Human wants are varied. They differ from place to place and time to time. In fact, they are unlimited. It means that human wants are numerous. A man is always bundle of desires. For example, a boy may want a bicycle than he may need a scooter or a motor-cycle. His wants are unlimited in relation to his means.
Different wants exist simultaneously and all of them cannot be satisfied at once. For example, a student may have a desire for a pair of shoes or terylene shirt,or a book, but all the wants cannot be satisfied with a limited amount of money. So there is a sort of competition among the wants. In such cases, the problem of choice arises. He has to choose between the more urgent wants and less urgent wants. Thus there is competition among the wants.
Sometimes in order to satisfy a particular want we need more than one good, Suppose a man wants to construct a house he may require cement, bricks, timber, labour etc. Thus to satisfy a particular want he need several things. Tooth brush and tooth paste, pen and ink, car and petrol, bat and ball are com-plementary good. There are also alternative sources of satisfying a particular want. Suppose a person wants some recreation, he may go to cinema or drama or listen to radio or T.V. Wants vary in their Intensing: Wants differ in importance. Some wants are very urgent and others can be postponed. Most of the people at present take coffee as they get up from bed everyday. This has become a habit with them. Smoking is also an example for this.
So, wants give rise to activities. Discovery of new product or invention of new style stimulates wants and increases consumption.
In spite of all these characteristics of wants, they are influenced by advertisements.
Since the people give room for wants, they are able to meet requirements for necessaries, comforts and luxuries. The term Wealth means stock of goods existing at a given time that have money value. In fact, it increases the degree of confidence to the people. Everyone wants to raise his standard of living. Here the term standard of living means the necessaries, comforts and luxuries that go into consumption pattern of a particular class of people. So, this way,everyone enjoys a certain income and a certain status in society. Standard of Living depends upon many things such as income, education, size of family and habits etc. As far as India is concerned, these are limited so compared to an American,an Indian enjoys a low standard of living. In order to raise standard of living, people should increase their expenditure on necessaries, comforts and luxuries. For this, they should be well educated about existing as well as new products in the market. Products are not from single industry but from many. To understand, please refer the table below.
Electrical goods - Simple bulbs,Various discharge lamps, Generators, Flourescent lamps, Electric Arc Lamps(useful in Cine Projectors), Electric motors , Cables and Wires, Batteries, Fans
Electronic goods - Simple Calculators, Televisions, Electronic Clocks, DVD Players, Various types of cell phones, Computers are some of the examples of assembled Electronic goods. Valves, Resistors, Capacitors, Transistors, Integrated Chips, Thyristors, Field Effect Transistors
Mechanical goods - Cycles, Scooters, Bikes, Cars(Hyundai, Ford etc), Air Conditioners, Refrigerators etc.
Optical goods - Microscopes, Digital Video Cameras, Cine Projector Lens, Various convex and concave mirrors
Educational Instruments - Drawing Board and stand,Tee square or mini drafter, set-squares, protractor and clinograph, pencils, Rubber or Eraser and erasing shield, duster, drawing ink, sand paper,Pens, Pencils, Sketches
System software products - operating system, assembler, compiler, interpreter, debugger, text editors etc.
Application software products - C, Pascal or Java etc.
Organic products - tables, chairs, doors ,gaskets, felt for packings, cork for insulation, footwares, bags, fibres for binding and oils etc.
These industries include Electrical, Electronics, Mechanical, Optical, Hardware, Software(ex. Computer Games) etc. Obviously, we can conclude that buying definitely brings wealth as well as Standard of Living. The Kavi Ads will make you understand the concept of Product and Service and their different industries. So we can make profitable and satifactory purhcase on these goods and services.
Healthcare Products And Services
One of the most challenging things you can do as a marketing professiona, entrepreneur, or business owner is to price your products appropriately. Often times, individuals have no real strategy for pricing products or understand the perceived value that pricing can create. In this article, I'll share my 12 year of product experience and what I've learned by pricing dozens of products ? pricing them to sell.
When considering how to price a product, there are a number of methods for arriving at a starting price. The most popular include zero sum pricing and competitive pricing. Those who price their products using the zero sum method generally begin at zero, add all their costs including manufacturing, overhead, and so on, plus some type of margin to reach an initial price. The margin used in this calculation is based on industry norms or existing margins on similar products.
Competitive pricing is a method where you evaluate the products your competitor is selling and at what price. If your product or service is the same or similar, you'd want to price your product in the same general area. If your product is different, you'd adjust your price up or down based on features, benefits, and value derived.
Another model is called premium pricing which is used when considering a competitive pricing grid. Companies like Cadillac use premium pricing. This method charges ?top dollar? for a product that is of better quality or perceived quality. Rolex is another example. It doesn't tell time any better than a Seiko but it costs much, much more.
Once you've determined your preferred pricing method, the next step is to develop multiple pricing options. Too often companies stop with the selection of a pricing method. The top marketing professionals know that the only way to optimize price is through tiered pricing and testing.
There are way too many individuals still pricing their product based on gut feel. The dialogue usually goes like this, ?How much should we charge?? ?I don't know, what does competitor X charge for it? $39.95? Let's charge $34.95 so we can out sell them?. Don't laugh?this is how 90% of the products are priced out there.
This method would be okay if after you evaluated your costs and were able to charge less. However, using pricing options allow you to charge both more and less for a given product compared to your competitors. Let me explain what I mean.
To illustrate pricing options, let's use a popular example, the fast food restaurant. Fast food establishments use tiered pricing all the time. Would you like the single hamburger, double hamburger, or the triple? Smal, medium or large drink? Small fries or large? Regardless of your industry, product, or service, you must give the consumer options.
A number of my clients have said that they can't offer that type of pricing. When I ask why, the answer is often that their product is one size fits all. If that's the case, determine how you can offer your product in increments. An attorney that charges by the hour can offer his services by the hour or on retainer. A landscaper can add-on additional services such as weeding, edging, or trimming. And an online publisher can provide a basic or premium package. It's all in the mind set.
Conclusion
When developing a pricing strategy, understand the direct and variable costs associated with your product, the competitive landscape, and the varying needs of your market segments. Only then can you develop a winning pricing strategy. Choose the strategy that you believe resonates with your market and test, test, test. Be sure to offer tiered pricing to give your prospects options and you'll soon be working at the optimal price.
Both Kavi Arasu & Raymond Brookside are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kavi Arasu has sinced written about articles on various topics from Strategy and Tactics of Pricing. Hello, My Name is Mr.Kavi Arasu. I am thirty two years old. I have completed AMIE(Associate Member of Institute of Engineers(India)) which is also equivalent to B.E. degree and become an Engineering Graduate in Computer Engineering. I have also completed. Kavi Arasu's top article generates over 1000 views. to your Favourites.
Raymond Brookside has sinced written about articles on various topics from Strategy and Tactics of Pricing, Cover Letter and Education. Michael Fleischner is an and the president of MarketingScoop.com. He has more than 12 years of marketing experience and has appeared on The T. Raymond Brookside's top article generates over 33100 views. to your Favourites.
Definition Of Internal Conflict After all, how many people that you know who own a magical ring? As you are writing your epic fantasy novel remember that all the wondrous worlds, scenes, and creatures are just in addition to the re...
