supply and demand

HideShow resource information

Demand Definition

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

1 of 16

demand theory

When P goes up Q goes down

When P goes down Q goes up

2 of 16

Movement of the demand curve

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

3 of 16

Shifts in demand

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 

4 of 16

what causes the demand curve to shift

  • Changes in tastes and fashions
  • Changes in income 
  • changes in income 
  • changes in population 
  • advertising 
  • changes in the prices of other gods
  • Substitutes  
  • complements  
5 of 16

Supply

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

6 of 16

theory of supply

When p goes up Q goes up

When P goes down Q goes down 

7 of 16

Movement of supply curve

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

8 of 16

Shift in the supply curve

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

Shift left decrease in supply

Shift right increase in supply  

9 of 16

Factors that cause a shift in the supply curve

  • Change in costs  

  • changes in size of industry 

  • imposition of tax 

  • natural phenomena 

  • new tachnologies 

10 of 16

Market orientation definition

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 

11 of 16

Benefits of market orientation

  • 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 

12 of 16

Asset lead marketing

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

13 of 16

Asset lead 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 

     

14 of 16

Market lead marketing definition

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

15 of 16

Market lead marketing

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

  • Chance of failure is reduced

  • less risk then asset lead marketing  

16 of 16

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Marketing and competitive environments resources »