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Economy and Marketing

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

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Economy and Marketing

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  1. Economy and Marketing

  2. 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

  3. America’s Economy • Private Enterprise: based upon independent decisions by businesses and consumers with only a limited government role • 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)

  4. 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

  5. Micro and Macro • Macroeconomics: economic behavior for an entire society • Microeconomics: relationships between individual consumers and producers

  6. Factors Affecting Demand • Strength of want or need • Availability of supply • Availability of alternative products that consumers believe will satisfy their need/want

  7. 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

  8. The Demand Curve

  9. Factors Affecting Supply • Possibility of profit • Amount of competition • Capability of developing and marketing the products and services

  10. 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

  11. The Supply Curve

  12. Market Price • Market Price: the point where supply and demand for a product is equal

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