Marketing Dynamics Unit 1 Lesson 1 BUSINESS ACTIVITIES . Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2012. All rights reserved. 2 BUSINESS ACTIVITIES Goals: Students will be able to categorize business activities as production, finance, marketing and management. Students will be able to explain how each of the business categories interrelate with marketing. Students will be able to explain how the international economy impacts business activities. Copyright © Texas Education Agency, 2012. All rights reserved. 3 BUSINESS ACTIVITIES Terms Business Production Marketing Management Finance International Trade Economic Dependence Copyright © Texas Education Agency, 2012. All rights reserved. 4 BUSINESS ACTIVITIES Business can be categorized into four primary functions: Production Marketing Management Finance Copyright © Texas Education Agency, 2012. All rights reserved. 5 BUSINESS ACTIVITIES Production is the process that creates, manufactures, grows or improves a good or service. Examples include: Potatoes grown in Idaho Smartphone's manufactured in China Art created by a painter Trees cut down and turned into lumber Lumber used to build a house Copyright © Texas Education Agency, 2012. All rights reserved. 6 BUSINESS ACTIVITIES Marketing is involved whenever a product is sold to a customer. Marketing includes: Pricing of the product Deciding what the product is and how it should look Where the product will be sold and how it will get there To whom the product will be promoted Copyright © Texas Education Agency, 2012. All rights reserved. 7 BUSINESS ACTIVITIES Examples of marketing include: Sales people ringing up the sale Advertising a product on a TV show Free samples being given out at a store Public Relations Copyright © Texas Education Agency, 2012. All rights reserved. 8 BUSINESS ACTIVITIES Management is effectively using the company’s resources by planning, organizing and controlling them to achieve the company’s goals. Company resources are: Assets that the company owns like property, manufacturing plants and buildings (land) People who work for the company (labor) Money that the company has (capital) Copyright © Texas Education Agency, 2012. All rights reserved. 9 BUSINESS ACTIVITIES Finance is the money that is used to operate a business. It can also mean borrowing money to facilitate business. Finance is involved when a customer purchases a car and borrows money for the purchase. Finance is also involved when a manager uses wise management to ensure the company is profitable. Copyright © Texas Education Agency, 2012. All rights reserved. 10 BUSINESS ACTIVITIES Marketing is what allows businesses to satisfy the customers’ wants and needs. Marketing creates mutually satisfying exchanges and promotes products. Marketing is intertwined with each business category. Copyright © Texas Education Agency, 2012. All rights reserved. 11 BUSINESS ACTIVITIES Marketing assists production by: Telling them which products customers want to buy. Helping design products shapes, colors and packaging. Predicting how much of a product customers are willing to purchase. Copyright © Texas Education Agency, 2012. All rights reserved. 12 BUSINESS ACTIVITIES Marketing activities: Help define the target market Assist with pricing and packaging Promote the product Determine the best outlets to sell the products Copyright © Texas Education Agency, 2012. All rights reserved. 13 BUSINESS ACTIVITIES Marketing works with management by: Developing products that customers will want to purchase Ensuring that the products are sold where customers will purchase them Copyright © Texas Education Agency, 2012. All rights reserved. 14 BUSINESS ACTIVITIES Marketing and finance work together to make money available so that people can purchase products. Loans for new cars Payment plans for furniture Credit cards offered by banks Copyright © Texas Education Agency, 2012. All rights reserved. 15 Business Activities International Trade involves the exchange of goods and services between nations. Copyright © Texas Education Agency, 2012. All rights reserved. 16 Business Activities Most countries need to get some of their goods and services from other countries. This is called economic dependence. Resources include: Raw materials Labor force Capital Location Copyright © Texas Education Agency, 2012. All rights reserved. 17 Business Activities Countries like the United States and Canada have good climates for agriculture. Countries in the Middle East have crude oil. Russia has coal. Eastern Europe and Asia have inexpensive labor forces. Copyright © Texas Education Agency, 2012. All rights reserved. 18 Business Activities Consumers, producers, workers and nations benefit from international trade. Consumers benefit from the competition that foreign companies offer. Producers can expand their business by conducting business in other countries. Copyright © Texas Education Agency, 2012. All rights reserved. 19 Business Activities Workers benefit from increased trade which leads to lower unemployment. Nations benefit as whole by increased foreign investment, higher standard of living and more options for consumers when choosing products. Copyright © Texas Education Agency, 2012. All rights reserved. 20 PICTURE RESOURCES http://www.sxc.hu/photo/1363446 - colored crates http://www.sxc.hu/photo/1336892 - teamwork http://www.sxc.hu/photo/626217 - clothes rack http://www.sxc.hu/photo/281623 -mall http://www.sxc.hu/photo/1210839 - car http://www.sxc.hu/photo/913663 - Euros http://www.sxc.hu/photo/1290130 money symbols Copyright © Texas Education Agency, 2012. All rights reserved. 21