1. Test 1 Review

2. 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

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

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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??”

11. 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

12. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

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

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