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Equilibrium position of a competitive market must necessarily be an „pareto optimal": with every transaction made, people get rich without anyone else to deplete. If there is no increasing income - economies of scale or proportion - in the production system, then each „pareto optimal" condition is a competitive equilibrium position, depending on the distribution of purchasing power. Where there are concerns about income distribution and hence of goods and services between individuals, the state can interfere by changing this algorithm of purchasing power distribution, within the economy. On the other hand, if some individuals are reluctant to risk (theory contradicted by the existence of gambling), then providing insurances is incumbent on mutually beneficial exchanges, because people are willing to pay for the convenience of not having to worry about the future events that may affect their existence. Another problem of the insurance field is that of "moral hazard": since signing an insurance contract, the insured is no longer trying as hard to prevent accidents against which they have been insured, therefore the likelihood of occurrence for such accidents increases. [ABSTRACT FROM AUTHOR]

Companies are complaining about the decrease of sales and their constant tendency to go down. Nevertheless, they have detected serious and expensive policies in their specialized departments, they have modified the organizational structures, they have technically trained salespeople and have adapted their products to the demands of the market. Results were week and their investment was hardly recuperated. Tough redundancy measures have been imposed, plants have been closed and the unemployment rate has become higher. What can be the reason for all these failures? In the early 80s, a professor asked what the most important event in the world was. The professor's answer was that the Second World War's influence upon the world had been over and that both economists and politicians continued to function under old standards, without being aware of the major transformations and reforms which highly affected the business world. New economic forces have appeared, especially in Asia, developing policies and military problems are completely different from those in the 50s-60s. Regarding these transformations which do not take into consideration the implications of the Second World War, new policies are to be adopted in business and in politics. Our comment on the example above refers to the evolution of economy in the 8th and 9th decades of the last century and further, after the 90s, until today: crises, especially the one in Asia, the change in consumers' needs, the importance of the growth of mass consumption in the evolution of national and global economies. In Europe, the EU expanded to the ex-communist countries after the 90s, which allowed the emergence of new markets on the background of globalization. The question which arises vis-a-vis the things previously presented is: what is the most important problem of sales policies now? In this paper, we try to find the correct answer to this question, which will help us find the antidote for the recent week sales and discover methods to relaunch sales. [ABSTRACT FROM AUTHOR]

The company sees its clients from a strategic point of view, approaching them as human beings and paying attention to their needs and preoccupations. The current marketers try to reach the mind and heart of the consumers. Most of them, the consumers seek for solutions to their anxieties on a globalised market. In a confusing world, they look for those companies that address to the most profound human wishes from a social, economic and environmental point of view in their mission, vision and values. They not only seek for functional and emotional satisfaction, but also the human spirit fulfilment throughout the chosen products and services. From another point of view, it is difficult to determine where the marketing creations stop and where "the real world" begins. We can not be sure of the beginning and the end of this border. [ABSTRACT FROM AUTHOR]

Because a firm's plans are impinged upon by a variety of market forces, a set of microeconomic tools should necessarily be applied to strengthen strategic forecasting and policy formulation. There exists a body of evidence in strategic planning which confirms that an understanding of supply and demand dynamics, elasticity, profit maximization, substitution analysis, and indifference curves are essential devices to calibrate strategy and probable competitive response [1]. While planning must address variables outside the domain of economic analysis-politics, social trends, and technological innovation, among them-there is little doubt that the tools described below can be of great assistance in clarifying the competitive landscape and informing the strategic management process. [ABSTRACT FROM AUTHOR]