Homework answers / question archive / Introduction To Marketing: Session 1 WHAT IS MARKETING? Definition of Marketing • As a consumer, you’ve been involved in thousands of marketing decisions – You are all already marketing experts! • Marketing is “the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large”American Marketing Association The University of Adelaide Slide 2 What is Marketing? (Kotler

Introduction To Marketing: Session 1 WHAT IS MARKETING? Definition of Marketing • As a consumer, you’ve been involved in thousands of marketing decisions – You are all already marketing experts! • Marketing is “the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large”American Marketing Association The University of Adelaide Slide 2 What is Marketing? (Kotler

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Introduction To Marketing: Session 1 WHAT IS MARKETING? Definition of Marketing • As a consumer, you’ve been involved in thousands of marketing decisions – You are all already marketing experts! • Marketing is “the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large”American Marketing Association The University of Adelaide Slide 2 What is Marketing? (Kotler. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Simply put: Marketing is the delivery of customer satisfaction at a profit. What is needed for marketing to occur? Marketing doesn’t just ‘happen’… We need: 1. Two or more parties with 2. unsatisfied needs & wants We need to make a profit! 3. And the ability to communicate with the other party and provide the good or service 3. With the ability to accept or reject the offer 4. And each party must want to deal with the other party The University of Adelaide Slide 4 Core Marketing Concepts (Kotler. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Needs, wants, and demands Markets Exchange, transactions, and relationships Products and services Value & satisfaction How Do Consumers Choose Choose Among Products and Services? (Kotler. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Value Gained From Owning a Product and Costs of Obtaining the Product is Customer Value ? Customer value triad Value = Benefits / Costs = (Functional benefits + Emotional benefits) / (Monetary costs + Time costs + Energy costs + Psychic costs) Creating value with Harley Davidson Slide 7 Creating value with Ripe Maternity Slide 8 How Do Consumers Choose Choose Among Products and Services? (Kotler. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Value Gained From Owning a Product and Costs of Obtaining the Product is customer Value Product’s Perceived Performance in Delivering Value Relative to Buyer’s Expectations is Customer Satisfaction ? Customer value triad Value = Benefits / Costs = (Functional benefits + Emotional benefits) / (Monetary costs + Time costs + Energy costs + Psychic costs) Expectation Economy Expectation are often set outside your industry Understanding Marketing Management Philosophies (text book pages 4-7) 1. Production orientation What do we know/do best? Only works when demand is more than supply! 2. Sales orientation Sell sell sell! The University of Adelaide 3. Market orientation Understand needs and wants! 4. Societal orientation Also focuses on needs of society – e.g. recyclable packaging Slide 12 Societal Marketing Concept (Kotler. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Society (Human Welfare) Societal Marketing Concept Consumers (Want Satisfaction) Company (Profits) Being social through product creation Slide 14 Being social by values of the company Slide 15 Being social through charity support Slide 16 Developing the Marketing Mix Price Product Amount of money that consumers have to pay to Obtain the product “Goods-and-service” combination that a company offers a target market Target Customers Intended Positioning Activities that persuade target customers to buy the product Promotion Company activities that make the product available Place (Kotler, P,. Marketing Management 15th Ed. [2016] Prentice Hall. Melb) Assignment 1 ECON1012 Principles of Economics Semester 2 2021 Course Learning Outcomes: 1 & 4 Topic/s of Primary Focus: Supply in Perfectly Competitive Markets (May also include content from previous topics.) Read the following excerpt from ABC News article ‘Dairy farmers exiting the industry across NSW due to low milk prices’ (30 June 2018) https://www.abc.net.au/news/rural/2018-06-30/dairy-exodus-in-nsw/9924892 Farmers across New South Wales are actively making plans to exit the dairy industry. For many farmers, the last straw came as they received confirmation from processors this week that they could be facing another year producing milk below the cost of production. "It's quite disgusting actually, after the positive reports and Bega Cheese talking up a strong market at the moment," said dairy farmer Michael Shipton. Drought, rising input costs and fatigue are just some of the factors farmers say are undermining the viability of farms in traditional dairy regions. The farm gate milk price was below expectations for many suppliers. Bega Cheese announced the 2018–19 opening milk price of $6.70 per kilogram of milk solids or 50 cents per litre for NSW producers — a 3 per cent increase on last year. The ABC spoke to half a dozen Bega Cheese suppliers who all shared their dissatisfaction with the dairy processor describing the price as "very disappointing". Mr Shipton, who operates just outside of Bega, said he would have to reduce the number of cows and staff over the coming months. "For 20 cents a kilogram increase on last year, it's just not enough for farmers in the valley to cover the costs," he said. "Input costs are up — grain prices, fuel, electricity, and on top of that wages go up on the first of July." Task: Explain why some farmers producing milk would be exiting the market in the circumstances described above in June 2018. And why even though it is suggested that they were ‘producing milk below the cost of production’ in the previous year, that they had not already shut down in the short run. Ensure in your answer that you use concepts such as shut down, exit, short and long run, profit, variable and fixed costs, and cost curves – and that you use diagrams to support your explanations where relevant. Format: The format of your response should be an essay-style response. You do not need subheadings or subsections. You do not need to spend as much attention on formal essay structure as you might for a persuasive or research-based essay. Instead you should focus on communicating your ideas in a clear and concise manner and making sure there is a logical flow of ideas and explanation. Word Limit: 800 words (excluding diagrams and references) Diagrams: As stated in the task, you should include diagrams where relevant. Where you use diagrams, they should be created by you. You could either draw them by hand and scan/photo them into your document. Or prepare them electronically. However, they must be your own work. You should not paste in diagrams from the internet or the textbook, even with referencing, as this will not adequately show the grader your understanding of these diagrams and models. Referencing: This is not a research assignment. So you do not necessarily need to find other references. You should answer the question based on what you have learnt in the course and the excerpt provided. However, it is important that if you do take content directly from other sources including course materials, both quoting and paraphrasing, that you appropriately reference to show what is your own original thoughts and what ideas you have borrowed from others. Please refer to the Academic Integrity Module within the course for further guidance and links regarding referencing, plagiarism, and academic integrity. Where referencing is used, it can be in any standard style, so long as it is consistent. The Harvard referencing style is preferred, as it is the standard in Economics and is also common in Business disciplines. https://www.adelaide.edu.au/writingcentre/resources/referencing-guides All submissions will be analysed with the assistance of Turnitin, checking for plagiarism against other students in the class and external sources. Submission and Feedback Students must submit the assignment by the due date via the electronic submission portal on MyUni (the same page you downloaded this pdf!). https://community.canvaslms.com/t5/Student-Guide/How-do-I-upload-a-file-as-anassignment-submission-in-Canvas/ta-p/274 It is students’ responsibility to ensure that it is correctly submitted by the due date. Make sure that you see and check that is says ‘Submitted’. Late submissions will generally *not* be accepted at all. Not even one minute late. This might seem more strict than some of your other classes, but do keep in mind that we also have a ‘best 4 of 5’ policy on the Assignments. If you have a medical or other circumstance that you believe may allow an extension, please email the course coordinator as soon as practical, and generally this must be before the due date has passed. Assignments will be graded, with grades and feedback provided within MyUni approximately one week after the submission due date. Grading The assignment will be graded against the Assessment Criteria in the Rubric attached to the MyUni Assignment and detailed below. Grades will be allocated in-line with the University’s grade descriptors. For example, a grade between 75-84 is a Distinction, which should indicate ‘A very high standard of work which demonstrates originality and insight’. Your grade is not matter of where you ‘lost marks’, but rather the evaluation of what you have presented against the standards and the criteria. Assessment Criteria Response provides a convincing economics-based argument for market exits Response provides a convincing economics-based argument for previous continued production Evidence is shown of understanding of all relevant economic concepts and terminology, which are correctly applied throughout Diagrams are correctly depicted and are used wherever relevant to support the explanation Appropriate writing style, word count and referencing (where relevant) Marks (100) 20 20 25 25 10 SCHOOL OF ECONOMICS ECON 1012 PRINCIPLES OF ECONOMICS TOPIC 1 – COURSE INTRODUCTION & ECONOMIC FUNDAMENTALS © Playconomics, LHS This Topic’s Outline • Course Information – some highlights – directions to the full details • Comparative Advantage & the Basis for Trade – First model: production possibilities • Tutorial – Topic 1 tutorial questions are posted (prepare) • Bi-Weekly Assignments – First assignment due Friday Week 3 at 11:59pm © Playconomics, LHS © Playconomics, LHS People • Lecturer: Dr Mark Dodd Office hour: Wednesday 11:30am-12:30pm Office location: Room 4.32, Nexus 10 Email: mark.dodd@adelaide.edu.au • Tutors: TBA – See MyUni (Contacts) • Economics Drop-In Centre: • https://www.adelaide.edu.au/professions/students/professionssupport-hub#economics • Maths Learning Centre: http://www.adelaide.edu.au/mathslearning/drop_in/ • Students! © Playconomics, LHS Our Objectives for You • Understand fundamental concepts in economics • Develop skills in analysing, evaluating and synthesizing economic information • Be able to make informed, responsible and critically discriminating judgments about current economic and social policy issues • Learn how to think like an Economist © Playconomics, LHS Course Learning Outcomes • Course Learning Outcomes On successful completion of this course, students will be able to: 1. Describe and explain how microeconomic models can be used to consider fundamental economic choices of households and firms. 2. Describe and explain how macroeconomic models can be used to analyse the economy as a whole. 3. Describe and explain how government policy influences microeconomic choices and macroeconomic outcomes. 4. Interpret and use economic models, diagrams and tables and use them to analyse economic situations. © Playconomics, LHS Course Resources • Course Website: MyUni – – – – – – – – Announcements Course Outline Contact Details Lecture Slides Lecture Recordings Tutorial Assignments Link to Playconomics Discussion Boards • Required Resources: "Playconomics: Principles of Economics" by Isabella Dobrescu and Alberto Motta with associated electronic textbook materials "Principles of Economics" by Isabella Dobrescu, Alberto Motta and Stephanie McWhinnie • Tutorials © Playconomics, LHS Course Plan – Subject to Change Week Lecture Topic Textbook Reference 1 Comparative Advantage & the Basis for Trade Ch 1 2 Supply in Perfectly Competitive Markets Ch 2 3 Demand in Perfectly Competitive Markets Ch 3 4 Demand & Supply: An Equilibrium Analysis Ch 4 5 Government Intervention: The Cost of Interfering with Market Forces Ch 5 6 Market Power: Monopoly Ch 6 7 Macroeconomic Fundamentals Ch 7 8 Aggregate Supply & Aggregate Demand Ch 8 Mid-Semester Break 9 Money & Inflation Ch 9 10 Business Cycles & Fiscal Policy Ch 10 11 Employment & Unemployment Ch 11 12 International Trade & Exchange Rates © Playconomics, LHS Ch 12 & 13 Assessment • Assignments - Worth 20% - Best 4 out of 5 - Due 11:59pm Fridays in week 3/5/7/9/11 - Don’t leave until the last minute! • Active Tutorial Participation - Worth 10% - Attend and actively participate in tutorials you are enrolled in • Online Engagement - Playconomics - Worth 20% Academia questions starts in Week 2 Game starts in week 9 Due 7:30pm Friday October 29th Full instructions will be posted on MyUni • Final Exam - Worth 50% © Playconomics, LHS What to do for this course • Week X – Download Lecture Notes (and read them) – Watch Lecture Recordings (and annotate notes) – Read Textbook (to aid understanding of lecture material) • Week X+1 – Attend and Participate in Tutorial on Week X Material – Academia questions – Attend PASS session? Go to Economics Drop-In Centre? Ask for help? • Submit Associated Assignments in Odd Weeks © Playconomics, LHS Other Helpful Resources • • • • • • • MyUni Support: click on the Help button on the left-hand menu of MyUni for phone or livechat support Professions Hub phone 8314 4755 or email professions@ask.adelaide.edu.au or refer to their website https://www.adelaide.edu.au/professions/students/professionssupport-hub Writing Centre: www.adelaide.edu.au/writingcentre/ Counselling Service: Personal counselling for issues affecting study www.adelaide.edu.au/counselling_centre/ International Student Centre: Ongoing support http://www.international.adelaide.edu.au/life/ Student Care: Advocacy, confidential counselling, welfare support and advice https://www.auu.org.au/services Students with a Disability: Alternative academic arrangements www.adelaide.edu.au/disability/ Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy www.adelaide.edu.au/policies/64/ © Playconomics, LHS © Playconomics, LHS What is Economics? • • • • • • • The study of human behaviour in a world with scarce resources. Families, businesses and society all face the same problem: we want more than we can afford or have time for. Economics is about how we choose. A way of understanding our society and community and how they interact to form “The Economy”. It offers insight into the ways in which businesses are structured and compete, and the ways in which people interact and make decisions. A framework for decision making and is also about how to design institutions that help us make decisions and ensure that our decisions are ’good’ from a social viewpoint. Not just about money, it’s also about choice, scarcity, opportunity, and the impact of decision making on aspects of society A social science like sociology, politics and international relations, it’s also closely related to business, human geography, psychology and history A subject that uses analytical and expositional skills together so requires techniques from maths and stats as well as English A broad intellectual training, providing the foundations of knowledge of how the economy works and helping develop skills to make decisions using a universal framework that can be applied to many situations © Playconomics, LHS What Do Economists Study? • How people make decisions • How people interact with one another • How the economy as a whole works ? Microeconomics: the study of how households and firms make decisions and how they interact in markets ? Macroeconomics: the study of economy-wide phenomena (Incl. inflation, unemployment, economic growth) © Playconomics, LHS Economic Models & Assumptions • Economic models are stylised representations of the world • Most often composed of diagrams and equations • Use assumptions to simplify the reality so we can determine the key features • Help us understand fundamental economic forces • Assumptions are the things that simplify life to something we can work with ... without substantially affecting the answer • What matters is not whether the assumptions are realistic, but how much they make a difference to the answer • Suppose we assume the earth is flat. Does this matter? – If I'm making a campus map? – If I'm showing locational relationships between two countries? – If I'm explaining the relationship between the Earth and the Sun? • The art of scientific method is deciding which assumptions to make • Assumptions that make sense in one model (eg prices don't change) may not make sense in another © Playconomics, LHS © Playconomics, LHS Your First Model – Production Possibilities Assumptions • There are only • There are only • When trading, there are . . (negotiation/transportation costs), (import quotas, tariffs). David Ricardo in 1817 “magic 4 numbers” © Playconomics, LHS One-Agent PPC • 2 (Assumption 1): – collecting bananas and catching rabbits • Performing an activity involves use of – 1kg bananas takes 1 hour to collect – 1kg rabbit takes 2 hours to catch • The amount of resources used to perform a productive activity determines productivity → 24h/day - 8h sleep? = 16h © Playconomics, LHS One-Agent PPC • Step 1: – 16h collecting bananas • → 16kg bananas (16h x (1kg/1h)) • → 0kg rabbit – 16h catching rabbit • → 0kg bananas • → 8kg rabbit (16h x (1kg/2h)) • Step 2: – 16h collecting bananas AND rabbits • → 8h x (1kg/1h) = 8kg bananas • → 8h x (1kg/2h) = 4kg rabbit • → 4h x (1kg/1h) = 4kg bananas • → 12h x (1kg/2h) = 6kg rabbit © Playconomics, LHS Production Possibility Curve (PPC) Definition: The Production Possibility Curve represents all possible combinations of bananas and rabbits that can be produced with Alberto’s labour if he works all the available hours (i.e, the whole day). Definition (general): The Production Possibility Curve captures all maximum output possibilities for two (or more) goods, given a set of inputs (or resources) if inputs are used efficiently. © Playconomics, LHS One-Agent PPC © Playconomics, LHS Efficient Production Definition: An Efficient Production Point represents a combination of goods (bananas & rabbits) for which currently available resources (Alberto’s time) do not allow an increase in the production of one good without a reduction in the production of the other. All the points on the PPC are efficient. Definition: An Inefficient Production Point represents a combination of goods (bananas & rabbits) for which currently available resources (Alberto’s time) allow an increase in the production of one good without a reduction in the production of the other. All the points below and to the left of the PPC are inefficient. © Playconomics, LHS Attainable Production Definition: An Attainable Production Point represents any combination of goods (bananas & rabbits) that can be produced with the currently available resources (Alberto’s time).