MARK20100 Lecture Notes - Lecture 1: Invisible Hand
Document Summary
Chapter 1 - marketing: creating and capturing customer value. *profit = sales (revenue) satisfying needs and wants (raise sales) (means) Costs (expenses) efficient use of resources ( lower costs) (ends) Idea: self-interested behavior tends to lead to a common good in a free market = * the invisible hand (wealth of nations by adam smith: *command economy (socialism) = government owns all types of production. Our capitalist system relies on human nature. This is the system that"s designed to work in free markets: works because it relies on a dependable force: self- interest/human nature. This type collapsed because it didn"t have the same incentive to take care of resources or satisfy customers because it didn"t have to worry about losing customers to a competitor because there was no competitor. In this system, companies couldn"t sell products worldwide because the quality of the products were so bad.
