Scope of marketing Essay Example | Topics and Well Written Essays - 1500 words

Scope of marketing - Essay Example See graph l Graph I When price is increased, seller would want to sell more because it will be more profitable. However we will find that consumer will buy less because in the increase in price. Consumer may look for substitute product for bread which could be cheaper. While the demand curve goes downward when the price goes up, the reverse happens with the supply curve. In the diagram left, let us take for example that price of bread goes further higher from $3 to $4, the seller will be more than willing to sell at a higher price because it will be more profitable but as shown above demand for the product is low. The effect to seller and employment. The seller cannot afford to sell at lower price because it will incur losses. At this point, the seller will think of ways to cut on the cost of production. One of these is to reduce the number of personnel employed in the bakery. If the reduction of employment happens to all the bakeries in the country, the magnitude of unemployment wil l be another problem of the economy. How to increase demand. If the price increase is inevitable, there are ways to increase demand for the product. One way is to do a little market in tricks. A bakery in our place created the interest of customers when it announced a big sales discount on breads before closing the store. It may also work if you use catchy phrases like â€Å"limited supply only†, or perhaps by extending extra services to customers. Things may work well if you sell the brand to customers to gain loyalty. Emphasize on the convenience of eating bread because you can take bread anywhere like making it into sandwiches and eat it as against rice that needs a setting first. 2. The marketing of the product becomes difficult even when there is enough supply because of some factors, such as consumer preferences and expectations. Let us remember that there are available substitutes for the product, and so when the price of bread becomes too high, consumer will think of ways to economize, for example, rice or cereals for breakfast. Substitute goods can be used in place of another, corn or beans perhaps. And maybe the best argument for this is the price. The price is the best indicator for demand. Their demand for bread decreases because consumers economize on their consumption. 3. Potential market. Potential market is a set of consumers who have expressed a desire for the product or market offer. Potential market means a set of consumers who profess some level of interest in a designed market offer. (Lake, Laura n.d. ) Available market. It is differentiated from potential market, because available market means potential costumers qualified on the basis of his/her buying authority, and willingness to buy. By this we make a segmentation of consumers by classifying them into income groups. Target market. Target market has similarity of approach with available market because here, the marketer focuses on a specific market. But the difference is that th e marketer does not exclude people who do not fit into the criteria from buying the product. . For example, our company could choose to market to homeowners between the ages of 35-65 with incomes of $150,000+ in certain area in California. To classify the market further, the company could choose homeowners who are renting, or do not own a house and lot. When we have a defined market, it is easier to market the company ,for example, in defining our target market, we will take into consideration not only those who have the need for the condominium but