Introduction to

Business
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
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.