MARKETING – CHAPTER 5 FUNCTIONS OF BUSINESS

BUSINESS All activities involved in producing and marketing goods and services Two primary functions of business: – Production & Marketing – Management controls all resources Management Bad Management Production Marketing

Production Creating, growing, manufacturing or improving on something produced by someone else Example: Songwriter creates a song Farmer grows wheat Ford manufacturers cars Carpenter improves homes

Marketplace – Exists wherever a product is sold to a buyer Management – Resources (capital/natural/human) are brought together through good management Finance – money management

Types of Businesses Can be divided by: – size (large/small) – profit orientation (profit/non-profit) – kind of product provided (goods/services)

Large vs. Small – McDonalds (started at 76 million ---- today 22.5 billion) Profit vs. Non-Profit – Profit – leftover money goes to owner – Non-Profit – leftover money goes to charity Not all non-profit organizations are built around charity; example: public schools, post office (government related) Leftover money goes back into business

Businesses not associated with the government = private sectors Businesses associated with the government = public sectors