1. Unit One Marketing Principles

2. Marketing Principles International Marketing BINGO
First horizontal wins a prize.
First vertical wins a prize.
First diagonal wins a prize.
First to get two complete lines, either horizontal or vertical wins a prize.
First to complete the entire card.

3. Unit 1 Vocabulary Absolute Advantage Agricultural Dependency
Balance of Trade
Capital Resources
Capitalism
Command Economy
Communism
Comparative Advantage
Consumer Price Index
Customers
Developing Country
Economics
Entrepreneurship Resources
Foreign Debt
Foreign Exchange Rate
Gross Domestic Product
Gross National Product
Human Resources
Inflation
Infrastructure
Less-Developed Country
Literacy Rate
Marginal Utility
Market Economy
Market Price
Marketing
Mixed Economy
Natural Resources
Privatization
Scarcity
Socialism
Technology Rate

4. Unit 1 Essential Question
What are the major concepts of marketing principles?

5. Amplifying Questions
Essential Question 1 Marketing Principles How do the basic marketing concepts relate to a specific market?
What constitutes value for customers and consumers alike?
What are the different ways a market can be segmented?
What are the five P's of the marketing mix?
Marketing Essentials pg , pg 37-41

6. Marketing is. . .
The process of developing, promoting, and distributing products in order to satisfy customers needs and wants.

7. Customers Vs. Consumers
Buy a product
Consumers
Use the product

8. Marginal Utility
Law of Diminishing Marginal Utility: Usefulness or utility of a product decreases as the number of units of the product obtained by the customer increases.

9. Identifying Your Customers
Market
Market Segmentation
Geographics
Demographics
Psychographics
Product Benefits

10. Identifying Your Customers
Developing a Customer Profile
Combining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.

11. The Marketing Mix Product Place 5 P’s of Marketing Price Promotion
People

12. Amplifying Questions
Essential Question 2 Marketing Principles How do the basic economic concepts relate to a free enterprise system?
What is a free enterprise system?
What are the roles of government in a free enterprise system?
What are the roles of a consumer in a free enterprise system?
Marketing Essentials pg , pg ,

13. Free Enterprise System
People have the right to make economic choices.
Can choose what products to buy.
Can choose to own property.
Can choose to start a business and compete with others.

14. Basic Economic Principles
Competition
Price Competition
Non-price Competition
Monopoly
Risk
Profit

15. The Role of Government Provide general services.
Support businesses to promote the growth and development of the country.
Regulates business to ensure fair business practices and safety of consumers.
Compete with businesses on a small scale.

16. Role of the Consumer
Decides which businesses survive with their shopping “votes.”
Determine the demand for a product and thereby dictate the price of the product.

17. How do supply and demand interact to set prices? What is elasticity?
Amplifying Questions
Essential Question 3 Marketing Principles How do the laws of supply and demand relate to prices and elasticity?
How do supply and demand interact to set prices?
What is elasticity?
Marketing Essentials pg International Business pg

18. Price-Setting Activities
Supply is the relationship between the amount of a good or service that businesses are willing and able to make available at the price.
Demand is the relationship between the amount of a good or service that consumers are willing and able to purchase at the price.
Market price is the point at which supply and demand cross.

19. Elasticity of Demand
Elastic: A small change in price causes a significant change in demand.
Inelastic: Any change in price has little to no effect on demand.
No acceptable substitute.
Price change is small relative to buyer income.
Product is a necessity.

20. Elasticity Formula
Ed is the coefficient of elasticity.

21. Coefficient of Elasticity
If Ed > 1 then demand is elastic.
If Ed < 1 then demand is inelastic.
If Ed = 1 then demand has unit elasticity.

22. Elasticity Effect on Revenue

23. Supply and Demand
Demand
Supply
Market Price

24. Amplifying Questions
Essential Question 4 Marketing Principles What is an economy and how is it defined?
What are the four main factors of production?
How do different countries make economic decisions?
What are the different types of economic models?
Marketing Essentials pg International Business pg.36-39

25. What is an Economy?
Economy: A system by which a nation decides how to use its resources to produce and distribute goods and services.
Resources: All the things used in producing goods and services. Also known as factors of production.

26. Factors of Production Land (Natural Resources) Labor (Human Resources)
Capital Resources
Entrepreneurship Resources
Scarcity: Condition that exists when people’s wants and needs exceed their resources.

27. How Economies Work
In deciding how to use their limited resources, nations, businesses, and people must answer three basic economic questions.
What goods and services should be produced?
How should the goods and services be produced?
For whom should the goods and services be produced?

28. Types of Economic Systems
Command Economies
Market Economies
Private property
Profit motive
Free, competitive marketplace
Mixed Economies

29. Amplifying Questions
Essential Question 5 Marketing Principles How is economic development achieved?
What are the factors that affect economic development?
What are the different levels of economic development?
International Business pg

30. Development Factors Infrastructure Literacy level Technology
Agricultural dependency

31. Types of Development Industrialized countries Less-developed countries
Developing countries

32. Levels of Economic Development
Less-Developed Country
Developing Country
Industrialized Country
Low literacy
Limited technology
Agricultural or mining economy
Very poor infrastructure
Improving literacy
Improving technology
Decreasing dependence on agriculture or mining economy
Developed infrastructure
High literacy
Modern technology
Industrial economy
Highly developed infrastructure

33. Amplifying Questions
Essential Question 6 Marketing Principles How is economic progress measured?
What are the economic principles that explain the need for international trade?
What economic indicators are used to measure economic progress and development?
Marketing Essentials pg International Business pg

34. Economics of Foreign Trade
Absolute advantage exists when a country can produce a good or service at a lower cost than other countries.
Comparative advantage exists when a country can produce a good or service with more efficiency than other countries.

35. Measuring Economic Progress
Measure of Production
Gross domestic product (GDP)
Gross national product (GNP)
International Trade Activity
Balance of trade
Foreign exchange rate
Foreign debt
Other Economic Measurements
Consumer price index (CPI)
Unemployment