Managers need to realize that marketing analysis builds on the fundamental economic concepts of demand and elasticity.
Managers need to realize that marketing analysis builds on the fundamental economic concepts of demand and elasticity. Marketers use these basic economic concepts to develop analyses of brand differentiation, market segmentation, and new product pricing. While some of the formal statistical approaches economists use to estimate demand relationships may appear abstract and academic to managers and marketers, these approaches attempt to determine the effects of different variables on demand, while holding all else constant.
Upon completion of this assignment, you should be able to:
Evaluate how managers use economic and marketing data to analyze demand for products and services.
Resources
Textbook: Economics for Managers
Videos: Econometrics:
Lecture 1: Introduction: http://www.
Lecture 2: Simple Linear Regression (SLR): http://www.youtube.com/
Lecture 3: OLS and Goodness-Of-Fit (R-Squared): http://www.
Background Information
The use of marketing and economic data can be very useful for driving business and managerial decisions. Various data can be derived from primary and secondary resources. Managers can make inferences through statistics or econometrics, or they can use direct information that is obtained from consumers through various marketing strategies or tactics.
Instructions
Before beginning the discussion, watch the Econometrics videos and read Chapter 4 in Economics for Managers.
Navigate to the threaded discussion and respond to the following:
“All else held constant” is a major problem facing all methods of estimating the demand for business products. Compare and contrast how the marketing and economic approaches deal with this problem. Please use examples.
Your initial post is due by the end of the fourth day of the workshop.
Read and respond to at least two of your classmates’ postings, as well as all instructor follow-up questions directed to you, by the end of the workshop.
Your postings should also:
Be well developed by providing clear answers with evidence of critical thinking.
Add greater depth to the discussion by introducing new ideas.
Provide clarification to classmates’ questions and provide insight into the discussion.
Respond to the following:
“All else held constant” is a major problem facing all methods of estimating the demand for business products. Compare and contrast how the marketing and economic approaches deal with this problem. Please use examples.
Answer preview Managers need to realize that marketing analysis builds on the fundamental economic concepts of demand and elasticity.
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