Embed Size (px)
Citation preview
Unit OneMarketing Principles
Marketing Principles
International Marketing BINGOFirst 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.
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
Unit 1 Essential Question
What are the major concepts of marketing principles?
Amplifying Questions
What constitutes value What constitutes value for customers and for customers and consumers alike?consumers alike?
What are the different What are the different ways a market can be ways a market can be segmented?segmented?
What are the five P's of What are the five P's of the marketing mix?the marketing mix?
Essential Question 1Marketing Principles
How do the basic marketing concepts relate to a specific market?
Marketing Essentials pg. 12-19, pg 37-41
Marketing is. . .
The process of developing, promoting, and distributing products in order to satisfy customers needs and wants.
Customers Vs. Consumers
CustomersBuy a product
ConsumersUse the product
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.
Identifying Your Customers
MarketMarket Segmentation
GeographicsDemographicsPsychographicsProduct Benefits
Identifying Your Customers
Developing a Customer ProfileCombining geographic, demographic,
psychographic, and product benefit data to get a complete picture of your potential customers.
The Marketing Mix
5 P’s of Marketing
ProductPlace
Promotion
Price
People
Amplifying Questions
What is a free What is a free enterprise system?enterprise system?
What are the roles of What are the roles of government in a free government in a free enterprise system?enterprise system?
What are the roles of a What are the roles of a consumer in a free consumer in a free enterprise system?enterprise system?
Essential Question 2Marketing Principles
How do the basic economic concepts relate to a free enterprise system?
Marketing Essentials pg. 100-106, pg 124-132,
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.
Basic Economic Principles
CompetitionPrice CompetitionNon-price CompetitionMonopoly
RiskProfit
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.
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.
Amplifying Questions
How do supply and How do supply and demand interact to set demand interact to set prices?prices?
What is elasticity?What is elasticity?
Essential Question 3Marketing Principles
How do the laws of supply and demand relate to prices and elasticity?
Marketing Essentials pg. 106-108 International Business pg. 32-34
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.
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.
Elasticity Formula
Ed is the coefficient of elasticity.
P%
Q% E
d
)/2P (P
P
)/2Q (Q
Q E
21
21d
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.
Elasticity Effect on Revenue
Value of Terminology Description Impact on total revenueelasticity when price:coefficient Increases Decreases
Ed > 1 Elastic Quantity demanded Total Totalchanges by a larger revenue revenuepercentage than decreases increasesdoes price.
Ed = 1 Unit Quantity demanded Total Totalelastic changes by the same revenue is revenue is
percentage as does unchanged unchangedprice.
Ed < 1 Inelastic Quantity demanded Total Totalchanges by a smaller revenue revenuepercentage than increases decreasesdoes price.
$0
$2
$4
$6
$8
$10
$12
0 10 20 30 40 50 60 70
Number of Tapes
Pric
e pe
r Tap
eSupply and Demand
Market Price
SupplyDemand
Amplifying Questions
What are the four main What are the four main factors of production?factors of production?
How do different How do different countries make countries make economic decisions?economic decisions?
What are the different What are the different types of economic types of economic models?models?
Essential Question 4Marketing Principles
What is an economy and how is it defined?
Marketing Essentials pg. 52-59 International Business pg.36-39
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.
Factors of Production
Land (Natural Resources)Labor (Human Resources)Capital ResourcesEntrepreneurship ResourcesScarcity: Condition that exists when
people’s wants and needs exceed their resources.
How Economies Work
In deciding how to use their limited resources, nations, businesses, and people must answer three basic economic questions.1 What goods and services should be produced?2 How should the goods and services be produced?3 For whom should the goods and services be
produced?
Types of Economic Systems
Command EconomiesMarket Economies
Private propertyProfit motiveFree, competitive marketplace
Mixed Economies
Amplifying Questions
What are the factors What are the factors that affect economic that affect economic development?development?
What are the different What are the different levels of economic levels of economic development?development?
Essential Question 5Marketing Principles
How is economic development achieved?
International Business pg. 41-43
Development Factors
Infrastructure
Literacy level
Technology
Agricultural dependency
Types of Development
Industrialized countriesLess-developed countriesDeveloping countries
Industrialized Country
Developing Country
Less-Developed Country
Levels of Economic Development
Low literacyLimited
technologyAgricultural
or mining economy
Very poor infrastructure
Improving literacy
Improving technology
Decreasing dependence on agriculture or mining economy
Developed infrastructure
High literacyModern
technologyIndustrial
economyHighly
developed infrastructure
Amplifying Questions
What are the economic What are the economic principles that explain principles that explain the need for the need for international trade?international trade?
What economic What economic indicators are used to indicators are used to measure economic measure economic progress and progress and development?development?
Essential Question 6Marketing Principles
How is economic progress measured?
Marketing Essentials pg. 60-67 International Business pg. 46-50
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.
Measuring Economic Progress
Measure of ProductionGross domestic product (GDP)Gross national product (GNP)
International Trade ActivityBalance of tradeForeign exchange rateForeign debt
Other Economic MeasurementsConsumer price index (CPI)Unemployment
