ECONOMICS NOTEBOOK

DAVID ESCOBAR GIL

11D

2021

Marketing: Marketing is the process of planning and undertaking the conception, pricing,
promotion and distribution of goods and services to create and maintain relationships that will
satisfy individual and organisational objectives.

ANSWERING QUESTIONS:

The global economy has created market opportunities for premium products aimed at
consumers who are short of cash and cannot afford a meal in 3 star restaurants and to avoid
being overweight.

Do you think it will be easy to change the company's brand image? Explain your answer

No, it's not easy because a company is usually known for something and to change that from
people's mind is hard and it would take a lot of time.

Why are researching consumer wants and promoting important to firms such as Mcdonalds
and Burger King?

They need to research why the people want and promote it.

5/02/2020

Marketing video

There are two types of customers: consumer market(markets for goods and services bought by
the final user of them and industrial markets(markets for goods and services bought by
businesses to be used in the production process of their products)

Market businesses to businesses

When selling to other businesses a computer manufacturer. Not focus on retail stores but used
more resources on industrial exhibitions and direct or personal selling to companies.
Customise the good or service to the exact requirements of each business customer.

Promote the product as being a cost saving and profitable choice not something that will
satisfy a consumer desire or need.

Produce technical promotions and literature that will recognize that business customers will
very likely be knowledge and will be making an informed choice.

Marketing services

Services cannot be taken back to be repaired or replaced so the service quality must be right
first time or the consumer will not return.

Consumers find it much more difficult to compare service quality that manufactured goods so
promotion and services must be informative and detailed about the precise nature of the range
and quality of services offered.

People are very important to the successful marketing of services.By contrast,products such
as Nintendo's wii, often “sell themselves” due to their innovative features.

17/02/2021

Points to think about

Why did Nevea use both existing and new markets research data?

Because the existing data on consumers' usage of deodorant products and competitors' sales
were out of date,new research was very important if the company wanted to find out what
today’s women want in a deodorant product and what its key features should be.

Explain four uses of the data collected to Nivea

Produced test products and tried these on small groups of women to identify that women
prefer the most beautifying and caring products.

The price changes to encourage women to switch brand and how many would buy at different
prices and a mid to high price was acceptable to majority

Image of the packaging and the advertisement. These were shown to the groups and their
reactions and opinions were used to adapt both packaging and the advertisement.

Was the use of market research the only factor that led to this product’s success?

Yes because they based the market research on what the people prefered but no because the
product has a part in this too because people liked the product.

24/02/2021

Session 2 summary bitcoin

Explaining bitcoin to dummies

Long time ago when money didn’t exist people used to exchange things like cows and
shells.Shells have value because two or more people have accepted and agreed that they have
value and they can be transferred to other people. If more people accept that shells have
value,the more value they are going to have.But there is one problem, there is an unlimited
amount of shellfish but for the shelfs to have value there needs to be a limited amount of shells
that’s why people started to use gold and silver.Gold has value because is limited and because
many people have accepted to be valuable.

A common belief is that gold has high value because it conducts electricity and it is used for
making products.

For leaders to stay in power, a government must give more and more free stuff to its citizens or
military or they will lose their position and they get the money by taxes and the government
also borrows money.The government print money and when more money is printed for the
same amount of money so the value of money goes down. Gold is not completely limited. Gold
is hard to transfer.

Bitcoin is a worldwide digital money which is not controlled or centralized for any government,
organization, bank, location or corporation. There is a limited supply , it can easily be
transferred digitally around the world. They transfer using “blockchain”

Explaining bitcoin to a fifth grader

A ledger is a book or collection of accounts in which account transactions are recorded.

Double spending problem is a potential flaw in a digital cash scheme in which the same digital
token can be spent more than once.

If everyone had a ledger everyone could make sure that your and other transactions are
legitimate. Bitcoin is a digital currency that offers the promise of lower transaction fees and the
promise of lower transaction fees than traditional online payment mechanisms and it is
operated by a decentralized authority.

Activity

Explain four benefits to IKEA’s managers of having detailed research information about their
customers.

By having the company have detailed information about the demographics of its public, it
allows it to meet the needs of its consumers at the moment of knowing between which ranges
its trends are, in order to know their public

BITCOIN DOCUMENTARIES: SESSION 1 and SESSION 2

Notes:

Bitcoin Explained for Dummies,

Explaining Bitcoin to a Fifth Grader (George Donev),

SESSION 1: THE BOSTON MATRIX ANALYSIS

Activity 26.1

Applying the Boston Matrix

Undertake detailed research into the product portfolio of one well-known business in your
country that sells a range of different products. For example, this might be a chocolate
manufacturer, soft drinks producer, car manufacturer and so on. Try to discover the market
share of the different products sold and the rate of growth of the market segment the products
are sold in.

24 marks, 35 minutes

1. Analyse the firm’s product portfolio using the Boston Matrix.

2. Evaluate two strategies that the business could adopt for any one of its products.

COLOMBINA S.A.

Colombian company, which has been in the market for 90 years, as a manufacturer and
marketer, it is named as a global food company that seeks to captivate the consumer through
innovation and the taste of its products.

Colombina is characterized by being a candy company (apart from its other products), it has
positioned itself in the market due to the diversity of products it has, and that from any
perspective is a brand recognized by Colombians.

Within its product portfolio are the following (each with its varieties):

● Beverages

● Cereals

● Chocolates

● Candys

● Cookies

● Ice Cream

● Snacks

● Sauces & preserves

● Canned

● Personal care product

According to the Boston parent company, Colombina's portfolio of products is:

The strategies that Colombina could contribute within thats products:

➔ Low-low: Identify the market segment and structure striking product for the new public and
Colombinas loyal customers.

➔ Low-high: Boost the market that each product has to consider it as High-high.

SECTION 2: PRICING

● Explain why Microsoft reduced the price of its Xbox console at this time. PlayStation was
selling more so they needed a competitive price, so people would start buying more XBox.

● Why do you think all of the prices quoted above are just below a ‘round figure’, e.g. $299 and
not $300?

It is because when we see a lower figure at the beginning of the price we think that we are
paying less.

● Since the first games console was launched, retail prices have fallen steadily. Why is the
price trend for this product falling?

Because as there are more and more options, people tend to stop buying the more expensive
ones.

SUPPLY AND DEMAND AND ELASTICITY OF DEMAND

Let's watch the following videos, take notes and then have a class discussion - SUPPLY AND
DEMAND: CRASH COURSE ECONOMICS 4

Main outtakes of this lesson

1) Market - any place where buyers and sellers meet to exchange goods and services. a. An
owner of a supermarket values the labor of the cashier more than money she pays him. 2) Price
signals - the information that markets generate to guide the distribution of the resources. a.
Businesses, and in particular large corporations , are often villainized as greedy, heartless
institutions, that take advantage of consumers, but if markets are transparent and buyers are
free to choose, then businesses will have a hard time making advantage of people.

3) Supply and demand.

a. When the price goes up - people buy less, when the price goes down - people buy more.
b.When the price goes up - the farmer wants to produce more, when the price goes down - the
farmer wants to produce less.

c. When quantity supplied = quantity demanded, we get equilibrium price of product. 4) Four
market behaviors

a. Supply can decrease.

b. Supply can increase.

c. Demand can increase.

d. Demand can decrease.

https://www.youtube.com/watch?v=g9aDizJpd_s

Activity 27.7

12 marks, 21 minutes

Do you think Levi's is right to try to limit the sale of its clothing products at “knock down”
prices? justify your answer.

Through the article "What's wrong with buying fake luxury goods?" We can identify the impact
of buying a counterfeit article or garment, as it implies dark and lost destinations for companies
that have spent years of dedication to their products and innovations. It is also worth
mentioning each of the reactions within a market, as it is in Mexico, where Tesco is accused of
using the products as having a lower value and even more losses for a company such as Levis.

At the same time, it will not be very equitable and affordable for people who buy this brand
when they see that their prices would not fall, a possible drop in the market would also be
identified. On the part of Levis, there would be a positioning between its consumers and its
profits where there is a collaborative economy.

SUPPLY AND DEMAND AND ELASTICITY OF DEMAND

Supply and Demand: Crash Course Economics #4

The production, delivery and sale chain can be evidenced through the movements generated
by the market. The markets in this case become very competitive, making their products of
efficient use.

As mentioned in the example of strawberries, from the smallest to the largest within its chain,
each of the importance of the market process is identified. In addition, an example may be that
the cheaper the strawberries, the less profits will be reflected, and there will be the incentive to
produce something more, among farmers.

In other words, if the supermarkets raise their prices, the incentive to produce many more
strawberries will be generated, considered as an advantage for the farmer.

MARKETS ENCOURAGE QUALITY PRODUCTION

Like strawberries, it is not very pleasant to see a strawberry that is almost damaged, or very
green. Where do the prices come from? The answer is supply and demand