Free market system

Examples of Free market system in the following topics:

• Economic Systems

  • Most other countries today are free market economies, with some aspects of a planned system (such as government owned and allocated healthcare).
  • Today the world largely operates under a global economic system based on the free market mode of production.
  • The economic system in which most businesses are owned and operated by individuals is the free market system, also known as "capitalism. "
  • In a free market, competition dictates how goods and services will be allocated.
  • Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring social justice and a more equitable distribution of wealth or ameliorating market failures.

• Capitalism in the U.S.

  • Democratic capitalism is a political, economic, and social system with a market-based economy that is largely based on a democratic political system.
  • Democratic capitalism, also known as capitalist democracy, is a political, economic, and social system and ideology based on a tripartite arrangement of a market-based economy that is based predominantly on a democratic polity.
  • The three pillars include economic incentives through free markets, fiscal responsibility, and a liberal moral-cultural system, which encourages pluralism.
  • This economic system supports a capitalist, free-market economy subject to control by a democratic political system that is supported by the majority.
  • States that have highly capitalistic economic systems have thrived under authoritarian or oppressive political systems.

• Free Enterprise

  • A free-enterprise system is based on private ownership as the means of production.
  • Political scientist Ian Bremmer describes China as the primary driver for the rise of state capitalism as a challenge to the free market economies of the developed world, particularly in the aftermath of the 2008 financial crisis.
  • The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy.
  • Many states have what are termed mixed economies, referring to the varying degree of planned and market-driven elements in a state's economic system.
  • Explain how free enterprise leads to the economic system of capitalism

• Promotion Strategies

  • Promotion is one of the marketing mix elements among a system of five in a promotional plan (often known as the five Ps).
  • Many times with the purchase of a product there are incentives like discounts, free items, or contests.
  • Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.
  • Typically there are four types of market dominance strategies:
  • By navigating this metrics continuum, from Activity-Based to Predictive, marketers can move towards more effective marketing measurement and align measurement and metrics with business outcomes.

• Marketing Information Systems

  • A marketing information system is a management information system designed to support marketing decision making.
  • Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness.
  • A marketing information system is a management information system designed to support marketing decision making.
  • Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis. " Kotler, et al. (2006) define it more broadly as "people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. "
  • It is true today that in many organization an MkIS is integrated as part of a computerized system.

• Mass marketing, direct marketing, and Internet marketing

  • Mass marketing is distinguished from direct marketing in terms of the distance between the manufacturer and the ultimate user of the product.
  • Mass marketing is characterized as having wide separation and indirect communication.
  • This type of marketing is experiencing tremendous growth.
  • Apparently, marketers have tired of the waste associated with mass marketing and customers want more personal attention.
  • A modified type of direct marketing is represented by companies that allow ordering of product by calling a toll-free number or mailing in an order card as part of an advertisement.

• Local, regional, national, international, and global marketers

  • Local marketers are concerned with customers that tend to be clustered tightly around the marketer.
  • Naturally, the total potential market is limited.
  • This may involve multiple manufacturing plants, a distribution system including warehouses and privately owned delivery vehicles, and different versions of the marketing "mix" or overall strategy.
  • Global marketing differs from international marketing in some very definite ways.
  • In the case of Honda Motors, for example, it means building manufacturing plants in the US, hiring local employees, using local distribution systems and advertising agencies, and reinvesting a large percentage of the profits back into the US.

• Tariffs, expropriation, and the technological environment

  • Most nations encourage free trade by inviting firms to invest and to conduct business there, while encouraging domestic firms to engage in overseas business.
  • There are, however, some governments that openly oppose free trade.
  • Marketers in developed nations cannot take many technological advances for granted.
  • Lack of data processing facilities makes the tasks of planning, implementing, and controlling marketing strategy more difficult.

• Consumerization of IT

  • In particular the rise of free, advertising-based services such as email and search engines from companies like Hotmail and Yahoo!
  • In recent years, this view has become increasingly accepted due to the widespread reliance on free, advertising-based services from a growing number of firms such as Google, Facebook and Twitter .
  • Historically, central IT organizations controlled the great majority of IT usage within their firms—choosing or, at least, approving the systems and services that employees used.
  • In addition to the mass market changes above, consumer markets are now changing large scale computing as well.
  • Among the major changes are reliance on low cost, commodity servers, N+1 system redundancy, and largely unmanned data center operations.

• The Lender of Last Resort

  • It took over this role from the private sector "clearing houses" which operated during the Free Banking Era; whether public or private, the availability of liquidity was intended to prevent bank runs.
  • This contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates.
  • The Federal Reserve System's role as lender of last resort has been criticized because it shifts the risk and responsibility away from lenders and borrowers and places it on others in the form of inflation.