Economics in simple terms
You see a girl at a party:
- You say, “I am very rich, marry me” — that’s direct marketing.
- One of your friends pointing at you says, “He is very rich, marry him” — that’s advertising.
- She walks up to you and says, “You are very rich, can you marry me?” — that’s brand recognition.
- You say, “I am very rich, marry me” and she gives you a nice hard slap — that’s customer feedback.
- You say to her, “Marry me” and she introduces her husband — that’s demand and supply gap.
- Before you say anything your wife arrives — that’s restriction on entry of new firm.
Very simple terms, no?