Copyright © Texas Education Agency, 2011. All rights reserved Principles of Business, Marketing, and Finance Marketing Goods and Services Copyright © Texas Education Agency, 2011. All rights reserved

Copyright © Texas Education Agency, 2011. All rights reserved  “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2011. All rights reserved

Copyright © Texas Education Agency, 2011. All rights reserved 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 Copyright © Texas Education Agency, 2011. All rights reserved

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

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

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

Copyright © Texas Education Agency, 2011. All rights reserved 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 Copyright © Texas Education Agency, 2011. All rights reserved

Copyright © Texas Education Agency, 2011. All rights reserved 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. Copyright © Texas Education Agency, 2011. All rights reserved

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

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 Copyright © Texas Education Agency, 2011. All rights reserved

Copyright © Texas Education Agency, 2011. All rights reserved 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 Copyright © Texas Education Agency, 2011. All rights reserved

Copyright © Texas Education Agency, 2011. All rights reserved 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 Copyright © Texas Education Agency, 2011. All rights reserved

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

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 Copyright © Texas Education Agency, 2011. All rights reserved

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 Copyright © Texas Education Agency, 2011. All rights reserved

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