SUPPLY AND DEMAND

FANETH YADIRA ALVARADO

SERVICIO NACIONAL DE APRENDIZAJE SENA

2374740: TECNÓLOGO GESTIÓN DE MERCADOS

CARLOS ARTURO CONTRERAS MONRROY

08 DECEMBRE 2021
TABLA DE CONTENIDO 4

ORIENTACIÓN 4

SUPPLY AND DEMAND 4

1. Match the Word with the corresponding meaning: 10

2. According to the text, mention the things people take into account todetermine the demand. 10

3. Write F for false or T for true 11

4. Answer the following questions 11

1. Planning 12

2. Analysis 12

3. Integration 12

4. Action 12

Product 12

Price 12

Sales systems 12

Payment systems 12

Advertising 12

Promotion 12

Location 12

Organization 12

Planimetry 13

BIBLIOGRAPHIC 15
 EVIDENCIA
“TALLER DE COMPRENSIÓN DE LECTURA”.

DESCRIPCION DE LA EVIDENCIA SOLICITADA

Desarrollar un taller de comprensión lectora sobre términos técnicos en idioma inglés,referente a oferta
y demanda.

ORIENTACIÓN

Lea con atención el texto “Supply and Demand”, que se encuentra en el objeto de aprendizaje de la
Actividad de Proyecto 4, y conteste:

SUPPLY AND DEMAND

In the business world, it’s common to hear and see references to supply and demand. With that said, few
individuals possess a thorough understanding of the idea and its wide-ranging impact on markets, prices,
and consumers. In short, supply and demand refers to the force of consumers (or how much customers
want or need to buy something) in relation to the available supply (or how much of something
companies are able to sell). Generally speaking, high demand results in limited supply and increased
prices, and low demand results in an ample supply and decreased prices.

This latter phenomenon - the correlation between supply and demand and prices -might sound confusing
at first, but it’s actually rather simple. When there isn’t enough of something available for sale to satisfy
demand (or so that everyone who wants this “something” can simply purchase it), manufacturers, or
businesses that produce a product or products, charge more; they are able to do so because they aren’t
faced with competition (as whatever they’re selling is in demand and presumably not offered by many
other businesses), and customers are willing to pay more to secure said product. Inversely, if something
is available in abundance, companies will have to contend with competition, or actions taken by a
company that’re designed to improve its market standing, sales, and ultimately, profits.

An example will make the concept of supply and demand entirely clear. Imagine that a company creates
a fantastic video game system that many customers want to buy. Demand will build both naturally and
as the product isn’t available to buy (this marketing technique is utilized by many companies today; not
being able to purchase something seems to create consumer buzz), and if the supply doesn’t increase to
give every willing customer a system, prices will rise. In other words, if customers have no other way to
buy the system than through its manufacturer, and are having a hard time finding the system to buy,
they’ll be willing to pay more to buy it.

On the other side of the coin, a product that’s not proprietary, is widely accessible, and can be sold by
any company - pasta, for instance - will be manufactured, marketed, and sold by a number of businesses.
One company might sell a box of pasta for $10, and another company could respond to this price by
selling their own pasta for six dollars, and another company could sell their pasta for four dollars, and so
on and so forth until the price has been driven down to a very affordable rate. Demand won’t be
particularly high in this scenario, as there will be plenty of the product at-hand to go around. Moreover,
demand comes before competition; if demand is relatively low because a supply is high, prices will fall
and some degree of competition will occur.

1. What is supply and demand?

a) The amount of something that’s available to purchase.

b) How much consumers are willing to pay for a product.
c) The maximum possible price for a product.
d) The force of consumers in relation to the available supply. ( x)

2. What prices do high and low demands create, generally speaking?

a) High demand creates low prices.

b) Low demand creates high prices.
c) High demand creates high prices and low demand creates low prices. ( x)
d) Both demand types create low prices

3. If a company produced a small quantity of an in-demand product, what would happen to

prices?

a) They would rise. ( x)

b) They would fall.
c) They would stay the same.
d) None of the above.

4. Companies sometimes limit their supplies to:

a) Decrease demand.
b) Increase prices. ( x)
c) Increase demand and lower prices.
d) Decrease demand and lower prices.

5. What is commonly associated with low demand and low prices?

a) Proprietary products.
b) Ample competition.
c) Items that can be crafted by many companies.
d) 2 and 3( x)
 ELEMENTS OF THE MARKETING MIX

The marketing mix is the combination of product, price, place and promotion for any business venture.

The marketing mix test questions

No one element of the marketing mix is more important than another – each element ideally supports the
others. Firms modify each element in the marketing mix to establish an overall brand image and unique
selling point that makes their products stand out from the competition.

An exclusive brand of jewellery uses the best materials but comes at a high price. Such designer brands
can only be bought at exclusive stores and are promoted using personal selling sales assistants. By
contrast, cheap and cheerful jewellery for the mass market is best sold in supermarkets and can be
promoted using television adverts.

Market research findings are important in developing the overall marketing mix for a given product. By
identifying specific customer needs a business can adjust the features, appearance, price and distribution
method for a target market segment.

New technologies and changing fashion means goods and services have a limited product life cycle.
Ideally, the marketing mix is adjusted to take account of each stage. For example, the life of a product
can be extended by changing packaging to freshen a tired brand and so boost sales.

There is no single right marketing mix that works for all businesses at all times. The combination of
product, price promotion and place chosen by a business will depend on its size, competition, the nature
of the product and its objectives.

The overall marketing mix is the business’ marketing strategy. It is judged a success if it meets the
marketing department’s objectives, eg increase annual sales by 5%.

The law gives customers protection against unfair selling practices. You do not need to know specific
Acts but you do need to understand how fair trading regulations protect consumers.

The consumer has basic legal rights if the product is:

 given a misleading description

 of an unsatisfactory quality
 not fit for its intended purpose
 Sale and Supply of Goods Act 1994

This Act says that all products have to be of a 'satisfactory quality'. This means that they have to:

 be safe
 last for a reasonable amount of time
 be fit for their intended purpose
 have nothing wrong with them (unless the defect was noted at the time of sale)
After reading carefully the previous text answer:

6. What does a business adjust to create a brand image for a product?

a) The marketing mix ( x)

b) Price
c) Product

7. What is the most important element of the marketing mix?

a) Price
b) Product
c) No single element is the most important( x)

8. What does the overall marketing mix of a firm determine?

a) Marketing strategy ( x)
b) Marketing objective
c) Profit from marketing

9. Who is protected by consumer protection laws?

a) Businesses and customers

b) Just customers ( x)
c) Just businesses

10. Which of the following is NOT an element in the marketing mix?

a) Price
b) Profit ( x)
c) Promotion

11. Where are premium products most likely to be sold?

a) In supermarkets
b) In designer stores( x)
c) On market stalls

12. When is a business most likely to adjust the marketing mix of a product?

a) If costs change
b) If customer needs change( x)
c) If management changes
13. A supermarket's own brand range of products:

a) Has its own marketing mix( x)

b) Has no marketing mix
c) Has no promotional mix

14. How is a business most likely to increase sales of a premium branded product?

a) By cutting price( x)
b) By increasing promotion
c) By using supermarkets for distribution

15. What does the overall marketing mix create?

a) Customer needs
b) Business objectives
c) A unique selling point for a product( x)
 1. Match the Word with the corresponding meaning:
a. Supply Expensive

b. Demand Desire to buy any product

c. High price All people

d. Mass market The lifetime of goods and services.

e. Life cycle Disposition to offer products

2. According to the text, mention the things people take into account todetermine the
demand.
1. Tastes or preferences
Consumers may demand for an item one year and ignore it the next.

2. Number of consumers
A large quantity of buyers carries to an increase in demand; a small quantity of buyers carries to a
decrease (Franny Chan website).

3. Income
When income rises, the quantity demanded will rise too. When income falls, the demand of that
product will fall too (Franny Chan website).

4. Consumer expectations
Purchasers are interested in satisfying their consumption regarding quality as the most important
factor. Likewise, the lead price has an effect on the potential increase of the consumer´s final
decision.

5. Price of related goods

There are two kinds of related goods that can affect the demand: substitutes (for example, butter and
margarine) and complementary (toys and batteries).
3. Write F for false or T for true
a. Production cost depends on Technology x

F ( ) V ( x)

b. As greater the expectations are, the lower will be the offer from the companies.

F ( ) V (x )

c. One of the four Ps of marketing mix is Packaging

F ( ) V (x )

d. Price is the amount a customer pays for the product

F ( ) V ( x)

e. Planning is to transform and develop marketing objectives to marketing

strategies

F ( ) V (x )

4. Answer the following questions

a. What is Benchmarking?
Benchmarking is the procedure o f determining who the best one is. It is an amount o f the quality o f
company’s products, policies, programs, tactics, etc., and their contrast with standard measurements,
or similar amounts of others.

It is, also, the continuous systematic process for evaluating the companies that are recognized as
best-in-class, for the following purposes:

• Establishing priorities, target, goals

• Developing product and process objectives

• Meeting or surprising industry best practices

b. What is the process of Benchmarking?

Process of benchmarking Competition and its main aspects In benchmarking, it is necessary to take
into account the next aspects:
 1. Planning
It is the plan for running the benchmarking investigation.

2. Analysis
After analyzing the information, it obtains a basis for comparison.

3. Integration
Develop aims and incorporate them into the benchmarked process.

4. Action
It refers to the action plans necessary to achieve the objectives decided in step 3.

c. Number the aspects to be taken into account in Benchmarking:

In benchmarking, it is necessary to take into account the next aspects:

Product
It is the thing produced by labor or effort.

Price
It refers to the quantity of payment or compensation given by one party to another in returnfor goods
or services.

Sales systems
It is a set of principles, processes, strategies and tools that are put into place to bring thecompany
results day-in and day-out.

Payment systems
It is used for transferring money include debit cards, credit cards, and e-commercepayment systems.

Advertising
It is a form of communication used to encourage or persuade an audience to continue ortake some
new action.

Promotion
It refers to the communications with the public in an attempt to influence them towardbuying
your products and/ or services.

Location
It is a place where something is or could be located.

Organization
It is a social unit of people systematically structured and managed to meet a need or topursue
collective goals on a continuing basis.
 Planimetry
It is the measurement of plane surfaces; for example, the determination of, angles,horizontal
distances and areas on a map

5. Write the vocabulary (20 words) from the reading, and make a Glossary: Organize the
words in alphabetic order and write the meaning of each word.

NO WORDS THE MEANING

1 Advertising the activity or profession of producing advertisements
forcommercial products or services.
"her father was in advertising"
2 Benchmarking A measurement of the quality of an organization's policies,
products, programs, strategies, etc., and their comparison with
standard measurements, or similar measurements of its peers.
The objectives of benchmarking are (1) to determine what and
where improvements are called for, (2) to analyze how other
organizations achieve their high-performance levels, and (3) to
use this information to improve performance.
http://www.businessdictionary.com/definition/benchmarking.html
3 Demand Demand in economics is the consumer's desire and ability to
purchase a good or service. It's the underlying force that drives
economic growth and expansion. Without demand, no business
would ever bother producing anything.
4 Featured displayed, advertised, or presented as a special attraction
5 High-priced expensive; costly:
6 Life Cycle the series of stages in form and functional activity through which
an organism passes between successive recurrences of a specified
primary stage
7 Location position or site occupied or available for occupancy or marked by
some distinguishing feature : SITUATION
8 Maketin strategy A marketing strategy is a business's overall game plan for
reaching people and turning them into customers of the product
orservice that the business provides. The marketing strategy of
acompany contains the company’s value proposition, key
marketingmessages, information on the target customer and other
high-levelelements. Read more: Marketing Strategy Definition |
Investopediahttps://www.investopedia.com/terms/m/marketing-
strategy.asp#ixzz5SSvckqU0
Follow us: Investopedia on Facebook
9 Mass-market sold through such retail outlets as supermarkets and drugstores
as well as through bookstores
10 Packaging
2. Practice of combining several related goods or services into a
single offer. See also bundling.
NO WORDS THE MEANING
11 Partner The legal relationship between two parties, having specific
rights and responsibilities as a common company.
12 Passion Emotion, feelings. The emotions as distinguished from reason, a
strong taste or devotion for some activity
13 Planimetry
14 Planning To transform and develop marketing objectives to marketing
strategies.
15 Presentation It refers to the performances of presenting any of the 9P’s to your
suppliers, customers, clients, or partners. A descriptive
or
persuasive account (Set forth for the attention of mind).
16 Price It´s is the amount a customer pays for the product. it includes
Retail price/wholesale, discounts, quantity discounts, credit terms,
sales and payment periods.
17 Product It´s the tangible object or service that can be offered to a market
for acquisition, use or consumption that might satisfy a want or
need.
18 Sales Systems It is a set of principles, processes, strategies and tools that are put
into place to bring the company results day-in and day-out
19 Supply The total amount of a product (good or service) available for
purchase at any specified price.
20 Technology a manner of accomplishing a task
especiallyusing technical processes, methods, or knowledge

6. Write a ten lines text that summarizes the topic of the activity.
Supply and demand is perhaps one of the most fundamental concepts of economics and it is the
backbone of a market economy. Demand refers to how much (quantity) of a product or service is
desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a
certain price; the relationship between price and quantity demanded is known as the demand
relationship. Supply represents how much the market can offer. The quantity supplied refers to the
amount of a certain good producers are willing to supply when receiving a certain price. The
correlation between price and how much of a good or service is supplied to the market is known as
the supply relationship. Price, therefore, is a reflection of supply and demand.

The relationship between demand and supply underlie the forces behind the allocation of resources.
In market economy theories, demand and supply theory will allocate resources in the most efficient
way possible. How? Let us take a closer look at the law of demand and the law of supply.
Bibliographic

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