Lesson 4: Marketing Concept + Supply and Demand Flashcards
CONSUMER
G&S are sold for personal use by individuals
Steps of the Marketing Concept
Identify an opportunity in a specific consumer market.
Ensure the opportunity does NOT exist in the competitive market.
Use appropriate marketing strategies to organize marketing plans and sell its products or service successfully.
INDUSTRIAL
G&S are sold for business use by companies
Law of Demand
- # of goods sold depends on price of product
- So as the price of a product increases, we tend to buy less of it.
- When the price of a product falls, we tend to buy more of it
how is Law of Demand is NOT always true
concumers needs and wants increase demand
what is demad depended on
consumer incomes
consumer expectations about future prices, incomes & availability
consumer tastes and preferences
population: size of market.
How should we market a product when demand is low?
- very important to increase consumer awareness
- awareness campaigns
- incentives if introducing a new product
- communicate USP (unique Selling Proposition)
How should we market a product when demand is high?
- less impt since people wnat ur products already
- remind consumers of squique selling propeion
- ## do not reivent anything
Supply
quanity of product that producers can and will sell
Law of Supply
quianity supplied varies on price in order to make profit
Producers’ willingness and ability to supply a product will either increase or decrease the supply.
how to deteermine price of product
when there is market equaliriem (demand and supply cross)
low supply
- less marketing
- high demand
- higher price
high supply
- more marketing
- less demand
- ## low price
low demand
- low price
high demand
high price
