Business & Marketing Essentials

1. Business & Marketing Essentials Business & Marketing Foundations of Work-Based Education A UGA Student Produced Presentation

2. OBJECTIVES • Define business & describe its functions • List three managerial functions • Identify & discuss in detail the 3 major business markets: consumer, industrial, & global

3. OBJECTIVES • Describe international trade & list its advantages and disadvantages • Review areas of social responsibility • Define ethics & evaluate ethical business behavior • Explore consumerism

4. Business All activities involved inproducing and marketing goods and services • Large vs Small • Profit vs Nonprofit • Goods vs Services

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

6. Management Functions Planning Organizing Controlling

7. Major Business Markets • Consumer Market • Purchases made for personal use • Industrial Market • Business to business market • Purchases made for business use • Global Market • International trade • Exchange of goods and services between nations

8. Consumer Market • Age • Ethnic Background • Income • Geographics • Psychographics

9. Age • Whoopies • Baby boomers • Generation X • Baby Boomlet

10. Ethnic Background • African-American • Hispanic • Asian-American • Caucasian

11. Income • Disposable Income • Discretionary Income • Income levels • Socioeconomic levels

12. Geographics • Metropolitan Statistical Areas • specially defined geographic areas • used by government to distribute federal aid • used by marketers to target consumers and promotional campaigns • Geographic Links • Age • Ethnic groups

13. Psychographics • Position in the Family Life Cycle • Single • Newly Married • Full Nest • Empty Nest • Sole Survivor • Trends

14. Industrial Market • 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

15. Business/Industrial Segments • Extractors • Construction • Manufacturing • Wholesalers • Retailers • Business Services • Professional Services • Institutions • Nonprofit Organizations • Government

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

17. Global Market • 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 • Comparative Advantage • value a nation gains by selling the goods it produces more efficiently than other nations

18. Global Considerations • Language Barriers • Symbols • Gestures • Cultural Traits • Customs and Traditions • Religion • Economic Factors • Political and Legal Factors

19. International Businesses • Multinationals • large corporations that have operations in several countries • Mininationals • midsized and smaller companies that have operations in other countries • Joint Ventures • partnerships with foreign companies

20. Imports & Exports • Imports • Goods and services that are brought in and bought from other countries • Exports • Goods and services that are sent and sold to other countries

21. Advantages of International Trade • Consumers • lower prices • improved quality • Producers • industrial growth • Workers • increased employment • Nations • improved standard of living • political alliances

22. 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

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

24. 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

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

26. Social Responsibility • Environment Issues • Air and Water Pollution - EPA • Conservation • Recycling • Business Ethics • Consumerism

27. Ethics • Guidelines for good behavior • Knowing the difference between right and wrong and doing what is right • Being truthful and fair • Considering the well-being of society

28. Ethical Questions • 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?

29. 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 1960-1980

30. 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