created value through innovation, product design and manufacture and that Utility was embedded in products or services offered for sale. In this type of thinking, marketer's objective was to communicate a value proposition to potential buyers. However, recent thinking has changed the traditional perspective and now recognizes that consumers may participate in the co-creation of value in a variety of ways. Consumers may derive value through usage and experience, known as value-in-use or may be involved in product design, known as participatory design. Foundation economic concepts Given that marketing has its roots in economics, it shares many foundation concepts with that discipline. Most practicing marketers will have a working knowledge of basic economic concepts and theories. Competitive advantages & comparative advantages Businesses seek to compete by achieving competitive advantages or comparative advantages. Competitive advantages often focus on reducing costs through achieving one or more of the following: Economies of scope; Economies of scale; Experience effects; First-mover advantages. Alternatively a business may seek to develop uniqueness through product differentiation or developing unique competencies such as market sensing, rapid market response or delivering superior customer value. superior value. Competitiontypes Different types of competitive markets can be identified: Duopoly; Monopoly; Monopolistic competition; Imperfect competition; Oligopoly Demand Understanding demand and supply is essential for determining market size and market potential as well as in the price-setting function. The basic mechanics of consumer demand include: Demand curve; Demand-led growth; Demand response; Law of demand; Law of supply; Transaction costs. Different types of demand functions include: Derived demand; Inverse demand function. Economic systems In Western economies, the capitalist economy dominates. However, other types of economic systems such as barter economies and the Sharing economy can be identified. Markets Market Monopsony Oligopsony Value Value-in-ownership Value-in-use Marketing ethics Switching Switching costs Switching barriers Planning levels and planning tools Planning levels Marketing planning is just one facet of the overall company's planning. Marketing plans must therefore take their guidance from the overall strategic plan or business plan. Most companies produce both a strategic plan and a managerial plan (also known as an operational plan). The distinction between strategic planning and management planning is that they are two phases with different goals. Strategic planning is fundamentally concerned with the policies that will improve the firm's competitive position. Strategic planning is sometimes called higher-order planning and is usually long-term planning (say 3–7 years) while management planning is short-term and may be