1. © South-Western Educational Publishing GOALS LESSON 2.1 BUSINESS ACTIVITIES  Identify the four kinds of businesses  Describe each of the seven business functions

2. © South-Western Educational Publishing Kinds of Businesses  Extractors  Businesses that grow products or take raw materials from nature.  Farmers in Wisconsin  Copper miners in Montana  Oil companies in Texas  Manufacturers  Businesses that take the extractor’s product or a raw material and changes it into a form that consumers cans use.  Also referred to as producers.  Can produce final product or be part of a chain of manufacturing processes

3. Kinds of Businesses  Marketers  Businesses that are involved with moving goods from producers to consumers.  Transports and sells products  Package goods to protect products and present them in attractive and convenient sizes.  Store goods until they are needed by other marketers or consumers.  Marketers add value to products  Service Businesses  Businesses that do things for you instead of making or marketing something.  Respond to needs and wants of a consumer or other business.  Travel Agent  Information Systems company © South-Western Educational Publishing

4. Business Functions  Find Ideas  Idea for a good service that will meet consumers’ needs and wants  Raise Capital  Personal funds, loans from financial institutions, loans from individual investors.  Whey do businesses need capital?  Buy Goods and Services  Products – clothing store (clothes, register, display case, etc.)  Services – web design, advertising space, etc.

5. Business Functions  Use Human Resources  Recruiting, interviewing, and selecting employees  Market Goods and Services  Designing and developing products/services based on needs and wants  Produce Goods and Services  Product/service must be produced at the desired time, in the appropriate quantity and quality, and at a competitive cost.  Keep Records  How much has sold, been returned, or owed. © South-Western Educational Publishing

6. GOALS LESSON 2.2 BUSINESS OWNERSHIP  Describe the types of business ownership and the specialized forms of business  Identify each of the five business management activities

7. © South-Western Educational Publishing Types of Business Ownership  Sole Proprietorship  Owned by one person  Keeps profit, but is liable for all debts.  Partnership  Owned by a small group (2-3 people)  Share profits  Unlimited liability for all debts

8. Types of Business Ownership  Corporation  Owned by a number of people and operates under special permission from the state that charters it.  Certificate of incorporation.  Shareholders or Stockholders  Elect a board of directors. © South-Western Educational Publishing

9. Types of Business Ownership  Specialized Forms of Ownership  Franchises  A written contract granting permission to sell someone else’s product or service.  Specifies the manner, time period, and territory  Cooperatives  Owned by the members it serves and is manages in the interests.  Consumers’ cooperative and producers’ cooperative  Non-Profit Corporations  Provide a service, and earning a profit is not their primary goal. © South-Western Educational Publishing

10. U.S. Business Ownership

11. © South-Western Educational Publishing Management Activities  Plan  Organize  Staff  Lead  Control

12. © South-Western Educational Publishing GOALS LESSON 2.3 EFFECTIVE MARKETING  Explain the marketing concept and the steps in setting marketing strategy  Identify the four elements of the marketing mix

13. Marketing Strategy  Marketing Concept  Considering the needs of customers when planning, pricing, distributing, and promoting their product or service.  Effective marketing leads to satisfying exchanges between businesses and customers. © South-Western Educational Publishing

14. Marketing Strategy  Involves 2 steps:  Marketers must decide whose wants or needs the business will try to satisfy.  Develop a marketing mix © South-Western Educational Publishing

15. Marketing Strategy  Target Market  A group of individuals or businesses that have similar product needs.  Marketing Concept  A statement of what the marketing activities will achieve.  Must be clear, realistic, and refer to desired consumer actions.

16. Marketing Strategy  Marketing Mix  Product  The product or service offered to the target market to satisfy needs for goods and services.  Place  The function of getting the product or service to potential customers.  Channel of distribution  Direct channel – brings the product to the consumer directly form the producer.  Indirect channel – has one or more businesses that conduct business in between the producer and the consumer.  Wholesaler  Retailer © South-Western Educational Publishing

17. Marketing Strategy  Price  What you pay for goods and services  Consumers do not always decide to buy at the lowest price, because a higher price may mean better quality.  Markup  How much is added to the cost of producing a product.  Must cover shipping, handling, storing, displaying, selling, rent, and taxes.  Wholesalers and retailers markup the price that they pay for a product so that they can earn a profit.  Promotion  Advertising and other methods used to communicate the benefits of the product or service to potential customers. © South-Western Educational Publishing

18. Functions of Marketing  Product/Service Management  Marketers assisting with the design and development of a product or service by gathering information and testing ideas related to a product or service.  Distribution  The steps taken to get the product or service to potential customers in the most efficient manner.  Selling  Any communication with customers to assess their needs and wants.

19. Functions of Marketing  Marketing-Information Management  The gathering and using of customer information.  Financing  Budgeting to support the purchase of products and services needed to produce and market the products or services it sells.  Pricing  Determining the prices and value of products and services to potential customers.  Promotion  Finding ways to communicate with consumers and encourage purchases of the goods and services being placed on the market. © South-Western Educational Publishing