What if I do not patent my invention?

If you do not patent your invention, anyone can to use, make or sell your invention without your permission. You can attempt to keep your invention secret, but this may not be possible for a product where the technology is on display.

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Types of advertising

 Media. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes, in- flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart handles, the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

One way to measure advertising effectiveness is known as Ad Tracking. This advertising research methodology measures shifts in target market perceptions about the brand and product or service. These shifts in perception are plotted against the consumers’ levels of exposure to the company’s advertisements and promotions. The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level, the effectiveness of the media buy or targeting, and the quality of the advertising executions or creative.

E-mail advertising.E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam".

Some companies have proposed placing messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda).

Unpaid advertising (also called publicity advertising), can provide good exposure at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of equating a brand with a common noun (in the United States, “Xerox” = “photocopier”, “Kleenex” = tissue, “Vaseline” = vaseline , “Hoover” = vacuum cleaner, “Nintendo” (often used by those exposed to many video games) = video games, and “Band-Aid” = adhesive bandage) — these can be seen as the pinnacle of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark - turning it into a generic term which means that its legal protection as a trademark is lost.

As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached $2.2 billion and providers such as Admob delivered billions of mobile ads.

More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture and video messages, advergames and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes.

A new form of advertising that is growing rapidly is social network advertising. It is online advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promise as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. Friendertising is a more precise advertising term in which people are able to direct advertisements toward others directly using social network service.

From time to time, The CW Television Network airs short programming breaks called "Content Wraps," to advertise one company's product during an entire commercial break. The CW pioneered "content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero II, CoverGirl, and recently Toyota.

Television commercials.The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached $3 million (as of 2009).

Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. Virtual product placement is also possible.

 Infomercials. There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing.

The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

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Fairtrade standards

Fairtrade International (FLO) is a non-profit, multi-stakeholder association involving 25 member and associate member organizations (labelling initiatives and producer networks), traders and external experts ^[1]. The organization develops and reviews Fairtrade Standards, assists producers in gaining and maintaining Fairtrade certification and capitalizing on market opportunities.

There are two types of Fairtrade standards for disadvantaged producers: standards for small farmers' organizations and for hired labour situations. Fairtrade standards for small farmers' organizations include requirements for democratic decision making, ensuring that producers have a say in how the Fairtrade Premiums are invested etc. They also include requirements for capacity building and economic strengthening of the organization.

Fairtrade standards for hired labour situations ensure that employees receive what supporters describe as "decent wages" and may join unions and bargain collectively. Fairtrade-certified plantations must also ensure that there is no forced or child ladour and that health and safety requirements are met. In a hired labour situation, Fairtrade standards require a “joint body” to be set up with representatives from both the management and the employees. This joint body decides on how Fairtrade premiums will be spent to benefit plantation employees.

For some products, such as coffee, only Fairtrade standards for small farmers' organizations are applicable. For others, such as tea, both small farmers' organizations and plantations can be certified.

Fairtrade standards and procedures are approved by the FLO International Standards Committee, an external committee comprising all FLO stakeholders (labeling initiatives, producers and traders) and external experts. Fairtrade standards are set by FLO International in accordance to the requirements of the ISEAL Code of Good Practice in standard setting and are in addition the result of a consultation process, involving a variety of stakeholders: producers, traders, external experts, inspectors, certification staff etc.

The Fairtrade Mark is an international independent consumer Mark which appears on products as a guarantee that producers and traders have met Fairtrade Standards. The Fairtrade Mark is owned and protected by FLO, on behalf of its 25 member and associate member labelling initiatives and producer networks.

For a product to carry the Fairtrade Mark, it must come from FLO-CERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with the International Fairtrade Standards set by Fairtrade International. The supply chain is also monitored by FLO-CERT to ensure the integrity of labelled products. Only authorized licensees can use the Fairtrade Mark on their products.

The Fairtrade Mark shows a cheering person - representing both the producers celebrating a fair deal through Fairtrade, and the consumers who know they are making a positive difference through the purchase of Fairtrade products.

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Demand

Demand is the desire to have some good or service and the ability to pay for it. You may want to take a round-the-world cruise or to rent a huge apartment that overlooks the ocean. Or you may want to buy a brand-new sports car or a state-of-the-art home entertainment center. However, you may not be able to afford any of these things.

Therefore, economists would say that you have no actual demand for them. Even though you want them, you don’t have the money needed to buy them. Conversely, you may want the latest CDs by several of your favorite bands. And, at a price of between $12 and $15 each, you can afford them. Since you have both the desire for them and the ability to pay for them, you do have demand for CDs.

Price is one of the major factors that influence demand. The law of demand states that when the price of a good or service falls, consumers buy more of it. As the price of a good or service increases, consumers usually buy less of it. In other words, quantity demanded and prices have an inverse, or opposite, relationship.

The demand schedules and demand were created using the assumption that all other economic factors except the price of DVDs would remain the same. If all other factors remain the same, then the only thing that influences how many DVDs consumers will buy is the price of those DVDs. The demand curve graphically displays that pattern.

Now think about the shape of demand curves. Why do they slope downward?

The reason is the law of diminishing marginal utility, which states that the marginal benefit from using each additional unit of a good or service during a given time period tends to decline as each is used. Recall that utility is the satisfaction gained from the use of a good or service.

Why do consumers demand more goods and services at lower prices and fewer at higher prices? Economists have identified two patterns of behavior as causes: the income effect and the substitution effect.

The income effect is the term used for a change in the amount of a product that a consumer will buy because the purchasing power of his or her income changes – even though the income itself does not change. For example, you can buy more paperback books if they are priced at $7 than if they are priced at $15. If you buy a $7 book, you will feel $8 “richer” than if you buy a $15 book, so you are more likely to buy another book. The income effect also influences behavior when prices rise. You will feel $8 “poorer” if you buy a $15 book instead of a $7 one, so you will buy fewer books overall.

The substitution effect is the pattern of behavior that occurs when consumers react to a change in the price of a good or service by buying a substitute product - one whose price has not changed and that offers a better relative value.

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Supply

Supply refers to the willingness and ability of producers to offer goods and services for sale. Anyone who provides goods or services is a producer. Manufacturers who make anything from nutrition bars to automobiles are producers. So, too, are farmers who grow crops, retailers who sell products, and utility companies, airlines, or pet sitters who provide services.

The two key words in the definition of supply are willingness and ability. For example, the Smith family grows various fruits and vegetables on their small farm. They sell their produce at a local farmers’ market. If the prices at the market are too low, the Smiths may not be willing to take on the expense of growing and transporting their produce. Also, if the weather is bad and the Smiths’ crops of fruits and vegetables are ruined, they will not be able to supply anything for the market. In other words, they will not offer produce for sale if they do not have both the willingness and the ability to do so.

As is true with demand, price is a major factor that influences supply. The law of supply states that producers are willing to sell more of a good or service at a higher price than they are at a lower price. Producers want to earn a profit, so when the price of a good or service rises they are willing to supply more of it. When the price falls, they want to supply less of it. In other words, price and quantity supplied have a direct relationship.

Let’s take a closer look at how price and quantity supplied are related by returning to the Smiths and their produce business. The Smiths travel to the Montclair Farmers’ Market every Wednesday and Saturday to sell a variety of fruits and vegetables - blueberries, peaches, nectarines, sweet corn, peppers, and cucumbers. However, their specialty crop is the tomato. How should the Smiths decide on the quantity of tomatoes to supply to the farmers’ market? The price they can get for their crop is a major consideration.

The Smiths know that the standard price for tomatoes is $1 per pound. What quantity of tomatoes will the Smiths offer for sale at that price? They decide that they are willing to offer 24 pounds. What if the price of tomatoes doubled to $2 per pound? The Smiths might decide that the price is so attractive that they are willing to offer 50 pounds of tomatoes for sale on the market. In contrast, if the price fell to 50 cents, the Smiths might decide to supply only 10 pounds. Furthermore, at prices under 50 cents per pound, they may not be willing to supply any tomatoes. Look again at the definition of the law of supply. As you can see, it provides a concise description of how producers behave.

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Types of Trade Barriers

A trade barrier is any law passed to limit free trade among nations. There are five basic types of trade barriers. Most are mandatory, but some are voluntary.

Quotas. Nations often impose quotas, limits on the amount of a product that can be imported. For example, the United States had quotas on the amount of textiles allowed to be imported. These quotas limited supply and kept textile prices relatively high.

These quotas expired on January 1, 2005. Chinese producers then flooded the United States (and the European Union) with low-priced textiles. Prices for Chinese textiles increased, however, in other nations. This practice of dumping, the sale of a product in another country at a price lower than that charged in the home market, hurt domestic producers but provides consumers a lower price.

Tariffs. Another trade barrier is the tariff, a fee charged for goods brought into a country from another country. There are two types of tariffs: revenue and protective. Revenue tariffs, taxes on imports specifically to raise money, are rarely used today. In the past, however, nations regularly used them as a source of income. Today nations use protective tariffs, taxes on imported goods, to protect domestic goods. Protective tariffs raise prices on goods produced more cheaply elsewhere, thereby minimizing the price advantage the imports have over domestic goods. Tariff rate have fallen worldwide since the late 1980s.

Voluntary Export Restraint. Sometimes, to avoid a quota or a tariff, a country may choose to limit an export. This is called a voluntary export restraint (VER). It usually comes about when a trade ambassador from one nation makes appeals to a counterpart, warning of possible consequences without the VER.

Embargoes. An embargo is a law that cuts off most or all trade with a specific country. It is often used for political purposes. Since the early 1960s, for example, the United States has had an embargo on trade with Communist Cuba.

Informal Trade Barriers. Other trade restrictions are indirect. Licenses, environmental regulations, and health and safety measures (such as a ban on the use of certain herbicides) are, in effect, trade barriers.

Trade barriers have numerous effects. They may temporarily save domestic jobs in certain industries, but without competition, those industries might continue to operate inefficiently. In the end, consumers pay higher prices. Further, limits on trade sometimes lead to a trade war, a succession of trade barriers between nations.

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How the Price System Works

To better understand how price works in the market, let’s look at how one kind of change in supply affects the equilibrium price. More producers in a market increases supply, which leads to increased competition and a lower equilibrium price.

Competitive pricing occurs when producers sell goods and services at prices that best balance the twin desires of making the highest profit and luring customers away from rival producers. By entering a market at a lower price, a new supplier can add to its customer base while it maintains overall profits by selling more units.

Let’s look at an example of competitive pricing. As winter approaches, Elm Street Hardware prices its snow shovels at $20. But Uptown Automotive sees an opportunity to take some customers (mostly for tools, which both stores sell) from Elm Street.

Uptown enters the snow shovel market, raising the overall supply. It also prices the shovels at $13. Uptown has a lower profit margin per shovel, but hopes to sell hundreds of them in order to maintain overall profit. Elm Street can choose to lower its prices as well or risk losing customers.

In a market economy, the price system has four characteristics.

1. It is neutral. Prices do not favor either the producer or consumer because both make choices that help to determine the equilibrium price. The free interactions of consumers (who favor lower prices) and producers (who favor higher prices) determines the equilibrium price in the market.

2. It is market driven. Market forces, not central planning, determine prices, so the system has no oversight or administration costs. In other words, the price system runs itself.

3. It is flexible. When market conditions change, prices are able to change quickly in response. Surpluses and shortages motivate producers to change prices to reach equilibrium.

4. It is efficient. Prices will adjust until the maximum number of goods and services are sold. Producers choose to use their resources to produce certain goods and services based on the profit they can make by doing so.

The laws of demand and supply show that consumers and producers have different attitudes toward price. Consumers want to buy at low prices; producers want to sell at high prices. Therefore, prices motivate consumers and producers in different ways.

For producers, the price system has two great advantages: it provides both information and motivation. Prices provide information by acting as signals to producers about whether it is a good time to enter or leave a particular market. Rising prices and the expectation of profits motivate producers to enter a market. Falling prices and the possibility of losses motivate them to leave a market.

A shortage in a market is a signal that consumer demand is not being met by existing suppliers. Recall that a shortage often occurs because prices are too low relative to the quantities demanded by consumers. Producers will view the shortage as a signal that there is an opportunity to raise prices. Higher prices act as an incentive for producers to enter a market. In other words, the prospect of selling goods at higher prices encourages producers to offer products for that market.

As more producers are motivated by high prices to enter a market, quantity supplied increases. When prices are too high relative to consumer demand, a surplus occurs. Producers can respond to a surplus either by reducing prices, or by reducing production to bring it in line with the quantity demanded at a particular price.

Either way, falling prices signal that it is a good time for producers to leave the market. Sometimes, less efficient producers leave a market completely, as increased competition and lower prices drive them out of business. More often, producers shift their business to focus on opportunities in markets with higher potential profits.

Competitive pricing in the market often informs the choices made by producers. When a market is growing, and when there is unmet demand, a producer may decide to enter the market with a price that is lower than its competitor’s. The new producer can still, however, earn a profit by selling more units at the lower price. So, while prices are the signals that are visible in the market, it is the expectation of profits or the possibility of losses that motivates producers to enter or leave a market.

Prices also act as signals and incentives for consumers. Surpluses that lead to lower prices tell consumers that it is a good time to buy a particular good or service. Producers often send this signal to consumers through advertising and store displays that draw consumers to certain products. Producers may also suggest that the low prices won’t last, encouraging consumers to buy sooner rather than later.

High prices generally discourage consumers from buying a particular product and may signal that it is time for them to switch to a substitute that is available at a lower price. A high price may signal that a particular product is in short supply or has a higher status. Brand marketers rely on the consumer perception that a certain logo is worth a higher price.