Transcript Marketing and the Economy PowerPoint

Economy and Marketing
Who Makes the Decisions?
• Controlled Economy: the government owns
and controls important resources
• Regulated Economy: decisions are shared
between the government and other groups or
individuals
• Free Economy: resources are owned by the
individuals and decision making rests solely
on the individuals, no regulation
• Mixed Economy: some goods and services
provided by the government and some by
individuals
America’s Economy
• Private Enterprise: based upon independent
decisions by businesses and consumers with
only a limited government role
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Resources owned by individual producers
Profit is the motive for business
Consumers decide what will be purchased
Consumers use value in deciding what to consume
(Value: decisions to use resources toward the
greatest satisfaction of wants and needs)
Consumers and Producers
• Consumers: individuals who purchase
products and services
• Producers: businesses that use the resources
they control to develop products and services
• Demand: relationship between the quantity
of a product consumers are willing and able
to purchase for the price
• Supply: relationship between the quantity of
a product that producers are willing and able
to produce and the price
Micro and Macro
• Macroeconomics: economic behavior
for an entire society
• Microeconomics: relationships between
individual consumers and producers
Factors Affecting Demand
• Strength of want or need
• Availability of supply
• Availability of alternative products that
consumers believe will satisfy their
need/want
The Demand Curve
• Demand Curve: relationship between
the price and the quantity demanded
• The Law of Demand: as the price of a
product is increased, the demand will
decrease and vice versa
• Economic Market: all the consumers
who are willing to purchase a particular
product or service
The Demand Curve
Factors Affecting Supply
• Possibility of profit
• Amount of competition
• Capability of developing and marketing
the products and services
The Supply Curve
• Supply Curve: a graph that shows the
relationship between price and quantity
• Law of Supply: with the price of a
product is increased, the more will be
produced and vice versa
The Supply Curve
Market Price
• Market Price: the point where supply
and demand for a product is equal