Type of Shoe<br />Athletic shoes will be produced in various styles to appeal to different interests/age groups<br />Athletic shoes will be endorsed by celebrity/pop singer Justin Bieber<br />Justin Bieber is currently the most famous teenager in the world<br />Justin Bieber = $$$<br />
Endorsement<br />In order to create an athletic shoe that is in high demand by children, teens, and parents alike, we believe that you should invest more in the endorsement of the shoe and less on the quality. Pop sensation Justin Bieber, one of the most famous teenagers in the world’s name on an athletic shoe, would draw in teens across America, no matter what the shoe looks or feel like.<br />
Cost of Endorsement<br />To have Justin Bieber endorse your product would benefit you greatly, but it would also cost some money, but not much<br />With Justin Bieber endorsed sneakers you will make an estimated 700 to 800 million dollars over the course of 5 years. Over that time you will be required to pay Justin Bieber 40 million dollars<br />Justin Bieber will be under contract for 5 years, with a possible 3 year extension <br />
Cost of Production<br />In order to save money, but to still attract those that are looking for American made shoes, we suggest that you invest in unskilled American laborers to produce more shoes faster.<br />
Production Cost<br />The Cheap Shoes<br />Cheap material shoes should be sold cheaply. <br />Lower price shoes targets teens audiences and families with large numbers.<br />Having cheap material made shoes priced high, will leave the shoe with a bad repetition.<br />
Production Cost Cont.<br />The Expensive Shoes<br />More expensively sold shoes with high quality, will ultimately prove to earn the producer a stronger name in marketing.<br />Expensive comes with a price.<br />
Self-Interest<br />Our economy is run by self-interested producers and consumers. YOU are looking for money and American teens are looking for Justin Bieber and parents are looking for inexpensive shoes for their teens. We will supply them with they want and are looking for, and they will supply YOU with what you want - $$$<br />
Production & consumption of products in the marketplace<br />Trade-offs and opportunity costs can be illustrated using a production<br />possibilities curver.<br />-shows all possible combo of two goods/serves within a stated period.<br />There are 2 assumptions:<br />Amount of Resources and technology will not change.<br /> -All resources are being in the most efficient manner. <br />Demand: how much products people want.<br />
The Relationship Between the Two<br />Production<br />Barter- You can trade any item for a different item<br />Money-Everyone agrees on for getting value.<br />-change prices a lot easier.<br />Credit-You can buy something now, and pay it out at a later cost.<br />Consumption of Products <br />If there is a higher demand for products, then there should be an increase of supplies for that exact same product.<br />However, there should be enough profits to cover those supplies and workers so they can be easily paid for. <br />
Consumption of Products-Cont-<br />If other consumers who buy different shoe products see that there is a higher demand for those shoe products, then they will be overly impressed and would want to buy more and more from that exact company with higher demand.<br />
Basics on Marketing<br />Firm-<br />A firm is something that uses resources to produce a product.<br />Factor Market-<br />This is where resources for firms can purchase supplies to produce their consumer product.<br />Product market-<br />Businesses normally sell their finished consumer products here. Factors of production<br />Tools of the Trade-<br /> 1:NATURAL RESOURCES (oil, animals, water)<br />2:HUMAN RESOURCES (workers)<br /> 3:CAPITAL RESOURCES (money, factories, machinery)<br /> 4:ENTREPRENEUR-SHIP (the guy that wants to go and start this product)<br />Corporations<br />They have Infinite life, limited liability, and can raise money easily.<br />
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