© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 3 MARKETING BEGINS WITH ECONOMICS...
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© 2009 South-Western, Cengage Learning MARKETING MARKETING 1 Chapter 3 MARKETING BEGINS MARKETING BEGINS WITH ECONOMICS WITH ECONOMICS 3-1 Scarcity and Private Enterprise 3-2 Observing the Law of Supply and Demand 3-3 Types of Economic Competition 3-4 Enhancing Economic Utility CHAPTER 3
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Transcript of © 2009 South-Western, Cengage LearningMARKETING 1 Chapter 3 MARKETING BEGINS WITH ECONOMICS...
© 2009 South-Western, Cengage LearningMARKETINGMARKETING
1
Chapter 3
MARKETING BEGINS MARKETING BEGINS WITH ECONOMICSWITH ECONOMICS
3-1 Scarcity and Private Enterprise
3-2 Observing the Law of Supply and Demand
3-3 Types of Economic Competition
3-4 Enhancing Economic Utility
CHAPTER
3
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Focus Questions:Does the use of a
Chinese language headline increase or decrease your interest in the advertisement?
What is the key message Morgan Stanley is trying to communicate?
Offer examples of how the growth of the economies in other countries around the world affects U.S. businesses and consumers.©
MO
RG
AN
ST
AN
LEY
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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SCARCITY AND PRIVATE ENTERPRISE
GOALSGOALSIdentify the basic economic problem.Describe how America’s private
enterprise economy works.
3-1
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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The Importance of Economic Understanding
The basic economic problemWho makes the decisions?
Controlled economy—governmentFree economy—individualsMixed economy—government and private
enterprise
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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America’s PrivateEnterprise Economy
CharacteristicsConsumersProducersGovernment
Economic forces
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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OBSERVING THE LAW OF SUPPLY AND DEMAND
GOALSGOALSExplain microeconomics and the
concept of consumer demand.Identify factors that affect supply and its
relationship to demand.
3-2
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Macroeconomics
Macroeconomics studies the economic behavior and relationships of an entire society.
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Microeconomics
Microeconomics is the study of relationships between individual customers and producers.
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Microeconomics andConsumer Demand
Factors affecting demandAnalyzing demand curves
Demand curveLaw of demandEconomic market
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Price$10.50
9.00
7.50
6.00
4.50
3.00
1.50
1,000Quantity
2,000 3,000 4,000 5,000 6,000 7,000
Demand Curve for Movies
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Supplying the Product
Handling the competitionAnalyzing supply curve
Supply curveLaw of supply
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Price$105
90
75
60
45
30
15
10,000Quantity
20,000 30,000 40,000 50,000 60,000 70,000 80,000
Supply Curve for Cell Phones
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Intersecting Supply and Demand
SupplyDemandMarket price
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Demand Curve for Notebook Computers
Price
$2,100
1,800
1,500
1,200
900
600
300
100Quantity (in 000s)
200 300 400 500 600 700 800
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Supply Curve for Notebook Computers
Price
$2,100
1,800
1,500
1,200
900
600
300
100Quantity (in 000s)
200 300 400 500 600 700 800
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Price
$2,100
1,800
1,500
1,200
900
600
300
100Quantity (in 000s)
200 300 400 500 600 700 800
Market Price for Notebook Computers
DemandDemand SupplySupply
Market PriceMarket Price
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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TYPES OF ECONOMIC COMPETITION
GOALSGOALSDefine pure competition and monopoly.Explain the characteristics of
oligopolies and monopolistic competition.
3-3
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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All-Out Competition or No Competition At All
Pure competitionMonopoly
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Price
Quantity
Demand Curve for One Companyin Pure Competition
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Price
Quantity
Demand Curve for a Monopoly
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Between the Extremes
OligopoliesMonopolistic competitionUnderstanding the competition
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Demand Curve for One Company in an Oligopoly
Price
Quantity
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Demand Curve for the Industry in an Oligopoly
Price
Quantity
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Price
Quantity
Demand Curve for Monopolistic Competition with Few Product Differences
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Demand Curve for Monopolistic Competition with Greater Product Differences
Price
Quantity
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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ENHANCINGECONOMIC UTILITY
GOALSGOALSDefine four types of economic utility.Explain how marketers use utility to
increase customer satisfaction.
3-4
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 3
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Utility Means Satisfaction
Economic utilityForm utilityTime utilityPlace utilityPossession utility
