IMPACT OF SUPPLY, DEMAND, AND ELASTICITY
The supply, demand, and elasticity have a direct impact on marketing decisions. The low demand may point to the necessity for better promotion of products and services simply because the consumers may turn out to know too little about the product, or be unaware of it at all. There would be little wonder if our specific product is not in demand, even though our competitors sell the same one very successfully. What if we fail to sell fresh water in hot summer time? Such paradox is quite possible if we do not follow simple marketing principle of 4 Ps. In terms of marketing, demand should not be viewed as something static. Even as applied to fundamentally new products, it can be created through marketing decisions. To say nothing of basic needs like fresh water in hot summer. We just have to remember of 4 Ps. The idea of supply in marketing is especially important in terms of competition: if we fail to provide supply that meets demand, our competitors will do it for us fast enough to their own advantage. The idea of demand elasticity is also important in terms of marketing decisions. For example, inelastic demand for a product usually results from a lack of substitutes. For this reason, marketing decisions might be aimed at identifying or creating a new product or service to substitute for the one with inelastic demand.
MARKET SEGMENTATION AND CONCEPT OF POSITIONING
In simple terms, the idea of market segmentation (naming and segmenting) is how not to lose the focus. For this purpose, identifying most promising consumers is really a critical part of marketing activities. Would it be a reasonable decision for us to try selling air conditioners in Northern Territories and snow-removing equipment in South California? Hopefully not. The idea of positioning is also important in terms of consumers' psychology. With the diversity of products today, it becomes important to be able to have a proper understanding of consumer’s needs and attitude, to see what and why they need and how their needs are satisfied by the existing market.
CONSUMER PRODUCT CLASSIFICATIONS, PRODUCT LIFE CYCLE, PACKAGING, AND BRANDING
The idea of consumer product classifications is important in terms of understanding how they think of them and what can be the motivation to buy them. This understanding is really critical, because to project our own perceptions on what we want to sell should be the last thing to do. Since the human nature is really a complicated thing, therefore the accumulated knowledge and observations made by the marketing scientists can be really helpful in making decisions. This may apply to certain particular classes of consumers' products like convenience, shopping, specialty, and unsought products. The useful thing to realize is that in selling a specific product or service we need to take into account specific qualities they offer, in terms of both material and psychological implications. Branding is also an important factor in marketing decisions. The idea of branding is to win wider and steadier recognition, though in real life a brand would not necessarily ensure a desired quality. Yet it works and, therefore, should be taken into account for competitive considerations. One of the important real life implications here is that to sell a branded product we would have to think well of what kind of advantages might contrast our product or service against the competitor’s one. The product life cycle is especially important to in terms of planning of our marketing activities. For example, when dealing with a new product on the market it is important to be aware of the main stages of product’s life. The low sales at the introduction and market growth stages would affect our marketing decisions in many ways, specifically in terms of promotion approaches, pricing policies, scale of production, financing, risk taking, etc.
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CHANNEL INTERMEDIARIES
Intermediaries, as an indirect channel of distribution, play a very important role in selling, which is one of most critical marketing functions. In real life it could hardly be possible to properly identify and effectively use all channels of distribution as they may represent quite complex ramifications of different channels. For example, for a small or medium-size production company it just might not be affordable to keep a large enough marketing department to deal with all problems of products distribution. Therefore, the services of intermediaries could be indispensable, even though they may take extra costs. Intermediaries help us cover larger market sectors. On the other hand, the value of intermediaries consists in their practical experience in trading. If our business is focused on production, we may need to concentrate more on production problems rather than trading, otherwise we lose the focus and there is always price to be paid for it. So the use of intermediaries might pay back.
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