate and sell the product or service to your customers. It is important to consider the value of a new customer to your company to determine how much should be spent on acquiring them. Promotion includes your advertising, public relations and media details. 49 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas - Marketing Budget. This should have been a part of the financials presented in your business plan but you may want to include more detail here. It is important to identify what percent of the money you earn will go back into marketing. 4.5.7 Activity: Checking Your Knowledge. Read each question and choose the best answer: 1. Which of the following components is NOT a component of the business plan? A. Marketing Budget B. Marketing Mix C. Target Audience D. Situation Analysis 2. Which of the 4 P’s of the marketing mix are you discussing when you explain the types and amounts of advertisements you will make and the media you will use (radio, print, TV, etc.)? A. Product B. Price C. Placement D. Promotion 3. TRUE OR FALSE? When identifying your target audience you want to be as general as possible to be sure to include as many potential clients as possible. A. TRUE B. FALSE 4.5.8 Reflection - 5 Minutes ● Write what you think is the most useful and persuasive rhetorical device and why that device persuades you. ● Select a partner and discuss your answer. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 50 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 51 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas 4.5.9 Learning Journal Please, write your own personal reflections below. 52 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas BIBLIOGRAPHY: LEARNING THEME 4 Module 4.1 Daum, K. (2013). Give the perfect elevator pitch. Inc.com. Online. http://www.inc.com/kevin-daum/give-the- perfect-elevator-pitch.html Fernandes, P. (2016). What is entrepreneurship? Business News Daily. Online. http://www.businessnewsdaily.com/2642-entrepreneurship.html#sthash.saz2xxNV.dpuf Mindtools Editorial Team. (2016). Crafting an elevator pitch. MindTools. Online. https://www.mindtools.com/pages/article/elevator-pitch.htm Mulgan, G. (2007). Social innovation: what it is, why it matters and how it can be accelerated. The Young Foundation. The Basingstoke Press: London. Online. http://eureka.sbs.ox.ac.uk/761/1/Social_Innovation.pdf Olatunji, O. (2016). LIVE the app - One-minute pitch. Conference. StartingBloc Los Angeles. 19 February 2016. http://www.livetheapp.com/ O’Rourke, A. (2016). What to say in your 1, 5, 10, or 20 minute pitch (+ t ips from successful entrepreneurs!). Bplans. Online. http://articles.bplans.com/what-to-say-in-your-1-minute-pitch-and-more/ Sherman, S. (2016). “Principles of Transformative Action”. Conference. StartingBloc Los Angeles. 18 February 2016. Stanford Graduate School of Business. (2016). Defining social innovation. Online. https://www.gsb.stanford.edu/faculty-research/centers-initiatives/csi/defining-social-innovation StartingBloc. (2016). “One-minute pitch”. Conference. StartingBloc Los Angeles. 18 February 2016. Module 4.2 IDEO. (2016). Design thinking. Conference. StartingBloc Los Angeles. 20 February 2016. Creativity at Work (2016). Design Thinking as a Strategy for Innovation. (n.d.). Online. http://www.creativityatwork.com/design-thinking-strategy-for-innovation/ Kruse, K. (2014). How to receive feedback and criticism. Forbes.com. Online. http://www.forbes.com/sites/kevinkruse/2014/08/12/how-to-receive-feedback-and-criticism/#1efa360d400b Poertner, S. & Massetti Miller, K. (1996). The art of giving and receiving feedback. Coastal Training Technologies Corp.: Virginia Beach. Online. http://www.trainingsolutions.com/pdf/feedback.pdf Module 4.3 Dictionary.com (2016). The world's favorite online English dictionary! (n.d.). Online. http://www.dictionary.com/ 53 | y o u t h i n d e v . o r g Building a Better Tomorrow - Learning Theme Four – Creating Value in Your Ideas Module 4.4 Yourdictionary.com (2016). Action Verbs (n.d.). Online. http://grammar.yourdictionary.com/parts-of- speech/verbs/Action-Verbs.html Module 4.5 Smith, C. (2016). What is the difference between a marketing and business plan? Houston Chronicle. Online. http://smallbusiness.chron.com/difference-between-marketing-business-plan-1682.html Entrepreneur Staff. (2015). Use these 5 steps to create a marketing plan. Entrepreneur. Online. https://www.entrepreneur.com/article/241953 Ethos Examples and Definition - Literary Devices. (2015). Online. http://www.literarydevices.com/ethos/ 54 | y o u t h i n d e v . o r g