OFFER

For Laura Fisher and Jorge Espejo, authors of the book "Marketing", the offer refers to
the quantities of a product that producers are willing to produce at the possible
market prices." Complementing this definition, both authors indicate that the law of
The supply refers to the quantities of a good that producers are willing to offer.
in the market, which tend to vary in direct relation to the movement of the price,
that is, if the price goes down, the supply goes down, and it increases if the price goes up.

The quantity of goods and/or services that different organizations, companies, or individuals
they have the capacity and desire to sell in the market, within a certain period of time and
space, in a particular monetary value, in order to satisfy desires and/or needs.

The law of supply

It is understood as the variation in the arrangement of goods and services in a market, whose
changes are closely linked to the change in prices. If prices
if prices are high, the supply increases; conversely, if prices decrease, the supply will do the same.

(Fischer, 2004)

Supply curve

The changing behavior of the determinants of supply leads us to

to assume continuous shifts in the supply. In order for them to occur
alterations in the determinants intense enough to
to provoke visible changes, it is necessary to have long periods of time, such as
the expansion of productive capacity, the introduction of new techniques of
production.

1.- Changes in the quantities offered.- These changes refer to the

movements that occur within the same supply curve, as a result
of the change given in the price. The price is reduced and the quantities are reduced
produced, the price increases and the quantities increase; this
it happens within the same supply curve.
The changes in the supply curve are graphically represented with a line.
upward slope that indicates that at a higher price, the greater the quantity will be
of the product that producers will be willing to offer in the market.

2.- Shifts of the supply curve.- These movements of the supply are
and when the price or the amount of the quantities increases or decreases, leading to
to the supply curve to make fluctuations to the left or to the right.

Increase in supply.- This change means that producers are

willing to sell a larger quantity of the product at possible prices of
market. The increase in supply will shift the supply curve to the right and
downwards.

Increase in supply. An increase in supply is illustrated by a change

in the supply curve. Here the supply curve O moved to the indicated position.
in the O1 curve as a consequence of the increase in supply.

Reduction in supply. A reduction in supply will shift the curve to the

left and up. This change means that producers have
modified its sales policy. At market possible prices they will attend with
smaller quantities of the product.

Determinants of supply

Variables that affect the supply

When building the supply curve, it is assumed that the price is the factor that most influences the quantity.

offered by any product, however, there are other very important factors in
the offer as:
Number of potentially eligible companies or the number of sellers there are in the
market.
If everything else is constant, the more suppliers there are, the greater it will be.
the supply. This will cause a shift of the curve to the right, and vice versa,
when some industries close, the supply will decrease, shifting the
curve to the left.
The cost of inputs and the different resources used in production
of the goods and conditions of the offer.
The higher prices of these raise production costs and to certain
Price levels reduce producer profits, so they will not be offered.
the same quantities of products, likewise a decrease in the price of the
inputs increase the supply, which shifts the curve to the right.
Technology
Improvements in technology make it possible for companies to produce the same
amount of products and even increase your production with fewer resources, which
that allows for reducing production costs and increasing supply. These improvements
technological advancements shift the curve to the right.

The duration of the produced goods, or the necessary time to respond to the
price change.
If an asset can be stored for a long period of time, it may be
saved by the producer in the case of unfavorable prices, reducing
the supply will similarly be able to increase when its price rises,
which does not happen with perishable goods. On the other hand, if the time required
to produce the good or to be able to bring it from another place is very short, it will be

increase the supply in the event of a sudden price change, otherwise not
it can react in a short period of time.

The prices of related complementary or substitute goods.

An increase in chicken meat prices may lead to an increase in
the supply of beef. A contrary situation may also arise. The
sellers of both products at lower prices
 lower pork prices will reduce its supply and increase the
beef offer.
Expectations about the evolution of future demand and relative prices.
The expectations that the price of the good they produce will rise in the future
then they will withhold the sale of at least part of their production until
increase the price. Similarly, in anticipation of changes that may occur.
Giving in the future demand for goods will increase or decrease the supply. (Mankiw,
2012)

Demand
For the economy, demand is the sum of the purchases of goods and services made by a
certain social group at a specific moment. It can be referred to as individual demand
(when it involves a consumer) or total demand (with the participation of all the
consumers of a market.

In this market, the quantity of the product that is demanded can vary, depending on
various factors, fundamentally its price, its availability and the wealth and need of
who wishes to acquire it.

The price is one of the determining factors of a product and is variable; this
it means that the same can change over time, generally it does so in
cases in which it is necessary from the perspective of the provider.

If a product has a strong market demand, the decrease in its stock leads to
that it becomes more precious and, in order to achieve better profit, producers increase
its price; on the other hand, if it is a product that has not had a significant impact, it usually
lower its price to successfully place it in the market.

This last point occurs mainly in food items with an expiration date, in order to
not to lose everything invested in the manufacturing or collection of the product, the producers
they prefer to sell it before the expiration date at an even lower price than the
expenses incurred to achieve it.

The demand curve allows us to understand the relationship between the quantity demanded of
a product and its price. That is, the quantities that consumers would wish to acquire of
a product based on a price and at a certain time. (KOTLER, 2012)
Product
As a general rule, in developed societies, desires and needs are satisfied at
through products. Normally, the term product suggests a physical good, such as
a car, a television or a camera. However, nowadays there are few
products that do not come with certain auxiliary elements such as services
additional, information, experiences, etc. For example, when we buy a car,
we not only acquire the physical asset that it entails, but also aspects associated with it such as
the warranty, certain financing conditions, a workshop service and
repair, etc. In this sense, we must conceive the product as a value proposition,
that is to say, a set of advantages that contribute to satisfying needs. This proposal
value is materialized in an offer that represents a combination of physical products,
services, information, experiences, etc.

Under this definition, we must understand the term product from a broad perspective.
in which, in addition to the physical goods themselves and the services (education, healthcare,

restaurants, hotels, cleaning, postal shipping, etc.), there are other possibilities
such as the following: The events (artistic and sporting shows such as
the Fib, the Olympics or the Expo.
Experiences (the commercialization of going to space begins, having a drink in
an ice bar or delving into parallel worlds like those offered by Euro Disney
or Port Aventura).
People (icons like Madonna, the Rolling Stones, Michael Jordan or Michael
Jackson has been used commercially in many business areas).•The
places (we continuously see on television ads trying to promote the
charms of certain autonomous communities.
These days, it is hard to see any promotional campaign from both companies.
leading sports brands, Nike and Adidas, focused on a specific product.
The truth is that their campaigns are usually focused on promoting their brand.

Product dimensions
This broad perspective on the product leads us to consider
different dimensions that make up the 'whole' of the product. Specifically, we identify
three dimensions

Basic product: it is the core of the total product. It represents the service or benefit.
basic that the consumer seeks when buying the product. It includes the
main components of the product such as functional features, the value
perceived, the image or the associated technology (e.g.: the basic product when buying a
perfume would be the aroma that is released from the liquid inside the bottle.
Real product: a basic product becomes a real product when additional features are added.
attributes such as brand, labeling, packaging, design, style, quality, etc.
(for example: in the case of the perfume, the actual product would be the product as it is purchased in)

the store).
Augmented product: consists of all the added aspects to the actual product, such as
are the after-sales service, maintenance, warranty, installation, delivery and
financing (e.g.: in the case of perfume, it could be the period of 30 days that is
offers to return the product or a customer service phone number.

Product rankings

Once we understand what we mean by product, the next step will be to examine the
different ways to classify them. We can do it based on different criteria.

According to tangibility
Considering the extreme possibilities we find:
At the extreme of tangibility, pure goods (such as could be the case of a
salt package.
At the extreme of intangibility are pure services (such as may be the
teaching). However, today it is difficult to be at these extremes; the
It is normal to move in intermediate positions. In this way, we find
goods that are offered to the market by adding intangible aspects (the
the purchase of a car includes financing conditions, warranty,
workshop service, etc.) and, at the same time, we see how services are offered.
which includes many tangible aspects (an advertising agency provides
your service accompanied by various supports such as audiovisual material,
brochures, care format reports, etc.)
 According to durability

Focusing now on the case of goods, based on the duration of consumption or use
we can talk about the product:

Non-durable goods: are those that are typically consumed quickly.

and are used on one or very few occasions (such as beer, fruit, and others
products from the shopping basket.
Durable goods: they are used for an extended period of time and
they usually last several years (like appliances, a car,
furniture, etc.)

According to the type of user

Based on this classification, we can divide the products into two main groups:

Industrial goods: these are items that are acquired to produce other goods.
Within these we encompass products such as: - Raw materials. - Materials and
incorporable sets.–Facilities.–Equipment goods.–Supplies.
Consumer goods: these are those that are purchased to satisfy needs.
personal and family issues. These can be divided into four categories:
Convenience goods: they are usually cheap products that are purchased
frequently, and whose purchase does not require effort from the consumer.
common household items such as bread, newspapers, etc.
Commercial goods: these are the ones that consumers acquire after a long
period of search and comparison between brands, establishments, qualities,
etc. (they are usually durable products, such as clothing, appliances,
the cars, etc.).
Specialty goods: they are products that, in the eyes of customers, possess a series
attributes that make them unique and that are often bought out of loyalty to a
brand, which is why the comparison between brands is scarce. They represent a significant effort

economic (jewelry products, designer items, exotic fruits, etc.).

Unwanted goods: these are products that the customer has not thought about buying.
well because he does not recognize them or well because he does not need them (insurance, encyclopedias,

etc.). Here, promotions with advertising and sales force are very important.
aggressive. (Tirado, 2013)
Bibliography
Marketing

Marketing Management
PEARSON.

Principles of Economics

Tirado, D. M. (2013). Fundamentals of Marketing. FIRST.