Economics Principles of Marketing B
Agenda <ul><li>Review second part of test </li></ul><ul><li>Notes </li></ul><ul><li>Introduction to Economics </li></ul><u...
Notes Quiz <ul><li>Use  ONLY YOUR  notes (NO BOOK) </li></ul><ul><li>1. Sleepytime Mattress Company advertises that it is ...
The Free Enterprise System <ul><li>Capitalism </li></ul><ul><li>Government and Consumer Functions </li></ul><ul><li>Play D...
Capitalism <ul><li>What is Capitalism? </li></ul><ul><ul><li>An  economic  system by private ownership of businesses and m...
Basic Principles <ul><li>Free Enterprise System </li></ul><ul><li>Freedom of Ownership </li></ul><ul><li>Competition </li>...
Free Enterprise System <ul><li>Free enterprise system </li></ul><ul><ul><li>Encourages individuals to start and operate th...
Freedom of Ownership <ul><li>What is freedom of ownership? </li></ul><ul><ul><li>Free to own personal property </li></ul><...
Competition <ul><li>Competition </li></ul><ul><ul><li>The struggle between companies for customer is called competition </...
Competition <ul><li>Price Competition </li></ul><ul><ul><li>Focuses on the sale price of a product </li></ul></ul>
Competition <ul><li>Nonprice Competition </li></ul><ul><ul><li>Businesses choose to compete on a basis of factors that are...
Competition <ul><li>Monopolies </li></ul><ul><ul><li>Where there is no competition and one firm controls the market for a ...
 
Individual Activity <ul><li>3.1 Assessment </li></ul><ul><li>1-5 </li></ul>
Risk <ul><li>Risk </li></ul><ul><ul><li>Potential for loss or failure in relation to the potential for improved earnings. ...
Profit <ul><li>Profit </li></ul><ul><ul><li>The money earned from conducting business after all costs and expenses have be...
Profit <ul><li>Economic Cost of unprofitable firms </li></ul><ul><ul><li>Lay-offs </li></ul></ul><ul><ul><li>Business lose...
Profit <ul><li>Economic benefit of successful firms </li></ul><ul><ul><li>Employees have better benefits and morale </li><...
Profit <ul><li>Economic benefit of successful firms (cont.) </li></ul><ul><ul><li>Government makes more money thru taxes <...
Government and Consumer Functions <ul><li>The Role of the Government </li></ul><ul><li>The Role of the Consumer </li></ul>
Role of the Government <ul><li>1. Provider of Services </li></ul><ul><li>2. Supporter of Business </li></ul><ul><li>3. Reg...
Provider of Services <ul><li>Military, police, fire department </li></ul><ul><li>Free public education </li></ul><ul><li>P...
Supporter of Business <ul><li>Disaster assistance </li></ul><ul><li>Small Business Administration </li></ul><ul><li>Larges...
Regulator <ul><li>Designed to protect the safety, health, and welfare of the people </li></ul><ul><ul><li>Consumer and wor...
Regulator <ul><li>Consumer and worker protection </li></ul><ul><ul><li>Government agencies </li></ul></ul><ul><ul><ul><li>...
Regulator <ul><li>Business Protection </li></ul><ul><ul><li>Protect private property rights, laws and regulations regardin...
Competitor <ul><li>Tennessee Valley Authority </li></ul><ul><li>US Postal Service </li></ul><ul><li>Amtrak </li></ul>
References: <ul><li>http://www.connect06.com/wp-content/uploads/2009/09/monopoly.jpg </li></ul><ul><li>http://www.eslpod.c...
<ul><li>Government and Consumer Functions </li></ul>
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Economics

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Economics

  1. 1. Economics Principles of Marketing B
  2. 2. Agenda <ul><li>Review second part of test </li></ul><ul><li>Notes </li></ul><ul><li>Introduction to Economics </li></ul><ul><li>Individual Activity </li></ul>
  3. 3. Notes Quiz <ul><li>Use ONLY YOUR notes (NO BOOK) </li></ul><ul><li>1. Sleepytime Mattress Company advertises that it is “never undersold.” Name and explain this type of competition. </li></ul><ul><li>2. Your just started a very profitable business. Predict three economic benefits of your company. </li></ul>
  4. 4. The Free Enterprise System <ul><li>Capitalism </li></ul><ul><li>Government and Consumer Functions </li></ul><ul><li>Play Dough Economics </li></ul>
  5. 5. Capitalism <ul><li>What is Capitalism? </li></ul><ul><ul><li>An economic system by private ownership of businesses and marketplace competition </li></ul></ul>
  6. 6. Basic Principles <ul><li>Free Enterprise System </li></ul><ul><li>Freedom of Ownership </li></ul><ul><li>Competition </li></ul><ul><li>Risk </li></ul><ul><li>Profit </li></ul>
  7. 7. Free Enterprise System <ul><li>Free enterprise system </li></ul><ul><ul><li>Encourages individuals to start and operate their own businesses without government involvement </li></ul></ul>
  8. 8. Freedom of Ownership <ul><li>What is freedom of ownership? </li></ul><ul><ul><li>Free to own personal property </li></ul></ul><ul><ul><ul><li>Cars, computers, homes, natural resources </li></ul></ul></ul><ul><ul><li>Free to own a business </li></ul></ul><ul><ul><li>Free to own intellectual property </li></ul></ul><ul><ul><li>Companies free to own branding elements </li></ul></ul>
  9. 9. Competition <ul><li>Competition </li></ul><ul><ul><li>The struggle between companies for customer is called competition </li></ul></ul><ul><ul><ul><li>Price competition </li></ul></ul></ul><ul><ul><ul><li>Non-price competition </li></ul></ul></ul><ul><ul><ul><li>Monopolies </li></ul></ul></ul>
  10. 10. Competition <ul><li>Price Competition </li></ul><ul><ul><li>Focuses on the sale price of a product </li></ul></ul>
  11. 11. Competition <ul><li>Nonprice Competition </li></ul><ul><ul><li>Businesses choose to compete on a basis of factors that are not related to price </li></ul></ul>
  12. 12. Competition <ul><li>Monopolies </li></ul><ul><ul><li>Where there is no competition and one firm controls the market for a given product </li></ul></ul>
  13. 14. Individual Activity <ul><li>3.1 Assessment </li></ul><ul><li>1-5 </li></ul>
  14. 15. Risk <ul><li>Risk </li></ul><ul><ul><li>Potential for loss or failure in relation to the potential for improved earnings. </li></ul></ul><ul><ul><li>As the potential for earnings gets greater, so does the risk </li></ul></ul>
  15. 16. Profit <ul><li>Profit </li></ul><ul><ul><li>The money earned from conducting business after all costs and expenses have been paid </li></ul></ul>
  16. 17. Profit <ul><li>Economic Cost of unprofitable firms </li></ul><ul><ul><li>Lay-offs </li></ul></ul><ul><ul><li>Business loses money </li></ul></ul><ul><ul><li>Investors lose money in stock value </li></ul></ul><ul><ul><li>Affects profitability of supplier </li></ul></ul><ul><ul><li>Pay less taxes because less buisness </li></ul></ul>
  17. 18. Profit <ul><li>Economic benefit of successful firms </li></ul><ul><ul><li>Employees have better benefits and morale </li></ul></ul><ul><ul><li>Investors earn money from investments </li></ul></ul><ul><ul><li>Suppliers make more money </li></ul></ul>
  18. 19. Profit <ul><li>Economic benefit of successful firms (cont.) </li></ul><ul><ul><li>Government makes more money thru taxes </li></ul></ul><ul><ul><li>Attract competition which is beneficial to the consumer </li></ul></ul><ul><ul><li>People have more flexible income thru higher salaries </li></ul></ul>
  19. 20. Government and Consumer Functions <ul><li>The Role of the Government </li></ul><ul><li>The Role of the Consumer </li></ul>
  20. 21. Role of the Government <ul><li>1. Provider of Services </li></ul><ul><li>2. Supporter of Business </li></ul><ul><li>3. Regulator </li></ul><ul><li>4. Competitor </li></ul>
  21. 22. Provider of Services <ul><li>Military, police, fire department </li></ul><ul><li>Free public education </li></ul><ul><li>Public libraries </li></ul><ul><li>Welfare </li></ul><ul><li>Medicare </li></ul>
  22. 23. Supporter of Business <ul><li>Disaster assistance </li></ul><ul><li>Small Business Administration </li></ul><ul><li>Largest consumer of goods and services in the US </li></ul><ul><li>Trade alliances </li></ul>
  23. 24. Regulator <ul><li>Designed to protect the safety, health, and welfare of the people </li></ul><ul><ul><li>Consumer and worker protection </li></ul></ul><ul><ul><li>Business protection </li></ul></ul>
  24. 25. Regulator <ul><li>Consumer and worker protection </li></ul><ul><ul><li>Government agencies </li></ul></ul><ul><ul><ul><li>OSHA </li></ul></ul></ul><ul><ul><ul><li>FDA </li></ul></ul></ul><ul><ul><ul><li>EPA </li></ul></ul></ul><ul><ul><ul><li>Securities and Trade Commission </li></ul></ul></ul>
  25. 26. Regulator <ul><li>Business Protection </li></ul><ul><ul><li>Protect private property rights, laws and regulations regarding copyrights, and trademarks </li></ul></ul><ul><ul><li>Sherman Antitrust Act </li></ul></ul><ul><ul><ul><li>Laws that prevent monopolies </li></ul></ul></ul><ul><ul><ul><li>Predatory pricing </li></ul></ul></ul>
  26. 27. Competitor <ul><li>Tennessee Valley Authority </li></ul><ul><li>US Postal Service </li></ul><ul><li>Amtrak </li></ul>
  27. 28. References: <ul><li>http://www.connect06.com/wp-content/uploads/2009/09/monopoly.jpg </li></ul><ul><li>http://www.eslpod.com/eslpod_blog/wp-content/uploads/2008/12/dollar-sign.jpg </li></ul>
  28. 29. <ul><li>Government and Consumer Functions </li></ul>

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