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M1Model--TheoryofMarketDynamics.pptx

Buyers’ preferences and wants are always being changed by changes in supply.

The variation in consumer demand is constantly changing

Sellers learn directly and by observing other sellers how to add customer and shareholder value

Sellers with superior market analysis skills that are listened to are more competitive.

The supply of products and processes is constantly changing

Supply will shift to serve the demand of the most profitable market segments

The economic processes change the economic structure that changes the social and political structure.

Sellers who implement faster are more competitive.

Markets are always in disequilibrium. Competition increases as supply exceeds demand.

Sellers with an insatiable self-improvement drive are more competitive.

Effective products and process are quickly imitated and improved

Competition forces sellers to try new ways of serving customers and reducing costs

A Theory of Market Dynamics

1

Again walk the students around this figure starting with “The supply of products and processes is constantly changing”. Companies that are good at the activities in the bottom half of the figure flourish…those that are not wilt and die. By now students will be getting the message. Marketing creates market dynamics and triggers a whole series of causes and effects.