Dear mojito74,
In the abstract, an increase in demand for some product is brought
about by making more people aware of that product. Since the
probability that any one person will purchase a familiar product is
constant within a short time-frame, an increase in the number of
people who are familiar with your particular product inevitably leads
to a greater number of purchases. To bring this about, you should
advertise in markets and through media where you have never advertised
before.
If your product is unknown in Europe, for example, then you can
undertake a European advertising campaign to familiarize a new class
of people with it. If you have advertised on television before, now
try newspapers and radio. Such a campaign will be most effective if
you have distribution channels in place that can meet the demand which
is sure to arise. By meeting this initial demand, your product will
physically spread in the marketplace and become familiar to more
people, leading to further increases in demand. Such a
self-reinforcing effect is most likely to take place in virgin
territories where you have not previously marketed your product.
On the other hand, if people are already familiar with your product
and there are a known number who demand it, you can increase the
overall value of the market by increasing the amount that they
purchase per annum. It is a tricky business to increase the quantity
purchased by each customer on a single occasion, since luxury items
are necessarily consumed in small portions, while commodity items are
generally consumed at a constant rate regardless of the portions
purchased. Each of these effects, however, can be achieved by
manipulating the product packaging in contradictory ways.
By reducing the size of the package, you tend to increase the
frequency with which the product is purchased, and you gain a higher
profit margin per unit. By marketing your product in larger packages,
you win a higher absolute profit per unit, and you increase the
probability that your product is on hand in consumers' homes at the
moment that they wish to use some of it, leading to a higher rate of
consumption. It is generally sensible to sell luxury products in
smaller packages and commodity items in larger ones. You should
enforce these effects by continuing the marketing effort. When
advertising to segments of the market who are already familiar with
your product, the emphasis should not be on novelty and excitement but
on reliability and value. Thus, you should cite long-term studies and
scientific research in favor of your product, and generally present
facts rather than images.
If you find that my answer is incomplete or inaccurate in any way,
please post a clarification request so that I have a chance to meet
your needs before you assign a rating.
Regards,
leapinglizard |
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