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

© South-Western Educational Publishing

GOALSGOALS

LESSON 2.1BUSINESS ACTIVITIES

Identify the four kinds of businesses Describe each of the seven business

functions


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

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



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.

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.



GOALSGOALS

LESSON 2.2BUSINESS OWNERSHIP

Describe the types of business ownership and the specialized forms of business

Identify each of the five business management activities


Types of Business Ownership

Sole ProprietorshipOwned by one personKeeps profit, but is liable for all debts.

PartnershipOwned by a small group (2-3 people)Share profits Unlimited liability for all debts

Types of Business Ownership

CorporationOwned 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.


Types of Business OwnershipSpecialized 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.



U.S. Business Ownership15.8

3.8

1.5

0

2

4

6

8

10

12

14

16

Sole Proprietorships Corporations Partnerships

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Management Activities

PlanOrganizeStaffLeadControl


GOALSGOALS

LESSON 2.3EFFECTIVE MARKETING

Explain the marketing concept and the steps in setting marketing strategy

Identify the four elements of the marketing mix

Marketing Strategy

Marketing ConceptConsidering the needs of customers

when planning, pricing, distributing, and promoting their product or service.

Effective marketing leads to satisfying exchanges between businesses and customers.


Marketing Strategy

Involves 2 steps:Marketers must decide whose wants

or needs the business will try to satisfy.

Develop a marketing mix



Marketing StrategyTarget Market

A group of individuals or businesses that have similar product needs.

Marketing ConceptA statement of what the marketing

activities will achieve.Must be clear, realistic, and refer to

desired consumer actions.

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


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.



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.

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 GOALS LESSON 2.1 BUSINESS ACTIVITIES Identify the four kinds of businesses Describe each of the seven business.

Documents

business ownershipdescribe

store goods

employeesmarket goods

wantsproduce goods

productspackage goods

moving goods

consumers cooperative

consumers cans