Test 1 Review

Marketing Marketing has TWO important roles: What is Marketing??? Sell what a business makes Manage a business’s brand Example What is Marketing??? All the activities involved in getting goods and services from the businesses that produce them to the consumers who wish to purchase them Includes research, development, sales, distribution, advertising and promotion It DOES NOT include the production of goods and services

Business Image Three important parts of a businesses image Brand Name Logo Slogan

Four Ps of Marketing Four things that businesses focus on when attempting to sell their product/service 1. Product Inform what you are selling, what it does and they variety to these products 2. Place Identifies where this product or service can be purchased by consumers

4 P’s 3. Price Prices for products must be set with care to ensure their success. Today consumers are very price conscious and look for competitive prices at other stores or on the Internet. Businesses need to be price sensitive and look at their competitors’ prices for the same products

4 P’s Promotion Promotion is an attempt to sell a product. Sales promotion encourages consumers to buy products by using coupons, contests, premiums, samples, or special events.

6 Factors of Production 1. Natural Resources 2. Raw Materials Agriculture, fishing & trapping, mining, water, fuel & energy, and logging & forestry Every product in the world results from one of these resources 2. Raw Materials Any materials used in the manufacturing of other goods AKA the “ingredients” used to make a good

Factors of Production 3. Labour 4. Capital 5. Information All physical and mental work needed to produce goods or services 4. Capital Money invested in a business 5. Information About new technology, customers, competition, etc. Involves conducting research 6. Management People who control all the factors of production listed previously

What Does Human Resources do? Managing all employees in a business The following things are considered at this level When will we be hiring? What will be qualifications? Where will employees come from? (University, high school, competitors, etc.) Training programs Administers payroll Handles employee transitions

Human Resources Financial Planning and Analysis Deals with how money will be spent and keeping records of financial transactions Answers the following… “How can we spend money that is in the best interest of the company??”

Human Resources Legal Issues and Responsibilities …and beyond Deals with all legal issues involved in running a company Can involve anything from… Paperwork/Contracts Ethics (morally right/wrong) Copyrights and patents Employee/Employer relations …and beyond

Product Life Cycle All businesses strive to have a high brand equity Brand Equity -> The value of the brand in the marketplace A business that has a high brand equity means… Customers can name the brand as part of a specific category Customers prefer the brand and support it Customers will likely accept no substitutes Pepsi, Playstation, Speed Stick

Product Life Cycle There are five parts to a product’s life-cycle

Product Life-Cycle - Introduction Product enters marketplace (launch) Usually, consumers don’t know the product exists Provide info on the product, what it does, where to buy it People that buy immediately are called early adopters

Product Life-Cycle (Growth) Early adopters set the trends, leading to an increase in popularity Competitors begin to emerge Competition fuels the growth of the product People become intrigued by competition Only several competitors emerge from this stage

Product Life-Cycle (Maturity) Growth is flat (little increase or decrease) Brand Equity is at its highest Large profits made in this stage Advertising less aggressive, low costs of production Profits used to fund new ideas and products

Product Life-Cycle (Decline) There comes a point when products fail to capture new consumers to replace those leaving Sales decrease Some declines are temporary (seasonal) Sometimes a decrease in price or new advertising can reverse this

Product Life-Cycle (Withdrawal) Business reaches a turning point Either Attempt to make product popular again Price change, improvements, new target market Or discontinue the product New technology makes product obsolete Videotape, Walkman, Nintendo Wii, DVDs

Non-traditional Product Life Cycles (Fads) Some products do not go through these stages all stages in this way Fads have very fast growth, with very quick decline Fads typically grow and decline within a year Often times losing money

Non-traditional Product Life Cycles (Niche) Many products have a niche -> target very specific section of market Short growth stage, and a small, but solid maturity stage Do not attempt to expand into other markets

Non-traditional Product Life Cycles (Seasonal) Many products are only popular during a specific time or season Sales very high in season, very low to non-existent out of season Each new season brings new styles

Entrepreneurial Characteristics Risk Taker Perceptive Curious Imaginative Persistent Goal-setting Hardworking Self-confident

Flexible Independent Research Skills Gathering Information Using Information Management Skills Planning Organizing Directing Controlling