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

Bell Ringer LIST 5 WANTS and 5 NEEDS CATEGORIZE WANTS and NEEDS as GOODS or SERVICES Copyright © Texas Education Agency, All rights reserved 2 What is keeping you from getting it?

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 3

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 4

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 5

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 6

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 7 What things do consumers cut from spending when economic conditions become bad? Why do shopping malls have an increasing number of open spaces for stores? The economy is directly related to consumer demand and spending. Demand and spending is directly related to the rate of ___? What are the advantages of using credit to make purchases?

Means through which goods and services are produced (Factors of Production) –Natural resources –Human resources –Capital resources Resources are Limited Economic Resources Copyright © Texas Education Agency, All rights reserved 8 What are they?

Basic Economic Problem-Scarcity Scarcity –Lacking resources to satisfy every need –Forces consumers to make choices Economic Decision-Making Process –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 9

Bell Ringer Identify a decision you will face in the future Minor Purchase Major Purchase College Career Spouse 10 What steps will you take to decide?

The Decision-Making Process Define your Problem Identify your Options Evaluate your Options Select an Option Act on your Choice Review the Consequences Copyright © Texas Education Agency, All rights reserved 11

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 12 What happens to prices when there is a shortage of goods? What do consumers do when shortages and rising prices exist? Alternatives Do Without

Determining Price Factors Influencing Demand –High demand equals high prices –More choices (competition) equal lower prices Copyright © Texas Education Agency, All rights reserved 13 How much would you pay for a clothes, shoes, or phone?

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 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 Copyright © Texas Education Agency, All rights reserved 15 Why do you buy what you buy?

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 16 What might influence you to buy a product or service in a tight economy?

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 17