ORIENTATION Read carefully the text "Supply and Demand", which is in the

learning object of Project Activity 4, and answer:

1. Match the Word with the corresponding meaning:

A.Supply C-Expensive
b. Demand B-Desire to buy any product
c. High price D-all people
d. Mass market E-the lifetime of goods and services.
e. Life cycle A -Disposition to offer products

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

1-tastes or preferences
2-number of consumers
3-income
4-consumer expectations
5-price of related good

3. Write F for false or T for true

a. Production cost depends on Technology F (X) V ( )

b. As greater the expectations are, the lower will be the offer from the
companies. F (X) V ( )

c. One of the four Ps of marketing mix is Package 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 of determining who the best one is. It

Is an amount of the quality of company’s products, policies, programs?
Tactics, etc., and their contrast with standard measurements, or similar
Amounts of others.

b. What is the process of Benchmarking?

- Establishing priorities, target, goals

- Developing product and process objectives
- Meeting or surprising industry best practice

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

-Product
-price
-sales systems
-payment systems
-promotion
-location
-organization
-planimetry

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.

VOCABULARY

1- DEMAND: it refers to the desire, ability, and disposition of consumers to buy

any product.
2- SUPPLY: it is related to the ability and disposition of producers to offer
products for sale.
3- PRODUCT: It is the thing produced by labor or effort.
4- PRICE: It refers to the quantity of payment or compensation given by one
party to another in return for goods or services.
5- 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.
 6- PAYMENT SYSTEMS: It is used for transferring money include debit cards,
credit cards, and e-commerce payment systems.
7- ADVERTISING: It is a form of communication used to encourage or persuade
an audience to continue or take some new action.
8- PROMOTION: It refers to the communications with the public in an attempt
to influence them toward buying your products and/ or services.
9- LOCATION: It is a place where something is or could be located.
10- ORGANIZATION: It is a social unit of people systematically structured and
managed to meet a need or to pursue collective goals on a continuing basis.
11- PLANIMETRY: It is the measurement of plane surfaces; for example, the
determination of, angles, horizontal distances and areas on a map.
12- PLANNING: It is the plan for running the benchmarking investigation.
13- ANALYSIS: After analyzing the information, it obtains a basis for comparison.
14- INTEGRATION: Develop aims and incorporate them into the benchmarked
process.
15- ACTION: It refers to the action plans necessary to achieve the objectives
decided in step 3.
16- 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).
17- PARTNER: The legal relationship between two parties, having specific rights
and responsibilities as a common company.
18- PLACE/DISTRIBUTION: It represents the location where a product or
service can be purchased and the distribution channel. Coverage,
assortments, locations, inventory and transportation of the product or service.
19- PASSION: Emotion, feelings. The emotions as distinguished from reason, a
strong taste or devotion for some activity.
20- INCOME: When income rises, the quantity demanded will rise too. When
income falls, the demand of that product will fall too.

6. Write a ten lines text that summarizes the topic of the activity.

The most affordable definition I know of the offer is the amount of good or service
that the seller puts on sale. This good or service can be bicycles, hours of driving
lessons, candy or anything else that comes to mind.

Demand is the quantity of a good or service that people want to acquire. Almost all
the human beings of the planet demand a good or a service, gold, rice, orange juice,
higher education ... However, the most interesting thing about supply and demand
is how they interact with each other.
Supply and demand interact with each other, fixing prices and the quantities of goods
and services that will be produced. This is done automatically without the
intervention of an external agent being necessary.

Something similar happens with the offer. Juan has obtained his first job in a
carpentry shop, his boss offers him to do extra hours because the orders are
accumulating. These extra hours are paid more expensive than usual and Juan
accepts because he is saving for a car. Instead let's suppose a movie theater. The
crisis affects people who still want to go to the cinema but are willing to pay less. The
director of the company decides to lower the price, but this causes him to make fewer
screenings and cut off the night sessions. In this way the rooms are more crowded
and you do not have to pay the nocturnal supplement to the employees who stayed
until three o'clock. A reduction in the market price has reduced the available supply.
Like the demand, the quantity offered depends on the price.

These examples have been very simple, but I think they are easy to understand and
necessary to imagine how supply and demand interact. Supply and demand interact
with each other, fixing prices and the quantities of goods and services that will be
produced. This is done automatically without the intervention of an external agent
being necessary.