Topic 4. Supply and demand in marketing
Question 1. Demand analysis in marketing
Definition of demand. Price elasticity of demand.
Any price set by the company, one way or another, will affect the level of demand for the product. The relationship between price and the resulting level of demand is represented by the well-known demand curve.
Using the data in Table 4.1, you can build a graph where, by connecting all the plotted points, we get a demand curve.
Rice. 4.1. Demand curve
The demand curve shows that an inversely proportional relationship is established between the price and quantity of a product, i.e. a gradual decrease in demand appears: the higher the price, the fewer goods will be purchased at a given price. An increase in the number of goods on sale will cause a decrease in its price.
However, under certain conditions, the demand for goods may change while the price remains constant. A similar situation occurs in the following cases:
when there are substitute or interchangeable goods. Fluctuations in the prices of some goods will cause a change in the demand for a substitute product;
a change in the income of buyers will immediately affect the demand for goods and services;
There are complementary goods, say gasoline and engine oil. An increase in gasoline prices will cause a decrease in demand for it, and therefore for oil, although prices for it have not changed;
changing consumer tastes.
If one of these events occurs, the quantity demanded increases or decreases, although the price remains constant. Under the influence of non-price factors, the demand curve shifts: to the left - with a decrease in demand (S2), to the right - with an increase in demand (S3) (Fig. 4.2).
In the mechanism of market equilibrium, supply plays an equally important role.
Rice. 4.2. Shift in Demand Curve
The supply scale summarizes information about the price per unit of goods and the corresponding offer.
Table 4.1 Ratio of price and quantity of product A offered for sale on the market
Question 2. Analysis of proposals in marketing
Supply is the amount of goods (services) that sellers are willing to offer to the buyer at a specific time and place.
The supply scale shows that at high prices sellers will offer more goods for sale than at low prices. This happens due to the desire to make more profit.
Rice. 4.3. Supply curve
If the demand curve falls when prices rise, then the supply curve rises when prices rise. This clearly shows the contradictory interests of the manufacturer and the buyer. Through the price of a product, a manufacturing company receives information about the extent to which society needs its products. And if the price level established on the market reimburses the enterprise’s costs and ensures the desired profit, then this serves as the surest sign of the feasibility of production and compliance with demand.
The supply of goods is influenced by a number of factors, the main one of which is production costs. If the cost of producing a product decreases, this will allow the manufacturer to produce more goods. An increase in cost will lead to the opposite result - supply will decrease. This factor has many derivatives that can affect supply dynamics. These include, first of all, scientific and technological progress, as a result of the implementation of achievements of which production costs are reduced and the supply of goods is increased. The degree of market monopolization, manifested in price changes at any level of production, is of great importance. The dynamics of prices for other, including interchangeable goods, also plays an important role.
The main factors influencing the quantity of supply include other sources of profit for the company. Most firms produce not one, but several types of goods. The price at which quantity demanded is exactly equal to supply is the market price (or equilibrium point). This is the price at which goods will actually be exchanged for money.
A feature of the free market is that with a certain amount of products offered, it seems to tend to equilibrium on its own. Suppose that a company offers its product at a higher price. equilibrium points (point P 2 in Fig. 4.4). Buyers consider this price too high, so some of the products do not find a buyer. In this case, there is an excess of supply over demand. The market is oversaturated with this product and the manufacturer is forced to reduce the price in order to eliminate the surplus of unsold products. At the same time, the production of goods is reduced, since its production at a reduced price is unprofitable. The price moves down along the supply curve; but the new price corresponds to greater demand, then the price moves up along the demand curve. This process continues until supply and demand balance again at the equilibrium price. For tactical reasons, a company can temporarily switch to the primary production of other goods from the product range that provide greater profits, which, naturally, will reduce the supply of the first product.
The company's marketing service also analyzes long-term profit expectations. If the results of market research show that in the near future an increase in demand for a particular product (service) is expected, then the manufacturer has every reason to increase production in the hope of a subsequent increase in profits.
The market, or equilibrium, price of a product is established when supply and demand correspond. In a competitive market, the equilibrium price is at the intersection of the supply and demand curves (Figure 4.4).
Rice. 4.4. Market (equilibrium) price
The state of equilibrium is never static; it is constantly changing under the influence of supply and demand. The essence of the balance of supply and demand is to achieve a general economic equilibrium of the market, when goods find their buyers through the mechanism of market pricing. It is the interrelationship of competitive equilibrium prices that creates the general equilibrium of the market.
It is known that in market conditions the dynamics of supply and demand are determined by the influence of a large number of factors. In order to quantify the sensitivity of supply and demand to changes in these factors, the concept of elasticity is used. Elasticity is a measure of the response of one variable to a change in another; or a number that shows the percentage change in one variable resulting from a change in another.
An entrepreneur needs information about how much demand will change under the influence of a number of factors (income, price, etc.), and the dependence of demand on prices, or price elasticity, is of particular importance. It describes the extent to which a change in price affects the quantity demanded. Price elasticity of demand measures the sensitivity of buyers to price changes in terms of the goods they purchase. The degree of price elasticity is measured using the elasticity coefficient (E s), which is calculated by the formula:
If small price fluctuations lead to significant changes in the quantity purchased, then demand is called elastic. In this case, the price elasticity coefficient of demand is greater than 1 (E c >1).
From Fig. 4.5 shows that an increase in price leads to a significant reduction in demand.
Rice. 4.5. Elastic demand
If price fluctuations are accompanied by a slight change in the quantity sold, then demand is inelastic. Obviously, with inelastic demand, the elasticity coefficient will always be less than one (E s<1).
Rice. 4.6. Inelastic demand
From Fig. 4.6 it is clear that an increase in price leads to a relatively small drop in demand.
A product can be more accurately classified into one group or another using the “income test”. In market conditions, the main indicators of the degree of elasticity are the volume and movement of income and sales proceeds. The volume of sales revenue is equal to the product's unit price times the number of goods sold.
If this indicator falls with rising prices, then the demand for a product is considered elastic. When sales volume does not change with price, demand is considered inelastic.
It should be especially noted that different products react differently to price changes.
Goods of inelastic demand include:
essential goods (bread, electricity, etc.);
goods that have little or no substitute (milk, medicines);
relatively inexpensive (salt, matches).
In addition, the inelasticity of demand determines the buyer’s lack of choice (If you run out of gasoline, you will not look for another gas station where gasoline is sold at a lower price), buyers justify price increases by improving the quality of the product, rising inflation, etc. . However, there are times when the price is stable but demand changes.
In addition to elastic and inelastic demand, there is a specific case called unit elasticity, when a percentage fluctuation in price is accompanied by exactly the same (percentage) change in the quantity of goods sold. As a result, total revenue remains completely unchanged (E c = 1).
Product description.
GDRIVE Auto service
- - High-quality repairs and installation of tuning components for various car models.
- - A professional paint shop with the latest equipment, coupled with excellent craftsmen - a guarantee of consistently high quality painting for all cars,
and individual elements
- - High-quality sound insulation and installation of audio systems of any complexity from professionals in their field.
- - Post-warranty vehicle maintenance
- - professional installation of the aerodynamic body kit, eliminating all kinds of defects (gaps, distortions, etc.);
- - installation of hoods, spoilers, linings;
- - installation of sensors and measuring instruments (oil temperature, exhaust temperature, turbine pressure and other electronics);
- - installation of an exhaust system, both bolt-on and custom (specially created) for your car;
- - installation/improvement of the brake system, replacement of pads;
- - installation of sports suspension;
- - replacement of technical fluids (oil, coolant, brake fluid, etc.);
- - painting of discs with powder paint;
- - installation of radiators and oil coolers and other cooling systems;
- - pasting with film, both individual parts and the entire body.
Positioning
GDRIVE positions itself as a high-level car service that can be contacted by both the owner of a regular sedan and the owner of a sports foreign car. For a car service there is no limit to perfection; employees will service your car in the shortest possible time, create a web model of your car in tuning and complete this work in the shortest possible time. Also in our car service center you can wash your car, carry out pre-sale preparation of the car and use body polishing to remove chips and cracks. During the wash, you can watch your car via webcam from the waiting room where hot coffee and pleasant films await you.
Brand name and branding solutions.
GDRIVE - G-satisfaction DRIVE-attraction. We combine these two concepts and can confidently say that we satisfy you with your passion for cars. This name sounds simple and concise, contains the company’s philosophy and is easy to pronounce.
Synchromarketing events:
Our car service has its own cost system per hour; it directly depends on the volume of work performed and the time of arrival at the car service.
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Cost, norms/hour |
From 10 hours |
From 5 hours |
From 3 hours |
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Evening 18-22 |
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Product promotion activities
To promote our car service, it is worth paying attention to advertising and creating video and photo material (tuned in our car service).
To attract car lovers, for each car we will order a video clip with a brief overview of the car. The car will also be covered with stickers with the symbols of the car service; for this, the owner will receive a 10% discount on the work performed. Owners will post photos of their cars on Drive2 and Smotra.ru, thereby attracting potential customers. We will also post these cars on our pages on social networks.
We will develop a loyalty system for our clients, and they will receive pleasant bonuses from our partners. We will also be able to get clients through this program.
Cooperation with Groupon sites, buy a coupon, etc. We will issue a series of coupons for painting one part of a car or for changing the oil in a car. And since these works cannot be done without accompanying work, it will be convenient for people to use this service because The total price for these works becomes cheaper.
We will hold drawings for free re-tire shoes. The one who removes the wheels from his car himself the fastest will change the wheels for free.
Competition for the best service car - it will be the car that will write the best story about how he loves his car and what he went through with it. The winner will receive a free car paint job and a set of alloy wheels and the right to display their car at a car show.
Promotion company calculation
Creating your own style - RUB 50,000
Car stickers 10,000 pcs. - 50,000 rub.
Own car accessories (phone holders, air fresheners, frames) - RUB 500,000
Video clips (for tuned cars) approximately 10 per year. - 10,000 rubles for one video clip
If on average we service 20 cars per day, then the cost of the average bill will increase by only 250 rubles. Not a very significant amount to spend on servicing your car.
The price of the product
The pricing policy of our car service is aimed at attracting customers. On average, Norma/hour costs 2,600 rubles, which allows us to cover the market to a greater extent. The price for our services is formed from the salary of employees, payments for housing and communal services, and depreciation of equipment. All this amounts to cost. We also add our percentage, thereby receiving our profit. Typically, 15 to 50 percent is added to the cost of services. We followed the principle of adding a golden mean of 30 percent. This will allow us to avoid misunderstandings of pricing policy among clients. And don’t give the impression of a cheap car service.
- (10,000,000 + 3,000,000 + 1,000,000) / 7200 + 30%= 2600 rub. On average the cost is one hour.
- 7200 working hours per year
- 10,000,000-employee salary per year
- 3,000,000 housing and communal services per year
- 1,000,000 - other costs
The role of marketing as one of the leading systems for managing business activities in market conditions is generally recognized both within the framework of modern economic concepts and in the practical sphere, but despite this, there are still numerous discussions, both about the essence of marketing itself and related them concepts and terms. One of the basic concepts of marketing is “marketing offer”.
An analysis of the evolution of marketing as a special form of activity shows that profound changes have occurred in it, predetermined by the entry into a fundamentally new round of civilizational development.
The key trends in marketing are the actualization of issues of integration of marketing activities, its innovation, and the search for other forms of taking into account consumer expectations.
The changes that are taking place also affect the content of marketing activities, including the essence, forms and model of the marketing offer. A marketing offer is a form of appeal to the consumer.
The English-Russian Economic Dictionary defines a “marketing offer” as any offer related to the sale of a product or service, and although this formulation seems somewhat limited, it generally reflects the essential content of this element of marketing activity, namely, direct appeal to the consumer.
This approach also gives rise to such common definitions as:
“a marketing proposal is, in fact, the text of your advertisement”;
“a marketing proposal must ... convey to potential customers information about what the company does, it must encourage them to become clients of the company”;
"there are two types of marketing proposals: short and comprehensive (audio logos), containing the answer to the question of what the company offers, and detailed ones, containing at least the following elements: a description of the customer's problem; evidence that this problem is so important that it must be solved immediately, without delay; a description of why the entrepreneur (company) is able to solve this problem; a description of the clear benefits received by those who buy this solution; examples of successfully overcoming a problem with the help of this solution and customer reviews; a description of prices, payments and pricing policies ; guarantees provided."
In English-language literature, the term “Unique Selling Proposition” (USP), introduced by R. Rosser in 1961, is widely used.
USP differs from other forms of marketing communication in three ways:
in that it formulates not just an offer for the consumer, but a benefit, a benefit that he will receive as a result of the acquisition;
the offer must be unique, one that a competitor cannot make or does not make, although it can;
the offer must be “strong” enough to attract new consumers to purchase the product.
In German-language marketing literature there is also a special term “Alleinstellungsmerkmal”, which is close in meaning to the concept of “unique selling proposition”. Interestingly, the German (European) understanding is somewhat broader than the English (Anglo-Saxon) and covers politics, social activities and other non-commercial areas, while emphasizing the “distinctiveness” of the proposal, including legal aspects, for example, the presence of a patent.
At the same time, "Alleinstellungsmerkmal" is precisely a form of marketing communication.
Communication is one of the foundations of marketing activities.
The structure of marketing communication in its most general form is presented in Fig. 1 .
Rice. 1.
Based on the presented scheme, a marketing offer in its most general form can be considered as an element of marketing communication that synthesizes all information about the product in a format presented to interested users.
At the first stages of the development of marketing, a marketing offer was defined as a message to the client about a product that had been launched or was being prepared for launch on the market. It is no coincidence that in early works on marketing the essence of the marketing proposal was often reduced to advertising, and the economic situation in the market determined the corresponding “emphasis”.
Thus, in conditions of high demand, the essence of the marketing offer was simply information about the product. Increased competition actualizes such a parameter as price, and accordingly, the marketing offer is concentrated around this factor. Market saturation brings to the leading positions those companies that are most active in the sales sector.
As a result, the marketing offer takes on the forms of active influence on the buyer (selling concept): advertising and promotion campaigns, tastings, distribution of samples, various forms of consumer incentives (coupons, bonuses, credit coupons, discount cards), competitions, lotteries, games, drawings; presentation of gifts and souvenirs, etc.
The turn of marketing towards the consumer has changed the understanding of the marketing offer, which, according to the concept of “traditional marketing”, begins to be based on consumers’ ideas about what they want. In the scientific literature on marketing, the most common point of view is that it was in the era of the concept of traditional marketing that the idea of the marketing mix was formed.
We do not share this point of view. Firstly, marketing methods did not deny, but complemented each other as market relations developed (Appendix 1), respectively, which arose in the mid-twentieth century. The marketing mix was not so much an innovative idea as a successful description of the accumulated “marketing experience”.
It is not accidental in this regard that the development of this idea and the emergence of new models - consisting of five, six or more "p" (public relations, people), physical evidence (physical evidence - building, interior, location), process (process - technologies, operations) etc. (Fig. 2).
Naturally, the transition to the marketing concept did not reject the achievements of marketing, but the radical difference between this concept and the previous ones is the appeal to the understanding of the value of the product (service) by the consumer himself.
In this regard, we consider it methodologically correct to distinguish two eras in marketing: parameter-oriented (product) and value-oriented.
The first era is characterized by complication and an increase in the number of parametric characteristics taken into account in marketing activities, and its final conceptual embodiment is expressed in the 4P complex. The second is in the process of development and is characterized by an increase in the number of values taken into account as part of marketing activities.
Rice. 2. Marketing mix ("p" complex)
It seems to us that it is not correct enough to single out any dominant concept of marketing in a given period. This is due to the fact that marketing activity is one of the functions of an economic entity, the difference between the market positions of which largely determines the chosen marketing model. For example, many experts note that Russian enterprises are still characterized by a predominantly sales concept.
At the same time, large Russian companies, which play a significant role not only in the Russian but also in the world economy, use the most modern marketing methods, for example, for such economic actors as Gazprom OJSC, Lukoil OJSC and many other social and ethical Marketing plays a vital role as an element of the company’s positioning and, in terms of the breadth of methods used, they are not inferior to the world’s leading companies.
Each of the considered concepts focuses marketing activities on a certain aspect. The change in emphasis depends on transformations in the external and internal environment of the company, however, general trends appear both in the development of marketing and in changes in the marketing offer.
Thus, we can clarify the concept of a marketing offer as follows:
A marketing proposal is a marketing element that synthesizes all information about a product in a format that is presented to end consumers. As a form of verbalization of a key marketing idea addressed to interested users, a marketing proposal is characterized by the following parameters:
Approval of a value approach, which involves the formulation of a marketing proposal as a certain set of values;
Adoption of an integrative approach, i.e. recognition that a “one-sided”, “local” offer can no longer be accepted by the recipient of marketing information as objective;
Understanding the integrity of both the individual and the society in which this individual is included, the appeal of the marketing proposal not to the “individual client”, but to all interested parties (individuals, groups, organizations, states, etc.) in order to achieve a balance of interests.
Based on the definition of marketing as a type of human activity aimed at satisfying needs and wants through exchange, for a more complete understanding of it, let's consider the following concepts: needs, requirements, supply, requests.
Needs
The original idea underlying marketing is the idea of human needs. We define need as follows:
Need is a feeling of a lack of something felt by a person.
People's needs are varied and complex. Here are the basic physiological needs for food, clothing, warmth and safety; and social needs for spiritual intimacy, influence and affection; and personal needs for knowledge and self-expression. These needs are not created by the efforts of Madison Avenue, but are the original components of human nature.
If the need is not satisfied, the person feels deprived and unhappy. And the more this or that need means to him, the more deeply he worries. An unsatisfied person will do one of two things: either he will search for an object that can satisfy the need, or he will try to drown it out.
Needs
The second basic idea of marketing is the idea of human needs.
Need is a need that has taken a specific form in accordance with the cultural level and personality of the individual.
A hungry resident of the island of Bali needs a mango, a baby pig, and beans. A hungry resident of the United States needs a steak bun, fried potato chips, and a glass of Coca-Cola. Needs are expressed in objects that can satisfy a need in a way that is inherent in the cultural structure of an ancient society. .
As society progresses, the needs of its members also grow. People are faced with an increasing number of objects that awaken their curiosity, interest and desire. Manufacturers, for their part, take targeted actions to stimulate the desire to own goods. They try to form a connection between what they put out and people's needs. A product is promoted as a means of satisfying one or a number of specific needs. The marketer does not create a need, it already exists.
Salespeople often confuse needs with wants. A drill bit manufacturer may believe that the consumer needs his bit, when in fact the consumer needs the well. If another product appears that can drill a well better and cheaper, the client will have a new need (for a new product), although the need will remain the same (a well).
From an economic point of view, a need is a human-conscious need for something (in the production of any goods, services, works, etc. material goods, spiritual values, social processes.
We can identify the main features of the classification of needs:
1. Depending on the subject and object;
2. Depending on the stage of reproduction:
3. Depending on solvency;
4. Depending on the degree of satisfaction:
5. Depending on the nature of the occurrence.
If need expresses the range of material and spiritual goods that people need to have for a normal existence under given social conditions, then demand expresses only those of them that the population considers necessary to satisfy, based on their ability to pay.
Requests
People's needs are almost limitless, but the resources to satisfy them are limited. So a person will choose those goods that will give him the greatest satisfaction within the framework of his financial capabilities.
A request is a need backed by purchasing power.
It is not difficult to list the demands of a particular society at a particular point in time. In the late 1970s, 200 million Americans bought 67 billion eggs, 250 million chickens, 5 million hair dryers, paid for 133 billion passenger miles on domestic airlines and over 20 million lectures by English language and literature teachers. in colleges. These and other consumer goods and services in turn generated demands for more than 150 million tons. steel, 4 billion tons of cotton and many other industrial goods. And these are just a few requests from an economy estimated at 1.5 trillion. Doll.
The society could plan production volumes for the next year based on the totality of requests from the previous year. This is exactly how production is planned in countries with centrally planned economies. However, requests are not a reliable indicator. People get bored with the things that are current and they look for variety for variety's sake. A change in choice may also be the result of a change in prices or income levels. K. Lancaster notes that products are essentially bundles of properties, and people choose those products that provide them with the best set of benefits for their money. Thus, a Volkswagen car embodies a basic means of transport, a low purchase price, fuel efficiency and European performance, while a Cadillac embodies high comfort, luxury and prestige. A person chooses a product whose combination of properties provides him with the greatest satisfaction for a given price, taking into account his specific needs and resources.
Offer
The response of demand to price changes can be quantitatively measured using the price elasticity of demand coefficient (EP):
Percentage change in quantity
Ets = Products sold
Percentage change in price
Based on the analysis of the values and dynamics of EC, it is possible to draw general conclusions about the dependence of the product sales process on consumer demand and about the possible actions of the enterprise, etc. its competitors in terms of price.
A. If an enterprise sells products for which demand is elastic to prices (Ec > 1), then the very fact of elasticity of demand allows us to draw the following preliminary conclusions:
goods are purchased by special (not random) groups of buyers who are sensitive to changes in the price, since its fixed change leads to a larger (as a percentage) change in the quantity of products sold (with Ec = 2, a decrease in the price of products by 10% will lead to an increase sales by 20%, with Ec = 10, a similar decrease in price will cause an increase in sales by 100%);
the product occupies a significant part of the consumer budget, which determines strict requirements for its quality and price,
the product has substitutes from the same or related product groups produced by competitors. The higher the elasticity, the more such substitute goods and, accordingly, the higher the intensity of competition. This provision follows from the formula, the calculation of Ets - with an increase in the price of a product, a greater (in percentage terms) decrease in the quantity of products sold occurs due to the switching of consumers to other goods. The presence of a high price elasticity of demand indicates a lot: the choice of similar products and the activity of a given product market
Based on the above, we can conclude that increasing the revenue of an enterprise (competitor) in conditions of elastic demand is possible only by reducing prices or modernizing products that will lead to a decrease in the elasticity of demand. This conclusion is the fundamental basis for constructing a pricing policy in conditions of elastic demand for goods sold.
B. If a given percentage change in price leads to a smaller percentage change in the quantity of products sold (Ec< 1), то предприятие реализует продукцию, спрос на которую неэластичен. С точки зрения конкуренции это означает, что:
the number of enterprises selling this product is small (otherwise consumers would easily switch to similar products from other enterprises), which in turn may be caused, for example, by the lack of high-quality substitutes for the products sold;
consumers of products are insensitive to price changes (with Ec == 0.5, an increase in product price by 10% will lead to a decrease in sales by 10% with Ec = 0.01, a similar increase in price reduces demand by only 0.3%), which allows the enterprise can manipulate prices in a fairly wide range;
all other things being equal, the lower the elasticity of demand for a product, the smaller the share it occupies in the consumer’s budget.
The listed features force the company to increase prices, since in conditions of inelastic demand only this measure will help increase total sales revenue.
B. With unit elasticity (Ec = 1), an increase or decrease in the price of a product does not change the total volume of sales revenue received:
the decrease in unit price and the associated decrease in revenue will be fully offset by an increase in the total cost of sales due to an increase in sales volume;
when the price of products increases, additional revenue is fully compensated by losses due to a decrease in sales volume.
Such an equilibrium state indicates a low probability of changes in prices for goods, since any price fluctuations will not lead to an increase in sales revenue. However, this situation is very unstable. The slightest change in the environment upsets the balance of unit elasticity.
States of demand and marketing tasks corresponding to these states:
1. Negative demand. The market is in a state of negative demand if the majority of it does not like the product and even agrees to certain costs just to avoid it. People have negative demand for vaccinations, dental procedures, vas deferens surgeries, and gall bladder surgeries. There is a negative demand among employers to hire former prisoners and alcoholics. The task of marketing is to analyze why the market dislikes the product and whether a marketing program can change the negative attitude of the market through redesign of the product, lower prices and more active incentives.
2. Lack of demand. Target consumers may be uninterested in the product or indifferent to it
Thus, farmers may not be interested in a new agricultural technique, and college students may not be interested in learning a foreign language. The task of marketing is to find ways to link the inherent benefits of a product with the natural needs and interests of a person.
3. Hidden demand. Many consumers may experience strong desires that cannot be satisfied by products or services available on the market. There is a large latent demand for harmless cigarettes, safe residential neighborhoods and more fuel-efficient cars. The task of marketing is to estimate the size of the potential market and create effective goods and services that can satisfy demand.
4. Falling demand. Sooner or later, any organization will face a drop in demand for one or more of its products. Church attendance is down, and enrollment in private colleges is down. The marketer must analyze the reasons for the decline in market conditions and determine whether sales can be stimulated again by finding new target markets, changing product characteristics or establishing more effective communication. Marketing's challenge is to reverse the trend of falling demand through creative rethinking of the approach to product supply.
5. Irregular demand. For many organizations, sales fluctuate on a seasonal, daily and even hourly basis, which causes problems of under- and over-loading. Most public transport is not loaded during the daytime lull and cannot cope with traffic during peak hours. On weekdays the museums have few visitors, but on weekends the halls are crowded. At the beginning of the week there are queues for operations in hospitals, and by the end of the week there are fewer applications than necessary. The task of marketing is to find ways to smooth out fluctuations in the distribution of demand over time using flexible prices, incentives and other incentive techniques.
6. Full demand. Full demand is said to exist when an organization is satisfied with its trade turnover. The task of marketing is to maintain the existing level of demand, despite changing consumer preferences and increasing competition. The organization must strictly take care of the quality of goods and services, constantly measure the level of consumer satisfaction in order to judge the correctness of its actions.
7. Excessive demand. A number of organizations have higher levels of demand than they are able or willing to meet. Thus, the intensity of traffic on the Golden Gate Bridge is above an absolutely safe level, and Yellowstone National Park is overcrowded in the summer. The task of marketing, referred to in this case as “demarketing,” is to find ways to temporarily or permanently reduce demand. In general demarketing, they try to curb excessive demand by resorting to measures such as raising prices, weakening incentive efforts, and reducing service. With selective demarketing, they strive to reduce the level of demand in those parts of the market that are less profitable or require fewer services. The demarketing chain is not to eliminate demand, but only to reduce its level.
8. Irrational demand. Countering the demand for unhealthy products requires dedicated efforts. Campaigns are being carried out against the distribution of cigarettes, alcoholic beverages, addictive drugs, firearms, pornographic films, and against the creation of large families. The task of marketing is to convince lovers of something to give up their habits by disseminating frightening information, sharply raising prices and limiting the availability of goods.
Marketing proposal - products, services and experiences
The needs and desires of consumers are realized through a marketing offer, i.e. a specific set of goods, services, information or experiences to satisfy a need or want. The marketing offer is not limited to physical goods. In addition to tangible products, it also includes services, i.e. actions or goods that are put up for sale and are intangible in essence, and their purchase does not lead to the possession of any things. Examples include services in areas such as banks, air travel, hotels, repairs, etc. In a broader sense, marketing proposals also include other elements such as people, places of sale, organizations, information and ideas. For example, EarthShare, a nationwide network of America's leading environmental organizations, has a marketing proposition that raises environmental awareness and provides philanthropic jobs.
Many sellers make the mistake of focusing more on specific products rather than the benefits and experiences they provide. They believe that they are simply selling a product rather than helping to satisfy any need. The drill manufacturer may think that the customer needs a drill. But ultimately he needs a hole. Or, most likely, the real need is to assemble various items. Such sellers are characterized by marketing myopia. They are so passionate about their product that they pay attention only to current needs, losing sight of the deeper needs of customers. They forget that a product is just a means of solving a consumer problem. Such sellers will face serious problems if a new product comes onto the market that will satisfy the customer's needs more effectively or at a lower price. A customer with previous needs will feel the need for a new product.
Thus, skilled marketers look beyond the characteristics of the goods and services they sell. They shape the meaning and impression of the brand in the minds of customers. For example, Walt Disney World is a very specific experience. The same can be said about riding a Hariey-Davidson motorcycle. Your Nike running shoes are more than just running shoes, they're an amazing experience of being able to "move at the speed of your mind." You're not just watching NASCAR, you're immersing yourself in the NASCAR experience. “What consumers really want is offerings that capture their imagination, touch their hearts and stir their minds,” says one expert. “They want offerings that leave a strong impression on them.
