Principles of Business, Marketing, and Principles of Business, Marketing, and FinanceFinanceLesson SevenLesson Seven

MarketingMarketing Goods and ServicesGoods and Services

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Goods and ServicesGoods and Services

• Goods

-things that you can see and touch (tangible)

• Services

-activities that are consumed at the same time they are produced (intangible)

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Marketing GoodsMarketing Goods and Services 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

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Goods and Services for Goods and Services for Businesses and ConsumersBusinesses and Consumers

• Business needs steel, plastic, gasoline, computers (goods)

• Business needs supply of electricity, security for buildings, and equipment (services)

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Consumer Goods and ServicesConsumer Goods and Services

• Consumers buy clothes, electronic devices, automobiles (goods) (tangible)

• Consumers eat at restaurants, go on vacations, and take flights (services) (intangible)

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U.S. EconomyU.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

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Economic ResourcesEconomic Resources

• Means through which goods and services are produced (Factors of Production)– Natural resources– Human resources– Capital resources

• Resources are Limited

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Basic Economic Problem-ScarcityBasic 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

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The Decision-Making ProcessThe 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..

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Supply and DemandSupply 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

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Determining PriceDetermining Price

• Factors Influencing Demand– High demand equals high prices– More choices (competition) equal lower prices

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Factors Influencing SupplyFactors 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

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Marketing Goods and ServicesMarketing 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

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Marketing Goods and ServicesMarketing 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

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Marketing Goods and ServicesMarketing 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

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