supply and demand

The ability and willingness to purchase a product at a given price at a given time 

When P goes up Q goes down

When P goes down Q goes up

Movement along the demand curve is due to a change in price

Shift in the demand curve is caused by a change in a factor other then price

Shift left decrease in demand

Shift right increase in demand 

• Changes in tastes and fashions
• Changes in income 
• changes in income 
• changes in population 
• advertising 
• changes in the prices of other gods
• Substitutes  
• complements  

The amount of a good or service that producers are willing and able to supply at a given price at a given time

When p goes up Q goes up

When P goes down Q goes down 

A movement along the supply curve is the result of a change in price 

A shift in the demand curve is caused by a factor other then price

Shift left decrease in supply

Shift right increase in supply  

• Change in costs  

• changes in size of industry 

• imposition of tax 

• natural phenomena 

• new tachnologies 

This is achieved when a business focuses its activities, products and services around the wants and needs of the customer.

The result is that the business adapts its products or innovates to give the products what they want and compete successfully with rival suppliers 

• By focusing on the wants and needs of the customer the business Is much more likely to produce a product or service that customers will buy

• this will give that bussiness a competitive advanatge 

• brand loyalty 

• A satisfied customer is likely to recommend the business to friends and family 

Where a company uses its strengths or assets as a key element of its marketing 

• A business may wish to diversify but still to play to its strengths
• Risk reduction
• Asset lead firms should retain customer loyalty
• still may be risky and may Increase costs
• leads to less elastic demand, higher prices and greater profit 
  

When a company conducts regular market research in order to analyse consumer needs and ensure they fulfill them 

• Enables a business to react quickly fist mover advantages can be gained

• Chance of failure is reduced

• less risk then asset lead marketing