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MARKETING BEGINS WITH MARKETING BEGINS WITH ECONOMICSECONOMICS
3.13.1 Scarcity and Private Enterprise3.23.2 Observing the Law of Supply and Demand3.33.3 Types of Economic Competition3.43.4 Enhancing Economic Utility
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SCARCITY AND PRIVATE SCARCITY AND PRIVATE ENTERPRISEENTERPRISEGOALSGOALS for Lesson 3.1Identify the basic economic problem.Describe how America’s private
enterprise economy works.
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The Importance of Economic The Importance of Economic UnderstandingUnderstandingThe basic economic problemWho makes the decisions?
Controlled economy—governmentRegulated economy—sharedFree economy—individualsMixed economy—shared by government
and private enterprise
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America’s Private America’s Private Enterprise EconomyEnterprise EconomyCharacteristics
ConsumersProducersGovernment
Economic forces
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OBSERVING THE LAW OF OBSERVING THE LAW OF SUPPLY AND DEMANDSUPPLY AND DEMANDGOALS GOALS for Lesson 3.2Explain microeconomics and concept of
consumer demand.Identify factors that affect supply and its
relationship to demand.
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MacroeconomicsMacroeconomics
MacroeconomicsMacroeconomics studies the economic behavior and relationships of the entire society.
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MicroeconomicsMicroeconomics
MicroeconomicsMicroeconomics is the study of relationships between individual customers and producers.
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Microeconomics and Microeconomics and Consumer DemandConsumer DemandFactors affecting demandAnalyzing demand curves
Demand curveLaw of demandEconomic market
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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 MoviesDemand Curve for Movies
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Supplying the ProductSupplying the Product
Handling the competitionAnalyzing supply curve
Supply curveLaw of supply
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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 WatchesSupply Curve for Watches
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Intersecting Supply Intersecting Supply and Demandand DemandSupplyDemandMarket price
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Demand Curve for Demand Curve for Notebook ComputersNotebook Computers
Price
$2,100
1,800
1,500
1,200
900
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100Quantity
200 300 400 500 600 700 800
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Supply Curve for Notebook Supply Curve for Notebook ComputersComputers
Price
$2,100
1,800
1,500
1,200
900
600
300
100Quantity
200 300 400 500 600 700 800
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Price
$2,100
1,800
1,500
1,200
900
600
300
100Quantity
200 300 400 500 600 700 800
Market Price for Notebook Market Price for Notebook ComputersComputers
DemandDemand SupplySupply
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TYPES OF ECONOMIC TYPES OF ECONOMIC COMPETITIONCOMPETITIONGOALSGOALS for Lesson 3.3Define pure competition and monopoly.Explain the characteristics of
oligopolies and monopolistic competition.
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All-Out Competition or No All-Out Competition or No Competition At AllCompetition At AllPure competitionMonopoly
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Price
Quantity
Demand Curve for One Demand Curve for One Company in Pure CompetitionCompany in Pure Competition
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Price
Quantity
Demand Curve for a MonopolyDemand Curve for a Monopoly
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Between the ExtremesBetween the Extremes
OligopoliesMonopolistic competitionUnderstanding the competition
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Demand Curve for One Demand Curve for One Company in an OligopolyCompany in an Oligopoly
Price
Quantity
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Demand Curve for the Demand Curve for the Industry in an OligopolyIndustry in an Oligopoly
Price
Quantity
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Price
Quantity
Demand Curve for Monopolistic Competition Demand Curve for Monopolistic Competition with Few Product Differenceswith Few Product Differences
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Demand Curve for Monopolistic Competition Demand Curve for Monopolistic Competition with Greater Product Differenceswith Greater Product Differences
Price
Quantity
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ENHANCING ECONOMIC ENHANCING ECONOMIC UTILITYUTILITYGOALSGOALS for Lesson 3.4Define various types of economic utility.Explain how marketers use utility to
increase customer satisfaction.
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Utility Means SatisfactionUtility Means Satisfaction
Economic utilityEconomic utilityForm utilityTime utilityPlace utilityPossession utility
