Economic Resources Marketing Dynamics – Unit 3 Lesson 1 Copyright © Texas Education Agency, All rights reserved

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Economic Resources O Goals O Students will describe the concept of economic resources O Students will identify economic needs and wants O Students will explain the concept of utility and cite examples of types of utility. O Students will describe the function of price in markets. O Students clarify how the interaction of supply and demand affects price. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Terms to know O Scarcity O Economics O Supply O Demand O Market Price O Factors of Production O Marketing Utilities O Goods O Services Copyright © Texas Education Agency, All rights reserved

Economic Resources O Goods – tangible products that you can touch or hold in your hand. O Services – intangible products, tasks performed for a customer. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Scarcity O Limited resources available to satisfy unlimited needs and wants. O Economics O Study of how people choose to use the limited resources to satisfy the unlimited needs and wants. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Supply – the relationship between the amount of a good or service that businesses are willing and able to make available and the price. O Demand – the relationship between the amount of a good or service that consumers are willing and able to purchase at the price. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Market Price – the point at which supply and demand cross. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Competition is the struggle between companies for customers. O Some companies choose to compete focusing on sale prices, this is called price competition. O Non-price competition business focus on factors other than price to attract customers such as quality, services, location, financing or reputation. Copyright © Texas Education Agency, All rights reserved

Economic Resources O Factors of Production O Natural resources - land O Human resources - labor O Capital resources - money Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Marketing adds value to products. O Form utility O Place utility O Time utility O Possession utility O Information utility Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Form Utility O Involves changing raw materials or putting parts together to make them more useful. O Examples are O trees made into lumber, then lumber turned into houses. O Parts that are put together to make a smartphone. Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Place Utility O Involves having a product where customers can buy it. O Examples are chips and candy bars in a vending machine, or sleeping bags in a sporting goods store. Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Time Utility O Have a product available at a certain of year or a convenient time of day. Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Possession Utility O The exchange of the product for some monetary value. O Cash O Personal checks O Credit cards O Financing O layaway Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Information Utility O Involves communication with the consumer. O Salespeople O Product labeling O Advertising O Displays O Product packaging Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O Marketing adds value to products and increases demand. O Higher demand = increased production. O Increased production = lower cost per unit. O Lower cost per unit = lower prices Copyright © Texas Education Agency, All rights reserved

Marketing Utilities O New and improved products are a product of increased competition generated by marketing. Copyright © Texas Education Agency, All rights reserved