Marketing Begins with Economics Marketing Chapter 3.

Slides:



Advertisements
Similar presentations
A Microeconomics Topic
Advertisements

MICROECONOMICS Study Guide Review.
Chapter 3: Marketing Begins with Economics
MARKETING BEGINS WITH ECONOMICS
SUPPLY AND DEMAND I: HOW MARKETS WORK. Copyright © 2004 South-Western The Market Forces of Supply and Demand.
© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 3 MARKETING BEGINS WITH ECONOMICS 3-1Scarcity and Private Enterprise 3-2Observing the Law of.
Chapter 8 The Impact of Economic Forces.
MARKETING BEGINS WITH ECONOMICS
Notebook # 11 Economics 4-2 Factors Affecting Demand.
THE BUSINESS OF FASHION 3.02 Explain the economics of fashion.
Economic Systems. Human wants are unlimited, but resources are not.
Marketing Begins with Economics
Chapter 31 MARKETING AND ECONOMICS 1Scarcity and Private Enterprise 2Observing the Law of Supply and Demand 3Types of Economic Competition 4Enhancing Economic.
Chapter 31 MARKETING AND ECONOMICS 1Scarcity and Private Enterprise 2Observing the Law of Supply and Demand 3Types of Economic Competition 4Enhancing Economic.
Principles of Business, Marketing and Finance Lesson Twelve Supply and Demand in a Private Enterprise System Supply and Demand in a Private Enterprise.
© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 3 MARKETING BEGINS WITH ECONOMICS 3-1Scarcity and Private Enterprise 3-2Observing the Law of.
Economic Systems Section 2.2 Scarcity of economic resources forces every country to develop an economic system that determines how resources will be used.
The Market Forces of Supply and Demand
Unit Three ECONOMICS DemandandSupply. PA Standards E; G; D; E; F.
Economic Resources And Systems
Chapter 4 Understanding Demand Yoliann Pons Period.5
Economics Vocabulary Chapter 3
Introduction to Business
3.02 Fashion Economics. Economics vocabulary n Economics: how to meet the unlimited wants of a society with its limited resources. n Goods: Items physically.
Good Anything that can be grown or manufactured (made) Food Clothes Cars.
Chapter 3 Marketing Begins With Economics. Scarcity and Private Enterprise Identifying the basic economic problem How our private enterprise economy works.
Tutorial 1 Introduction to Economics 1. LEARNING OUTCOMES The term “economy” 2. Difference between microeconomics and macroeconomics; 3.The three basic.
E-con. Intro to E-con Economics is the study of scarcity and choice. At its core, economics is concerned with how people make decisions and how these.
Competition in a Free Market Economy. What is Competition? Competition is the struggle between buyers and sellers to get the best products at the lowest.
Types of Economic Competition. Determining the Type of Economic Competition The number of firms competing in the market The amount of similarity between.
What is Entrepreneurship? Glencoe Entrepreneurship: Building a Business 1 1 Entrepreneurship and the Economy The Entrepreneurial Process 1.1 Section 1.2.
Marketing I Curriculum Guide. Objective To understand the role of business in the free enterprise system. Be able to define free enterprise system Understand.
2.02 Supply and Demand Understand Economics and Economic Systems Interpret supply and demand graphs.
Harcourt Brace & Company Chapter 4 The Market Forces of Supply and Demand.
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Microeconomics Supply and Demand ●Review –Factors affecting.
+ Supply and Demand Why are some goods produced and not others?
Bell Ringer Activity Which economic system does the United States have? (Command, Market, or Mixed) Why do you think that?
Demand. What Is Demand? Demand – the desire, ability, and willingness to buy a product Microeconomics – the area of economics that deals with behavior.
DEMAND CHAPTER 4. Goals & Objectives 1.Describe and illustrate the concept of demand. 2.Describe how demand and utility are related. 3.What causes a change.
MARKETING BEGINS WITH ECONOMICS
S & E Economics.
Read to Learn Describe the three basic economic questions each country must answer to make decisions about using their resources. Contrast the way a.
By: Chloe, Ariel, and Emily
Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.
© 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Prepared by: Fernando & Yvonn Quijano 6 Chapter Household Behavior.
Demand ES: Make decisions after reflection and review.
CHAPTER 4 DEMAND. Section 1: What Is Demand? Main Idea: Demand is a willingness to buy a product at a particular price. Objectives: Describe and illustrate.
Bell Ringer Pretend you are at a farmer’s market. Two farmers are selling strawberries. Farmer Fred is selling the strawberries for $2.25 a basket. Farmer.
MARKETS AND COMPETITION A market is a group of buyers and sellers of a particular good or service. The terms supply and demand refer to the behavior of.
Unit 1- Entrepreneurship and the Economy 1.1.   The process of getting into and operating one’s own business. Entrepreneurship.
Introductory Economics. Definition of Economics Unlimited wants and needs combined with limited resources results in scarcity. Therefore, Economics studies.
What is microeconomics?
Economic Decisions and Systems
Economy and Marketing.
Types of Economic Competition
SUPPLY and stuff.
MICROECONOMICS.
Part 1 Marketing Basics Chapter 4 Market Forces Ch4.
Marketing Begins with Economics
EOCT Review Microeconomics.
Economy and Marketing.
Describe economic systems.
Chapter 4 : Lesson 1 What is Demand
Chapter 3 Review Hosted by Mrs. Piotrowski
Chapter 3 Review Hosted by Mrs. Piotrowski
Demand and Supply Chapters 4, 5 and 6.
Microeconomics Review
Economy and Marketing.
Economy and Marketing Today we are going to be breaking down the main ideas of economy and marketing.
Topic 3: Demand, Supply, and Prices
Presentation transcript:

Marketing Begins with Economics Marketing Chapter 3

Warm-Up Using the worksheet tell what you know about economics and what you want or need to learn about it. LEAVE the THIRD COLUMN Blank.

The Importance of Economic Understanding The basic economic problem  Scarcity Unlimited wants/needs with limited resources Economic System  A collection of laws, institutions and activities that provide a framework for economic activity

Who makes the decisions? Controlled (Command) economy  government Regulated economy  Shared between government and individuals Free (Market) economy  individuals

America’s Private Enterprise Economy Profit Motive  Use of resources toward the greatest profit for the producers Characteristics  Consumers (demand)  Producers (supply)  Government (regulate)

Answer the following: What if the U.S. Economy was strictly a free/market economy and not regulated by government? Predict how the lack of government regulations might affect the environment, consumers, and workers.

OBSERVING THE LAW OF SUPPLY AND DEMAND Supply  Quantity of product the producer is willing and able to provide for a price Demand  Quantity of products consumers are willing and able to purchase for a price

What’s So Special About a Rose? Gather therefore the Rose, Whilst yet is prime, For soon comes age, That will her pride deflower; Gather the Rose of Love, Whilst yet is time Edmund Spenser

What’s in a name? That which we call a rose By any other name would smell as sweet William Shakespeare

O, my Luve is like a red, red rose, That’s newly spring in June. O, my Luve is like a melodie, That’s sweetly played in tune. Robert Burns

Determinants of Demand Number of Consumers  More buyers = more demand Consumer Tastes and Preferences  When this changes so will demand Consumer Income  More income = more demand Prices of Related Goods  If the substitute has a better price the demand for the other product will decrease Consumer Expectations  When consumers expect something about the future it can change demand for a product

Demand Curve for Movies Price $ ,000 Quantity 2,0003,0004,0005,0006,0007,000

Determinants of Supply Number of Producers  More producers = more supply Resource Prices  Higher cost of resources = less supply (unless they can make the cost up in the increase of price) Technological Changes  Better productivity = more supply Prices of other Products of the business  If one product’s price raises supply increases but could cause a decrease of supply of another product Producer Expectation  Expectations of future changes could decrease current supplies

Supply Curve for Notebook Computers Price $2,100 1,800 1,500 1, Quantity

Market Price for Notebook Computers Price $2,100 1,800 1,500 1, Quantity DemandSupply

Macroeconomics Macroeconomics Macroeconomics studies the economic behavior and relationships of the entire society.

Microeconomics Microeconomics Microeconomics is the study of relationships between individual customers and producers.

Warm-Up Why is an understanding of economics more important to marketing now than it was in the past?

All-Out Competition or No Competition At All Pure competition  Large number of suppliers offering very similar products Monopoly  One supplier offering a unique product

Between the Extremes Oligopolies  Few businesses offering very similar products Monopolistic competition  Many firms competing with products that are somewhat different Understanding the competition  Must know what type of competition to maximize profits

Warm-Up How does the marketing concept relate to the concept of economic utility.

Utility Means Satisfaction Economic utility (the amount of satisfaction a consumer receives from the consumption of a product) Form utility – changes in tangible parts of product Time utility – available when customer wants it Place utility – available where the customer wants to buy it Possession utility – affordability of the product