Two ways people can interact *
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Private voluntary agreements
Force or threat of force
Examples of force or threat of force:
Common hoodlum, Prohibition
Asterisk * denotes exam question
Nearly everything you possess
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Was produced and delivered to you without
the force of government
Thousands and millions of people acting in
their own interest deliver to you the things
you want
The Invisible Hand
To understand marketing
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One needs to understand the free market
Example of the free market in action: The
Jungle Café. The color of money
Example of when the Invisible Hand was
not present: Rosa Parks versus government
transportation monopoly
With the free market you have it your way
Marketing
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When you think of the word marketing
what comes to mind?
Marketing = individuals acting in their
own self interest*
One can think of marketing as individuals acting in
their own self interest to provide products and
services to others *
I Pencil demonstrates that when individuals act
peacefully in their own self interest they help
others
This creates peace, prosperity, wealth, productive
jobs and harmony among nations and improves
the quality of life for all*
The Invisible Hand *
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Thousands, millions, and billions of individuals
cooperating, transacting, working together,
buying and selling
Acting in their own self interest to improve the
quality of their lives
In doing so they make the lives of other people
better
Marketing uses persuasion, government uses
force
How does a free market bring
prosperity *
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It allows every producer and seller to
respond to what his customers want
In a voluntary transaction by definition
both parties are better off
This happens without central planning,
without politicians and bureaucrats telling
people what to do
If it ain’t broke don’t fix it
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The free market does not need fixing
The free market is a marvelous thing
It empowers the self interest of each of us
It puts self-interest to work for the benefit
of all
It is regulation by reality and self interest,
not by coercion
Free trade
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The corollary of the free market is free
trade
Example: Estonia Piano company
We will get by with a little help
from our friends
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Milton Friedman, Johann Norberg, John
Stossel, Ludwig von Mises, David Ogilvy,
and Alan Greenspan
This is freedom of speech class
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Students are encouraged to state their opinions
during class or during personal meetings with the
professor. Papers and presentations are for
documentation not opinions.
Students are encouraged to ask questions
Lively discussion is encouraged
Students can challenge the professor
Politely and respectfully of course
Grades not determined or influenced by your
opinions
Marketing is an art not a science
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That is the professor’s opinion
That is not a documented fact
In this course opinions will be defined as
opinions and facts will be defined as facts
Documentation is very important
Class objective
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Not here to give you the scholarly view
Comprehension not memorization
To help you understand the real world of
marketing
It is my job to make the course fun,
interesting and relevant
Course teaching methods
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Questions about assignments, tests, topics, grades
ask your questions during class.
Questions about your grades must be asked
privately-during office hours not in the classroom
Grades are not discussed by email
To introduce you to resources that you may be
unaware of; not to read from the book.
Why study Marketing?
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Most of the problems of the world would
be solved by a proper understanding of
marketing
A bold statement? Perhaps…stay
tuned…….
You can use marketing to make your life
happier and more successful
Principles of marketing
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There are so many aspects of marketing we
cannot cover all of them in this course
Approach to some topics may astonish you
Goal is to broaden your horizons and raise
your sights, to challenge you intellectually
The educated person understands things the
uneducated does not and is therefore
generally more successful in life