2Marketing Principles International Marketing BINGO First 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.
4Unit 1 Essential Question What are the major concepts of marketing principles?
5Amplifying QuestionsEssential Question 1 Marketing Principles How do the basic marketing concepts relate to a specific market?What constitutes value for customers and consumers alike?What are the different ways a market can be segmented?What are the five P's of the marketing mix?Marketing Essentials pg , pg 37-41
6Marketing is. . .The process of developing, promoting, and distributing products in order to satisfy customers needs and wants.
7Customers Vs. Consumers Buy a productConsumersUse the product
8Marginal UtilityLaw of Diminishing Marginal Utility: Usefulness or utility of a product decreases as the number of units of the product obtained by the customer increases.
9Identifying Your Customers MarketMarket SegmentationGeographicsDemographicsPsychographicsProduct Benefits
10Identifying Your Customers Developing a Customer ProfileCombining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.
11The Marketing Mix Product Place 5 P’s of Marketing Price Promotion People
12Amplifying QuestionsEssential Question 2 Marketing Principles How do the basic economic concepts relate to a free enterprise system?What is a free enterprise system?What are the roles of government in a free enterprise system?What are the roles of a consumer in a free enterprise system?Marketing Essentials pg , pg ,
13Free 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.
15The 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.
16Role of the ConsumerDecides which businesses survive with their shopping “votes.”Determine the demand for a product and thereby dictate the price of the product.
17How do supply and demand interact to set prices? What is elasticity? Amplifying QuestionsEssential Question 3 Marketing Principles How do the laws of supply and demand relate to prices and elasticity?How do supply and demand interact to set prices?What is elasticity?Marketing Essentials pg International Business pg
18Price-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.
19Elasticity of DemandElastic: 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.
20Elasticity FormulaEd is the coefficient of elasticity.
21Coefficient of Elasticity If Ed > 1 then demand is elastic.If Ed < 1 then demand is inelastic.If Ed = 1 then demand has unit elasticity.
24Amplifying QuestionsEssential Question 4 Marketing Principles What is an economy and how is it defined?What are the four main factors of production?How do different countries make economic decisions?What are the different types of economic models?Marketing Essentials pg International Business pg.36-39
25What 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.
26Factors of Production Land (Natural Resources) Labor (Human Resources) Capital ResourcesEntrepreneurship ResourcesScarcity: Condition that exists when people’s wants and needs exceed their resources.
27How Economies WorkIn deciding how to use their limited resources, nations, businesses, and people must answer three basic economic questions.What goods and services should be produced?How should the goods and services be produced?For whom should the goods and services be produced?
28Types of Economic Systems Command EconomiesMarket EconomiesPrivate propertyProfit motiveFree, competitive marketplaceMixed Economies
29Amplifying QuestionsEssential Question 5 Marketing Principles How is economic development achieved?What are the factors that affect economic development?What are the different levels of economic development?International Business pg
31Types of Development Industrialized countries Less-developed countries Developing countries
32Levels of Economic Development Less-Developed CountryDeveloping CountryIndustrialized CountryLow literacyLimited technologyAgricultural or mining economyVery poor infrastructureImproving literacyImproving technologyDecreasing dependence on agriculture or mining economyDeveloped infrastructureHigh literacyModern technologyIndustrial economyHighly developed infrastructure
33Amplifying QuestionsEssential Question 6 Marketing Principles How is economic progress measured?What are the economic principles that explain the need for international trade?What economic indicators are used to measure economic progress and development?Marketing Essentials pg International Business pg
34Economics 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.
35Measuring Economic Progress Measure of ProductionGross domestic product (GDP)Gross national product (GNP)International Trade ActivityBalance of tradeForeign exchange rateForeign debtOther Economic MeasurementsConsumer price index (CPI)Unemployment