Module description
This module introduces the basic concepts in economics. It defines economic problems that concern the effective operation of a rural business. It examines the reasons behind government intervention in the market and the role of diversification in the development of the rural economy. Following on from this section of the module, marketing examines the process of existing product management and the process of diversification. It is important that the student regards marketing as a dynamic operation and that the rural business should continually explore the opportunities and needs of the market.

Outcomes
Outcome 1
Examine the basic economic principles and their effect on the rural business.

Performance criteria:
a. The factors that affect supply and demand are reviewed.
b. The market mechanism and the equilibrium condition of supply and demand are
assessed.
c. The role and the states of the market are evaluated.
d. The reasons behind and methods of government intervention in markets are
explained.

Ranges:
Determinants of supply, elasticity of supply, demand and elasticity of demand.
Markets and prices: perfect competition, oligopoly and monopoly.
Intervention: legislation, taxation and subsidies.
Simulation: the consumer, the firm and the market place.

Outcome 2
The definition and scope of marketing are described.

Performance criteria:
a. Marketing is defined and its economic role is assessed.
b. The business's relations to its markets and the marketing environment are evaluated.
c. The existing and potential products are appraised and the effect of socio-economic
trends are discussed.
e. The changing attitude to land use and the opportunities to structure the change from
traditional activities are explained.

Ranges:
Marketing chains and the environment.
Business: production, sales, financial and market orientated.
Macro and micro environment
Economy: local, community and organisation.

Outcome 3
The marketing process - constructing the feasibility study.

Performance criteria
a. Market needs and opportunities are evaluated.
b. The role of market research in marketing management is assessed.
c. The market and market segment is analysed.
d. Customer buying behaviour: motivation and the influence of socio-economic factors
are described.
e. Statutory needs and intervention are evaluated and applied.

Ranges:
Sources of market information: numerical and written.
Identifying the market: customer and consumer.
Buying behaviour of: organisations, families and individuals.
Legislation and grants: national, regional and local.

Outcome 4

Planning the marketing programme

Performance criteria:
a. The marketing objectives of the plan are understood.
b. Product management and new product development are evaluated.
c. The strategic marketing plan is developed and appraised.