BULLETIN 74G -2
VE EDUCA ION
MARKETING MANAGEMENT MODEL
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
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
Business and Distributive Education
TABLE OF CONTENTS
I. INTRODUCTION . . . . . . . . . . . 1
II. COORDINATOR GUIDELINES . . . . . . . . 4
III. STUDENT HANDBOOK . . . . . . . . . . 22
Curri cul um Content
IV. MCARTHUR MARKETING, LIMITED . . . . . . . 32
Executive Planning Board
Delegation of Responsibilities
BIBLIOGRAPHY . . . . . . . . . . . . 41
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.
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.
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
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.
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
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?
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,
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.
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
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:
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!
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
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.
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.
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:
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?
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
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
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.
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 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 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
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.
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.
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
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.
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
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.
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"
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.
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
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.
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.
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.
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.
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
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.
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
3. Social skills necessary in distribution
4. Basic skills necessary in distribution
5. Distribution in the economy
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:
3. Sales promotion
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
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.
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.
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.
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
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.
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, 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.
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.
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.
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.
MCARTHUR MARKETING, LIMITED
MCARTHUR MARKETING, LIMITED
6501 Hollywood Boulevard
Hollywood, Florida 33024
305-983-5300 Ext. 37
Marketing Services through
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
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
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
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
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 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
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.
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
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
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.
The Creations Department designs and completes all artwork for:
1 each D.E.C.A. manual as needed,
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,
3. D.E.C.A. election campaign material, and
4. press releases as needed by public relations 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
Public Relations Department
The Public Relations Department plans, implements and documents
a public relations program for:
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.
The Research Department designs and conducts marketing research
1. each studies in marketing manual,
2. alumni affairs officer,
3. merchandising clients, and
4. program recruitment (personnel)
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.
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.
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.
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.
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.
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
The Manager, Research Department, reports to Director as
required; and responsible for all research activities required by
1. McArthur High School Distributive Education Program.
2. McArthur Gold Chapter of D.E.C.A.
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
FLOYD T. CHRISTIAN, Commissioner