What is Marketing

The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives.
Marketing activities are required for many differgent kinds of products. Product is not only tangible goods. Those that can be held or touched such as health care services.

Ultimately the purpose of marketing activities is to bring about exchanges. Exchange is the process by which parties provide something of value to one another to satisfy the needs of each.
Through activities that enables exchanges to take place, marketing adds value to products. This value is known as utility, the ability of a product to satisfy a customer need. There are four types of utility: form, time, place, and possession.

Marketing directly creates three types of utility. By marketing products available when costumers want and need them, marketing creates time utility. Publishing company print and distribute morning newspaper early so readers can read them at breakfast or while commuting to work.
Marketing products available where consumers need or want to obtain them creates place utility. Newspaper are delivered to homes and business; sold in supermarket , and bookstores. Marketing creates possession utility when the ownership of a product is transferred from seller to buyer. To obtain newspaper, costomers pay the publishing company for home delivery, or pay clerks in stores.

Marketing is important to organisations are consumers alike. It touches the lives of all members of society. Through the cost of what we purchase, each of us supports the costs of marketing. Most people would agree that marketing costs are worth it because the many and varied marketing ectivities enable us to satisfy our needs and wants. A need is something required for human survival, such as food, water, shelter, and clothing. A want is something desired but not necessary for basic survival. Without marketing, many needs and wants would go unsatisfied.
The efforts of marketing are directed at a market. It is a group of potential customers with the authority and ability to purchase a particular product or service that satisfies their collective demand. There are two major markets: consumer and industrial. The consumer markets is composed of individuals who buy products for their personal use. The industrial market consists of businesses that buy products to use in making other products.

The large industrial and consumer markets need to be divided into smaller markets. This process of the dividing markets into subgroups with similar characteristics is called market segmentation.
A management philosophy stating that an organisation should strive satisfy the needs of consumers through a co-ordinated set of activities to achieve its objectives is known as marketing concept the marketing concept calls for all departments to be committed to satisfying consumers. To put the marketing concept into action, a firm must decide on the appropriate marketing activities to satisfy consumer needs and achieve its goals.

Give your complete answer to the following questions.
1. What is the definition of marketing?
2. What is the purpose of marketing activities?
3. What is utility?
4. What are the four types of utility?
5. Why marketing is important to organisation and consumers alike?
6. What are the two major market?
7. What is marketing concepts?
8. What is market?


Choose the correct answer according to the reading passage

1. It is required for many different kinds of products.
a. Marketing assosiation
b. Marketing activities
c. Products value

2. The ability of a product to satisfy a consumer need.
a. utility
b. Exchange
c. Conception

3. Semething required for human survival
a. Want
b. Need
c. Utility
4. Something desired but not necessary for basic survival
a. Want
b. Need
c. Utility

5. A group of potential customers that can buy a particular product
a. Market
b. Purchasers
c. Individuals

Product and Price

A product is a good, service, or idea including all the tangibles and intangibles provided in an exchange between a buyer and a seller. People buy a product for the benefits and satisfaction it gives. A product can be a good (like a car) or a service (like your checking account at the bank). Sometimes a product is a blend of the both. Dinner at a restaurant, for example. Consists not only of tangible items – food and beverages – but also preparation, service, and the appeal of dining in that special setting.

Product used by individuals for personal and family cosumption are consumer products. Inexpensive goods and services that consumer often buy, without much thought or effort, are convenience products. Milk, bread, magazine, soft drinks are examples. An item that buyers will expend time and effort to find and purchase is shopping product. This category includes goods such as TV set, VCRs, major appliances, and furniture, and services such as dental care, legal advice, and tax preparation.

Goods and services that have specific attributes desired by a particular group of consumers are known as speciality products. Speciality products can be expensive and unique, such as Mercedes sports car.

Products used by organisations in producing goods or services are known as industrial products.
A group of related goods or services marketed by a firm is called product line. A firm’s product can be shallow, with only one or two products, or deep, including many products. The collection of items and services a firm offers for sale is known as product mix. Marketers refer to product mixes as narrow or wide, depending on how many product lines are carried.

PRICING
The price of a product is one of its most important aspects for both sellers and buyers. Price is the value that buyers exchange for a product in the marketing transaction. Money usually is the value exchanged for a product that satisfies a consumers and greatly affects purchase decisions.
A firm cannot determine a product’s price without considering several factors that affect price. Managers must take into account the use of price and non-price competition, supply and demand, and consumer perception of price. Firms competing based on price competition. It is policy of using price to differentiate product in the marketplace. Generally they set prices equal to or lower than competitor’s prices.
A policy of emphasising aspects other than price, such as, quality, service, or promotion, to sell products is known as non-price competition. This strategy is useful in building brand loyality. A name, sign, symbol, or design a company uses to distinguish its product from others is called a brand. Firms usually want exclusive use of their brands and take steps to prevent others from using them. A brand registered with the patent and trademark office is called a trademark. A trademark, legally protected, can be used only by its owner.

QUESTIONS FOR COMPREHENSION

1. WHAT IS A PRODUCT?
2. WHY DO PEOPLE BUY A PRODUCT?
3. WHAT DO PRODUCTS CONSIST OF?
4. WHAT IS A CONSUMER PRODUCT?
5. WHAT ARE A CONVENIENCE PRODUCTS?
6. WHAT IS A SHOPPING PRODUCT?
7. WHAT DO SHOPPING PRODUCTS INCLUDES?
8. WHAT IS A PRODUCT LINE?
9. WHAT A SPECIALITY PRODUCTS?
10. WHAT IS PRODUCT MIX?
11. WHAT IS A PRICE?
12. WHAT IS PRICE COMPETITION?
13. WHAT IS NON-PRICE COMPETITION
14. WHAT IS A BRAND?
15. WHAT IS TRADEMARK?

Types of Business Organization

When you start a business, you have many decisions to make. The first is the form of organization best suited to the needs of your business. Most business start as sole proprietorships. Many of them become partnerships or corporations as they expand. You are probably familiar with sole proprietorships, business that are established, owned, operated, and often financed by a single person.

Sole proprietorships have several advantages that make them popular. They are ease and low cost of setting up, all profit go to the owner, control of the business can be performed directly, and from government regulation. Another major form of business organization is the partnership. It is an association of two or more persons to carry on as co-owners of business for profit. Some advantages of partnership come quickly to mind. When you have a partner, you are not tied to the business, as you would be in a sole proprietorship.

Someone else helps manage and operate the firm and brings extra skills. Setting up partnership takes a more formal agreement than starting a sole proprietorship, but partnerships are still quite easy to form.Ease of information, availability of capital, diversity of skills and expertise, flexibility, and relative freedom form government control are the advantages of all types of partnership.

Corporations are not the most popular form of business organization in term of number of firms. But they acccount for the largest share of both sales and income. A corporation is a legal entity with an existence and life seperate from its owners. A corporation can own property, enter into contracts, sue and be sued, and engage in business operations under the terms of its charter. Unlike sole proprietorships and partnerships, corporations are taxible entitles.

There are four types of corporate ownership. The common stock of a privately owned firm is not available to the general public. A closely owned firm belongs to a small group of investors.
The common stock of a publicly owned firm belongs to a broad group of unrelated individual and institutional investors.

Several specialized types of business organization play a role in our economy are co-operative, joint ventures, and limited liability companies.
A co-operative is a legal entity with several corporate features, such as limited library, an unlimited life span, an elected board of directors, and an administrative staff. Unlike a corporation, a co-operative does not keep profit.
Instead, it distributes all profits to its members in proportion to their contribution. Since the co-operative keeps no profit, it pays no taxes.

A joint venture is an entity formed by two or more companies to undertake a special project. there are many reasons for joint ventures. The project may be too large for one party to handle on its own. Another reason for joint ventures is that a company can gain access to new markets, products, or technology by working with a firm whose expertise complements its own.
A new type of business entity is the limited liability company (LLC). This company provides liability protection but is taxed like a partnership.
The combination of limited liability and favorable tax treatment makes the LLC attractive for many types of small business.

EXERCISE:
Put the words in the following list into the blank space of the sentences below.

FINANCE, START, PROVIDE, ESTABLISHED, DISTRIBUTED, EXPAND, FORM, OPERATE, OWN, PERFORM

1. You may have planned to get a job and then ... working in the career of your choice.
2. Sole proprietorship is a ... of business organisation
3. They ... the business on several forms including partnership and joint venture.

4. The company has ... several factories in several location in five cities.
5. You must read the direction for user before you ... the machine.
6. They ... all of the business activity to produce good and services.
7. Managers often ... more than one of the managerial functions.
8. They ... the brochures to all audience in the conference hall.
9. Businesses ... goods and services for consumers.
10. They ... several companies operated by professional managers.

What is an Organization

An organization is a group of two or more people that exists and operate to achieve clearly objectives. A business is an organization created to provide a product that consists of goods and services to customers for profit. To reach the objectives it is necessary to establish a framework of operating relationships between people and structure.

The formal organization is developed through a series of organizing steps. These steps consist of considering the objectives and plans, determining activities necessary to achieve objectives, classifying and grouping activities, and designing a hierarchy of relationships. The result of this process is a formal organizational structure.

Once the organization is developed, there are organizational concepts to be applied by managers to assist the organization in achieving its objectives. These concepts include:
Authority: it is the right to give orders. There are there types of authority: line, staff, and functional authority.

Delegation: it is the passing of formal authority to another person. Delegation involves assigning tasks, delegating authority, exacting responsibility, and holding a person accountable.
Span of control: it is the number of subordinates a manager supervises. There are four types of formal organizational strucutres developed by managers. They are line organizational, line-and-staff organizational, functional organizational, and matrix organizational. Each has its advantages, stage of development. Within the format organization is the informal organization.
The informal organization is a network. Of personal and social relationships that arises spontaneously as people associate with each other in the work environment. Managers need to recognize and work with the informal organization as its assists the managers in meeting organization objectives.

VOCABULARY:
objective :tujuan
profit :laba
framework :kerangka
result :hasil
resource :sumber daya
subordinate :bawahan
advantage :keunggulan, keuntungan
network :jaringan
authority :wewenang
span of control :rentang kendali
necessary :perlu
developed :yang dikembangkan
achieving :pencapaian
assigning :penentuan
delegating :pelimpahan
exacting :penetapan

QUESTIONS FOR COMPREHENSION
1. What is an organization?
2. What is business?
3. What are the objectives of a business?
4. How is an organization to reach its objectives?
5. What do you call the operating framework?
6. What do the organizing steps consist of?
7. What is delegation and what does it include?
8. How many types of formal organization structures developed by managers? what are they?
a. What is the informal organization?
b. Why do managers need to recognize and work with the informal organization?

Manager and Organization

An effective manager is an effective leader. He creates positive work environment.
In the environment the organization and its employees have the opportunity and challenge to achieve a high performance. Managers should be leaders. They take the initiative and become active participants in the activities performed by their employees and other operations. Successful managers create a situation that encourages high performances and removes the cause of failure. These m anagers ensure that employees understand their jobs and have the resources necessary to complete their tasks. Finally, effective managers try to create interesting jobs and motivate the employees with appropriate incentives.

An organization is a managed system designed and operated to achieve specific set of objectives. This system processes human, financial, and information resources into outputs. These outputs are good and services. External environment demands both outputs.

Manager performs several major functions. These functions include planning, organizing and staffing, leading, and controlling. Planning is analyzing a situation, determining the goals to be achieved both in present and in the future, and deciding in advance the action which is needed to realize these goals.

Organizing and staffing include the efforts of the managers to assemble the resources needed to complete the job and to group and coordinate employees and tasks to get a maximum success. Controlling involves monitoring the progress of the organization and, if necessary, taking corrective action.

To execute management functions successfully, managers need these specific skills: technical skills, interpersonal and communications skills, conceptual and decision-making skills.
A technical skill is the ability to perform a specialized task. This task involves a certain method or process. Interpersonal and communications skills influence the manager’s ability to interact and work well with people. Conceptual and decision making skills involves the manager’s ability to recognize complex and dynamic issues, to examine the factors that influences these problems, and to make decision regarding them.

These functions and skills are applied differently depending on the manager’s status in the organization. Strategic managers are the senior executives who are responsible for the organization’s overall management. Tactical managers take the general goals and plans developed by strategic managers and translate them into more specific objectives. They supervise the operation of the organization.

VOCABULARY:
performance :pelaksanaan (pekerjaan)
Participant :peserta
Challenge :tantangan
Initiative :inisiatif
Failure :kegagalan
Task :tugas
Effort :upaya
Output :hasil
Issue :masalah yang harus diputuskan
Progress :kemajuan
Skill :kecakapan
Create :menciptakan
achieve :mencapai
encourage :membangkitkan semangat/dorongan
remove :menghapus, menyingkirkan
Ensure :meyakinkan
Pursue :berusaha untuk memenuhi, mengejar
assemble :merangkai, menggabungkan
execute :melaksanakan
involve :meliputi, mencakup

QUESTION FOR COMPREHENSION
1. Why a positive work environment must be created?
2. What do managers do ro achieve the targets of their company?
3. What is an organization?
4. What are the output of an organization?
5. What must managers carry out to achieve the organization’s objectives?
6. What is planning?
7. What is organizing?
8. How can managers execute management functions succesfully?
9. What are the differences of managers from tactical managers?

The Foundation of Business

Economics : The Foundation of Business
Economics is the study of how society chooses to use scarce resources to produce goods and services and to distribute them to people for consumption. A national’s resources consist of natural, capital, and labour resources.

Natural resources are provided by nature in limited amounts; they include crude oil, natural gas, miniral timber, and water. Natural resources must be processed to become a product or to be used to produce other goods and services. For examples, trees must be processed into lumber before they can be used to build homes, shopping malls, and hospitals.
Capital resources are good produced for the purpose of making other types of goods and services. Some capital resources are called current assets. They have a short life and are used up in the production process. These resources include fuel, raw materials, paper, and money. Long-lived capital resources, which can be used repeatedly in the production process, are called fixed capital. Examples include factory building, machinery, and means of transportation.
Labour resources represent the human talent. To have value in the labour force, individuals must be trained to perform either skilled or semiskilled work. For example, the job of a manager requires extensive training, whereas only minimal training is needed to operate a service station’s gas pump.

Goods and Services. The resources are used to produce goods and services that will satisfy people’s need and wants. Goods are tagible items made by business, such as shoes and cars. Services are intagible items, things that can’t be held. Touched, or seen, provided by organizations for their consumers.

Resources Allocation. The process of choosing how resources will be used to meet people’s need and wants is called allocation. All countries face the economic problem of limited resources and unlimited wants. Because we live in a world in which the quantity of all resources are limited, we must make choices about how to use these scarce resources. We have a basis for choosing the way of using and allocating the resources to satisfy our wants and needs.
The allocation involves the distribution of goods and services to consumer. Allocation also involves an exchange (e.g. money, goods, time, service) between a business and a consumer. The business earns a profit and the consumer is satisfied with the good and the consumer is satisfied with the good or service. The exchange provides mutual benefit.

VOCABULARY
1. STUDY : KAJIAN
2. SOCIETY : MASYARAKAT
3. RESOURCES : SUMBER DAYA
4. NATURAL RESOURCES : SUMBER DAYA ALAM
5. LABOUR : PEKERJA
6. AMOUNT : JUMLAH
7. CAPITAL : MODAL
8. CRUDE OIL : MINYAK MENTAH
9. NATURAL GAS : GAS ALAM
10. MINERAL : HASIL TAMBANG
11. TIMBER : KAYU GELONDONG
12. LUMBER : KAYU OLAHAN
13. PRODUCT : PRODUK
14. SHOPPING MAL : PUSAT PERBELANJAAN
15. PURPOSE : TUJUAN
16. FUEL : BAHAN BAKAR
17. RAW MATERIAL : BAHAN MENTAH
18. MEANS OF TRANSPORTATION : SARANA ANGKUTAN/TRANSPORTASI
19. TALENT : BAKAT
20. LABOUR FORCE : ANGKATAN KERJA
21. DISTRIBUTE : MEMBAGIKAN
22. CONSIST OF : TERDIRI ATAS
23. PROVIDE : MENYEDIAKAN
24. INCLUDE :MENCAKUP, MELIPUTI
25. REPRESENT : MENCERMINKAN, MENGGAMBARKAN
26. TRAIN : MELATIH
27. REQUIRE : MEMERLUKAN
28. OPERATE : MENGOPERASIKAN
29. SATISFY : MEMNUHI KEBUTUHAN (ORANG)

Question for Comprehension
1. What is economics?
2. What do a nation resources consist of?
3. What do natural resources include?
4. Whatdo people do to natural resources in preparing for use?
5. What are capital resources?
6. What are current assets?
7. What are fixed assets?
8. What is the difference of current assets from fixed assets?
9. What is the difference of needs from want?

What is a Business

A business is an organization. It produces goods and services to make a profit. Business may be divided into good producing and service producing firms.
The American business system is known as private enterprise because the factors of production and the business are owned by individuals. This system is based on the right to private properties.

There are four factors of production which include machinery, building, tools and means of transportation. To produce goods and services in the private enterprise system, the four factors of production are obtained from the individuals owning the business in exchange for income.
The human element is the core of business. Business needs people as owners, managers, and consumers. People need business for the production of goods and services and the creation of job opportunities.

The person responsible for operating the business is called manager. The manager maybe the owner or a professional employed by the owner. A professional manager attempts to achieve the objectives of the business.

Employees supply the skills and abilities to provide a product or service. They expect to receive a wage or salary for the use of their skills and abilities.
The target of business is consumer. A consumer is a person or business who purchase a goods or service for personal or organization use. The consumer, in an economic system, wants better goods and services. A business enterprise attempts to satisfy such needs and desires or wants.
The most common motive for setting up a business the profit motive. It the desire to make a profit as a reward for taking risks or running a business. Profit or surplus income is total sales minus the cost of a production. It is a measurement of one’s success. A profit is not always gained. Sometimes the business suffers losses.

EXERCISE:
Give your answer to the following questions about the passage briefly and in complete sentences.
1. What is the product of a business?
2. What do you call the business woned by individuals?
3. What are the four factors of productions?
4. Why human element is called core of business?
5. What do the business owner expect?
6. What is a manager?
7. What do employees do to provide a product or service?
8. What is the business target?
9. What is a consumers want?