Economic Resources Marketing Dynamics – Unit 3 Lesson 1 Copyright © Texas Education Agency, 2014. All rights reserved.

Economic Resources

Marketing Dynamics – Unit 3 Lesson 1

Copyright © Texas Education Agency, 2014. All rights reserved

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Economic ResourcesO Goals

O Students will describe the concept of economic resources

O Students will identify economic needs and wants

O Students will explain the concept of utility and cite examples of types of utility.

O Students will describe the function of price in markets.

O Students clarify how the interaction of supply and demand affects price.


Economic ResourcesO Terms to know

O ScarcityO EconomicsO SupplyO DemandO Market PriceO Factors of ProductionO Marketing UtilitiesO GoodsO Services


Economic ResourcesO Goods – tangible products that you

can touch or hold in your hand. O Services – intangible products,

tasks performed for a customer.


Economic ResourcesO Scarcity

O Limited resources available to satisfy unlimited needs and wants.

O EconomicsO Study of how people choose to use

the limited resources to satisfy the unlimited needs and wants.


Economic ResourcesO Supply – the relationship between

the amount of a good or service that businesses are willing and able to make available and the price.

O Demand – the relationship between the amount of a good or service that consumers are willing and able to purchase at the price.


Economic ResourcesO Market Price – the point at which

supply and demand cross.


Economic ResourcesO Competition is the struggle

between companies for customers. O Some companies choose to compete

focusing on sale prices, this is called price competition.

O Non-price competition business focus on factors other than price to attract customers such as quality, services, location, financing or reputation. Copyright © Texas Education Agency, 2014. All rights

reserved

Economic ResourcesO Factors of Production

O Natural resources - landO Human resources - laborO Capital resources - money


Marketing UtilitiesO Marketing adds value to products.

O Form utilityO Place utilityO Time utilityO Possession utilityO Information utility


Marketing UtilitiesO Form Utility

O Involves changing raw materials or putting parts together to make them more useful.O Examples are

O trees made into lumber, then lumber turned into houses.

O Parts that are put together to make a smartphone.


Marketing UtilitiesO Place Utility

O Involves having a product where customers can buy it.O Examples are chips and candy bars in a

vending machine, or sleeping bags in a sporting goods store.


Marketing UtilitiesO Time Utility

O Have a product available at a certain of year or a convenient time of day.


Marketing UtilitiesO Possession Utility

O The exchange of the product for some monetary value.O CashO Personal checksO Credit cardsO FinancingO layaway


Marketing UtilitiesO Information Utility

O Involves communication with the consumer.O SalespeopleO Product labelingO AdvertisingO DisplaysO Product packaging


Marketing UtilitiesO Marketing adds value to products

and increases demand.O Higher demand = increased

production.O Increased production = lower cost

per unit.O Lower cost per unit = lower prices


Marketing UtilitiesO New and improved products are a

product of increased competition generated by marketing.


Economic Resources Marketing Dynamics – Unit 3 Lesson 1 Copyright © Texas Education Agency, 2014. All rights reserved.

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