Principles of Business Marketing and Finance Marketing Goods

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 • Demand -the quantity of a good or service that consumers are willing and able to buy, set by consumers wants/needs • Supply -the quantity of a good or service that businesses are willing and able to provide Copyright © Texas Education Agency, 2011. All rights reserved 2

Determining Price • Factors Influencing Demand – High demand equals high prices – More choices (competition) equal lower prices • Factors Influencing Supply – More competitors results in a greater supply equals lower prices – Little competition results in less supply and higher prices Copyright © Texas Education Agency, 2011. All rights reserved 3

How Do You Market Goods and Services • Different strategies are used to market goods and services. Marketers must research the target market to determine needs, wants, and demand. Sales are enhanced with solid demonstrations of goods. Services frequently count on word-of-mouth of satisfied customers • 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 4

How Do You Market 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 5

Designer vs Non-Designer Brands Power. Point Project TSW create a comparison between a designer brand a non-designer brand. Your Power. Point must include: 1. Title Slide – Slide 1 2. Images of products being compared – Slide 2 & 4 3. Comparisons of the following - Slide 3 & 5 • Price • Material content (What is it made of / Product Detail or Description / It is ok to SUMMARIZE) • Availability (Where can it be purchased? ) • Advantages of each (2) • Disadvantages of each (2) 4. Research why consumers will buy designer brands – Slide 6 & 7 5. Research why consumers buy non-designer brands – Slide 8 & 9 6

Footwear Comparison BCG vs NIKE

BCG™ Men's Journey Training Shoes

• • $19. 99 Leather, EVA, TPR, Energy Foam® Available exclusively at Academy Sports Advantages: – Reasonable Price Point – Molded, removable Energy Foam® insoles cushion feet • Disadvantages: – Product reviews state that the shoes wear easily – Are not as attractive as higher priced shoes

Nike Men's Fingertrap Max Training Shoes

• $124. 99 • Mesh, Phylon, rubber • Available at numerous sporting goods stores as well as retail shoes stores such as Academy, Foot Locker, JC Penny, etc. • Advantages: – Good support and very comfortable – Feature mesh uppers with nanoply cages for durability and breathability and lightweight Phylon midsoles with Max Air heel cushioning. • Disadvantages: – High price point – Product reviews state the shoe is too heavy

Dress Code or Not, What You Wear Matters - By Eva Rykersmith • • The effect of your clothing choices might be much more powerful than you think. Fair or not, people judge us by the way we look and that includes the way we dress. For example, women dressed in a masculine fashion are perceived as better managers. And people dressed more formally are perceived as more intelligent. Effect on Others - According to a series of studies published in the Evolution and Human Behavior journal last year, flashing designer brands can provide an advantage. When wearing perceived high-status clothing, people gained cooperation from others more easily, scored job recommendations and higher salary, and received higher contributions for charity. – – • Man wearing a polo shirt featuring a designer logo was rated as higher status as same man with logo photoshopped out. A female wearing a sweater with a designer logo got response rate of 52% (versus 13% of female wearing sweater sans logo) when asking passerby’s to fill out a survey. Participants watching a man interviewing for job on video rated the one with a shirt with a designer logo as more suitable for the job and deserving of a 9% higher salary than the same man without a logo. Wearing a designer logo resulted in twice as many contributions when soliciting for charity. The logo-versus-no-logo design eased drawing conclusions from the experiment, but you can see how these findings might also extend to a well-dressed/well-groomed versus average appearance. The researchers explain that designer labels communicate underlying quality—the subconscious thought pattern is that only the 12 best can afford them so this person must be among the best.

Why Generic Products Can Make You Feel Bad About Yourself - By Heidi Grant Halvorson • People often buy brand-name products over their generic alternatives for fairly obvious reasons. They may trust high-end brands more, or feel that using them conveys to others a sense of their own taste, coolness, or affluence. • But the influence of brands and logos on our behavior goes well beyond the moment of product choice—when actually using the product, we continue to feel the brand's influence. For instance, studies show that people give more creative solutions to a problem after seeing an Apple logo than an IBM logo. Other studies have shown that wearing counterfeit versions of brand-name products makes people feel less authentic, and actually increases their likelihood of both behaving dishonesty and distrusting others. • There is, however, one important exception: Some people (and I am thinking of my husband here) feel genuinely smart and savvy when using generics instead of brandnames. They believe that they are getting a product of equal worth for less money, and for them that choice is a source of pride—of greater self-esteem. • So it may be that only when we have to use generic products—when others choose them for us, or when we feel we can't or shouldn't pay for the brand-name alternative —that using the "lesser" product makes us feel like a lesser person. 13

Smartest Shoppers Buy Generic - By Libby Kane • • • If you're already defending your choice to buy generic against an onslaught of high-profile ads, there's new research to further bolster your case. A study published at the National Bureau of Economic Research found that the more informed a consumer is about a product, the more likely they are to buy the generic or store brand, whether that's medication or baking supplies. As Bloomberg View reports, there's a correlation between who knows the most about a product and who buys the (often cheaper) generics. The researchers looked at seven years' worth of consumer data and found that expert behavior was markedly different from regular shopper behavior. The takeaway is simple: Those who know best tend to bypass the brand names for a likely less expensive alternative — so we, the "average consumers, " might be wise to do the same. 14

Study finds smart people buy generic, dummies buy name brands – By Kristin Hunt • Most people would tell you to buy Di. Giorno over the X-Press Mart pizza, but those people are stupid. . . according to science. A study by Dutch economist Bart Bronnenberg and three researchers at the University of Chicago reveals that the "more informed" consumers go generic, while ignorant shoppers buy national brands. • The team analyzed the shopping habits of several groups before they laid down that conclusion. When looking at headache meds, the researchers found that pharmacists hardly ever bought brand names, opting for them only 9% of the time. But the average consumer goes national 26%, because they don't know ibuprofen from acetaminophen. Similarly, professional chefs were way less likely to purchase name brand salt, sugar, and other "pantry staples", even as their amateur counterparts hoarded the Morton's. • Being a blind sheep adds up. Bronnenberg and co. estimated that consumers could save a collective $44 billion if they bought generic whenever they could. And with those kinds of savings, the entire Di. Giorno empire could be yours. . . and you'd have all the way-better-than-Brand X 15 pizza you wanted.

Works Cited • www. academy. com • http: //quickbase. intuit. com/blog/2012/05/23/dress-code-or-not-whatyou-wear-matters/ • http: //www. thrillist. com/eat/nation/tilburg-university-and-university-ofchicago-study-informed-shoppers-buy-generic-brands • http: //www. fastcompany. com/1715707/why-generic-products-canmake-you-feel-bad-about-yourself • http: //www. businessinsider. com/smartest-shoppers-buy-generic 2014 -7#ixzz 3 Irh 9 dn. Rm 16