Principles of Business, Marketing, and Finance Marketing Goods and Services Copyright © Texas Education Agency, 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) Copyright © Texas Education Agency, All rights reserved 2

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, All rights reserved 3

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, All rights reserved 4

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, All rights reserved 5

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 Copyright © Texas Education Agency, All rights reserved 6

Economic Resources Means through which goods and services are produced (Factors of Production) –Natural resources –Human resources –Capital resources Resources are Limited Copyright © Texas Education Agency, All rights reserved 7

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, All rights reserved 8

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. Copyright © Texas Education Agency, All rights reserved 9

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 Copyright © Texas Education Agency, All rights reserved 10

Determining Price Factors Influencing Demand –High demand equals high prices –More choices (competition) equal lower prices Copyright © Texas Education Agency, All rights reserved 11

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, All rights reserved 12

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 Copyright © Texas Education Agency, All rights reserved 13

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 Copyright © Texas Education Agency, All rights reserved 14

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, All rights reserved 15