Small Business Operations
Name:________________________________________
Unit 3: Product and Service Management for the School Based Enterprise
Directions: Complete this unit outline during the class discussion.
I. _____________ _____ ___________ _____________ is the exchange of products and services between
businesses. Marketing, 3e, page 330
A. Businesses may purchase products for direct resale to customers. Example: clothing, shoes
B. Businesses may also purchase raw materials that are then processed by the business into finished
products for sale to customers. Example: coffee beans, steamed milk, chocolate syrup
II. _____________________ includes determining the products and services needed, identifying the best
sources to obtain them, and completing the activities necessary to obtain them. Marketing, 3e, page 331
A. Small business owners will frequently travel to a ____________ ____________ - a location where
people bring products to be sold or exchanged. Marketing, 3e, page 13
B. Categories of Business Purchases Marketing, 3e, page 331
______________ Goods – The building and major equipment.
_______________ Equipment – Equipment used in the daily operation of the business.
________________ – Consumable materials used in the operation of the business.
____________ Materials – Unprocessed materials that are incorporated into products.
Services – Tasks performed for the business to support production, sale, or maintenance of the
businesses products or services.
1.
2.
3.
4.
5.
C. ___________________ occurs when businesses decide to exchange products or services, rather than
purchasing with cash. Marketing, 3e, page 12
III. Acquiring Product Knowledge
A. A _______________________ is anything tangible offered to a market by a business to satisfy
customer needs. Marketing, 3e, page 276
B. A __________________is an activity that is intangible and consumed at the time of production.
Marketing, 3e, page 308
C. Products: DECA’s House of Grounds - Two sizes, Small 12 oz and Regular 16 oz
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Brewed Coffee - Ethiopian, or Costa Rican (decaf if demand exists)
Café Latte - Espresso with steamed milk
Cappuccino - Espresso with steamed milk, capped with milk foam
Café Mocha - A chocolate Café Latte
Café Au Lait - Brewed coffee with steamed milk, equal parts
Flavored Café Latte - Café Latte with a shot of flavored syrup
Hot Chocolate - Chocolate syrup and steamed milk
Steamers - Choice of syrup and steamed milk
Bottled Water
Frozen Milk Chocolate Mocha – One scoop powder mix, ice, and water blended
Italian Soda – Flavored syrup mixed with club soda - 12 oz. size only
Frozen Italian Soda – Flavored syrup, ice, and regular water blended together
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IV. Inventory Management
A. The term __________________ refers to the assortment of products maintained by a business.
Marketing, 3e, page 349
B. _______________________________ (JIT) inventory management means that the inventory level
is kept low and resupplied just as it is needed. Marketing, 3e, page 348
1. This reduces the amount of money the business will need to invest in its inventory.
2. The amount of storage space, or holding space, is reduced also saving the business money.
3. JIT helps ensures that fresh products will be available for purchase by customers.
C. A ______________________ is a business that offers products for sale to other businesses.
Marketing, 3e, pages 343
D. The______________________ is an itemized billing statement with the terms of payment for the
order. Marketing, 3e, pages 350
V. Determining the Retail Price
A. The selling _________________ is the amount of money a customer must pay for a product or
service. Marketing, 3e, page 401
B. A _____________________ is an amount added to the cost of a product to determine its selling
price. Marketing, 3e, page 411
1. If a 2 GB flash drive costs the business $9 and it is marked up by $1, this is a 10% markup
as a percentage of the selling price of $10.
C. A ______________________is a reduction from the original selling price. Marketing, 3e, page 412
D. __________ ______________ or gross profit is the difference between the cost of the product and
the selling price. Marketing, 3e, page 410
E. __________ _____________ is the difference between the selling price and ALL costs and
operating expenses associated with producing the product. Marketing, 3e, page 411
VI. Receiving Procedures
A. The vendor fills orders and sends it to the buyer with a _____________ _____________ : an
itemized listing of all of the products included in the shipment. Marketing, 3e, page 350
1. When the merchandise is received by the buyer, it should be unpacked and compared to the
invoice or the packing slip.
2. The merchandise should be inspected for damage and spoilage.
VII. A __________________ is an activity that is intangible, exchanged directly from the producer to
consumer, and consumed at the time of production. Marketing, 3e, page 308
A. The characteristics of Services - Marketing, 3e, pages 309-312
1. ________________ means that the service cannot be touched, seen, tasted, heard, or felt.
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2.__________________ means that the service is produced and consumed at the same time.
3. __________________________ means that services unused in one time period cannot be
stored for use in the future.
4. _________________________ means there are differences between services.
VIII. A ____________________________________________ an organized method of collecting, storing,
analyzing, and retrieving information to improve the effectiveness and efficiency of marketing
decisions. Marketing, 3e, page 131
A. __________________________ is a procedure designed to identify solutions to a specific
marketing problem through the use of scientific problem solving. Marketing, 3e, page 136
B. Consider the following steps:
1.
2.
3.
4.
5.
Define the problem
Analyze the situation
Develop a data collection procedure
Gather and study information
Propose a solution
C. After carefully and clearly defining the problem and analyzing the situation, the marketing
research project should collect data relevant to the study.
1. _____________ ____________ is information that has already been collected for another
purpose that can be used to solve the current problem. Marketing, 3e, page 137-138
3. _______________ __________ is information collected for the first time to solve the
problem being studied. Marketing, 3e, page 137-138
4. A ____________________is a planned set of questions to which individuals or groups of
people respond. Marketing, 3e, pages 144-148
5. ____________ ____________ ______________ offer two or more choices. Marketing, 3e,
pages 144-148
6. _________________ ________________ _____________ allow respondents to develop
their own answers. Marketing, 3e, pages 144-148
7. A ______________ ________________ is a small number of people brought together to
discuss identified elements of an issue or problem. Marketing, 3e, pages 144-148
8. The __________________ ________________ collects information by recording the
actions of customers without interacting with or communicating with them. Marketing, 3e,
pages 144-148
9. A ________________ _______________ is a geographic area in which a new product or
service is tested in order to gather information about customer reaction to the tested product
or service. Marketing, 3e, pages 144-148
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