Principles of Business Marketing and Finance Marketing Goods
Principles of Business, Marketing, and Finance Marketing Goods and Services Copyright © Texas Education Agency, 2011. All rights reserved
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Goods and Services • Goods -things that you can see and touch (tangible) • Services -activities that are consumed at the same time they are produced (intangible) Copyright © Texas Education Agency, 2011. All rights reserved 3
Marketing Goods and Services • Needs and Wants – Needs are required in order to live (food, water, clean air, clothing, shelter) – Wants-things that add comfort and pleasure to your life • Needs and Wants are Unlimited Copyright © Texas Education Agency, 2011. All rights reserved 4
Goods and Services for Businesses and Consumers • Business needs steel, plastic, gasoline, computers (goods) • Business needs supply of electricity, security for buildings, and equipment (services) Copyright © Texas Education Agency, 2011. All rights reserved 5
Consumer Goods and Services • Consumers buy clothes, electronic devices, automobiles (goods) (tangible) • Consumers eat at restaurants, go on vacations, and take flights (services) (intangible) Copyright © Texas Education Agency, 2011. All rights reserved 6
U. S. Economy • Is the largest producer of goods and services in the world • Has twice as many shopping malls as it does high schools • America-leader in consuming goods and services • Use of Credit – Increased purchasing power – Led to more debt Copyright © Texas Education Agency, 2011. All rights reserved 7
Economic Resources • Means through which goods and services are produced (Factors of Production) – Natural resources – Human resources – Capital resources • Resources are Limited Copyright © Texas Education Agency, 2011. All rights reserved 8
Basic Economic Problem-Scarcity • Not having enough resources to satisfy every need • Economic Decision-making – Scarcity forces individuals, businesses, and governments to make choices – Economic decision-making (process of choosing which wants, among several options, will be satisfied – Trade-off (when you give up something to have something else – Opportunity cost-the value of the next-best alternative that you did not choose Copyright © Texas Education Agency, 2011. All rights reserved 9
The Decision-Making Process • Define the problem. • Identify the choices. • Evaluate the advantages and disadvantages of each choice. • Choose one choice. • Act on your choice • Review your decision. Copyright © Texas Education Agency, 2011. All rights reserved 10
Supply and Demand • Consumer -person who buys and uses goods and services • Producers -individuals and organizations that determine what products and services will be available for sale • Consumers set demand -the quantity of a good or service that consumers are willing and able to buy • Supply -the quantity of a good or service that businesses are willing and able to provide Copyright © Texas Education Agency, 2011. All rights reserved 11
Determining Price • Factors Influencing Demand – High demand equals high prices – More choices (competition) equal lower prices Copyright © Texas Education Agency, 2011. All rights reserved 12
Factors Influencing Supply • More competitors results in a greater supply • Little competition results in less supply and higher prices • Market price -point where supply and demand are equal Copyright © Texas Education Agency, 2011. All rights reserved 13
Marketing Goods and Services • Determine consumer Buy Motives • Show and Demonstrate Goods • Distribution -determining the best ways for customers to locate, obtain, and use products and services of an organization • Product and Service Management -designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs Copyright © Texas Education Agency, 2011. All rights reserved 14
Marketing Goods and Services • Selling -communicating directly with potential customers to determine and satisfy their needs • Marketing information management -obtaining, managing, and using market information to improve business decision-making and the performance of marketing activities Copyright © Texas Education Agency, 2011. All rights reserved 15
Marketing Goods and Services • Financial analysis -budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’ products and services • Pricing -setting and communicating the value of products and services • Promotion -communicating information about products and services to potential customers Copyright © Texas Education Agency, 2011. All rights reserved 16
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