Economy/ Government Marketing review

how does the government pay for everything it does ?

Personal income taxes, businesses  and borrows money from its own citizens or from foreign countries

Public sector:

 the portion of the economy that is controlled or owned by the government. 

Private sector:

the portion of the economy that is run by businesses and individuals for profit, and not owned by the government. 

what do government regulations force business to do?

what does EPA regulates

Environmental regulation, including things like car and factory emissions, conservation, and water supply 

What does the FTC regulates?

provides protections against monopolies, to either ensure they don't get formed or break them up if they are formed. Also keeps a watchful eye on other unfair competition practices, like price fixing, and also truth-in-advertising, meaning businesses can't make false claims

What are monetary policy tools ?

Directed by the Federal Reserve (also called the central bank) that stimulates or slows down the economy by lowering or raising interest rates and by determining the amount of money supply in circulation. Control of interest rates and money circulation.

Direct competition

when companies offer essentially the same product or service, i.e., Coke and Pepsi, Ford and GM

indirect competition

when products or services are not the same, but they could satisfy the same need; i.e., bicycles are indirect competition to automobiles.

what are you looking at when you complete a competitive analysis?

• Product and/or services they provide 

• Their 4ps

• Their target market

• Size in terms of annual sales

• Their market share

• Their marketing strategies(past and present)

• Strengths and weaknesses

• What threats they pose to you

• Types of media they use

Monopoly

A market where one company controls the supply of a good or service, where other options for consumers aren’t readily available, and where barriers to entry for other companies are highly restrictive.

Monopolistic Competition

A market where there are many suppliers, and barriers to entry are low, but suppliers try to differentiate their products and gain some price advantage. 

Oligopoly

A market where a small number of companies control the supply of a good or service, and where barriers to entry for other companies are highly restrictive.

Pure Competition

A market where a large number of companies provide essentially the same product and sell similar price or the same price, and barriers to entry for new entrants are low.

Economics

The study of how individuals and societies make decisions about resources, production, distribution, exchange, and consumption of goods and services, given unlimited and competing wants, and given the scarcity of resources.

Trade-offs

Choosing between two things that can’t be had or done at the same time; it’s giving up something you want in exchange for something else you want, often as a compromise.

Scarcity

the reality that  people’s wants always exceed the resources available to fulfill those wants.

Economic Utilities

Form

Possession

Time

Place

Task

How does FORM utility benefit customers ?

It saves you the trouble of making things from scratch. ex: turning wood into a table. The wood becomes more useful by turning it into a table, relates to good.

how does POSSESSION utility benefit customers?

ownership benefit. when purchasing something, this utility increases when you actually get the thing and can use, and also be the thing is useful for many projects.

How does TIME utility benefit customers?

gives you what you want when you need it. ordering tools from an online store that offers same-day delivery, then that adds to this tool’s utility.

How does PLACE utility benefit customers?

it puts the product in a convenient location so you do not have to travel far.being able to fing tools at a nearby store adds to the tool’s of this utility.

How does TASK utility benefit customers?

it allows you to pay an expert to do a chore you do not know how to do or do not want to. relates to services. A laundromat that also delivers to your home increases this utility.

Productivity

The amount of goods and services produced (output) per unit of input (labor, capital, and other resources)

Efficiency

Strives to use the least amount of inputs to generate the highest amount of output.

Specialized worker

A worker that has spacial skills, which makes them very important because they might be the only ones to have those skills.