Define the meaning of Economics

Economics can be defined as a discipline that studies the behaviour patterns of human beings.The main aim of economics is to analyse how individuals, households, organisation and nations use their scarce resources to achieve maximum profit.

Economics is broadly classified into two parts, namely Microeconomics and Macroeconomics.

Microeconomics is a branch of economics that studies the behaviour of individual consumers and organisations in the market.On the other hand, Macroeconomics examines the economy as a whole and deals with issues related to national income, employment pattern, inflation, recession,and economic growth.

Meaning of Economics: Evolution of subject economics.In simple terms, economics can be defined as the study of how individuals, households, organisations, and nations make optimum utilisation of scare resources to satisfy their wants and needs.

The word Economics has originated from a Greek word oikonomikos, which can be divided into two parts:oikos means home and nomo means management.

Let us now discuss how these groups use economics for their betterment:

Economics and a household: Every household needs money to meet their daily expenses.In this manner they sell their labour to firms, producers or government agencies and in return they get limited amount of money.

Economics and society: Economics also helps a society to ensure optimal allocation of scare and limited resources.If a large amount of inputs is used to produce a small amount of output,then there will be wastage of resources.It will create imbalance for economy and the society as a whole.ultimately ,it makes economy weak which is unable to deal with social evils, like poverty and unemployment.

Economics and nation: Human wants are unlimited but resources which are available to satisfy these wants are unlimited or scarce in nature.Scarcity is the cause for all economics problems and it also give rise to other related problems such as traffic jams,long queues in Bank, overcrowding in public transport,etc.

Economics and world:As we know Human wants are unlimited but resources to satisfy these wants are limited and scarce and the problem of scarcity can also be seen at the global level.At the global level, international economics provide a way to study economic transaction among different countries.These economics transactions are also called economic activities and it includes transfer of goods, capital, resources, technology and services from one country to another country.

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What is Customer Equity?

The ultimate aim of customer relationship management is to produce high customer customer equity.

Customer equity is the total combined customer lifetime value of all the company’s current and potential customers.

Building the Right Relationship with the Right Customers…… companies should manage customer equity carefully.They should view customer as assests that need to be managed and maximized.

The company can classify customers according to their potential profitability and manage its relationship with them accordingly.

Customer Relationships Group
1.Strangers show low potential profitability and little projected loyality. 2.Butterflies are potentially profitable but not loyal. 3.True Friends are both profitable and loyal. 4.Barnacles are highly loyal but not profitable

Therefore,the point here is an important one…..Different types of customer require different engagements and relationships management strategies.The goal is to build the right relationships with the right customers.

Happy Saturday­čśŐThe Persistence of Cultural Values!

People in a given society hold many beliefs and values.Their core beliefs and Values have a high degree of persistence.
Core beliefs and values are passed on from parents to children and are reinforced by schools, businesses, religious institutions, and government.

Secondary beliefs and values are more open to change.Believing in marriage is a core belief; believing that people should get married early in life is a secondary beliefs.

Shifts in Secondary Cultural Values
Although core values are fairly persistent, cultural swings do take place.Consider the impact of popular music groups, movie personalities and other celebrities on young people’s hairstyle and clothing norms. The major cultural values of a society are expressed in people’s view of themselves and others as well as in their views of organizations, society, nature and the universe.

People’s Views of Themselves….. People vary in their emphasis on serving themselves versus serving others.Some people seek personal pleasure, wanting fun, change,and escape..

Marketers can position their brands to appeal to specific self- view segments.

People’s Views of Others….. People’s attitudes toward and interactions with others shift over time.

People’s Views of Organizations…..People vary in their attitudes toward corporations, government agencies, trade unions, universities,and other Organizations.

People’s Views of Society….. People vary in their attitudes toward their society-patriots defend it,reformers want to change it,and malcontents want to leave it.

People’s Views of Nature….. People vary in their attitudes toward the natural world-some feel ruled by it, others feel in harmony with it,and still others seek to master it.

People’s Views of Universe….. Finally, people vary in their beliefs about the origins of the universe and their place in it.

The Social Marketing Concept!

The social marketing concept questions whether the pure marketing concept overlook possible conflicts between consumer short run wants and consumer long run welfare..

The social marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well being.It calls for sustainable marketing, socially and environmentally responsible marketing that needs the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Understanding the Market Place and Customer Needs!!

We examine five core customer and marketplace concepts!

1)needs,wants,and demands 2)market offerings 3) value and satisfaction 4) exchanges and relationships and 5)markets

Customer Needs, Wants,and Demands

The most basic concept underlying Marketing is that of human needs.Human needs are states of felt deprivation.They include basic physical needs for food, clothing,warmth and safety;social needs for belonging and affection;and individual needs for knowledge and self expression.

Wants are the form human needs take as they’re shaped by culture and individual personality.
When backed by buying power,wants become demands.

Market Offerings-Product, Services and Experiences.Consumers’ needs and wants are fulfilled through market offerings.

Market offerings are not limited to physical products.They also include services-activities or benefits offered for sale that are essentially intangible and do not results in the ownership of anything.

Customer Value and Satisfaction
Customer usually face a broad array of products and services that might satisfy a given need.Customers form expectations about the value and Satisfaction that various market offerings will deliver and buy accordingly.

Customer value and customer satisfaction are key building blocks for developing and managing customer relationships.

Exchange and Relationships
Marketing occurs when people decide to satisfy their needs and wants through exchange relationship.Exchange is the act of obtaining a desired object from someone by offering something in return.

Marketing consists of actions taken to create,maintain and grow desirable exchange relationships with target audiences involving a product, service, idea,or other object.

Markets
The concept of exchange and relationships lead to the concept of a market. A Market is the set of actual and potential buyers of a product or service. Marketing means managing markets to bring about profitable customer relationships.

What is Marketing!!

The aim of marketing is to create value for customers in order to capture value from customer in return.

There are 5 steps in the marketing process!!

From understanding customer needs,to designing customer value-driven marketing strategies and integrated marketing programs,to building customer relationships and capturing value for the firm.

Let’s start with a good story about Marketing in action at Nike, the world’s leading sports apparel company and one of the best-known brands on the planet!

Nike’s outstanding success results from much more than just making good sports gear.The iconic brand delivers customer value by building deep engagement and a sense of community with and between the Nike brand and it’s customers.

The Nike”swoosh”- it’s everywhere!

Product innovation has always been a cornerstone of Nike’s success.Nike makes outstanding shoes, clothing and gear weather for basketball football, baseball or golf, skateboarding,wall climbing, bicycling and hiking.

Beyond shoes,Nike marketed a way of life,a genuine passion for sports,a”just do it”attitude.

Therefore, Marketing is engaging customers and managing profitable customer relationships.

E-Business

E-Business refers to the manner in which modern commercial organisation create information links and conduct business.

In contrast to the purpose of e-commerce which is to conduct commercial transactions with customers through buying, selling, auctions and searching,the purpose of e-business is to enhance the internal functioning of organisations by using the facilities of the internet.

E-Business enables firms to maintain a rich information interchange with their partners, collaborators and suppliers.

The main economic benefit of e-business is reduced transaction cost.

E-Business infrastructure have made the biggest difference to large multinational business that work with a large number of partners in different countries, working in different time zones and in different languages.

E-supply chains are now widely used by multinational organisation!!

DOING BUSINESS OVER THE INTERNET!!

The internet presents a unique and unsusal channel for business as compared to older methods.It has several properties that make it very different from the ways of doing business in the past-the internet permits almost instant communication; messages sents in by email arrive at destinations across the globe in a matter of seconds; people can chat or talk online simultaneously while being located in different countries; images and sounds and video can be shared and broadcast instantly; the cost of sending messages is much lower than by physical means and it is possible to search vast quantities of information on the internet, something that was practically impossible in the manual methods of information exchange.

E-Commerce;The first few prominent e-commerce firms used the technologies such as HTML and email to set up business.The immense success of this business model led to more innovation and newer technologies being invented.

Portals;Web portals were one of the first e-commerce business to arrive after the commercial launch of the World Wide Web.

Search Engines; Search Engines are special programs built upon HTML to search information and data within web pages and categories them.

Direct Selling; Traditionally,goods are sold through a retailer where customers arrive at the premises, observe and examine the goods they are interested in,ask questions to the seller,if necessary and then make the purchase.Direct selling to consumers is often referred to as business to consumer (B2C) and commerce between businesses is referred to as business to business (B2B).

AUCTIONS;A typical auction is an aggregation of many buyers and sellers, where the sellers provide the items for sale and buyers price them according to some principles

Aggregators;In B2B markets,buyers and sellers may place their requirements and products on a single website that manages the bidding and sale process

E-Commerce Technology!!

Electronic commerce or e-commerce in the modern world defines a powerful means of doing business. The origin of the word e-commerce are in early days of the commercial internet, in the early 1990s,when businesses started extending their market reach using the new electronic medium.
There was a massive growth of e-commerce around the world as the technology became available to all, and also, as it evolved over time.
THE DOTCOM BOOM AND BUST-When the internet was opened for commercial use in 1993 in the USA, it resulted in a huge upsurge of business ideas and models for using the new medium.
Many Entrepreneur started building websites that offered new preposition for both customers and businesses.
The dotcom boom was not restricted to the USA as firms in other parts of the world, including India, started out with new and innovative business ideas.