BULLETIN 74G -2
FEBRUARY, 1971

VE EDUCA ION

MARKETING MANAGEMENT MODEL
FOR

DISTRIBUTIVE EDUCATION

A MARKETING/MANAGEMENT MODEL
FOR DISTRIBUTIVE EDUCATION

DIVISION OF VOCATIONAL, TECHNICAL, AND ADULT EDUCATION
Carl W. Proehl, Director

BUSINESS AND DISTRIBUTIVE EDUCATION SECTION
John Frazier, Acting Administrator

3 7 5i0097

Ito, '-
/C,3^

ACKNOWLEDGEMENTS

This publication represents the first in what hopefully will

be a series of publications developed by master's degree and doctor's

degree students enrolled in teacher education programs at Florida

Atlantic University and the University of South Florida. Sincere

appreciation is expressed to Mr. Gregory J. Payette for his efforts,

persistence, and diligence in preparing this publication which

represents an abstract of his thesis submitted to the faculty of the

College of Education at Florida Atlantic University in partial

fulfillment of the requirements for the degree of Master of Education.

It is with extreme pride that the Business and Distributive

Education Section of the Florida Department of Education offer this

publication to the teacher-coordinators and supervisors of Distributive

Education programs throughout the state of Florida. It is presented as

a resource guide to more effectively plan and utilize the Distributive

Education laboratory in the development, implementation, and evaluation

of appropriate learning activities.

John E. Frazier
Acting Administrator
Business and Distributive Education

TABLE OF CONTENTS

I. INTRODUCTION . . . . . . . . . . . 1

Purpose
Need
Hypothesis
Summary

II. COORDINATOR GUIDELINES . . . . . . . . 4

Introduction
Planning
Organizing
Controlling

III. STUDENT HANDBOOK . . . . . . . . . . 22

Concept
Rationale
Purpose
Objectives
Description
Curri cul um Content

IV. MCARTHUR MARKETING, LIMITED . . . . . . . 32

Organization
Ownership
Executive Officers
Executive Planning Board
Consultants
Delegation of Responsibilities
Job Descriptions
Client Accounts

BIBLIOGRAPHY . . . . . . . . . . . . 41

CHAPTER I

INTRODUCTION

Purpose

The purpose of this study is to provide a system of management

through which the model store in the distributive education laboratory

becomes an authentic representation of a marketing business enterprise.

The results of this study will take the form of a student-oriented

handbook in which will be constructed and described a Marketing/

Management Model for Distributive Education.

A secondary purpose of this study is to expand the learning

activities of the model store in order to prepare more students for

careers in the area of business services for the marketing process--

specifically: advertising, public relations and marketing research.

A third purpose is to aid full-scale participation in the

DECA program of youth activities by providing a "management treatment"

of the chapter-of-the-year competitive effort.

Need

Model stores exist in distributive education laboratories.

They are intended to be realistic simulations of a typical retail store

in which all functions of marketing and distribution are practical, and

in which the majority of the graduates of the program will gain employ-

ment and develop careers. The use of the model store as a training

laboratory is not fulfilled because a significant element necessary

for business operation has not been provided to accompany the physical

equipment. A system of management for the model store laboratory is

the missing element that must be provided before the model store can

be a realistic approximation of that which it was intended to represent.

There exists a subordinate need to provide an opportunity to

develop interests for careers and provide experiences in the area of

business services such as advertising, public relations and marketing

research. These experiences are not now practicable within the scope

of the model store. They are not generally provided for in the use

the model store as learning experiences.

Further, a need exists to provide a management plan for

providing full-scale participation in all DECA activities. The

breadth of activities and extent of competitive opportunities in

DECA have become so great that a plan of involvement is necessary

before the secondary school chapter can fully realize the benefits

provided as learning activities.

Hypothesis

A system of management is needed in order to make the model

store in the distributive education laboratory a realistic represen-

tation of a marketing institution. Such a system of management can

be evolved that provides realism and also:

1. Maintains curricular integrity

2. Expands career-training opportunities

3. Aids D.E.C.A. involvement

Summary

In ascertaining the need for a study such as this, the fact

came to the forefront that for most distributive education programs

the secondary school laboratory was nothing more than an arrangement

of store equipment. Instead of the laboratory replicating a dynamic

retail store operation that would provide a reasonable facsimile of

an ideal learning situation, the fact appeared that the model store

fixtures could not, by themselves, be anything more than static

pieces of wood, glass and metal. Something was indeed missing.

This has been a non-experimental study of action research

using a modification of the survey method to analyze and describe the

pertinent conditions extant in the field of distributive education

laboratory learning situations. Result of the research undertaken

exposed the need for a system of management to provide realism to the

laboratory. Such a system of management was developed as a product of

the study. Primary objective in designing A Marketing/Management

Model for Distributive Education was to inject realism into the model

store concept in the distributive education laboratory. Subordinate

objectives were to ensure curriculum integrity, expand occupational

opportunities, and to aid D.E.C.A. involvement; at the same time

within the laboratory.

CHAPTER II

COORDINATOR GUIDELINES

Introduction

The project method in Distributive Education, although not

as well established as the cooperative method, is the current target

of much attention in vocational instruction. This method has become

a new frontier in many respects: the area has been discovered and

charted but few Distributive Education coordinators know their way

around it; a majority of the new Distributive Education programs are

following the project method but few coordinators feel confident

about how to proceed. Communications between pioneers in the field

is severely limited by time and opportunity. Maps exist only in

outline form. Techniques are guarded secrets or not yet developed.

In total, the project method is something apart from the cooperative

method in more than methodology alone. There is some historical

background for the cooperative method in education, but very little,

or no, frame of reference for project training in Distributive

Education. The methodology in practice is as recent as the advent

of the method of distributive educational training. It was as recent

as 1963 that large scale backing came about for the project method

even though the cooperative method has been in use since the 1930's.

What Is A Project?

A project as defined in education is:

...a significant, practiced unit of activity having educational
value and aimed at one or more definite goals of understanding,
involves investigation and solution of problems and frequently,
the use and manipulation of physical materials; planned and
carried to completion by the pupils and teacher in a natural
'real-life' manner.1

It would appear that the teacher and pupil might sit down in

front of a computer date terminal, discuss a desired training objective,

punch the information in a couple of cards, and then scoop up reams of

projects the computer spewed out from its data banks. Someday this

will be the scene, but today it is the individual teacher-coordinator

who must come up with projects that are tailored to the variables

within the definition. Although most projects will be of an individual

nature some, however,

...can be developed best as group activities. Such projects
seek to develop general understandings in a particular field
of distributive endeavor upon which students can build specific
understandings based on their chosen career interests.2

Furthermore, the scope of group projects permits greater breadth of

experiences, greater interaction, and a larger arena in which to

observe. Some competencies necessary for distribution (e.g. human

relations and leadership) naturally benefit from the greater magnitude

of a group project.

What Are Project Objectives?

For every distributive competency that has an outcome in

observable behavior, each of these isolated competencies could

IGood, Dictionary of Education, 1959, p. 421.
2Antrim, William H., "Realistic Learning in a Simulated
Environment," American Vocational Journal, January 1967.

conceivably be developed in a project. A long-time leader in

distributive education classifies project objectives according to

a ranking of levels of performance in distributive occupations:

1. Facts and information
2. Processes and terminology
3. Fundamental activities

(levels, 1, 2 and 3 would constitute self-contained projects
that would be concerned with functions, products, and adjustment
to basic occupational situations)

4. Basic job activities
5. Operational level activities
6. Management level activities

(a project in level 4, 5 and 6 would involve integrated
learning in all of the previous three levels)3

From the previous discussion the legitimacy has been established

for a long-range project designed for large group participation that

places emphasis on training at the management level which encompasses

the broadest range of distributive competency areas. This utopian

ideal has resulted in the Marketing/Management Model project.

What Is the Model?

Project

The rationale for a project has already been established--if

nothing else than by virtue of need within the methodology in current

favor. The Model is a large-scale project, requiring anywhere from

ten to twenty students at the minimum. The scope of student activity

encourages participation of numbers of students up to eight or one

hundred. It is a learning activity with a multiplicity of available

3Harland E. Sampson. "Organizing Participating Experiences
in Distributive Education," Business Education Forum, February 1966,
p. 25-26.

goals, that is planned by both teacher and students, that encompasses

problem solving and embodies distributive activities and processes,

and permits room for individual growth irrespective of normal group

constraints. It is a "real-life" situation that is as relevant and

realistic as is possible within the boundaries of the environment.

Marketing

The Model teaches Marketing by marketing a product from

product-buying to product-selling including research, accountability,

operating, promotion and personal selling. Marketing--one of five

competency areas in distributive education--is the one discipline

common to all distributive occupations, be they product or service

oriented.

Management

The Model teaches Management by managing the marketing

activity. Management is legitimately a function of marketing, but

more emphasis is placed here for two reasons:

Orientation

There seems to be a current fixation for "managing" in our

society. Every job must have some form of the term "manage" in it

to be a desirable job. Perhaps inflation has bloated our senses,

but we must recognize that terminology in itself has the power to

attract and repel. The "now" oriented student recognizes only the

new terminology. We must use it!

Motivation

If a person does not care to learn an operation or a skill,

offer him the opportunity to learn to "manage" that skill and see

how much more interest he exhibits toward the operation. The same

basic skill-type learning will take place, but with a new perspective

and new vigor. (The need for this consideration arises from the

writers classroom experiences, and is not necessarily founded in

proven research.)

Management training in the Model is conceptual in nature.

An attempt has been made to present essential management concepts

and processes in as lucid a manner as possible. Direct, though

limited, application of these principles to a specific application

has necessitated the existence of the Model.

How the Model Operates

One of the most recent methods of instruction that is gaining
in educational stature is the simulation exercise, more commonly
referred to as the business game. Although the first educationally
useful game was developed in the late 1950's by the American
Management Association, the availability has been very limited...
Basically the games are of two types. They may be designed for
specific products or functions, or they may be conceptual in
nature. The second type attempts to relate principles and
analytical methods to fabricated situations. The game must
create realistic conditions, and therefore all aspects of the
business operation must be analyzed in order to reach workable
solutions. The students may operate either as individuals in
the decision-making sequence or in group situations similar to
a board of directors. With background information about the
operation of the business and an understanding of what decisions
must be made for the fulfillment of the exercise, the students
pass judgment and act accordingly to their decisions. Again,
active participation is imperative to student success, and direct
meaningful experiences are accomplished.4

4Gelderloss, Harold, "Innovations in Teaching Methods,"
Business Education Forum, November 1968, p. 22-23.

8

The Marketing/Management Model operates as a business game,

a simulation of a realistic business enterprise with actual working

elements that plan, organize, and control; functions that research,

promote, buy, sell, control and direct. The Model is not a paper

and pencil simulation, but a live role playing scissors and glue,

soft sell and shoe leather, pat on the back and finger in the face

situation. "Stress" conditions are built into the program as are

gradations of responsibility capabilities that are one step ahead of

the student no matter how fast he learns. The organization of the

Model's firm is purposely semi-developed so that the student group

must succeed on their own initiative and not merely fill in someone

else's blanks in the back of a textbook.

Go or No Go

Should the Model be a part of every distributive education

program, should every teacher-coordinator be expected to use it, is

it an appropriate curriculum element for each project method program

in distributive education? Certainly, the Model cannot have universal

representation in all Distributive Education programs without the

danger of stereotyping the course with a standardized textbook

dependency. The ability of the distributive education teacher-coordinator

to structure his program to the needs, abilities and interests of his

students is the forte of the program. The inherent flexibility creates

a need for the Model in some instances, but rules it out in other

circumstances. Programs are as unique as the community, the student

group, the teacher-coordinator's background, and the particular school's

policies are unique. Each teacher-coordinator will have to make

the judgment for himself as to the Model being:

1. Feasible in itself

2. Appropriate in the school

3. Able to be implemented in the community

4. Within the teacher's ability to control

5. Able to serve the needs of the students

6. Within the limits of the students capabilities

Recognition that situational differences do exist will necessitate a

decision to be made by the teacher-coordinator concerning his utiliza-

tion of this Model. Section on "Planning" should help the individual

teacher-coordinator make that decision.

Discussion about the Model is approached from the aspect of

management topics which, hopefully, will enable the teacher-coordinator

to reach a decision. The Model is a management activity in the area

of Marketing for distributive education students, but even more

important to remember is that it is a management activity calling

for experience and attention on the part of the teacher-coordinator.

It is a paramount contribution to furthering the concept that the

distributive education teacher-coordinator is a program manager and

not merely a classroom teacher. His management skills are necessary

to implement this project.

Planning

The primary concern at this point is the "Go or No Go" decision

on the part of the distributive education coordinator--should he go

into this business? The Marketing/Management Model is a learning

activity (a project, by definition) that has equal significance for

cooperative students. It can be a part of either instructional method;

there is no disqualifying methodological factor.

Criteria to be evaluated by the teacher-coordinator preparatory

to a "go or no go" decision should include:

Feasibility

Is the Model thought to be a valid learning activity--does it

teach marketing/management through the simulation? Does the teacher-

coordinator think he can modify it to his needs? Is he enthusiastic

enough to want to give the Model a try?

Appropriateness

Will the school, or school system, permit the activity to be

implemented? Are there any prohibitions against fund-raising by

students? Do inter-club relationships permit enough freedom for the

D.E.C.A. chapters use of the Model? Are there conflict areas about

fund-raising goals, etc.?

Able To Be Implemented

Will the community support the activity by sales and advisory

aid? Is the population of the community conveniently available to be

counted on as prospects? Is the geographic area to be covered too

large in relation to its population?

Able To Be Controlled

Is the teacher-coordinator confident in supervising the

activity? Has he sufficient business experience to advise the

student? Is he willing to innovate, to try something now? Does he

have satisfactory rapport with the students, can he count on their

cooperation?

Able to Serve the Students

Will the Model help the students learn more about Marketing and

Management than through the textbook alone method? Will they acquire

affective as well as cognitive competencies from their experiences?

Within Student Capabilities

Will they be as receptive toward this learning activity as is

necessary for full participation? Are they mature enough to appreciate

the learning situation, or are they too textbook oriented? Are there

sufficient numbers of students to staff the Model? Is there already

a strong interest in the D.E.C.A. segment of the program?

Each of these factors has a varying degree of relevance to

the "go-no go" decision. It is in the total weighing of situational

factors that the indicated balance will become evident. There is,

however, one factor that has the power of an overriding veto: the

coordinator's attitude. He has the ability to tip the balance in

either direction by the influence of his enthusiasm and wholehearted

desire to make his distributive education program more exciting.

Every coordinator should strongly consider the use of the Model. It

is a step toward meaningful innovation.

In my opinion it will be the innovator...who decides the
future of distributive education.... It is going to take some
highly creative individuals to lead the way in the future of
distribution.5

Organizing

Much of the organizing of the Model has already been done,

but not every facet of the organization structure has been explained

or "reasoned out" in the student's section. The organization as a

structure forms a medium to convey some essential management topics

to the participants. It is, however, based on a minimal framework

that permits room for flexibility and requires a certain amount of

divergent thinking. Not every procedure is pre-supplied for the

students, nor is every problem to be solved spelled out for them.

Line Organization

The Stockholders

The local D.E.C.A. chapter is brought into the organization

as the ultimate authority for the purpose of motivating the students

to follow through in a project they committed themselves to undertake.

Hopefully, this inclusion serves as a cohesive agent in anchoring the

chain of command at two places. It points out to the students that

they are in fact working for themselves.

The Director

The function of director is deliberately overloaded in order

to require the delegation of responsibility, a good measure of human

relations, and real leadership qualities. The job demands the right

5Bernard, Louise, "Priorities for Progress in Distributive
Education...The Proper Allocation of Priorities," Business Education
Forum, April 1969, p. 9.

person--and might demand a series of people to try their hand at

running the show. It is a rather intense training situation for the

outstandingly talented student.

The Executive Planning Board

In management circles, the committee is currently very much

in vogue. Committees make the decisions, the really big decisions,

in the world today. Because they are important, an opportunity to

experience the advantages and disadvantages of the committee approach

first hand is provided in the Model. Some illumination of committee

decision making idiosyncrasies will be required of the coordinator

during the game.

The Departments

The functional approach to departmentalization speaks for

itself and the lack of structure within each function is deliberate.

It is at this level where a good percentage of the learning will take

place. Rather than merely filling in the blanks, real planning,

organization and control is required by each divisional manager.

How he builds his department is up to him. How he manages his own

function is his responsibility.

The D.E.C.A. Chapter Members

Each club member is an employee in the organization. He

gets to choose his own job area, and must compete for the better

jobs. This "pool" of available employees has been kept indistinct

in the Model to allow for size variances between clubs. Anywhere

between twenty and eighty students can operate the Model.

The Staff Organization

Coordinator

The coordinator is brought into the formal organization as

an advisor for a precise reason: the Model is a student activity.

An overanxious coordinator should remind himself of this twice as

often as he needs to do so. The coordinator functions as a business

management consultant in the simulation. He is the handiest advisor

and should take on only consultative duties of a general nature.

Advisory Committee

The advisory committee is another staff function that is

included by virtue of actual potential rather than for mere lip

service. Members of the Advisory Committee should be called upon as

business consultants for specific areas; e.g. sales, advertising,

research, etc. Resource people for the committee would include:

Sales and Marketing Executives International, the Mid-Management

Coordinator, the Distributive Education Teacher-Educator, Training

sponsors, local business leaders, interested and knowledgeable

parents, and D.E.C.A. alumni.

Even though the organization of the Model has already been

charted, there is much need for the teacher-coordinator to oversee

the rounding out of the structure. It would seem that the most

effective means to the end would be to ask many (and often) questions

of a rhetorical nature. This is entirely within the coordinator's

jurisdiction if he plays his role of consultant primarily by bringing

out questions that should have been considered by the students. He is

doing his job in the Model if he does nothing more than ask

insightful questions that bring to light considerations from way

outside a student's normal frame of reference.

Controlling

The management task of controlling the Model is in reality

the educators' task of controlling a learning activity. Because the

objectives of the Model are different for the students and the

coordinator using it, control must be toward a different set of

standards. The coordinator's central criteria center around educa-

tional objectives, but the management principles still provide the

framework.

Motivating

The need for motivating distributive education students in

this learning activity is inversely proportionate to the degree of

enthusiasm with the local D.E.C.A. chapter. If the job of building

D.E.C.A. has been done well, the momentum of the Model will be

assured. If the D.E.C.A. organization is not as strong as it should

be to initiate the Model, the coordinator must provide the initial

motivation. A selling job is called for--not because the goods are

undesirable, but because an enthusiastic presentation by the coordi-

nator hopefully will project the same attitude on the part of the

students. Perhaps some students are too accustomed to being spoonfed

from textbooks. In this case, they will need plenty of reassurance

that this is a bona fide curriculum element. A skeptical look on

their faces means this is too good to believe. Capitalize on the

state of shock and close the sale! Periodically investigate to see

that the job stays sold, and your task of motivation is accomplished.

Keep in mind your product's features: relevancy, action and interest.

Direction

The aim of the teaching model follows very strongly the same

general objective of the D.E.C.A. participating contests. Learn-by-

doing is a hackneyed expression that only comes back to life within

the context of doing something meaningful. The Model is constructed

to be a meaningful vehicle in which to carry out the various learning

activities that produce vocationally sound desired outcomes. In

order to accomplish similar outcomes as the D.E.C.A. contests, each

student should participate as much as possible. Sufficient latitude

is built into the proposed organization structure for each student

to identify an area that interests him most. Within each area there

its plentiful opportunity to explore, investigate, experiment and

perform the same tasks as would be found in a real-life counterpart

organization.

Clearly the coordinators task in directing is to see that

each student involves himself in the activity, and that each student

is encouraged to expand his thinking and contribution to the point

where he himself is surprised at his accomplishments.

Evaluating

The process of evaluation in any sphere of endeavor is a

difficult process at best. This is especially true in education,

and quite an extremely difficult process in distributive education.

Distributive education is distinguished among occupational
fields by representing a people-oriented occupational cluster
with roots in the behavioral sciences. Since the behavioral
sciences are less concrete and exact than the physical sciences,
the competencies involved in distributive occupations are more
difficult to measure, and it is more difficult to distinguish
between those who are trained and those who are not.6

The skillful educator can devise instruments to measure

learning in the cognitive domain that are more or less valid and

reliable. In other vocational areas, competency proficiency in the

psychomotor domain is rather easy to measure. But, owing to the

unique mix of competencies involved in Distributive Education,

measurement of attained skills, knowledge and attitudes requires

evaluation of learning beyond the cognitive and psychomotor domains.

Learning in the affective domain (i.e. changes in interest, attitudes,

and values) can be measured by the teacher if the teacher is aware

of the desired learning outcomes relative to distributive occupations.

The distributive education teacher-coordinator who is well versed in

the subject matter of distributive education does recognize the

learning outcomes that are desired from non-cognitive and non-

psychomotor learning requirements.

In similar manner, these young teachers are keenly aware
of the value of the affective domain outcomes. They realize
that this type of outcome is relatively long lived and that it
is particularly adapted to people-oriented occupations in
general and merchandising occupations in particular.
These teachers are not confused by elastic terms such as
interest, appreciation, attitude, value and adjustment which
cover a wide range of behavior.'

6Meyer, Warren G., "Distributive Teacher Education: Its Role
in Program Development," Readings in Distributive Education, p. 110-111
7Meyer, Warren G., "Desired Outcomes of Projects," Readings
in Distributive Education, p. 41.

Evaluating the learning outcomes of the Model might be

measured in terms of "approach tendencies"8--added interest in the

subject, enthusiasm, use of the jargon, sense of purpose, reluctance

to go to other classes, queries from other teachers, investigation

by the P.T.A., etc.

The Model should be evaluated by the students after they

have lived through it. This evaluation should very definitely take

the form of a D.E.C.A. manual, and be included as a Chapter Activities

project. No opportunity should be lost when there is an occasion for

students to evaluate themselves and discover just how much "we did

learn after all"

Conclusion

The Marketing/Management Model is an attempt to incorporate

every competence required in distributive occupations into a purpose-

ful training situation that provides a natural business environment

where the competencies are realized, learned, practiced and valued

as necessary skills in the field of distribution. The Model is a

vehicle designed especially for problem-solving.

Problem-solving, the highest type of learning involves the
learners use of ideas to control his environment, develop new
ideas, or combine several principles to arrive at a correct or
acceptable solution to a problem.9

The Marketing/Management Model has been expressly structured

to permit, actually demand, the emergence of leadership skills within

8Mager, Robert F., Developing Attitude Toward Learning,
Palo Alto, Fearon Publishers, 1968.
9Ashmun, Richard, "Applied Learning Theory in Distributive
Education," American Vocational Journal, April 1967, p. 37.

19

certain students. Requirements for leadership development in the

simulation permit more than one level of responsibility to be

grasped. There is room for leaders to come forth and develop and

perform to their greatest potential without "topping out" or getting

squeezed out in the process.

The Model enforces the need for group interaction to set

plans and accomplish goals. Although distributive education students

are far from being anti-social creatures, the basic necessity for

cultivating good human relations as part of any distributive educa-

tion program is so basic to the business, that the Model could well

exist for no other purpose than to facilitate the learning of good

human relations and the ability to make judgments with other people,

and for other people.

Our business of distribution is and will remain a people-
oriented business. We must teach people to develop and use their
ability to make decisions and take action, for it is this ability
which makes people absolutely necessary in a business where other
people need advice and counsel in the fulfilling of their judgment
skills then the job of distribution might just as well be
automated.10

This has been an attempt to create a viable classroom vehicle

for use as a distributive training activity. We have sought to present

both marketing and management principles as inter-relating processes or

concepts. We have attempted to use a conceptual approach to the Gestalt

type perception of the process of managing a firm. In this framework

we have tried to explain the "why" of the management process within a

10Ely, Vivian King, "Education for Occupational Growth,"
American Vocational Journal, April 1968, p. 29-30.

marketing enterprise to illustrate the conceptual basis of operation.

This is especially necessary for distribution because practitioners

in the field, the merchants themselves feel that training can only be

done effectively in a "real life" situation.11

We have certainly attempted to create the opportunity and

we hope that the potentiality for leadership development will be

unlimited in the Model. In this way the Model will have significance

for distributive education.

11Clark and Sloan, Classrooms in the Stores, p. 13.

CHAPTER III

STUDENT HANDBOOK

Concept

A Marketing/Management Model is an artificially constructed

business enterprise for use in the distributive education program.

It is designed to be used by students who are mature enough to direct

their own activities toward worthwhile goals. The Model is a framework

of an organization for marketing business services that include adver-

tising, public relations, selling, buying, operations, marketing

research and related management.

Rationale

The rationale behind the Model is the fact that most distributive

education programs have a model store set-up in the laboratory. The

model store is usually a few pieces of store fixtures and display equip-

ment that represent the external appearance of an actual business that

functions as a retail store. There has been, however, no framework of

business management theory available to make the model store a realistic

marketing situation. A need for realism in the distributive educational

laboratory is the rationale behind development of the Model.

The model store, when operated as a retail store, does not

permit students to practice more sophisticated marketing activities

beyond product merchandising. Expansion of the business organization

framework for the model store to include advertising agency functions

serves to broaden the scope of marketing activities able to be

implemented in the classroom laboratory.

Purpose

The purposes of the Model is to make the model store a realistic

learning situation. Another purpose of the Model is to enable distributive

education students to practice more marketing activities than usually

available in the model store merchandising situation. Further, the

Model provides an experience in management practice for high school

students that involves planning, controlling and directing business

activities, decision-making, and leadership opportunities.

Objectives

The primary objective of the Model is to provide a realistic

learning activity for the distributive education laboratory that

encompasses as many different marketing functions as practical, that

provides an actual working environment for each element of the accepted

distributive education curriculum, and that enables both curricular

elements and co-curricular D.E.C.A. elements to be combined in an

efficient unit.

Description

The Marketing/Management Model is a type of business game

similar to the kind of a learning activity currently in use at the

foremost business schools across the country. Usually only seasoned

executives or college seniors and graduate students are permitted

the opportunity to participate in business games. The "game" is

very much like Monopoly in that it is based upon true conditions and

variables in the business world. Most business games require the use

of a computer where decisions are made upon certain variables and the

computer calculates the outcome of the decisions in a competitive

setting. This type of game is called a simulation because it attempts

to simulate the realities of the business environment. Other business

games are based upon role playing situations where the participants

assume the role of a decision maker in the business firm and must

react to circumstances as these are introduced into the game.

The Marketing/Management Model is a unique business game

in that it combines both types with a bonus feature. Our game

simulates the business environment by creating a business entity.

It uses role playing when it staffs the business entity with game

participants. The added bonus feature in our game is its size, and

the fact it is not a paper and pencil game. In this game decisions

are carried out, not just forgotten: plans are implemented, ads are

written, sales are made, records are kept--it can be just as dynamic

as the players want it to be dynamic.

The Model has been developed especially for distributive

education students as a learning activity. Our game breaks with a

couple of traditions:

1. The Model is a business game for high school students.

It presupposes that distributive education students are motivated

sufficiently well to participate as adults, i.e. assuming responsi-

bility, exerting leadership, practicing teamwork, etc.

2. The Model is an educational learning activity that trades

textbooks for reference materials, resource people, previous training

and experience, undeveloped aptitudes, and undiscovered abilities.

The objectives of the Marketing/Management Model are to:

create an authentic distributive situation, that provides the ability

to learn by actual performance, with the availability of help, built

upon natural momentum and genuine motivation.

The Marketing/Management Model is a business game that creates

a distributive business entity for the purpose of marketing a product

or service. Because the business is owned by local chapter of the

Distributive Education Clubs of America, the goals and profits of

the business activity belong to the local D.E.C.A. Chapter. As

stockholders, it is your resources that enable the firm to exist.

It is your resources that are invested in the business in order to

make a profit. The stockholders (D.E.C.A. chapter members) are the

sole and exclusive owners of the business. They alone select and

empower the management of the company. There are no other constraints

upon the operations and activities of the business enterprise except

for the economics of the business environment: the confines of public

legislation (i.e. government and school), the conditions within the

market place (i.e. resources of man, money, materials and markets).

Every aspect of the business activity is in complete accord with reality

except for the extra amount of goodwill that the firm might receive due

to the character of its ownership.

No contemporary business firm originates in a vacuum; there is

a history, a state-of-the art, to observe in organizing a new business

entity. Recommendations are available from the Small Business

Administration, dozens of authoritative textbooks and knowledgeable

people to aid the founders of an enterprise. What material that is

included in this handbook is based upon the recommendations compiled

from many of the available sources. They are suggested means to

accomplishing the end product. They need not be looked upon as rigid

prescriptions or rules. You have the freedom to deviate within the

constraints of the economic environment and good judgment.

Curriculum Content
Distributive education curriculums on the preparatory level

include five major categories of instruction:

1. Marketing and distribution principles

2. Product or service technology of the distributive

occupation

3. Social skills necessary in distribution

4. Basic skills necessary in distribution

5. Distribution in the economy

Marketing

Marketing, as an area of study, is the discipline of distribu-

tion because it is the body of knowledge common to all distributive

occupations as categorized by the Standard Industrial Classification.

Within the discipline of distribution, marketing is divided into these

function and study areas:

1. Selling

2. Buying

3. Sales promotion

4. Operations

5. Marketing research

6. Retailed management

As consumer first, and now as a student of distribution you are aware

that these areas of study are important to your overall understanding

of the total picture of just what goes on in marketing and distribution.

You realize the value each function possesses within the area of

marketing.

Selling

You value the activity of selling because you know that it is

the dominant process in the area of marketing. It is the activity that

becomes the target of all other activities within the field of marketing.

You have an appreciation for selling because without selling of some

type there would be no connection between what you want to buy and

those produce the goods you want.

Buying

You have appreciation for the function of buying in marketing

because you realize that the goods you and everyone else wants must be

available at the right time, at the right place, in the right quantities,

and at the right price. You know that someone must coordinate the efforts

of the producers and the sellers to maintain the flow of goods through

the marketing channels.

Sales Promotion

You know the value of advertising and display because you

know that these activities make people aware of the goods that are for

sale. You know that sales promotion efforts increase the amount of

goods sold, goods bought for resale, and goods produced. You have

learned that the increase in productivity is responsible for the growth

of the American economy.

Operations

You know that the operations involved in the marketing

activity are responsible for handling the merchandise made available

for sale. Goods must be transported and stored. You appreciate the

function of operation when you charge a purchase or when your purchase

is gift-wrapped. If you value selling, buying and sales promotion, you

value operation because this activity connects the other merchandising

functions.

Marketing Research

You may have an appreciation for the research function in

marketing without really knowing why. If you prefer to shop at a

certain store rather than another, if you make most of your purchase

at a shopping center instead of going downtown, you do so because

marketing research has foreseen your preference. Research provides

information that improves the efficiency, the value, the availability

and the appropriateness of the goods and services we market.

Management

You appreciate the role of management in the world of marketing

because you know that a great deal of effort must go into planning and

coordinating the many phases of marketing. You rightly assume that

management has created greater efficiency, has reduced prices, has

produced a greater level of sophistication than we have ever known in

the area of marketing.

Management

Management, both a science and an art, is a function of marketing,

but it is also an activity that is required in production, government and

consumption. As a matter of fact, the necessity of management is evident

wherever people work together. It is not the idea of people requiring

management as much as the fact that the efforts of people must be coordi-

nated toward goals, according to policies, within established organizational

structures, and with certain controls. You are a manager, you plan your

time, you organize your efforts, and you control your activities.

Management is a basic requirement that prevents chaos in group activities.

Management exists (no matter how informally) in families as an example of

a mini-group to national government which might be considered maxi-groups.

This is management in the broadest sense, but for our purpose, we must

look at management as it exists in an individual business firm which

engages in some type of marketing activity. Management in marketing is

responsible for planning, organizing and controlling the activities and

resources involved in the process of distributing goods and services.

Planning

You recognize the necessity for goals within the marketing

enterprise because it is in business to provide selections of goods

at an assortment of prices to a specific market segment; and make a

profit doing it. Policies are formulated to direct the activities

and resources of the company toward this goal. Procedures are written

as specific interpretations of policies to guide individuals as they

do their job within the firm. Planning is deciding upon goals,

policies, and procedures.

Orani zing

You appreciate the concept of organization because it provides

a setting--it pinpoints the place--for the individual within the whole.

In marketing, we organize the human, financial and physical resources

of the company to achieve the goals already planned and within the

policies and procedures already established. Organizing means assigning

responsibilities to people. It means defining relationships between

people, jobs, and levels of management. Organization is needed for

communication within the structure of the various functions.

Controlling

If you established a goal for yourself, you would never know

if you reached that goal; or how close you were getting, or even if

you were going in the right direction, unless you took a few measure-

ments along the way. Controlling is evaluating the progress of an

action toward objectives by means of standards and criteria of

measurement. Controlling is motivating the people within activities

when progress is not up to standards or according to direction.

Controlling is directing, evaluating, and motivating.

CHAPTER IV

MCARTHUR MARKETING, LIMITED

MCARTHUR MARKETING, LIMITED
6501 Hollywood Boulevard
Hollywood, Florida 33024
305-983-5300 Ext. 37

Marketing Services through
Distributive Education

in

Advertising

Marketing Research

Merchandising

Public Relations

Personnel Recruitment

Organization

The organization is composed of specialists in the area of

marketing services. The entire organization is staffed by distribu-

tive education students with interests in each area of the field of

marketing and distribution.

Objectives of the organization are:

1. to provide services to clients in the areas of advertising,

public relations, marketing research, test marketing, and

merchandising;

2. to provide management services for McArthur Gold Chapter of

D.E.C.A. chapter-of-the-year activity; and

3. to promote individual growth and development within the

firm.

Goals of the organization are to achieve the objectives of the

organization as stated above to the degree that:

1. services to clients will result in profit to both clients

and the service organization;

2. management of Chapter-of-the-Year will result in successful

competition of McArthur Gold Chapter at the State Leadership

Conference;

3. practice of marketing services by the firm will make

significant contributions to the background of the

organization and to the state of the art; and

4. each member of the firm will be able to grow in marketing

practice and secure a worthwhile career standing as a

professional in the field.

Policies of the organization will be determined within the

firm according to the:

I. needs and wishes of each client;

2. dictates of the economic and legal environment;

3. goals of the organization; and

4. direction of the ownership of the firm as delegated to

the management of the organization.

Plans of the organization will be developed according to the:

1. marketing services desired by each client;

2. marketing function performed in each department; and

3. required action necessary to accomplish the goals of the

firm.

Tasks of the organization shall be in accordance with the

stated objectives of the firm as determined by the Executive Planning

Board with respect to each functional department.

Ownership of the Enterprise

McArthur Marketing, Limited is wholly owned and operated by

and for the McArthur High School Gold Chapter of D.E.C.A. at Hollywood,

Florida. Each active member of local, state, and national D.E.C.A.

having paid annual dues and maintained good standing in the chapter

shall have equal ownership and voting rights as an individual stock-

holder in the firm. No shares of stock beyond that represented by

the membership card in D.E.C.A. are to be issued and no capitalization

shall be required beyond a budget for current operating expenses.

Executive Officers

Executive officers will be elected by the ownership of the

organization. The officers may, or may not, be the same office

holders in the professional D.E.C.A. chapter. Officers of the

organization may be replaced at anytime by a duly enacted stock-

holders meeting. A two-thirds majority vote shall be necessary in

order to effect replacement of any executive officer of the organiza-

tion. Replacement of an officer of McArthur Marketing, Limited will

not constitute replacement of the corresponding D.E.C.A. chapter officer

unless voted and adopted by separate impeachment action taken by the

D.E.C.A. membership at a duly called D.E.C.A. professional meeting.

All profits acruing from the firm are the property of the

ownership body, i.e. the McArthur Gold Chapter of D.E.C.A.; and none

can be used for purposes outside of those approved by the stockholders.

Operating budgets and disbursement of monies for expense items must be

approved by the Executive Planning Board subject to stockholder final

approval.

Executive Planning Board

The Executive Planning Board shall be comprised of the

following officers of McArthur Marketing, Limited:

1. The Director

2. The Chief Account Executive

3. The Legal Advisor

4. The Accounting Manager

5. The Creations Manager

6. The Merchandising Manager

7. The Public Relations Manager

8. The Research Manager

9. A business consultant outside of the ownership of the firm.

The Executive Planning Board shall have the responsibility of

determining company policy necessary to reach company objectives.

Consultants

A consultant retained by the Executive Planning Board in a

full-time capacity will be the coordinator of distributive education.

He will also be the advisor of the McArthur Gold Chapter of D.E.C.A.

Additional advisory assistance may be obtained from the local profes-

sional sales and advertising organizations, specifically: The Sales

and Marketing Executives of Fort Lauderdale, and The Advertising

Club of Greater Fort Lauderdale. Supplementary aid may be secured

from the Hollywood Chamber of Commerce and other business organizations

as needed.

Delegation of Responsibilities

Responsibilities for carrying out the objectives of the company

shall be delegated to five departments within the organization. Each

department will be directed by an appointed manager, who will have the

authority to fill staff positions as necessary to accomplish his

delegated responsibilities.

Departmental Responsibilities

Accounting Department

The Accounting Department maintains internal accounts for club;

pays bills accrued by operations; oversees financial and monetary aspects

of merchandising operations; and handles all internal monies.

Creations Department

The Creations Department designs and completes all artwork for:

1 each D.E.C.A. manual as needed,

2. Chapter-of-the-Year,

3. advertising layouts for clients,

4. D.E.C.A. election campaign materials, and

5. sales promotion aids for merchandising department.

The Creations Department also assists in creative writing for:

1. each D.E.C.A. manual as needed,

2. Chapter-of-the-Year,

3. D.E.C.A. election campaign material, and

4. press releases as needed by public relations department.

Merchandising Department

The Merchandising Department operates school bookstore;

selects merchandise for fund raising; merchandise fund raising events;

performs test marketing for clients; buys jewelry and blazers for club;

and receives, marks, stores, displays, and inventories merchandise

for sale.

Public Relations Department

The Public Relations Department plans, implements and documents

a public relations program for:

1. Chapter-of-the-Year

2. Distributive Education

3. McArthur D.E.C.A.

4. Clients, as directed.

The Public Relations Department is also responsible for all

communications from the club and for setting up a speakers bureau.

Research Department

The Research Department designs and conducts marketing research

projects for:

1. each studies in marketing manual,

2. alumni affairs officer,

3. merchandising clients, and

4. program recruitment (personnel)

Job Descriptions

Director

The Director coordinates activities of each department;

reports to stockholders as directed; consults with advisors as

necessary; and ensures completion of client projects.

Chief Account Executive

The Chief Account Executive reports to Director daily;

acts in place of Director during absences; coordinates activity

of account executive for each client, consults with legal advisor as

needed; and ensures that each client has full services of each depart-

ment as needed.

Legal Advisor

The Legal Advisor reports to Director or Chief Account

Executive as requested; provides legal assistance as needed for each

client; and serves as parliamentarian during stockholders' meetings.

Manager,
Accounting Department

The Manager, Accounting Department, reports to Director as

required; responsible for accurate and current fiscal records of

receipts; prepares all accounts payable for payment; and prepares

billing for all accounts receivable.

Manager,
Creations Department

The Manager, Creations Department, reports to Director as

required; responsible for all creations as needed by the company; and

responsible for creations for clients as directed by the Director.

Manager,
Merchandising Department

The Manager, Merchandising Department, reports to Director

about department activities as required; reports to Chief Account

Executive about individual merchandise clients as requested;

responsible for all inventory entrusted to model store; and

responsible for all sales from model store.

Manager, Public
Relations Department

The Manager, Public Relations Department, reports to Director

as required; responsible for all public relations activities for the

company; and responsible for all public relations projects for

clients.

Manager,
Research Department

The Manager, Research Department, reports to Director as

required; and responsible for all research activities required by

clients.

Client Accounts

1. McArthur High School Distributive Education Program.

2. McArthur Gold Chapter of D.E.C.A.

a. Chapter-of-the-Year

b. Creative Marketing Project

c. Studies in Marketing Manuals

d. Alumni Affairs

e. Officer Candidate Campaigns

3. Marketing-services client accounts

a. School bookstore (when applicable)

b. Internal fund raising projects

c. School service projects (carnival, homecoming).

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DEPARTMENT OF EDUCATION
TALLAHASSEE. FLORIDA
FLOYD T. CHRISTIAN, Commissioner