Day 2
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Icebreaker Activity
PENREURENETR _ _ _ _ _ _ _ _ _ _ _ _
Products vs Services
What do businesses want to do?
Make money!
How does a business make money?
Selling products and/or services.
What is a product?
Products are usually items you can touch.
– Car
– Television
– Nail polish
– Drone
– Cellphone
What is a service?
A service is something that is done for you.
– Pool cleaning
– Doctor visit
– Car wash
– Teeth cleaning
– Manicure
Can a business sell both a product and a service?
Yes, a nail salon can sell both nail polish and do manicures.
Response
What do businesses want to do?
How does a business make money?
What is a product?
What is a service?
What is value?
What do products and services provide?
Products and services provide value.
Value is the benefit received from a product or service.
- Taste
- Safety
- Historic
- Speed
Think of a video game that you play with your friends. Your parents probably made a one time purchase of around $60 for the game, but you have probably spent many hours playing the game with friends and family.
The video game business was selling the values of:
- Entertainment
- Stress relief
- Friendship building
Values include all the experiences and memories somebody receives from a product or service. It’s impossible for a business to provide all values. A business will focus on being the leader in select values.
– A hotel could focus on providing luxury and customer service.
– A motel could focus on providing low cost and convenience.
Competition
What are businesses in the same industry called?
Businesses in the same industry are called competitors.
Competition proves your product or service is wanted in the market. These businesses would not exist if they didn’t have customers.
The more competition there is, the more difficult it is to be successful, because customers can buy similar products and services from many sources.
If a competitor sells the same product or service as your business, how can your business be different and stand out to customers?
You can provide different value.
For example, let’s say you are in the restaurant business. If your competitor focuses on the value of the best location, you can focus on the value of the best taste. Customers might prefer to eat a good meal even if it is far away.
Response
What do products and services provide?
Describe two products and two services you use every day and attach values to each one.
What are businesses in the same industry called?
How can a business be different and stand out to customers?
It can be difficult for a business to be successful if it has lots of competition since customers can buy similar products and services from many sources.
True
A golden phone cover would provide the value of _____________________. (Multiple correct answers)
Luxury
Would a business that sells the value of low price have products that are available or exclusive?
Available
Day 2 Homework
(Complete your homework assignment on paper)