Download Mkt begins with ECON

MARKETING AND
ECONOMICS
1
2
3
4
Scarcity and Private Enterprise
Observing the Law of Supply and
Demand
Types of Economic Competition
Enhancing Economic Utility
Chapter 3
1
©MORGAN STANLEY
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.
Chapter 3
2
SCARCITY AND
PRIVATE ENTERPRISE
GOALS
 Identify the basic economic problem.
 Describe how America’s private
enterprise economy works.
Chapter 3
3
The Importance of
Economic Understanding
 The basic economic problem
 Who makes the decisions?
 Controlled economy—government
 Free economy—individuals
 Mixed economy—government and
private enterprise
Chapter 3
4
America’s Private
Enterprise Economy
 Characteristics
 Consumers
 Producers
 Government
 Economic forces
Chapter 3
5
OBSERVING THE LAW
OF SUPPLY AND DEMAND
GOALS
 Explain micro/macro economics and
the concept of consumer demand.
 Identify factors that affect supply and
its relationship to demand.
Chapter 3
6
Macroeconomics
 Macroeconomics studies the
economic behavior and relationships
of an entire society.
Chapter 3
7
Microeconomics
 Microeconomics is the study of
relationships between individual
customers and producers.
Chapter 3
8
Consumer Demand
 Factors affecting demand
 Analyzing demand curves
 Demand curve
 Law of demand
 Economic market
Chapter 3
9
Demand Curve for Movies
Price
$10.50
9.00
7.50
6.00
4.50
3.00
1.50
1,000
2,000
Quantity
3,000
Chapter 3
4,000
5,000
6,000
7,000
10
Supplying the Product
 Handling the competition
 Analyzing supply curve
 Supply curve
 Law of supply
Chapter 3
11
Supply Curve for Cell Phones
Price
$105
90
75
60
45
30
15
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Quantity
Chapter 3
12
Intersecting Supply and
Demand
 Supply
 Demand
 Market price
Chapter 3
13
Demand Curve for
Notebook Computers
Price
$2,100
1,800
1,500
1,200
900
600
300
100
200
Quantity (in 000s)
300
Chapter 3
400
500
600
700
800
14
Supply Curve for
Notebook Computers
Price
$2,100
1,800
1,500
1,200
900
600
300
100
200
Quantity (in 000s)
300
Chapter 3
400
500
600
700
800
15
Market Price for
Notebook Computers
Price
$2,100
Demand
Supply
1,800
1,500
Market Price
1,200
900
600
300
100
200
Quantity (in 000s)
300
Chapter 3
400
500
600
700
800
16
TYPES OF ECONOMIC
COMPETITION
GOALS
 Define pure competition and
monopoly.
 Explain the characteristics of
oligopolies and monopolistic
competition.
Chapter 3
17
ENHANCING
ECONOMIC UTILITY
GOALS
 Define four types of economic utility.
 Explain how marketers use utility to
increase customer satisfaction.
Chapter 3
18
Utility Means Satisfaction
Economic utility
 Form utility
 Time utility
 Place utility
 Possession utility
Chapter 3
19