Day 4

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Review

What was the name of the girl from yesterday?

What country is she from?

Complete this word ( P R _ D _ C T )

Complete this word ( S _ R V _ C E )

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?

Value is the benefit received from a product or service. (True or False)

True

Competitors are businesses in the same industry. (True or False)

True

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 or False)