This document contains a summary of a lecture on marketing and national income. It defines key marketing concepts like the marketing mix of 4Ps and 4Cs. It also explains different types of markets like competitive, monopoly, oligopoly markets. For national income, it discusses concepts like GDP, GNP, circular flow, stock and flow. It provides definitions and formulas to calculate national income at current and constant prices.

1. SHREE S’AD VIDHYA MANDAL
INSTITUTE OF TECHNLOGY

2. SUBJECT:- ENGEINEERING ECONOMICS
AND MANAGEMENT
ENROLLMENT
NO.
NAME
130450106019 Modi Akash
130450106035 Patel Margi
130450106044 Shah Ishani
130450106047 Taira Naznin
140453106016 Yadav Divaya

3. Marketing = ?
•Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,
goods, services to create exchanges
that satisfy individual and
organizational goals
• American Marketing Association
3

4. What is Marketing…??
• Selling?
• Advertising?
• Promotions?
• Making products available in stores?
• Maintaining inventories?
• All of the above, plus much more!
4

5. Marketing = ?
•Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing
customers through creating, delivering,
and communicating superior customer
value.
5

6. Simple Marketing System
6
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

7. The 4 Ps & 4Cs
7
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience

8. Difference between sales and
Marketing
Sales =
Trying to get the customer to want what the
company produces.
Marketing =
Trying to get the company produce what the
customer wants.

9. Scope – What do we market
9
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

10. Core Concepts of
Marketing
10
• Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

11. Core concept of Market
Needs
,wants ,
demand
product Utility ,
value &
satisfaction
Markets Marketing &
marketers
exchange ,

12. Core Concepts of Marketing
12
 Need – food ( is a must )
 Want – Pizza, Burger, French fry's (
translation of a need as per our experience )
 Demand – Burger ( translation of a want as
per our willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

13. Competitive Market
• Competitive Market is defined as the
market in which a large number of
suppliers compete with each other to
satisfy the wants and needs of a large
numbers of consumers at competitive
price.

14. Price determination in perfect
competitive market
• In competitive market price is determined
by law of demand and supply.
• If the price will be increased then the
demand decreased and supply increase.
• The price corresponding to intersection of
supply and demand is the market price.

15. Price
Quantity
Price is fixed
Market
supply
Market
demand
P
Q

16. • Marginal cost curve has initial downward
slope and then it has upward slope.
• Price is fixed , marginal revenue line is
stright line coinciding on the horizontal
price line.
• Here cost is equal to price and firm will
not make profit of single rupee.

17. Cost per
unit
Quantity
Marginal
cost
Average
total cost
Marginal revenue
Economical
profit = 0Cost = Price
Q

18. Cost per
unit
Quantity
Marginal
cost
Average
total cost
Marginal revenue
Price
cost
Q
Profit
Profit maximum
MC = MR

19. Cost per
unit
Quantity
Marginal
cost
Average
total cost
Marginal revenue
cost
Price
loss
Q

20. Monopoly Market
• There is only one seller and others are buyers .
Hence, the demand of the industry will be the
demand of the firm.
• Since the monopoly resources are impossible
or difficult to get, the entry barrier is high for
the competitors.
• Buyers have no control over the competitors.
• Buyers have no control over the price of the
product.

21. Oligopoly
• When number of suppliers are more compared to
monopoly market for same product, new type of
market is developed which neither competitive
nor monopoly.
• There will be competition among suppliers for
same in case of perfect competitive market due
to less number of suppliers.
• Oligopoly market is a mix of perfect competition
market as well as monopoly market.

22. NATIONAL INCOME
• National income is the result of all economic
activities of the nations in terms of money.
• The level of national income determines the
level of aggregate demand for goods and
services.
• National income can be defined in terms of
money flows.
• National income can be obtained by adding
the factor earnings and adjusting sum for
indirect taxes and subsidies.

23. • Central Statistical Organization: - “National
Income is the sum total of factor incomes
earned by the normal residents of a country in
the form of wages, rent, interest and profit in
an accounting year”.

24. Circular flow diagram
• Assumption: The economy composed of
households and firms only
• Households: own factors of production,
consume goods and service
• Firms: hire factors of production to produce
goods and services

25. FIGURE 8.1. Circular flow diagram. The diagram above represents the transactions between firms and
households in a simple economy.
In the upper loop, the arrow emanating from firms to households represents the sale by firms of goods
and services to households. On the other hand, the arrow from households to firms represents the
payments.
n the lower loop, the arrow originating from the households to the firms shows that firms hire labor and
capital from households in order to produce goods and services. The arrow emanating from the firms
indicates their payments for the use of the factors of production.
factor payments
(wages, interest, rent, profit)
factor services
goods and services
payments for goods and services
HOUSEHOLDSFIRMS

26. MARKETS FOR
FACTORS OF
PRODUCTION
MARKETS FOR
GOODS AND
SERVICES
FIRMS HOUSEHOLDS
Good and
services
bought
Good and
services sold
Revenue
(=GDP)
Spending
(=GDP)
Inputs for
Production
Land, labor
and capital
Wages, rent,
interest and
profit (=GDP)
Flow of goods & services
Flow of money: pesos
Income (=GDP)
THE CIRCULAR FLOW DIAGRAM

27. Stock and flow concept
• Monthly deposits saving is termed as ,flows.
• The year end savings balance is termed as,
stocks.
• In economics, when inflows exceeds outflows,
a positive balance builds up.
• Whereas if outflows exceeds inflows, a
negative balance results.
• Flows includes GDP, saving, consumption,
investment, trade deficit and surplus etc.
• Stocks includes debt, infrastructure, library,
databases, garages, cars etc.

28. VALUATION APPROCHES FOR
NATIONAL INCOME
Valuation of national income is done on two
basis:
1 . Current price
2. Constant price

29. NATIONAL INCOME AT CURRENT
PRICE
• When goods and services product by normal
residents of a country in a given year are
estimate at current prices, it is called national
income at current prices.
• For national income at current prices, we use
same year’s output and same year’s market
price.

30. NATIONAL INCOME AT CONSTANT
PRICE
• When goods and services produce by normal
residents of country during a year are valued
at fixed prices, i.e. prices of the base year, it is
called national income at constant prices.
Every country measures national income both
at current prices and constant prices but it is
the latter real change in national income.

31. TERMINOLGIES RELATED TO
NATIONAL INCOME
1. GROSS NATIONAL PRODUCT (GNP)
• GNP is the sum of Gross Domestic Product at
market price and Net Income from abroad.
• GDP + N.I = GNP
2. GROSS DOMESTIC PRODUCT(GDP)
• GDP is defined as the market value of all final
goods and services products in the domestic
economy during a period of one year, plus
income earned locally by the foreigners minus
incomes earned abroad by the national.

32. 3. NET NATIONAL PRODUCT
• It is the GNP minus depreciation of the stock of
the country. Here's, depreciation is the wear and
tear on the economy’s stock of equipments
structures with the passage of time.
• NNP = GNP – Depreciation
4. NET DOMESTIC PRODUCTS
• The net domestic product(NDP) equals the gross
domestic product(GDP) minus depreciation on a
country’s capital goods.
• NNP = GDP – Depreciation

33. 5. PERSIONAL INCOME
• It is the sum of all the incomes actually
received by the individuals or household
during a given period.
6. DISPOSABLE INCOME
• Disposable income is equal to personal
income minus personal taxes and certain
nontax payments.