INTRODUCTION TO BUSINESS

By Fahad Hussain
QUESTION:
 If you need/want something, how do acquire it?
ANSWER:
 Make it yourself
 Get it by theft or coercion

 Exchange: Offer something of value (money, services,

another good) to an individual or organization that has
the desired good or services and is willing to exchange it
for what you offer.
CONDITIONS FOR EXCHANGE
 Two or more persons must be involved
 All parties involved must have a certain level of
dependency on each other
 The exchange must be voluntary

 Each party must have something of value to

contribute to the exchange process
 Each party must believe that it will benefit from
the exchange
 Communication
WHAT IS A MARKET?
 A premises offering goods and services like a mall or a
bazaar?
 A term used to denote an entire industry like the mobile
phones market, the textile market etc. ?
 A concept used to describe selling & buying activities
such as the stock market?
MARKET
 A mechanism that facilitates exchange
MARKET PLAYERS
 Sellers
 Buyers

 Intermediaries

 The Government

 Pressure Groups
QUESTION
 What is the object of exchange?
PRODUCT DEFINED
 Product: A set of attributes assembled together in an
identifiable form
PRODUCTS
 Goods
 Services
 Ideas/Ideologies
 Places
 Persons
 Events/Occasions
MARKETING DEFINED
 A business function designed to plan, price, promote and
distribute want-satisfying products in order to achieve
organizational objectives
THE MARKETING MIX
 Product
 Price

 Distribution (Place)

 Promotion
CLASSIFICATION OF PRODUCTS
 Consumer Products
 Business Products
WHAT DO WE MEAN BY THE TERM
“CONSUMER PRODUCTS”?
 All goods and services meant for individual/household
consumption.
TYPES OF CONSUMER PRODUCTS
 Convenience Goods: Commonly available, generally
affordable, often prone to rapid consumption and re-buy,
in which case these are referred to as Fast Moving
Consumer Goods (FMCG’s)
TYPES OF CONSUMER PRODUCTS
 Shopping Goods: A category of consumer goods that are
purchased after the buyer has spent some time and effort
comparing the price, quality, style and other attributes of
the product in several stores Types of Consumer
Products
TYPES OF CONSUMER PRODUCTS
 Specialty Goods: A category of consumer goods for
which the consumers have a strong brand preference and
are willing to spend substantial time, effort and money
for acquiring the desired brand
TYPES OF CONSUMER PRODUCTS
 Unsought Products: A category of products about which
the consumers are generally not aware, or if they are
aware, they would rather not buy them unless otherwise
compelled
WHAT DO WE MEAN BY
THE TERM “BUSINESS PRODUCTS”?
All goods & services purchased for any of the following
purposes:
 To make other goods & services

 To resell to other businesses or consumers

 To conduct the organization’s operations

TYPES OF BUSINESS PRODUCTS
 Raw Material: Business goods that become part of
another tangible product before being processed
 Examples include natural resources, minerals,
agriculture, dairy and poultry products etc.
TYPES OF BUSINESS PRODUCTS
 Fabricating Materials & Parts: Business goods that
become part of another tangible product after being
processed
 Examples include sugar, flour, semi-conductor micro
chips in computers, and zippers & buttons in clothing
etc.
TYPES OF BUSINESS PRODUCTS
 Installations: Manufactured products that form an
organization’s major, expensive and long-lived assets
 Examples include machinery (heavy generators, blast
furnaces, machinery used in production) and buildings
TYPES OF BUSINESS PRODUCTS
 Accessory Equipment: Goods that neither become a part
of finished goods nor are directly involved in the
manufacturing process, yet are essential in carrying out
various processes of a firm
 Examples include workstations, fork lifts, office
furniture etc.
TYPES OF BUSINESS PRODUCTS
 Operating Supplies: Goods characterized by low price
and short life span, contributing to an organization’s
operations
 Examples include stationery, fuel, telephone sets etc.