Mktg Unit 31 Business & Marketing Essentials Business & Marketing Foundations of Work-Based Education A UGA Student Produced Presentation

Mktg Unit 32 OBJECTIVES ¬ Define business & describe its functions ­ List three managerial functions ® Identify & discuss in detail the 3 major business markets: consumer, industrial, & global

Mktg Unit 33 OBJECTIVES ¯ Describe international trade & list its advantages and disadvantages ° Review areas of social responsibility ± Define ethics & evaluate ethical business behavior ² Explore consumerism

Mktg Unit 34 Business All activities involved in producing and marketing goods and services Large vs Small Profit vs Nonprofit Goods vs Services

Mktg Unit 35 Major Business Functions l Production Creating, growing, manufacturing, or improving goods and services l Marketing Selling products in the marketplace l Management Achieving goals, allocating resources, providing sound financial planning, and maintaining accurate records

Mktg Unit 36 Management Functions Planning Organizing Controlling

Mktg Unit 37 Major Business Markets l Consumer Market Purchases made for personal use l Industrial Market Business to business market Purchases made for business use l Global Market International trade Exchange of goods and services between nations

Mktg Unit 38 Consumer Market ` Age ` Ethnic Background ` Income ` Geographics ` Psychographics

Mktg Unit 39 Age ø Whoopies ø Baby boomers ø Generation X ø Baby Boomlet

Mktg Unit 310 Ethnic Background t African-American t Hispanic t Asian-American t Caucasian

Mktg Unit 311 Income  Disposable Income  Discretionary Income  Income levels  Socioeconomic levels

Mktg Unit 312 Geographics l Metropolitan Statistical Areas specially defined geographic areas used by government to distribute federal aid used by marketers to target consumers and promotional campaigns l Geographic Links Age Ethnic groups

Mktg Unit 313 Psychographics l Position in the Family Life Cycle Single Newly Married Full Nest Empty Nest Sole Survivor l Trends

Mktg Unit 314 Industrial Market l Derived Demand Industrial market demand tends to be dependent on consumer demand Inelastic Demand increase or decrease of an industrial good will not have a drastic effect on the price of consumer good Joint Demand two or more products are used together to produce a single product

Mktg Unit 315 Business/Industrial Segments è Extractors è Construction è Manufacturing è Wholesalers è Retailers è Business Services è Professional Services è Institutions è Nonprofit Organizations è Government

Mktg Unit 316 Global Market l Economic Interdependence The need to obtain certain goods and services from other countries not self-sufficient l Unique Resources country’s weather, raw materials, labor force, capital resources, location

Mktg Unit 317 Global Market l Absolute Advantage a country has special natural resources or capabilities that allow it to produce a given product at a lower cost than any other nation in the world l Comparative Advantage value a nation gains by selling the goods it produces more efficiently than other nations

Mktg Unit 318 Global Considerations  Language Barriers  Symbols  Gestures  Cultural Traits  Customs and Traditions  Religion  Economic Factors  Political and Legal Factors

Mktg Unit 319 International Businesses l Multinationals large corporations that have operations in several countries l Mininationals midsized and smaller companies that have operations in other countries l Joint Ventures partnerships with foreign companies

Mktg Unit 320 Imports & Exports l Imports Goods and services that are brought in and bought from other countries l Exports Goods and services that are sent and sold to other countries

Mktg Unit 321 Advantages of International Trade  Consumers lower prices improved quality  Producers industrial growth  Workers increased employment  Nations improved standard of living political alliances

Mktg Unit 322 Disadvantages of International Trade » Inability to compete due to cheaper labor costs and availability of raw materials » Operations moved to foreign countries » Unemployed US workers

Mktg Unit 323 Balance of Trade l Difference in value between imports and exports Trade Surplus Trade Deficit l US largest exporter l Emphasis shifting from farming and manufacturing to services l Negative trade balance reduces GDP contributes to unemployment

Mktg Unit 324 Trade Barriers Controls that restrict the flow of goods and services among nations Tariff (duty) - tax on imports Quotas - limits quantity or value of imports Embargoes - total ban on goods coming into and leaving a country

Mktg Unit 325 Trade Support l Encouraging Foreign Trade Most-Favored Nations Status Foreign Trade Zones Export-Import Bank (Eximbank) International Monetary Fund l Trade Agreements General Agreement on Tariffs and Trade (GATT) North American Free Trade Agreement (NAFTA) European Union (EU)

Mktg Unit 326 Social Responsibility l Environment Issues Air and Water Pollution - EPA Conservation Recycling l Business Ethics l Consumerism

Mktg Unit 327 Ethics J Guidelines for good behavior J Knowing the difference between right and wrong and doing what is right J Being truthful and fair J Considering the well-being of society

Mktg Unit 328 Ethical Questions Ê Is the practice right, fair, and honest? · What would happen if the product were marketed differently? ¸ What practice will result in the greatest good for the greatest number of people?

Mktg Unit 329 Consumerism Societal effort to protect consumer rights by putting legal, moral, and economic pressure on business Shared by individual consumers, consumer groups, government, and socially responsible business leaders Largest growth

Mktg Unit 330 Consumer Bill of Rights  To be informed and protected against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources  To be protected from unsafe products  To have a choice of goods and services  To have a voice in product and marketing decisions made by government and business