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Principles of Business, Marketing, and Finance Marketing Goods and Services
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2. 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)
needs – things that are required in order to live
wants – things that add comfort and pleasure to your life
Ask students to make a list of their wants. Then ask students what is keeping them from getting their wants
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4. 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
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5. 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)
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6. Consumer 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. 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
Ask students what things consumers cut from spending when economic conditions become bad. Ask students why shopping malls have an increasing number of open spaces for stores. Explain how the economy is directly related to consumer demand and spending. Demand and spending is directly related to the rate of employment
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Economic Resources
Means through which goods and services are produced (Factors of Production)
Natural resources
Human resources
Capital resources
Resources are Limited
Ask students to make a list of the greatest resources in the United States. Then ask how the resources are used in a global business setting.
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9. 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
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10. 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.
Ask students to list a major decision they must make. Then ask students to incorporate the steps of the decision-making process to make their decision
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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
Ask students what happens to prices when there is a shortage of goods. Then explain what consumers do when shortages and rising prices exist. They find other alternatives or do without certain goods and services
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Determining Price
Ask students what price they are willing to pay for their favorite concert or sporting event. Then explain how prices rise according to consumer demand. Explain how a ticket to the Super Bowl costs well over $1,000.
Factors Influencing Demand
High demand equals high prices
More choices (competition) equal lower prices
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13. 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
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14. 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
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
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15. 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
During a tight economy, businesses become increasingly aware of the importance of outstanding customer service
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16. 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
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