Copyright © Texas Education Agency, All rights reserved. Business and Society Marketing Dynamics Copyright © Texas Education Agency, All rights reserved.

Copyright © Texas Education Agency, All rights reserved. Marketing Dynamics Business and Society 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, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Goals –Students can explain the contributions that marketing makes to business and society. –Students can explain the role of business in society. –Students can describe the types of business activities. –Students can explain the organizational design of businesses. –Students can discuss the global environment in which businesses operate. –Students can depict factors that affect the business environment. –Students can express how organizations adapt to today’s markets. Marketing Dynamics Business and Society Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Terms –Marketplace –Business –Production –Nonprofit Organization –Public Sector –Private Sector –Factors of Production –Command Economy –Market Economy –Mixed Economy Marketing Dynamics Business and Society Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Marketing contributes to business –Facilitating exchange relationships –Higher Sales –Business reputation –Target marketing Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. How marketing contributes to society –Education of consumers –Competition –Improved products –Reduced prices – Increased social awareness. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. What is business? –All of the activities involved in producing and marketing goods and services. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Business has two primary functions –Production – the process of creating, growing, manufacturing, or improving goods and services –Marketing – the activities that are involved in producing, distributing, promoting and selling goods and services. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. The marketplace exists wherever a product is sold to a customer. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Management is used to plan, organize, and control all available resources to reach company goals. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Large vs. small –Small businesses are operated by one or a few individuals, generally has less then 100 employees –“Mom and Pop” shops, florists, neighborhood grocery stores, internet businesses, gift shops. –About 95% of all U.S. businesses are classified as small business. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Domestic vs. Global –Internet has allowed many companies to enter the global marketplace. –Many companies who are successful domestically have international competition. They must compete globally to continue to be profitable. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Profit vs. Nonprofit. –A business operated to make a profit for the business owners. –Service organizations are called nonprofit organizations. They are not operated to make a profit, but to serve a purpose –Nonprofits must pay expenses and hire employees. All remaining income goes to their charitable cause. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Public vs. Private –Public sector businesses include schools, libraries, federal, state and local governments. –Public sector businesses purchase one third of all goods and services sold in the U.S. –Private sector business are not associated with any governmental agencies. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Consumer vs. Industrial –Industrial market is business to business. The industrial market is based on, or derived from the demand for consumer goods. Therefore the demand for industrial goods are called derived demand. Industrial marketers must be aware of the changes in the consumer market to know how it will affect their markets. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. E-Commerce has opened many doors for business globally and domestically. –ATM’s, shopping with debit cards, shopping online. –Research shows that over half of businesses say that the internet is central to their daily activities. Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Factors of Production – needed to produce goods and services. –Natural resources - Land –Human resources - Labor –Capital resources - Money Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Global Economies –Command Economies – One person or central ruling party makes all of the decisions on how the countries resources will be used. –Market Economies – Ability to own property, start businesses, make unlimited profit with no intervention from government. –Mixed Economies – Same qualities as market economy, but government intervenes in safety and security matters Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Global Markets Affected By –Expanded Communications –Technology –Changing Political Situations –Increased Competition –Changing Demographics Copyright © Texas Education Agency, All Rights Reserved

Copyright © Texas Education Agency, All rights reserved. Factors that affect the business environment: Businesses expand during recovery or prosperity and cut back during recessions. Inventories are cut back during recession causing ripple affect. Consumers stop spending during recession. Government policies and programs influence cycles. Copyright © Texas Education Agency, All Rights Reserved