Marketing Efficiency & Efficient Marketing “Economics is not an exact science. It consists merely of laws of probability. The most prudent investor is one who pursues only a general course of action which is ‘ normally ’ right and who avoids acts and policies which are ‘ normally ’ wrong.”
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It consists merely of laws of probability.
The most prudent investor is one who pursues only a general course of action which is ‘normally’ right and who avoids acts and policies which are ‘normally’wrong.”
f(expected Supply, expected Demand)
The efficient market theory conceptualizes markets as information.
An efficient market is a market which incorporates all currently available information when determining price.
To earn a profit it is not enough to know that price will change, the direction in which price will change must be known.
Profit is earned by people or companies who acquire information relevant to the market before anyone else in the market.
Information per se is not useful without analysis that places it in the context of existing information. Therefore another method for earning profit is to analyze existing information better than the collective analytical ability of the market.
Few people/companies consistently earn large profits from pricing decisions and these people earn their profits from their information and/or analysis.
Producers/lenders not obtain data first.
Need volume to make marketing effort worth the return.
Nearly impossible to predict prices.
5. Make decisions based on probabilities.
Decisions based on what is normally
right and avoid what is normally