Marketing Dynamics Unit 1 Lesson 1.

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 Goals:  Students will be able to categorize business activities as production, finance, marketing and management.  Students will be able to explain how each of the business categories interrelate with marketing.  Students will be able to explain how the international economy impacts business activities. Copyright © Texas Education Agency, All rights reserved. 3

 Terms  Business  Production  Marketing  Management  Finance  International Trade  Economic Dependence Copyright © Texas Education Agency, All rights reserved. 4

 Business can be categorized into four primary functions:  Production  Marketing  Management  Finance Copyright © Texas Education Agency, All rights reserved. 5

 Production is the process that creates, manufactures, grows or improves a good or service.  Examples include:  Potatoes grown in Idaho  Smartphone's manufactured in China  Art created by a painter  Trees cut down and turned into lumber  Lumber used to build a house Copyright © Texas Education Agency, All rights reserved. 6

 Marketing is involved whenever a product is sold to a customer.  Marketing includes:  Pricing of the product  Deciding what the product is and how it should look  Where the product will be sold and how it will get there  To whom the product will be promoted Copyright © Texas Education Agency, All rights reserved. 7

 Examples of marketing include:  Sales people ringing up the sale  Advertising a product on a TV show  Free samples being given out at a store  Public Relations Copyright © Texas Education Agency, All rights reserved. 8

 Management is effectively using the company’s resources by planning, organizing and controlling them to achieve the company’s goals.  Company resources are:  Assets that the company owns like property, manufacturing plants and buildings (land)  People who work for the company (labor)  Money that the company has (capital) Copyright © Texas Education Agency, All rights reserved. 9

 Finance is the money that is used to operate a business. It can also mean borrowing money to facilitate business.  Finance is involved when a customer purchases a car and borrows money for the purchase.  Finance is also involved when a manager uses wise management to ensure the company is profitable. Copyright © Texas Education Agency, All rights reserved. 10

 Marketing is what allows businesses to satisfy the customers’ wants and needs.  Marketing creates mutually satisfying exchanges and promotes products.  Marketing is intertwined with each business category. Copyright © Texas Education Agency, All rights reserved. 11

 Marketing assists production by:  Telling them which products customers want to buy.  Helping design products shapes, colors and packaging.  Predicting how much of a product customers are willing to purchase. Copyright © Texas Education Agency, All rights reserved. 12

 Marketing activities:  Help define the target market  Assist with pricing and packaging  Promote the product  Determine the best outlets to sell the products Copyright © Texas Education Agency, All rights reserved. 13

 Marketing works with management by:  Developing products that customers will want to purchase  Ensuring that the products are sold where customers will purchase them Copyright © Texas Education Agency, All rights reserved. 14

 Marketing and finance work together  to make money available so that people can purchase products.  Loans for new cars  Payment plans for furniture  Credit cards offered by banks Copyright © Texas Education Agency, All rights reserved. 15

Business Activities  International Trade involves the exchange of goods and services between nations. Copyright © Texas Education Agency, All rights reserved. 16

Business Activities  Most countries need to get some of their goods and services from other countries. This is called economic dependence.  Resources include:  Raw materials  Labor force  Capital  Location Copyright © Texas Education Agency, All rights reserved. 17

Business Activities  Countries like the United States and Canada have good climates for agriculture.  Countries in the Middle East have crude oil.  Russia has coal.  Eastern Europe and Asia have inexpensive labor forces. Copyright © Texas Education Agency, All rights reserved. 18

Business Activities  Consumers, producers, workers and nations benefit from international trade.  Consumers benefit from the competition that foreign companies offer.  Producers can expand their business by conducting business in other countries. Copyright © Texas Education Agency, All rights reserved. 19

Business Activities  Workers benefit from increased trade which leads to lower unemployment.  Nations benefit as whole by increased foreign investment, higher standard of living and more options for consumers when choosing products. Copyright © Texas Education Agency, All rights reserved. 20

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