BUSINESS
Aug062012Business
Extreme demand entails extreme marketingWritten byHaider Ali
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As we know, within the context of free competition, the forces of supply and demand operate. The forces of demand, i.e. consumer needs, determine and regulate supply forces. In periods of “money flow” supply is great but and in times of economic crisis it is reduced. With a given amount of consumer needs, in a fixed-size market supply, people simply compete to claim the largest piece of the market pie. The rules of the free economy theoretically allow each business to try to create a monopoly in the market. Of course, we know that in practice, when a product is discovered, supply and demand increases but later on correlated products increase, so the initial product demand and supply decrease. Therefore, the only way for more sales is to win more customers to detriment competitors. This is applied when the laws are imposed by the free market and there is ’fair play ‘. Within these frames, new marketing students learn that in the free economy, the consumer needs to have creative science.
But if the free market had taken the necessary controls to ensure compliance with the laws, probably it would not arrive at this economic crisis that we are experiencing today. The experienced businessmen are aware of consumer psychology. Human demands have no limits, you can spend beyond the point that your budget allows you. What is a necessity for someone actually depends on that person and for each person it is different.
The need for extra marketing can be associated with either a greater quantity of the same goods or with wider range of goods. Over-consumption is no longer considered as a criterion for viability.
Increased consumption needs can be created, either by direct contact with the customer, or by indirect contact (advertising). This is where “cross selling” comes into play. “Cross-selling is the action or practice of selling among or between established clients, markets, traders, etc. or the action or practice of selling an additional product or service to an existing customer.”(www.wikipedia.org)
Businesses define cross-selling in many different ways. There are also the so-called ‘complementaries” (related products). In economics, a complementary good is a good with a negative cross elasticity of demand, in contrast to a substitute good. This means a good’s demand is increased when the price of another good is decreased. Conversely, the demand for a good is decreased when the price of another good is increased.
Every business wants to grow and develop a strong client base. Advertising or promoting a business is the key to achieving this growth. Advertising methods include traditional marketing methods as well as newer, modern methods. Incorporating innovative marketing methods is an effective way to supplement your current marketing campaign. For example, you can have a print, radio or commercial spot advertising your product or service. With these advertisements, you can then plug your company’s blog or social media feed. Supplementary marketing methods are great for interacting with your customers, offering special promotions and increasing your online presence.
Somewhere in the same frames, actual advertising takes place. Such advertising would perhaps correspond to the definition “extra advertising.” You must have experienced your mailbox getting filled with a bunch of flyers with “amazing opportunities”, flooded«scam» with alluring colours and striking phrases and you get bombarded by “unprecedented” offers when you reach out to get the product you need, but eventually you get two on the shelf because they wrote it in two. Also, similar situation occurs when you are given discounts by banks who do not hesitate giving a credit card with virtually no guarantee or when the car importer offers you the latest model with a minimum deposit and payment in ten years. When all this happens, it is not too difficult to understand that this kind of advertising is done because it inflates consumer needs.
Categories: Business
Tags: advertising, competition, cross elasticity of demand, cross selling, demand, free marketing, supply
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HAIDER ALI (have 25 posts in total)
View posts
Aug062012Business
Extreme demand entails extreme marketingWritten byHaider Ali
7 0
0 Likes
As we know, within the context of free competition, the forces of supply and demand operate. The forces of demand, i.e. consumer needs, determine and regulate supply forces. In periods of “money flow” supply is great but and in times of economic crisis it is reduced. With a given amount of consumer needs, in a fixed-size market supply, people simply compete to claim the largest piece of the market pie. The rules of the free economy theoretically allow each business to try to create a monopoly in the market. Of course, we know that in practice, when a product is discovered, supply and demand increases but later on correlated products increase, so the initial product demand and supply decrease. Therefore, the only way for more sales is to win more customers to detriment competitors. This is applied when the laws are imposed by the free market and there is ’fair play ‘. Within these frames, new marketing students learn that in the free economy, the consumer needs to have creative science.
But if the free market had taken the necessary controls to ensure compliance with the laws, probably it would not arrive at this economic crisis that we are experiencing today. The experienced businessmen are aware of consumer psychology. Human demands have no limits, you can spend beyond the point that your budget allows you. What is a necessity for someone actually depends on that person and for each person it is different.
The need for extra marketing can be associated with either a greater quantity of the same goods or with wider range of goods. Over-consumption is no longer considered as a criterion for viability.
Increased consumption needs can be created, either by direct contact with the customer, or by indirect contact (advertising). This is where “cross selling” comes into play. “Cross-selling is the action or practice of selling among or between established clients, markets, traders, etc. or the action or practice of selling an additional product or service to an existing customer.”(www.wikipedia.org)
Businesses define cross-selling in many different ways. There are also the so-called ‘complementaries” (related products). In economics, a complementary good is a good with a negative cross elasticity of demand, in contrast to a substitute good. This means a good’s demand is increased when the price of another good is decreased. Conversely, the demand for a good is decreased when the price of another good is increased.
Every business wants to grow and develop a strong client base. Advertising or promoting a business is the key to achieving this growth. Advertising methods include traditional marketing methods as well as newer, modern methods. Incorporating innovative marketing methods is an effective way to supplement your current marketing campaign. For example, you can have a print, radio or commercial spot advertising your product or service. With these advertisements, you can then plug your company’s blog or social media feed. Supplementary marketing methods are great for interacting with your customers, offering special promotions and increasing your online presence.
Somewhere in the same frames, actual advertising takes place. Such advertising would perhaps correspond to the definition “extra advertising.” You must have experienced your mailbox getting filled with a bunch of flyers with “amazing opportunities”, flooded«scam» with alluring colours and striking phrases and you get bombarded by “unprecedented” offers when you reach out to get the product you need, but eventually you get two on the shelf because they wrote it in two. Also, similar situation occurs when you are given discounts by banks who do not hesitate giving a credit card with virtually no guarantee or when the car importer offers you the latest model with a minimum deposit and payment in ten years. When all this happens, it is not too difficult to understand that this kind of advertising is done because it inflates consumer needs.
Categories: Business
Tags: advertising, competition, cross elasticity of demand, cross selling, demand, free marketing, supply
[X]YOU MAY ALSO LIKE...
4 Megatrends are transforming the world
The big “Apple”
Pay and promote your post in FB
Facts about Market Trends
Fast Moving Consumer Goods (FMCG)
SHARE THIS POST
HAIDER ALI (have 25 posts in total)
View posts
