Marketing Efficiency Efficient Marketing H andersocompservmktgefficiency ppt Economics

Marketing Efficiency & Efficient Marketing H: /anderso/compserv/mktgefficiency. ppt

“Economics is not an exact science. It consists merely of laws of probability. The most prudent investor is one who pursues only a general course of action which is ‘normally’ right and who avoids acts and policies which are ‘normally’ wrong. ” L. L. B. Angus H: /anderso/compserv/mktgefficiency. ppt

Price = f(expected Supply, expected Demand) H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING The efficient market theory conceptualizes markets as information. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING An efficient market is a market which incorporates all currently available information when determining price. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING To earn a profit it is not enough to know that price will change, the direction in which price will change must be known. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING Profit is earned by people or companies who acquire information relevant to the market before anyone else in the market. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING Information per se is not useful without analysis that places it in the context of existing information. Therefore another method for earning profit is to analyze existing information better than the collective analytical ability of the market. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING Few people/companies consistently earn large profits from pricing decisions and these people earn their profits from their information and/or analysis. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING 1. Producers/lenders not obtain data first. 2. Need bench-marks 3. Need volume to make marketing effort worth the return. 4. Nearly impossible to predict prices. H: /anderso/compserv/mktgefficiency. ppt

MARKET EFFICIENCY & PRICING 5. Make decisions based on probabilities. Decisions based on what is normally right and avoid what is normally wrong. H: /anderso/compserv/mktgefficiency. ppt