CURRICULUM AND STRATEGIES FOR PRINCIPLES
of BUSINESS, MARKETIING & FINANCE
Unit Number
Unit Two
Overview & Purpose :
Lesson Name
Marketing Goods and Services
• Upon completion of this lesson, the student will explain strategies to meet the needs and
wants of consumers. Students will describe different strategies for marketing goods and
services.
Lesson Day Number:
Lesson 7
Education Standards (TEKS)
• 130.112(c)(6)(A)
explain the importance of different
marketing strategies for goods versus
services
• 130.112(c)(1)(B)
differentiate between goods and services
• 130.112(c)(1)(C)
identify types of businesses
• 130.112(c)(3)(E)
investigate potential causes of economic
decisions such as supply and demand or
consumer dollar votes
Student Guide
Specific Objectives:
• Explain the difference between needs and wants.
• Distinguish between goods and services.
• Describe the types of economic resources.
• Explain marketing strategies for goods and services.
• Explain the how supply and demand affect prices of goods and services.
• Explain how economic resources determine what goods and services will be
produced.
Introduction:
Materials Needed:
Other Resources
1. Scarcity is a fact of life for individuals, businesses, and nations. We want more than
we can afford. Due to scarce consumer resources, businesses must carefully decide
which goods and services to produce. Slow economic times result in consumers
spending less money on wants. Ask students what goods and services they are willing
to cut from their lifestyle if the economy plunges.
2. You only get one chance to make a first impression. Ask students why this
statement is especially important for salespeople. Then ask students to describe
marketing strategies for popular goods and services. Explain that a service and
produced/consumed simultaneously-there is no room for mistakes. Ask students why
car dealerships want potential customers to test drive the vehicles.
3. Ask students why it might be a good idea to purchase gifts following the holidays.
Then explain how the price of product depreciates greatly after the holiday is over.
Explain to students how wise consumers make purchases following the holiday for next
year’s special season.
Vocabulary:
• needs – things that are required in order to live
• wants – things that add comfort and pleasure to your life
• goods – things you can see and touch; they are products you can purchase to meet your wants and needs
• services – activities that are consumed at the same time they are produced
• economic resources – the means through which goods and services are produced
• scarcity – not having enough resources to satisfy every need
• economic decision making – the process of choosing which wants, among several options, will be satisfied
• trade off – what you make when you give something up to have something else
• opportunity cost – the value of the next-best alternative that you did not choose
• consumer – a person who buys and uses goods and services
• producers – Individuals and organizations that determine what products and services will be available for sale
• 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
• selling – communicating directly with potential customers to determine and satisfy their needs
• marketing – an organizational function and a set of processes for creating, communicating, and delivering value to customers and
for managing customer relationships in ways that benefit the organization and its stakeholders
• 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 – any form of communication used to inform, persuade, or remind; communicating information about products and
services to potential customers
• product and service management – designing, developing, maintaining, improving, and acquiring products and services that meet
consumer needs
Outline:
I. Marketing Goods and Services
A. Needs and Wants
1. Needs are required in order to live (food, water, clean air, clothing, shelter)
2. Wants-things that add comfort and pleasure to your life
B. Needs and Wants are Unlimited
C. Goods and Services
1. goods-things that you can see and touch (tangible)
2. services-activities that are consumed at the same time they are produced
(intangible)
D. Goods and Services for Businesses and Consumers
1. Business needs steel, plastic, gasoline, computers (goods)
2. Business needs supply of electricity, security for buildings and equipment,
accounting (services)
3. Consumers buy clothes, electronic devices, automobiles (goods)
4. Consumers eat at restaurants, go on vacations, and take flights (services)
E. U.S. Economy-largest producer of goods and services in the world
1. twice as many shopping malls as it does high schools
2. America-leader in consuming goods and services
3. Use of credit
a. increased purchasing power
b. led to more debt
II. Economic Resources
A. Means through which goods and services are produced (Factors of Production)
1. natural resources
2. human resources
3. capital resources
B. Resources are limited
C. Basic Economic Problem-Scarcity-not having enough resources to satisfy every
need
D. Economic Decision-making
1. scarcity forces individuals, businesses, and governments to make choices
2. economic decision-making (process of choosing which wants, among several
options, will be satisfied)
3. trade-off-when you give up something to have something else
4. opportunity cost-the value of the next-best alternative that you did not choose
E. The Decision-Making Process
1. Define the problem.
2. Identify the choices.
3. Evaluate the advantages and disadvantages of each choice.
4. Choose one choice.
5. Act on your choice.
6. Review your decision.
III. Supply and Demand
A. Consumer-person who buys and uses goods and services
B. Producers-individuals and organizations that determine what products and
services will be available for sale
C. Consumers set demand-the quantity of a good or service that consumers are
willing and able to buy
D. Supply-the quantity of a good or service that businesses are willing and able to
provide
IV. Determining Price
A. Factors Influencing Demand
1. high demand equals high prices
2. more choices (competition)-lower prices
B. Factors Influencing Supply
1. more competitors results in a greater supply
2. little competition results in less supply and higher prices
C. Market price-point where supply and demand are equal
V. Marketing Goods and Services
A. Determine Consumer Buying Motives
B. Show and Demonstrate Goods
C. Distribution-determining the best ways for customers to locate, obtain, and use
products and services of an organization
Ask students to make a list of their wants.
Then ask students what is keeping them from
getting their wants.
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.
Ask students to explain the advantages
and disadvantages of using credit to
make purchases.
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.
Ask students to list a major decision they
must make. Then ask students to
incorporate the steps of the decisionmaking process to make their decision.
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.
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.
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. During a tight
economy, businesses become
increasingly aware of the importance of
outstanding customer service.
D. Product and Service Management-designing, developing, maintaining,
improving, and acquiring products and services that meet consumer needs
E. Selling-communicating directly with potential customers to determine and satisfy
their needs
F. Marketing-information management-obtaining, managing, and using market
information to improve business decision-making and the performance of marketing
activities
G. 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
H. Pricing-setting and communicating the value of products and services
I. Promotion-communicating information about products and services to potential
customers
Looking Forward:
Q: What is scarcity?
A: Scarcity is not having enough resources to satisfy every need.
Q: What is the difference between a need and a want?
A: A need is required to live and a want adds comfort and pleasure to your life.
Q: How do people satisfy their wants and needs?
A: People purchase goods and services to satisfy their needs and wants.
Q: What are three types of economic resources?
A: Three economic resources are natural resources, human resources, and capital resources.
Q: What is opportunity cost?
A: Opportunity cost is the value of the next-best alternative that you did not choose.
Q: What are the six steps in the decision-making process?
A: The six steps are (1) define the problem, (2) identify the choices, (3) evaluate the advantages and disadvantages of each choice,
(4) choose one, (5) act on your choice, and (6) review your decision.
Q: How does the price of a product affect demand and supply?
A: Prices have a direct impact on the amount supplied and the amount demanded. Less is demanded when prices go up. Higher
prices encourage suppliers to provide more.
Q: How is market price for a product determined?
A: Market price is the point where supply and demand are equal.
U.S. CENSUS BUREAU RESEARCH
Ask student to use the Internet to access the Census Bureau’s web site and locate the link to “Economic Indicators.” Students
should select one of the indicators and prepare a short PowerPoint presentation that indicates how the economic indicator changed
over the last ten years. The presentation will be evaluated using the assigned rubric.