Many promoters fall in love with their product or service. If the public does not share his enthusiasm, the market can not be. Consumers have to buy a product because of an easily relevant need or should be caused by the need of a product through advertising and promotion.
To study the marketability of a product or service, it is desirable to classify under the following headings:
- Luxury or necessity
- New or Staple
- Producers or consumers
- Shopping or convenience goods
- Physical properties
In any business recession, luxury goods lose sales much faster than needs. Luxury items have much higher markings than essential items. In difficult times, the demand for diamonds decreases very quickly, while the demand for food only slightly affects. However, diamonds demonstrate a much higher percentage of profits than: food, and that the market can maintain financial stability if properly managed.
New items are securely short-lived market. This is typical of many women's jewelery items, such as bijouterie, handbags and hats. Staple products enjoy a reliable, stable market with small fluctuations and reliable life expectancy. Men's clothing, canned soups, nuts and bolts are all major products. In contrast to the marketing equilibrium of the clip manufacturer, the manufacturer of new products must constantly monitor new items, as older products lose their markets.
Products purchased in industry, such as machine tools, hoists, trucks, and forms of structural steel, are products of manufacturers. Many of these items are capital goods; that is, they are not quickly consumed, but are used for a long period of time to assist in the production of other goods. Although such items are usually bought after a thorough analysis of the needs of the business and the relative merits of various products, emotions are sometimes the basis for the purchase of new equipment, the economic justification for which has not been clearly proven. Products purchased by the consumer, ranging from food and electrical appliances, are classified as consumer products. More advertising directed to the consumer than the manufacturer. Consumers and # 39; Purchases are usually made on a more ethical basis than manufacturers. A mink coat can rarely be justified by a thorough analysis of a person’s needs. Food, however, is bought because of its materiality.
The buyer's attitude is the main determinant between stores and everyday goods. As a rule, expensive items, such as electrical appliances and furniture, are not bought at the present time, but only after a careful comparison of the types, qualities and prices of the goods available. Typically, commodity goods, but not always, include items that are to some extent capital expenditures. Convenience goods are those that the buyer buys without careful comparison. Time and place of purchase are dictated by convenience. The article is usually standard and with little price change. Such items include cigarettes, candy, chewing gum and magazines.
Perishable products must be sold quickly to avoid spoilage, or they must be processed for preservation. The obsolescence style is similar to the on-demand quick sale. Fragile products that are difficult to transport should have higher markings to compensate for the breakdown of some part of the total stock or product. Difficulties in the manufacture of certain items, leading to a large percentage of garbage that cannot be sold at the usual price, also require a higher marking.
In addition to gaining a clear understanding of the benefits and limitations of a product or service, the market must be defined. Too often, the public cannot divide the promoter's enthusiasm into their product or service even after much of the money has been spent on advertising and sales promotion. Affordable pricing should be determined with due regard for competition and production costs. The price at which a product or service is offered indicates which income groups can be viewed as markets. The nature of the product will also determine which level of education group may be interested. It is difficult to sell the works of Shakespeare to the illiterate; it is equally difficult to interest those educated in patent medications with extravagant claims. Prejudices and practices of racial or religious origin can create or eliminate markets. Some preferences and prejudices of the public are difficult to analyze. Americans' preference for super-long, bright, powerful cars and their prejudices against Turkish coffee are often easily rejected as signs of a high standard of living, on the one hand, and lack of knowledge on the other. In many low-income groups, the first major expense comes from a luxury car. It is difficult to determine the amount of advertising and sales promotions that are necessary for the development of the American Turkish coffee market. Suffice it to say that these preferences and prejudices must be taken into account when analyzing markets.
Legislation also affects the market. The sale of alcoholic beverages is regulated by law. The laws and regulations of small government units vary widely. The rules of interstate commerce regulate the supply of many items.
In addition to analyzing the product and the market, the method by which the product reaches the customer requires study. Usually, channel selection is not compiled during the organization of a new business because of the many possibilities and constantly changing patterns. However, if legislation, custom, or financing needs limit the choice of channel, it is important to determine the channels available. The law in most states prescribes channels for the sale of alcoholic beverages and drugs. Custom dictates that tobacco products are sold through tobacco retailers. Here, however, the shop of the grocery store, to a limited extent, engaged in the retail trade in cigarettes. The need for financing cotton-converters leads to proliferation through factors that contribute to a significant part of the selling price when delivering goods.
Enterprises have two main types: production in advance (mass production in a warehouse) and goods under the order. Household appliances, cars, soaps and clothing are produced in large quantities and supplied by a manufacturer, wholesaler and retailer. The customer chooses from the display of finished products. In some cases, further processing is done after the sale, for example, installing accessories in cars or changing clothes to fit. The advantages of this system for the client are the possibility to choose from stocks, immediate delivery and low prices. In the production process, low costs are achieved through bulk purchases, the use of large equipment and careful production planning. In general, mass production requires large capital expenditures on equipment and a greater amount of working capital to finance procurement and labor.
There are many large enterprises that make goods to order. Large machines and power generating equipment are the subject of such a rare purchase and such specialized applications that each piece of equipment is made to order. Here the buyer must purchase by written specifications, from abbreviations of catalogs and from technical data. Many small businesses operate in this way, for example, customers, cabinet makers and fancy bakers. The client pays special attention to his needs, but he cannot verify the item.
In advance, must wait for delivery, and usually pays a higher price. The manufacturer may not need such large equipment, as well as save on the cost of inventory, but his store may not always be busy. Production planning is difficult, especially if the company receives several orders at once. For any type of work guaranteed delivery of materials is required. The problem may be more difficult for the type of order to order than the type of mass production, which can foresee their needs.
