Marketing_LectureNotes_Midterm1 - Marketing Lecture Notes...

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Marketing Lecture Notes Market Systems Indentured Servants (Production) → Surplus Product Adam Smith - “Invisible Hand” Created concept of “Consumption” and Concept of Selling Overabundance Consumers = Servants who pay to consume This is where the idea of producivity comes, which created the opportunity of buying goods. Rules/ Laws / Constraints (Definition of Freedom) “Freedom w/o rules is Anarchy” There is a need to depend on each other for Trade. (Builds society and culture) Gov't out! - Free Markets (Laissez Faire) Adam Smith's 3 Principles 1. $ Vote Theory – Consumers vote with the dollars they spend. 2. Rational Economic Man Theory – Competitive price ( The rationale behind this is Price is Lowest / Quality is Highest wins!) …. Some taxation makes sense. 3. Management of System – Invisible Hand “Everything Adjusts” Mixed Economy – Post-Futile “Monopoly” - Single (1) provider of good or service! “Control over markets” Very tough barriers to entry. If company has high quality and lower prices, the company survives.
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This note was uploaded on 09/08/2010 for the course BUS 130 at San Jose State.

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Marketing_LectureNotes_Midterm1 - Marketing Lecture Notes...

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