Lesson+05


 * Lesson 5 - Marketing Goods and Services**

• needs – things that are required in order to live • wants – things that add comfort and pleasure to your life • goods – things you can see and touch; they are products you can purchase to meet your wants and needs • services – activities that are consumed at the same time they are produced • economic resources – the means through which goods and services are produced • scarcity – not having enough resources to satisfy every need • economic decision making – the process of choosing which wants, among several options, will be satisfied • trade off – what you make when you give something up to have something else • opportunity cost – the value of the next-best alternative that you did not choose • consumer – a person who buys and uses goods and services • producers – Individuals and organizations that determine what products and services will be available for sale • demand – the quantity of a good or service that consumers are willing and able to buy || • supply – the quantity of a good or service that businesses are willing and able to provide • selling – communicating directly with potential customers to determine and satisfy their needs • marketing – an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders • financial analysis – budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’ products and services • pricing – setting and communicating the value of products and services • promotion – any form of communication used to inform, persuade, or remind; communicating information about products and services to potential customers • product and service management – designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs || ﻿ ||   ||   ||
 * Important Terms for this Lesson**
 * **Important Terms for this Lesson:**


 * Review:**
 * What is scarcity?

A: Scarcity is not having enough resources to satisfy every need. Q: What is the difference between a need and a want? A: A need is required to live and a want adds comfort and pleasure to your life. Q: How do people satisfy their wants and needs? A: People purchase goods and services to satisfy their needs and wants. Q: What are three types of economic resources? A: Three economic resources are natural resources, human resources, and capital resources. <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">Q: What is opportunity cost? || <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">Opportunity cost is the value of the next-best alternative that you did not choose. **Q** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">: What are the six steps in the decision-making process? **A:** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">The six steps are (1) define the problem, (2) identify the choices, (3) evaluate the advantages and disadvantages of each choice, (4) choose one, (5) act on your choice, and (6) review your decision. **Q:** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">How does the price of a product affect demand and supply? **A:** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">Prices have a direct impact on the amount supplied and the amount demanded. Less is demanded when prices go up. Higher prices encourage suppliers to provide more. **Q:** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">How is market price for a product determined? **A:** <span style="display: block; font-family: Arial,Arial;"><span style="font-family: Arial,Arial;">Market price is the point where supply and demand are equal. ||
 * **A:**