Priciples of Marketing
by Philip Kotler and Gary Armstrong
New-Product Development and
Product Life-Cycle Strategies
New-Product Development Strategy
Explain how companies find and develop newproduct ideas.
Chapter 11 Defining Psychology
1. Psychology looks to study a variety of different things, from personality to brain function to cultural
2. There are many different branches of psychology, such as social, cognitive, biological and
1. Here we examine the determinants of the natural rate of unemployment
the average rate of unemployment around which the economy uctuates.
2. The unemployment caused by the time it takes workers to search for a job
is called frictional un
9. Introduction to Economic Fluctuations
1. Economists call these short-run uctuations in output and employment the
2. In the long run, prices are exible and can respond to changes in supply or
demand. In the short run, many prices are sti
2. The Data of Macroeconomics
1. Economists needed some way to combine many individual experiences
into a coherent whole.There was an obvious solution:as the old quip
goes,the plural of anecdoteis data.
2. Gross domestic product, or GDP, tells us the nati
7. Economic Growth I
1. Our primary task is to develop a theory of economic growth called the
Solow growth model.
2. We therefore call k* the steady-state level of capital.
3. The steady state represents the long-run equilibrium of the economy.
4. The ste
10. Aggregate Demand
1. The model of aggregate demand developed in this chapter, called the IS
LM model, is the leading interpretation of Keyness theory.
2. The two parts of the ISLM model are, not surprisingly, the IS curve and
the LM curve.
3. To develo
3. National Income: Where It Comes From
and Where It Goes
1. Factors of production are the inputs used to produce goods and services.
2. Economists express the available technology using a production function.
3. Many production functions have a property
5. The Open Economy
1. Dening net exports to be exports minus imports (NX = EX IM),the
identity becomes Y = C + I + G + NX.
2. Another name for net exports is the trade balance, because it tells us how
our trade in goods and services departs from the benc
8. Economic Growth II
1. We now write the production function as Y = F(K,L E), where E is a new
(and somewhat abstract) variable called the efciency of labor.
2. The term L E measures the number of effective workers.
3. This form of technological progress
4. Money and Ination
1. In 2000 the Times cost 75 cents,the price of a home was $166,000,and
the average wage was $14.26 per hour. This overall increase in prices is
2. Even when the U.S ination problem became severe during the 1970s,
1. The Science of Macroeconomics
1. Real GDP measures the total income of everyone in the economy
(adjusted for the level of prices).
2. The unemployment rate measures the fraction of the labor force that is out
3. There are repeated periods duri
Systemic or Macro Factors That Affect
1. Financial planning has to take into account conditions in the wider economy and in the
markets that make up the economy.
2. The labor market, for example, is where labor is traded throu
Individual or Micro Factors That Affect Financial
1. The circumstances or characteristics of your life influence your financial concerns and
2. What you want and needand how and to what extent you want to protect the
The Planning Process
1. A financial planning process involves figuring out where youd like to be, where you are,
and how to go from here to there.
2. Personal circumstances change, and the economy changes, so your plans must be
flexible enough t
Basic Ideas of Finance
1. Money, says the proverb, makes money.
2. Personal finance addresses the great difficulty of getting a little money.
3. It is about learning to manage income and wealth to satisfy desires in life or to create more income
Accounting and Financial Statements
1. Clay tablets interested Sumerian traders because the records gave them a way to see
their financial situation and to use that insight to measure progress and plan for the
2. The method of accounting
Comparing and Analyzing Financial
1. On common-size statements, each items value is listed as a percentage of another.
2. On the income statement, each income and expense may be listed as a percentage of the total
3. This show
Accounting Software: An Overview
1. Most programs have designed their data input to look like a checkbook, which is what
most people use to keep personal financial records.
2. This type of user interface is
intended to be recognizable and famil
Debt and Equity
1. Buying capital, that is, borrowing enables you to invest without first owning capital.
2. By using other peoples money to finance the investment, you get to use an asset before
actually owning it, free and clear, assuming you
1. As defined earlier in this chapter, an asset is any item with economic value that can be
converted to cash.
2. Assets are resources that can be used to create income or reduce
expenses and to store value.
3. When you sell excess capita
Income and Risk
1. Personal finance is not just about getting what you want; it is also about protecting what
2. Since the way to accumulate assets is to create surplus capital by having an
income larger than expenses, and since you re
6. Growing and Developing
1. Development refers to the physiological, behavioral, cognitive, and social
changes that occur throughout human life, which are guided by both
genetic predispositions (nature) and by environmental influences (nurture).
3. Brains, Bodies, and Behavior
1. Our behavior is also influenced in large part by the endocrine system,
the chemical regulator of the body that consists of glands that secrete
2. A neuron is a cell in the nervous system whose function it is to
8. Remembering and Judging
1. The two subjects of this chapter are memory, defined as the ability to store
and retrieve information over time, and cognition, defined as the processes
of acquiring and using knowledge.
2. psychologists conceptualize memory
1. The topic of this chapter is learningthe relatively permanent change in
knowledge or behavior that is the result of experience.
2. For behaviorists, the fundamental aspect of learning is the process of
conditioningthe ability to connect sti
4. Sensing and Perceiving
1. . The human ear can detect sounds as low as 20 hertz (vibrations per
second) and as high as 20,000 hertz, and it can hear the tick of a clock
about 20 feet away in a quiet room.
2. Psychophysics is the branch of psychology tha
2. Psychological Science
1. Basic research is research that answers fundamental questions about
2. Applied research is research that investigates issues that have implications
for everyday life and provides solutions to everyday problems.