1.1 BUSINESS ACTIVITY

• Goods are tangible products
• Services are intangible products
• goods:

  Meat

  Poultry

  Dairy Products

  Confectionary

  Bread

  Pasta, Rice
• services :

  Cashier

  Helper putting

  items in bags

  Valet

  Customer Service

  Security
• The marketing mix is the combination of elements that make up a product or service.
• Product - The goods or services offered by an organization to satisfy customer needs.
• Price - The amount paid by customers for the product or service.
• Price - The amount paid by customers for the product.
• Place - Where the product can be purchased (distribution channels).
• Promotion - How the product or service is promoted to potential buyers.
• People - The employees who interact with customers and represent the brand.
• Processes - Methods used to produce products or deliver services.
• The marketing mix refers to the four P's of marketing: Product, Price, Place, and Promotion.
• Product - A good or service offered by an organization.
• Pricing strategy - Determining how much to charge for a product or service based on factors like cost, competition, and perceived value.
• a need is A good or service essential for living. ( eg. Clean Water,Clothing,Shelter)
• A want is something that satisfies a desire but isn’t necessary for survival.
• A demand is when people are willing and able to buy a particular product at a specific price.
• Market segmentation involves dividing a market into smaller groups of consumers with similar needs or characteristics.
• Target markets are segments chosen as potential customers for a new product.
• The real cause of the shortage of goods and

  services in a country is the too few Factors of

  Production.
• Factors of Production are those resources needed

  to produce the goods and services.

  Land

  Labour

  Capital

  Enterprise
• land: Fields and Forests,Oil and Gas,Metals,Minerals
• labour:This is the efforts of people needed to make

  products.
• enterprise: The ability to take risks and be innovative.
• capital: Money used to buy equipment or machinery.
• firms use these factors of production to create products that satisfy consumer needs.
• Enterprise: This is the skill and risk-taking ability of the

  person who brings the other resources or factors

  of production together to produce a good or

  service.( entrepreneurs.)
• opportunity cost : the benefits forgone of the

  next best conclusion
• Scarcity – a finite (limited) amount
• Choice – economic choices involve the alternative

  uses of scarce resources
• Basic Economic problem – resources have to be

  allocated between competing uses because wants

  are infinite whilst resources are scare
• Production is the process of taking resources and

  changing them into products or services
• Three Sectors of Production

  Primary Sector

  Secondary Sector

  Tertiary Sector
• The primary sector produces goods using natural

  resources

  Extracted from the ground

  Grown

  Collected
• The secondary sector manufactures goods

  Capital goods used to make other goods and

  services

  Consumer goods
• The tertiary sector provides services

  To other businesses

  Directly to consumers
• adv Specialisation: Workers are trained in one task

  and specialise in this- this

  increases efficiency and output

  Less time is wasted to moving

  from one work area to another

  Quality of products improves as

  staff become experienced in

  their role
• Specialisation:people in business focus on what they do best
• specialisation Disadvantages

  Workers can become bored

  doing just one job –

  efficiency might fall

  If one worker is absent and

  no one else can do the job,

  production might be stopped

  Firms may need to develop

  strategies to motivate staff

  this can be expensive.