1.
Economics
–
Economics is a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services according to the Merriam-Webster Dictionary. Economics focuses on the behaviour and interactions of economic agents and how economies work, consistent with this focus, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behaviour of elements in the economy, including individual agents and markets, their interactions. Individual agents may include, for example, households, firms, buyers, macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, inflation, economic growth, and the public policies that address these issues. Economic analysis can be applied throughout society, as in business, finance, health care, Economic analyses may also be applied to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, science, and the environment. At the turn of the 21st century, the domain of economics in the social sciences has been described as economic imperialism. The ultimate goal of economics is to improve the conditions of people in their everyday life. There are a variety of definitions of economics. Some of the differences may reflect evolving views of the subject or different views among economists, to supply the state or commonwealth with a revenue for the publick services. Say, distinguishing the subject from its uses, defines it as the science of production, distribution. On the satirical side, Thomas Carlyle coined the dismal science as an epithet for classical economics, in this context and it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. He affirmed that previous economists have usually centred their studies on the analysis of wealth, how wealth is created, distributed, and consumed, but he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it, generates both cost and benefits, and, resources are used to attain the goal. If the war is not winnable or if the costs outweigh the benefits. Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets, there are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. The same source reviews a range of included in principles of economics textbooks. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which the author believes economics is evolving, microeconomics examines how entities, forming a market structure, interact within a market to create a market system
Economics
–
Economists study trade, production and consumption decisions, such as those that occur in a traditional
marketplace.
Economics
–
World GDP (PPP) per capita by country (2014)
Economics
–
In
Virtual Markets, buyer and seller are not present and trade via intermediates and electronic information. Pictured:
São Paulo Stock Exchange, Brazil.
Economics
–
A map showing the main
trade routes for goods within
late medieval Europe.
2.
Marketing
–
Marketing is the study and management of exchange relationships. Marketing is used to create the customer, to keep the customer, with the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management - the other being Innovation. Other services and management activities such as Operations, Human Resources, Accounting, Law, the term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. The Chartered Institute of Marketing defines marketing as the management process responsible for identifying, anticipating and satisfying customer requirements profitably, a similar concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. Marketing practice tended to be seen as an industry in the past. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and it is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times, the term marketing concept pertains to the fundamental premise of modern marketing. This concept proposes that in order to satisfy its organizational objectives, Marketing and marketing concepts are directly related. An orientation, in the context, relates to a perception or attitude a firm holds towards its product or service. There exist several common orientations, A firm employing a product orientation is chiefly concerned with the quality of its own product, a firm would also assume that as long as its product was of a high standard, people would buy and consume the product. A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible. Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, a firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale, until the minimum efficient scale is reached, a production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes do not rapidly alter. The marketing orientation is perhaps the most common used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, the marketing orientation often has three prime facets, which are, A firm in the market economy can survive by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firms future viability, in this sense, a firms marketing department is often seen as of prime importance within the functional level of an organization. Information from a marketing department would be used to guide the actions of other departments within the firm. As an example, a department could ascertain that consumers desired a new type of product
Marketing
–
Constructive criticism helps marketers adapt offerings to meet changing customer needs.
3.
Service (economics)
–
In economics, a service is a transaction in which no physical goods is transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the willingness to make the exchange. Public services are those that society as a whole pays for, using resources, skill, ingenuity, and experience, service providers benefit service consumers. Services can be described in terms of their key characteristics, sometimes called the Five Is of Services and they are not manufactured, transported or stocked. Services cannot be stored for a future use and they are produced and consumed simultaneously. Services are perishable in two regards, Service-relevant resources, processes and systems are assigned for delivery during a specific period in time. If the service consumer does not request and consume the service during this period, from the perspective of the service provider, this is a lost business opportunity if no other use for those resources is available. Examples, A hairdresser serves another client, an empty seat on an airplane cannot be filled after departure. When the service has been rendered to the consumer, this particular service irreversibly vanishes. Example, a passenger has been transported to the destination and the flight is over, the service provider must deliver the service at the time of service consumption. The service is not manifested in an object that is independent of the provider. The service consumer is also inseparable from service delivery, examples, The service consumer must sit in the hairdressers chair, or in the airplane seat. Correspondingly, the hairdresser or the pilot must be in the shop or plane, respectively, many services are regarded as heterogeneous and are typically modified for each service consumer or each service context. Another and more common term for this is heterogeneity, both service provider and service consumer participate in the service provision. Mass generation and delivery of services must be mastered for a provider to expand. This can be seen as a problem of service quality, both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent service quality. Many services involve variable human activity, rather than a precisely determined process, the human factor is often the key success factor in service provision. Demand can vary by season, time of day, business cycle, consistency is necessary to create enduring business relationships
Service (economics)
–
A
bellhop is an example of a service occupation.
4.
Target market
–
A target market is a group of customers a business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element of a marketing strategy, Product, price, promotion, and place are the four elements of a marketing mix strategy that determine the success of a product or service in the marketplace. It is proven that businesses must have a definition of their target market as this can help reach its target consumers and analyze what their needs. A target market is a group of people considered likely to buy a product or service, a target market consists of customers that share similar characteristics, such as age, location, income and lifestyle, to which a business directs its marketing efforts and sells its products. As marketing efforts are becoming increasingly online based, the need to find the right market for marketing campaigns is essential, one of the first steps in developing an effective marketing campaign is determining an appropriate target market so that marketing goals can be set and implemented. Target markets can be separated into primary and secondary target markets, primary target markets are those market segments to which marketing efforts are primarily directed and secondary markets are smaller or less important. It is important for a business to identify and select a target market so it can direct its efforts to that group of customers and better satisfy their needs. This enables the business to use its resources more efficiently, resulting in more cost. It allows for understanding of customers and therefore enables the creation of promotional materials that are more relevant to customer needs. Also, targeting makes it possible to more precise data about customer needs and behaviors. Market segmentation including the following, Geographic - Addresses, Location, Climate, Region Demographic/socioeconomic segmentation - Gender, age, wage, career, to aim at the small target market, which is easy to formulate the special marketing strategy. Through market segmentation, the enterprise will be able to notice every subdivision market purchasing potential, satisfying degree, competition and comparative analysis, meanwhile, the manpower, material resources and funds of any enterprise are limited. Segmenting the market allows marketers to understand the group they are aiming their message at. Segmentation has been a part of marketing since industrial development induced mass production. This caused the focus to shift from customer satisfaction to reduction of production costs, however, as manufacturing processes became more variable, and consumer demand diversified, businesses needed to respond by segmenting the market. Businesses who were able to identify specific needs were able to develop the right message for consumers within particular segments. Since being introduced by Wendell R. Smith in 1956, the theory has become a key concept in marketing, not establishing a target market will often result in a poor response from consumers, or no response at all. The aim of market segmentation for businesses is to gain an advantage by having a better understanding of a specific segment than its competitors
Target market
–
Euler diagram showing the relationship among Target Market,
Served Available Market (SAM), and
Total Available Market (TAM)
5.
Competition
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It arises whenever at least two parties strive for a goal which cannot be shared, where ones gain is the others loss. Competition occurs naturally between living organisms which co-exist in the same environment, for example, animals compete over water supplies, food, mates, and other biological resources. Humans usually compete for food and mates, though when these needs are met deep rivalries often arise over the pursuit of wealth, power, prestige, and fame. Competition is often considered to be the opposite of cooperation, however in the real world, optimal strategies to achieve goals are studied in the branch of mathematics known as games theory. Also competition inside a company is usually stimulated with the purpose of meeting and reaching higher quality of services or improved products that the company may produce or develop. Competition can have both beneficial and detrimental effects, many evolutionary biologists view inter-species and intra-species competition as the driving force of adaptation, and ultimately of evolution. However, some disagree, citing competition as a driving force only on a small scale. Some social Darwinists claim that competition also serves as a mechanism for determining the best-suited group, positively, competition may serve as a form of recreation or a challenge provided that it is non-hostile. On the negative side, competition can cause injury and loss to the organisms involved, competition within, between, and among species is one of the most important forces in biology, especially in the field of ecology. Third parties within a species often favour highly competitive strategies leading to extinction when environmental conditions are harsh. Competition is also present between species, when resources are limited, several species may depend on these resources. Thus, each of the species competes with the others to access to the resources. As a result, species less suited to compete for the resources may die out unless they adapt by character dislocation, according to evolutionary theory, this competition within and between species for resources plays a significant role in natural selection. This is illustrated by living plant communities where asymmetric competition and competitive dominance frequently occur, game theory is the study of mathematical models of conflict and cooperation between intelligent rational decision-makers. Game theory is used in economics, political science, and psychology, as well as logic, computer science, biology. Originally, it mainly addressed zero-sum games, in one persons gains result in losses for the other participants. Game theory is a method used in mathematical economics and business for modeling competing behaviors of interacting agents. This research usually focuses on particular sets of strategies known as solution concepts or equilibria, a common assumption is that players act rationally
Competition
–
Competition in sports. A selection of images showing some of the sporting events that are classed as
athletics competitions.
Competition
–
The
Department of Justice building in
Washington, D.C. is home to the influential
antitrust enforcers of U.S. competition laws
Competition
–
The
USOC 's headquarters in
Colorado Springs, Colorado. The
Olympic Games are regarded as the international pinnacle of sports competition.
Competition
–
Baseball, a competitive sport
6.
Firm (economics)
–
A business is an organizational entity involved in the provision of goods and services to consumers. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social, a business owned by multiple private individuals may form as an incorporated company or jointly organise as a partnership. Countries have different laws that may ascribe different rights to the business entities. The word business can refer to an organization or to an entire market sector or to the sum of all economic activity. Compound forms such as agribusiness represent subsets of the broader meaning. Businesses aim to maximize sales to have their income exceed their expenditures, resulting in a profit, the owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, partnership, A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business, the three most prevalent types of for-profit partnerships are, general partnerships, limited partnerships, and limited liability partnerships. Corporation, The owners of a corporation have limited liability and the business has a legal personality from its owners. Corporations can be either government-owned or privately owned and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, a privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange. Cooperative, Often referred to as a co-op, a cooperative is a limited-liability business that can organize as for-profit or not-for-profit, a cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives, cooperatives are fundamental to the ideology of economic democracy. In contrast, unincorporated businesses or persons working on their own are not as protected. Franchises, A franchise is a system in which entrepreneurs purchase the rights to open, franchising in the United States is widespread and is a major economic powerhouse. One out of retail businesses in the United States are franchised and 8 million people are employed in a franchised business. Real estate businesses sell, invest, construct and develop properties – including land, residential homes, retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to the intended consumers, they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers, transportation businesses such as railways, airlines, shipping companies that deliver goods and individuals to their destinations for a fee
Firm (economics)
–
Offices in the
Los Angeles Downtown Financial District
7.
Edward Chamberlin
–
Edward Hastings Chamberlin was an American economist. He was born in La Conner, Washington, and died in Cambridge, Chamberlin studied first at the University of Iowa, then pursued graduate-level studies at the University of Michigan, eventually receiving his Ph. D. from Harvard University in 1927. For most of his career Edward Chamberlin taught economics at Harvard and he made significant contributions to microeconomics, particularly on competition theory and consumer choice, and their connection to prices. Edward Chamberlin coined the term product differentiation to describe how a supplier may be able to charge a greater amount for a product than perfect competition would allow, in 1962 was admitted as corresponding academician to the RACEF. His most significant contribution was the Chamberlinian monopolistic competition theory and he is also considered one of the first theorists who applied the marginal revenue idea, which is implicit on Cournot´s monopoly theory in the late 1920´s and early 1930´s. Chamberlin concludes that most market prices are determined by monopolistic and competitive aspects, chamberlins theory of monopolistic competition is used by sociologist Harrison White in his markets from networks model of market structure and competition. Duopoly, Values where sellers are few,1929, QJE The Theory of Monopolistic Competition, A Re-orientation of the Theory of Value, Harvard University Press,1933,1965, 8th ed
Edward Chamberlin
–
Edward Chamberlin
8.
Competition (economics)
–
Merriam-Webster defines competition in business as the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms. Later microeconomic theory distinguished between perfect competition and imperfect competition, concluding that perfect competition is Pareto efficient while imperfect competition is not. Competition, according to the theory, causes commercial firms to develop new products, services and technologies, the greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition or little competition. Competition is generally accepted as a condition for the coordination of disparate individuals interests via the market process. It is generally accepted that competition results in lower prices and a number of goods delivered to more people. Less competition is perceived to result in higher prices with a fewer number of—and less innovation in—goods delivered to fewer people, as a result, many governments use competition laws to promote competition and regulate against anti-competitive practices. Competition is seen as a state which produces gains for the whole economy, competition is widespread throughout the market process. It is a condition where buyers tend to compete with other buyers, in offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on the market, competing for the attention, competition results from scarcity—there is never enough to satisfy all conceivable human wants—and occurs when people strive to meet the criteria that are being used to determine who gets what. For the competitive process to work however, it is important that prices accurately signal costs and benefits, where externalities occur, or monopolistic or oligopolistic conditions persist, or for the provision of certain goods such as public goods, the pressure of the competitive process is reduced. Competition may also lead to wasted effort and to increased costs in some circumstances, in a small number of goods and services, the cost structure means that competition may be inefficient. These situations are known as natural monopoly and are usually publicly provided or tightly regulated, competition does not necessarily have to be between companies. For example, business writers sometimes refer to internal competition, the idea was first introduced by Alfred Sloan at General Motors in the 1920s. Sloan deliberately created areas of overlap between divisions of the company so that division would be competing with the other divisions. For example, the Chevy division would compete with the Pontiac division for some market segments, also, in 1931, Procter & Gamble initiated a deliberate system of internal brand versus brand rivalry. The company was organized around different brands, with each brand allocated resources, each brand manager was given responsibility for the success or failure of the brand and was compensated accordingly. This form of competition thus pitted a brand against another brand, finally, most businesses also encourage competition between individual employees. An example of this is a contest between sales representatives, the sales representative with the highest sales over a period of time would gain benefits from the employer
Competition (economics)
–
Adjacent advertisements in an 1885 newspaper for the makers of two competing ore concentrators (machines that separate out valuable ores from undesired minerals). The lower ad touts that their price is lower, and that their machine's quality and efficiency was demonstrated to be higher, both of which are general means of economic competition.
Competition (economics)
–
The printing equipment company
ATF explicitly states in its 1923 manual that its goal is to 'discourage unhealthy competition' in the printing industry.
9.
Preference (economics)
–
In economics and other social sciences, preference is the ordering of alternatives based on their relative utility, a process which results in an optimal choice. The character of the preferences is determined purely by taste factors, independent of considerations of prices, income. With the help of the scientific method many practical decisions of life can be modelled, in 1926 Ragnar Frisch developed for the first time a mathematical model of preferences in the context of economic demand and utility functions. Up to then, economists had developed a theory of demand that omitted primitive characteristics of people. This omission ceased when, at the end of the 19th, because binary choices are directly observable, it instantly appealed to economists. The search for observables in microeconomics is taken further by revealed preference theory. Since the pioneer efforts of Frisch in the 1920s, one of the issues which has pervaded the theory of preferences is the representability of a preference structure with a real-valued function. This has been achieved by mapping it to the mathematical index called utility, von Neumann and Morgenstern 1944 book Games and Economic Behaviour treated preferences as a formal relation whose properties can be stated axiomatically. Even though the economics of choice can be examined either at the level of utility functions or at the level of preferences, suppose the set of all states of the world is X and an agent has a preference relation on X. It is common to mark the weak preference relation by ⪯, the symbol ∼ is used as a shorthand to the indifference relation, x ∼ y ⟺, which reads the agent is indifferent between y and x. The symbol ≺ is used as a shorthand to the preference relation, x ≺ y ⟺. In everyday speech, the statement x is preferred to y is generally understood to mean that someone chooses x over y, however, decision theory rests on more precise definitions of preferences given that there are many experimental conditions influencing peoples choices in many directions. Suppose a person is confronted with an experiment that she must solve with the aid of introspection. She is offered apples and oranges, and is asked to choose one of the two. A decision scientist observing this event would be inclined to say that whichever is chosen is the preferred alternative. Under several repetitions of experiment, if the scientist observes that apples are chosen 51% of the time it would mean that x ≻ y. If half of the oranges are chosen, then x ∼ y. Finally, if 51% of the time she chooses oranges it means that y ≻ x, preference is here being identified with a greater frequency of choice
Preference (economics)
–
A simple example of a preference order over three goods
10.
Advertising
–
Advertising is an audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea. Sponsors of advertising are often businesses who wish to promote their products or services, Advertising is differentiated from public relations in that an advertiser usually pays for and has control over the message. It is differentiated from personal selling in that the message is nonpersonal, the actual presentation of the message in a medium is referred to as an advertisement or ad. Commercial ads often seek to generate increased consumption of their products or services through branding, on the other hand, ads that intend to elicit an immediate sale are known as direct response advertising. Non-commercial advertisers who spend money to advertise items other than a product or service include political parties, interest groups, religious organizations. Non-profit organizations may use free modes of persuasion, such as a service announcement. Advertising may also be used to reassure employees or shareholders that a company is viable or successful, in 2015, the world spent an estimate of US$592.43 billion on advertising. Its projected distribution for 2017 is 40. 4% on TV,33. 3% on digital, internationally, the largest advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP. In Latin, ad vertere means to turn toward, egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii, lost and found advertising on papyrus was common in ancient Greece and ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, the tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry of bamboo flutes played to sell candy, advertisement usually takes in the form of calligraphic signboards and inked papers. Fruits and vegetables were sold in the city square from the backs of carts and wagons, the first compilation of such advertisements was gathered in Les Crieries de Paris, a thirteenth-century poem by Guillaume de la Villeneuve. In the 18th century advertisements started to appear in newspapers in England. However, false advertising and so-called quack advertisements became a problem, thomas J. Barratt from London has been called the father of modern advertising. Working for the Pears Soap company, Barratt created an advertising campaign for the company products. One of his slogans, Good morning, have you used Pears soap. was famous in its day and into the 20th century. Barratt introduced many of the ideas that lie behind successful advertising
Advertising
–
A
Coca-Cola advertisement from the 1890s
Advertising
–
Bronze plate for printing an advertisement for the Liu family needle shop at
Jinan,
Song dynasty China. It is considered the world's earliest identified printed advertising medium.
Advertising
–
Edo period LEL flyer from 1806 for a traditional medicine called Kinseitan
Advertising
–
A 1900 advertisement for Pears soap
11.
Perfect competition
–
In economics and general equilibrium theory, a perfect market is defined by several conditions, collectively called perfect competition. Perfect information – All consumers and producers know all prices of products, homogeneous products – The products are perfect substitutes for each other. Well defined Property rights – These determine what may be sold, profit maximization of sellers – Firms sell where the most profit is generated, where marginal costs meet marginal revenue. Rational buyers, Buyers make all trades that increase their economic utility, No externalities – Costs or benefits of an activity do not affect third parties. This criteria also excludes any government intervention, zero transaction costs – Buyers and sellers do not incur costs in making an exchange of goods in a perfectly competitive market. Non-increasing returns to scale and no network effects – The lack of economies of scale or network effects ensures that there always be a sufficient number of firms in the industry. This equilibrium will be a Pareto optimum, meaning that nobody can be better off by exchange without making someone else worse off. Such markets are efficient, as output will always occur where marginal cost is equal to marginal revenue. But perfectly competitive markets are not necessarily productively efficient as output will not always occur where marginal cost is equal to average cost, in perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost. This implies that a factors price equals the marginal revenue product. It allows for derivation of the curve on which the neoclassical approach is based. This is also the reason why a monopoly does not have a supply curve, the abandonment of price taking creates considerable difficulties for the demonstration of a general equilibrium except under other, very specific conditions such as that of monopolistic competition. Real markets are never perfect, but range from close-to-perfect to very imperfect, share and foreign exchange markets are commonly said to be the most similar to the perfect market. The real estate market is an example of an imperfect market. In a perfect market the sellers operate at zero economic surplus, normal profit is a component of costs and not a component of business profit at all. It represents the opportunity cost, as the time that the owner spends running the firm could be spent on running a different firm. In other words, the cost of normal profit varies both within and across industries, it is commensurate with the associated with each type of investment. Only normal profits arise in circumstances of perfect competition when long run equilibrium is reached
Perfect competition
–
In the short run, it is possible for an individual firm to make an
economic profit. This situation is shown in this diagram, as the price or average revenue, denoted by P, is above the average cost denoted by C.
12.
Substitute good
–
In consumer theory, substitute goods or substitutes are products that a consumer perceives as similar or comparable, so that having more of one product makes them desire less of the other product. Formally, X and Y are substitutes if, when the price of X rises, there are different degrees of substitutability. For example, a car and a bicycle may substitute to some extent, if the price of fuel increases considerably. In economics, one way that two or more goods can be classified is by examining the relationship of the demand schedules when the price of one good changes and this relationship between demand schedules leads to classification of goods as either substitutes or complements. Substitute goods are goods which, as a result of changed conditions, a substitute good, in contrast to a complementary good, is a good with a positive cross elasticity of demand. This means a goods demand is increased when the price of good is increased. Conversely, the demand for a good is decreased when the price of good is decreased. If goods A and B are substitutes, an increase in the price of A will result in a movement along the demand curve of A. A decrease in the price of A will result in a movement along the demand curve of A. Examples of substitute goods include margarine and butter, tea and coffee, substitute goods not only occur on the consumer side of the market but also the producer side. Substitutable producer goods would include, petroleum and natural gas, the degree to which a good has a perfect substitute depends on how specifically the good is defined. Take for example, the demand for Rice Krispies cereal, which is a narrowly defined good as compared to the demand for cereal generally. An increase in price will result in an increase in demand for its substitute goods, if two goods have a high substitutability, the change in demand will be much greater. It is important to note that when speaking about substitute goods one is referring to two different kinds of goods, so the substitutability of one good for another is always a matter of degree. One good is a substitute for another only if it can be used in exactly the same way. In microeconomics, two types of substitutes are being distinguished, gross substitutes and net substitutes, substitutes differ with respect to their category membership. Within-category substitutes are goods that are members of the taxonomic category. Cross-category substitutes are goods that are members of different taxonomic categories, a person who cannot have the chocolate that she desires, for example, might instead buy ice cream to satisfy her goal to have a dessert
Substitute good
–
Substitute good graphical example
Substitute good
–
Indifference curve for perfect substitutes
13.
Packaging
–
Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, in many countries it is fully integrated into government, business, institutional, industrial, and personal use. Package labeling or labelling is any written, electronic, or graphic communication on the package or on a separate but associated label. The first packages used the materials available at the time, baskets of reeds, wineskins, wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags. Processed materials were used to form packages as they were developed, for example, early glass, the study of old packages is an important aspect of archaeology. The use of tinplate for packaging dates back to the 18th century, by 1697, John Hanbury had a rolling mill at Pontypool for making Pontypoole Plates. The method pioneered there of rolling iron plates by means of cylinders enabled more uniform black plates to be produced than was possible with the practice of hammering. Tinplate boxes first began to be sold from ports in the Bristol Channel in 1725, the tinplate was shipped from Newport, Monmouthshire. By 1805,80,000 boxes were made and 50,000 exported, tobacconists in London began packaging snuff in metal-plated canisters from the 1760s onwards. With the discovery of the importance of airtight containers for food preservation by French inventor Nicholas Appert, after receiving the patent, Durand did not himself follow up with canning food. By 1813, they were producing the first canned goods for the Royal Navy, the progressive improvement in canning stimulated the 1855 invention of the can opener. In 1858, another lever-type opener of a complex shape was patented in the United States by Ezra Warner of Waterbury. Set-up boxes were first used in the 16th century and modern folding cartons date back to 1839, the first corrugated box was produced commercially in 1817 in England. Corrugated paper received a British patent in 1856 and was used as a liner for tall hats, scottish-born Robert Gair invented the pre-cut paperboard box in 1890—flat pieces manufactured in bulk that folded into boxes. Gair discovered that by cutting and creasing in one operation he could make prefabricated paperboard boxes, commercial paper bags were first manufactured in Bristol, England, in 1844, and the American Francis Wolle patented a machine for automated bag-making in 1852. Packaging advancements in the early 20th century included Bakelite closures on bottles, transparent cellophane overwraps and these innovations increased processing efficiency and improved food safety. As additional materials such as aluminum and several types of plastic were developed, they were incorporated into packages to improve performance, in 1952, Michigan State University became the first university in the world to offer a degree in Packaging Engineering
Packaging
–
UK Risperdal Tablets 2000 in a
blister pack, which was itself packaged in a folding
carton made of
paperboard.
Packaging
–
Shrink wrapped frozen pork
Packaging
–
1914 magazine advertisement for
cookware with instructions for home canning.
Packaging
–
Packing folding cartons of salt.
14.
Freemium
–
Freemium is a pricing strategy by which a product or service is provided free of charge, but money is charged for proprietary features, functionality, or virtual goods. The business model called shareware has been in use for software since the 1980s and this is often in a time-limited or feature-limited version to promote a paid-for full version. The model is suited to software as the cost of distribution is negligible. Thus little is lost by giving it away for free, then offer premium priced value added services or an enhanced version of your service to your customer base. Jarid Lukin of Alacra, one of Wilsons portfolio companies, then suggested the term freemium for this model, in 2009, Chris Anderson published the book Free, which examines the popularity of this business model. As well as for software and services, it is now also often used by Web 2.0. The freemium model is related to tiered services. It has become a popular model, with notable examples including LinkedIn, Badoo. A freemium model is used to build a consumer base when the marginal cost of producing extra units is low. In the Christian 5033 religious education sector, Christian Leaders Institute uses the model to train Christian leaders. CLI offers free training to receive unofficial certificates, diplomas and degrees at no charge, the infrastructure cost to provide this training and these unofficial awards is supported by donations to the mission, which receive tax deductions in the United States. If CLI students want official awards, they are required to make minimal non-tax deductible donations that cover the costs of processing, verification. Cloud service providers – ranging from Infrastructure providers, platform providers to service providers – use freemium pattern in their business models. Companies such as Rackspace, Heroku, and Amazon use freemium business patterns by providing services for free. Amazon, for example, allows anyone to create a cloud in their infrastructure as a trial service for 12 months. Other examples include free-to-play games – video games that can be downloaded without paying, other software makes its features available for trial period, and then at the end of that period it stops working. This is an evaluation, and at the end of the evaluation period does not work at all. This is not to be confused with the model, where the user has access to a limited free version without time restraint
Freemium
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In freemium business model, business tiers start with a "free" tier
15.
Price discrimination
–
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. Price differentiation is distinguished from product differentiation by the substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the willingness to pay. Other terms used to refer to price discrimination include equity pricing, preferential pricing, the optimal incarnation of this is called perfect price discrimination and maximizes the price that each customer is willing to pay. Product versioning or simply versioning — offering a product line by creating slightly different products for the purpose of price differentiation, another name given to versioning is menu pricing. Typical examples include student discounts and seniors discounts, however, product heterogeneity, market frictions or high fixed costs can allow for some degree of differential pricing to different consumers, even in fully competitive retail or industrial markets. The effects of discrimination on social efficiency are unclear. Output can be expanded when price discrimination is very efficient, even if output remains constant, price discrimination can reduce efficiency by misallocating output among consumers. Price discrimination requires market segmentation and some means to discourage discount customers from becoming resellers and, by extension and this usually entails using one or more means of preventing any resale, keeping the different price groups separate, making price comparisons difficult, or restricting pricing information. The boundary set up by the marketer to keep segments separate is referred to as a rate fence, another example of price discrimination is intellectual property, enforced by law and by technology. Price discrimination can also be seen where the requirement that goods be identical is relaxed, for example, so-called premium products have a price differential that is not explained by the cost of production. Some economists have argued that this is a form of discrimination exercised by providing a means for consumers to reveal their willingness to pay. Exercising First degree price discrimination requires the seller of a good or service to know the absolute maximum price that every consumer is willing to pay. By knowing the price, the seller is able to sell the good or service to each consumer at the maximum price he is willing to pay. So the profit is equal to the sum of consumer surplus, the marginal consumer is the one whose reservation price equals to the marginal cost of the product. The seller produces more of his product than he would to achieve monopoly profits with no price discrimination, examples of where this might be observed are in markets where consumers bid for tenders, though, in this case, the practice of collusive tendering could reduce the market efficiency. In second degree price discrimination, price varies according to quantity demanded, larger quantities are available at a lower unit price. This is particularly widespread in sales to customers, where bulk buyers enjoy higher discounts
Price discrimination
–
Sales revenue without and with Price Discrimination
16.
Product management
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Similarly, product lifecycle management integrates people, data, processes and business systems. It provides product information for companies and their supply chain enterprise. The role may consist of product development and product marketing, which are different efforts, with the objective of maximizing sales revenues, market share, Product management also involves elimination decisions. The product manager is responsible for analyzing market conditions and defining features or functions of a product. The role of product management spans many activities from strategic to tactical, to maximize the impact and benefits to an organization, Product management must be an independent function separate on its own. While involved with the product lifecycle, the product managements main focus is on driving new product development. Depending on the size and history, product management has a variety of functions. Sometimes there is a manager, and sometimes the role of product manager is shared by other roles. Frequently there is Profit and Loss responsibility as a key metric for evaluating manager performance. In some companies, the management function is the hub of many other activities around the product. In others, it is one of things that need to happen to bring a product to market and actively monitor. In very large companies, the manager may have effective control over shipment decisions to customers. For example, product managers often translate business objectives set for a product by Marketing or Sales into engineering requirements, conversely, they may work to explain the capabilities and limitations of the finished product back to Marketing and Sales. Product managers may also have one or more direct reports who manage operational tasks and/or a change manager who can oversee new initiatives, manufacturing is separate from the research function, the product manager has the responsibility to bridge the gaps if any exist. In most technology companies, most product managers possess knowledge in the areas, computer science, business. Many refer to inbound and outbound functions, in many organizations the inbound and outbound functions are performed by the same person. The core function of Marketing, that differentiates it from Sales, Operations, still, many organizations put under Marketing only Market Communications, which is just the operational end of marketing and only a subset of what Promotion comprises. From a Product Management perspective, MarCom is a supporting function
Product management
–
Business administration
17.
Brand
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A brand is a name, term, design, symbol, or other feature that distinguishes one seller’s product from those of others. Brands are used in business, marketing, and advertising, however, the term has been extended to mean a strategic personality for a product or company, so that ‘brand’ now suggests the values and promises that a consumer may perceive and buy into. Branding is a set of marketing and communication methods that help to distinguish a company from competitors, the key components that form a brands toolbox include a brand’s identity, brand communication, brand awareness, brand loyalty, and various branding strategies. Brand equity is the totality of a brands worth and is validated by assessing the effectiveness of these branding components. To reach such an invaluable brand prestige requires a commitment to a way of doing business. A corporation who exhibits a strong brand culture is dedicated on producing intangible outputs such as customer satisfaction, reduced price sensitivity and customer loyalty. A brand is in essence a promise to its customers that they can expect long-term security, when a customer is familiar with a brand or favours it incomparably to its competitors, this is when a corporation has reached a high level of brand equity. Many companies are beginning to understand there is often little to differentiate between products in the 21st century. Branding remains the last bastion for differentiation, in accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation’s balance sheet. The word ‘brand’ is often used as a referring to the company that is strongly identified with a brand. Marque or make are often used to denote a brand of motor vehicle, a concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a associated with a commodity. The word, brand, derives from Dutch brand meaning to burn and this product was developed at Dhosi Hill, an extinct volcano in northern India. Roman glassmakers branded their works, with Ennion being the most prominent, the Italians used brands in the form of watermarks on paper in the 13th century. Blind Stamps, hallmarks, and silver-makers marks are all types of brand, industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, Bass & Company, the British brewery, claims their red-triangle brand as the worlds first trademark. Another example comes from Antiche Fornaci Giorgi in Italy, which has stamped or carved its bricks with the same proto-logo since 1731, cattle-branding has been used since Ancient Egypt. The term, maverick, originally meaning an un-branded calf, came from a Texas pioneer rancher, Sam Maverick, use of the word maverick spread among cowboys and came to apply to unbranded calves found wandering alone
Brand
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Ferrari is the world's most powerful brand according to
Brand Finance.
Brand
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The color, letter font and style of the
Coca-Cola and
Diet Coca-Cola logos in
English were copied into matching
Hebrew logos to maintain brand identity in Israel.
18.
Country of origin
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Country of origin, is the country of manufacture, production, or growth where an article or product comes from. There are differing rules of origin under various laws and international treaties. The effects of country of origin labeling on consumer purchasing have been extensively studied The country of origin effect is known as the made-in image. Its effect is strongest on consumers who dont know much about the product or product type, sensitivity to country of origin varies by product category. It is strongest for durable goods and luxury goods and weakest for low involvement product categories such as shampoo, in various studies it has also been proven that the Country-of-Origin Effect also applies to services. The requirements for Country of Origin markings are complicated by the various designations which may be required such as Made in X, Product of X and they also vary by country of import and export. For example, For imports to the United Kingdom, there is a code for Food. Other products are not subject to labelling requirements, but misleading labelling can result in prosecution under the Trade Descriptions Act 1968, meats, produce, and several other raw agricultural products generally were exempt. Textile products that are imported must be labeled as required by the Customs Service, a textile or wool product partially manufactured in the U. S. and partially manufactured in another country must be labeled to show both foreign and domestic processing. On a garment without a neck and on other kinds of textile products, catalogs and other mail order promotional materials for textile and wool products, including those disseminated on the Internet, must disclose whether a product is made in the U. S. imported, or both. The Fur Products Labeling Act requires the country of origin of imported furs to be disclosed on all labels, any representation that a car marketer makes that is required by the AALA is exempt from the Commission’s policy. When a company makes claims in advertising or promotional materials that go beyond the AALA requirements, it will be held to the Commission’s standard. The Buy American Act requires that a product be manufactured in the U. S. of more than 50 percent U. S. parts to be considered Made in USA for government procurement purposes. For more information, review the Buy American Act at 41 U. S. C. §§ 10a-10c, part 25, and the Trade Agreements Act at 19 U. S. C. The Lanham Act gives any person who is damaged by a designation of origin the right to sue the party making the false claim. Companies may indicate with a number of different strategies, though not all of these legal requirements in all jurisdictions. Use of the phrase Made in, Country of origin will affect its admissibility, the rate of duty, its entitlement to special duty or trade preference programs, antidumping, and government procurement. Today, many products are an outcome of a number of parts and pieces that come from many different countries
Country of origin
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"Swiss Made" label on a
TAG Heuer chronograph.
Country of origin
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Country of origin label for a product designed in the
United States of America, but actually manufactured in the
People's Republic of China.
Country of origin
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Ford automobile hubcap
19.
Harvard University Press
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Harvard University Press is a publishing house established on January 13,1913, as a division of Harvard University, and focused on academic publishing. In 2005, it published 220 new titles and it is a member of the Association of American University Presses. Its current director is William P. Sisler and the editor-in-chief is Susan Wallace Boehmer, the press maintains offices in Cambridge, Massachusetts, near Harvard Square, in New York City, and in London, England. The Display Room in Harvard Square, dedicated to selling HUP publications, HUP owns the Belknap Press imprint, which it inaugurated in May 1954 with the publication of the Harvard Guide to American History. The John Harvard Library book series is published under the Belknap imprint, Harvard University Press distributes the Loeb Classical Library and is the publisher of the I Tatti Renaissance Library, the Dumbarton Oaks Medieval Library, and the Murty Classical Library of India. It is distinct from Harvard Business Press, which is part of Harvard Business Publishing, category, Harvard University Press books Hall, Max. Official website Blog of Harvard University Press
Harvard University Press
–
Kittredge Hall, home to Harvard University Press
Harvard University Press
–
Harvard University Press
Harvard University Press
–
History
20.
International Standard Book Number
–
The International Standard Book Number is a unique numeric commercial book identifier. An ISBN is assigned to each edition and variation of a book, for example, an e-book, a paperback and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, the method of assigning an ISBN is nation-based and varies from country to country, often depending on how large the publishing industry is within a country. The initial ISBN configuration of recognition was generated in 1967 based upon the 9-digit Standard Book Numbering created in 1966, the 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108. Occasionally, a book may appear without a printed ISBN if it is printed privately or the author does not follow the usual ISBN procedure, however, this can be rectified later. Another identifier, the International Standard Serial Number, identifies periodical publications such as magazines, the ISBN configuration of recognition was generated in 1967 in the United Kingdom by David Whitaker and in 1968 in the US by Emery Koltay. The 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108, the United Kingdom continued to use the 9-digit SBN code until 1974. The ISO on-line facility only refers back to 1978, an SBN may be converted to an ISBN by prefixing the digit 0. For example, the edition of Mr. J. G. Reeder Returns, published by Hodder in 1965, has SBN340013818 -340 indicating the publisher,01381 their serial number. This can be converted to ISBN 0-340-01381-8, the check digit does not need to be re-calculated, since 1 January 2007, ISBNs have contained 13 digits, a format that is compatible with Bookland European Article Number EAN-13s. An ISBN is assigned to each edition and variation of a book, for example, an ebook, a paperback, and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, a 13-digit ISBN can be separated into its parts, and when this is done it is customary to separate the parts with hyphens or spaces. Separating the parts of a 10-digit ISBN is also done with either hyphens or spaces, figuring out how to correctly separate a given ISBN number is complicated, because most of the parts do not use a fixed number of digits. ISBN issuance is country-specific, in that ISBNs are issued by the ISBN registration agency that is responsible for country or territory regardless of the publication language. Some ISBN registration agencies are based in national libraries or within ministries of culture, in other cases, the ISBN registration service is provided by organisations such as bibliographic data providers that are not government funded. In Canada, ISBNs are issued at no cost with the purpose of encouraging Canadian culture. In the United Kingdom, United States, and some countries, where the service is provided by non-government-funded organisations. Australia, ISBNs are issued by the library services agency Thorpe-Bowker
International Standard Book Number
–
A 13-digit ISBN, 978-3-16-148410-0, as represented by an
EAN-13 bar code
21.
Philip Kotler
–
He is the author of over 60 marketing books, including Marketing Management, Principles of Marketing, Kotler on Marketing, Marketing Insights from A to Z, Marketing 4. Kotler describes strategic marketing as serving as the link between societys needs and its pattern of industrial response, Kotler helped create the field of social marketing that focuses on helping individuals and groups modify their behaviors toward healthier and safer living styles. Kotlers latest work focuses on justice and the shortcomings of capitalism. He published Confronting Capitalism, Real Solutions for a Troubled Economic System in 2015 and Democracy in Decline, both of Kotlers parents, Betty and Maurice, emigrated in 1917 from Ukraine and settled in Chicago, where Kotler was born on May 27,1931. He studied under three Nobel Laureates in Economic Science, Milton Friedman, Paul Samuelson, and Robert Solow and he did a year of postdoctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago. Kotler started teaching marketing in 1962 at the Kellogg School of Management and he links the profit motive to the satisfaction of consumer wants and societys well-being. In order to effectively, Kotler believes the marketing purpose of elevating consumer well-being has to be put at the heart of company strategy. Kotler argued for broadening the field of marketing to cover not only operations but also the operations of non-profit organizations. He held that marketing can be applied not only to products, services, and experiences, but also to causes, ideas, persons, and places. Thus a museum needs the marketing skills of Product, Price, Place, and Promotion if it is to be successful in attracting visitors, donors, staff members, and public support. Kotler and Gerald Zaltman created the field of marketing, which applies marketing theory to influence behavior change that would benefit consumers, their peers. Kotler and Sidney Levy developed the idea of demarketing, which organizations must employ to reduce overall or selective demand when demand is too high. Thus, when water is in supply, the government needs to persuade various water consumers to reduce water usage so that enough water will be available for essential uses. In 1967, Kotler published Marketing Management, Analysis, Planning, and Control, now in its 15th edition, and the worlds most widely adopted textbook in graduate schools of business. Whereas previous marketing textbooks were highly descriptive, this text was the first to draw on economic science, organizational theory, psychology of behavior and choice and it described theory and practice, and drew on findings from empirical studies and cases. On December 9,1996, the Financial Times cited Marketing Management as one of the 50 greatest business books of all time, Kotler was invited to be the first Legend in Marketing. His published articles are presented, analyzed, and commented on in the nine-volume Legends in Marketing Series, Philip Kotler, in 2014, he started a blog on fixcapitalism. com that featured many articles on making capitalism work better for more people. In 2016, he became an advisor to The Marketing Journal, in 1975, Kotler was the first person to receive the Leader in Marketing Thought award voted on by the academic members of the American Marketing Association
Philip Kotler
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Philip Kotler in
Warsaw,
Poland, 2009
Philip Kotler
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Prof. Kotler Stamp issued by Indonesia.
Philip Kotler
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Prof.Kotler after a lecture on Marketing 3.0 with students at
Hyderabad, India.
