Fundamentals of Business and Marketing

Customer Needs

• Needs are essential for survival
• Wants are desires, not essential
• Businesses satisfy emotional, functional, social, convenience, and health needs
• 4 factors of production: land, labor, capital, entrepreneurship

Entrepreneurs

• Entrepreneur: a person who starts and manages a business, taking on the risk of financial market operations, hoping for a profit.
• Real-world examples: Andrew Carnegie, Jeff Bezos, Mark Zuckerberg

Marketing Mix (4Ps)

• Product, Price, Place, Promotion

Product

• Fast-moving consumer goods (FCMGs): quickly sold, inexpensive products (e.g., beans)
• Consumer perishables: short shelf life (e.g., flowers)
• Consumer durables: long shelf life, infrequent replacement (e.g., books, household items)
• Specialty products: unique characteristics or brand identification (e.g., Gucci)

Price

• Cost-plus pricing: selling price determined by adding a percentage markup to the cost
• Psychological pricing: lowering the price to a number lower than a whole number
• Discrimination pricing: pricing strategy based on different customer segments or situations
• Loss leader: selling a product at a loss to attract customers

Promotion

• Promotion is persuading customers to buy products or services to increase sales
• Promotion methods: email marketing, advertising, direct marketing, social media, sponsorships
• Aims of promotion: increase sales, build brand awareness, build customer loyalty
• AIDA: Attention, Interest, Desire, Action

Place (Distribution)

• Retailers: sell goods to the public in relatively small quantities
• Wholesalers: buy goods in bulk and resell to retailers
• Zero level channel: direct distribution from manufacturer to customer
• One level channel: one intermediary (e.g., retailer) between manufacturer and customer
• Two level channel: two intermediaries (e.g., wholesaler and retailer) between manufacturer and customer

Revenue and Market Share

• Revenue: total money brought in by a company
• Market share: percentage of total sales in an industry generated by a company

Explore the essential concepts of customer needs, entrepreneurship, and the marketing mix with this quiz. Dive into the definitions and examples of various products, pricing strategies, and the role of entrepreneurs in the market. Test your knowledge and understanding of these fundamental business principles.