How can I make good decisions?How am I influenced?

How can I be successful?

Enhancing connectivity and interdependence among the world’s markets and businesses

What percent of online users does the US represent?

what percent of online users speak English?

Is a way of life that includes behaviors, beliefs, values, and generally accepted symbols for a group of people

*customers from different cultures may respond differently to the SAME simple design element on your website

Machine translation – may not be entirely accurate, but can quickly translate the text into another language using a software application

Issues – ex. If your website takes orders in Japanese, but the database used to fill orders can’t read the characters – you’ve got a problem

Study of how to meet

unlimited competing wants

with limited resources

Marketing Basics - How can I satisfy customers? 7

Products:

Economic wants that you can buy

Goods

Tangible products, ex. computer equipment

Services

Intangible products, ex. Internet service,

banking

Capital

Money, buildings, equipment, infrastructure – everything needed to start & operate a business

Labor

All who work full or part time, public or private

Natural/Land

Land, coal, oil, trees, water

Difference between wants/needs and available resources

**key – makes us dependent upon each other globally

What percent of the world’s consumer’s DO YOU THINK live in the US?

Imports

Goods and services purchased from other countries

Exports

Goods and services sold to other countries

deficit

More imports than exports

surplus

More exports than imports

Prosperity Good time to start a new business, prices rise,

economy is flourishing (90’s)Recession Slow down for at least 6 months, companies reduce

workforce, prices are loweredDepression Long recession, hard to find a job, many businesses

close, very low pricesRecovery Business spikes up, people find jobs, demand for

products increases, prices increase

EXAMPLE of the business cycle

Taxes Raise to gain money for govt, lower to give money to

citizens

Interest rate Raise to gain money for businesses, lower to gain

money for citizens

Social service programs Provide programs for economic stability for all

citizens Ex. Welfare, food stamps, unemployment and job

services

Gov’t lowers

taxes

People have

more money to

spend

People buy more

things

Company’s make

more money

Company’s hire

more employees

or give raises

3 questions:

what will be produced

how will it be produced

who will receive it

Market economy/capitalism

People answer – private ownership, marketplace competition

Planned economy/communism

Gov’t answers – gov’townership, no competition

Mix economy/socialism

Mix – almost all economies are a mix

Risks

Potential for business loss or failure

Freedoms

Choice

Ownership

Profit

Competition

Where to work

what to buy

from whom

vote for govt leaders

Ownership

Own your own business and land

Profit Money earned after all costs and expenses have

been paid

Owners get to keep this (rather than give to govt)

incentive to take the risk of running the business (still pay taxes though)

revenue Gross income from sales BEFORE costs and

expensesexpenditures Costs, expenses and taxes incurred on a

business in order to operate

Competition

Struggle for customers between companies

Benefits of:

Keeps prices low, more choices, better quality, incentive to operate efficiently

Price

Focuses on price

Non-price

Focus other than price, ex. Customer service, quality, gift wrap, location

Pure Infinite amount of competitors (like internet)

supply Businesses ability and willingness to sell

products

demand Consumers ability and willingness to buy

products

Equilibrium point When demand equals supply

Surplus/buyers mkt

More supply than demand – keeps prices low

Ex. Corn/cornsyrup, homes

Shortage/sellers mkt

More demand than supply – keeps prices high

Ex. Gas, hybrid cars

Surplus vs. Shortage

Monopoly

One firm controls market for a give product (local phone & cable companies)

Direct

Indirect

www.bn.com

Cnn.com

Explain economics

Explain how the phases in a business cycle effect SER industries

Explain the concept of supply & demand

Explain competition as it relates to SER industries