The business environment is always volatile because it is affected by the supply and demand of the marketplace. There are many factors that can contribute to the demand in the market and this demand will likewise also affect the supply. It is important to look into each of these factors to be able to cope up with changes. One of the most important determinants of demand is the income of the customer. When the income of the customer falls then his ability to purchase goods and service is affected.
Another factor that influences the demand for a product is the prices of related goods. For example, if the price of an apple falls for one particular season then you can expect the customers to buy more apples during that time frame even if they are used to buying banana. In this regard, the banana industry suffers because the customers buy the apples because of the low price.
Still another determinant of demand is the shifting taste of the market. Sometimes, there are trends in the market the drives the demand of some products up while sometimes it would adversely affect the demand in the market. The taste of individuals themselves can reflect on the overall demand of the market. If some customers prefer chocolate more than coffee then you can expect the demand of chocolate to be a lot more significant compared to coffee.
Your expectations in the future are also likely to affect the demand for a particular good or service right now. For example, if you are expecting to earn a lot of money in the near future then you will most likely be more inclined to spend today. On the other hand, if you expect to encounter several financial difficulties in the near future then your demand for products and services then you are likely to save your money right now.
Even the number of buyers in the market has will have an overall effect on the demand because they will drive up the production of these goods. The prices of these goods will also be dependent on the demand which is created by the number of buyers.
As you can see, there are many determinants of demand and as a business owner; you should know each of these determinants individually and thoroughly. This is because you are in an industry that is highly dependent on the demands of the market. Every business in the world needs to follow the trends and where the demand in the market is going in order to survive. The enumerated determinants of demands are just some of the things that will affect the demand; there are still other factors that may affect the demand more than you though possible.
As we move forward into the new millennium, the marketing of our product or service becomes more and more essential. On an average day, your customer is being hit with a deluge of communications. Most of these communications do not ARRIVE at your customer, as he doesn't have the ability or the desire to assimilate the sheer volume. A consumer can now, in a fraction of a second and with the click of a mouse or remote control, move from one communication to another.
So how do we increase the chance of reaching new prospects? Well, let's step back for a second and look at a quote from by L. Ron Hubbard:
"The whole story of marketing is told in just a few words:
"ONE FINDS OR STRENGTHENS OR CREATES A DEMAND."
We see that this gives us three areas to consider.
Finding a demand. Strengthening a demand. Creating a demand.
Finding a demand conveys the idea that the demand is there somewhere, we just need to locate it. A tried and true way of finding a demand is to ASK YOUR CURRENT CUSTOMERS. They know what you deliver. They know its value. Ask them to refer friends or family to you. Better yet, give them a reason to refer people to you.
Whenever a current customer of yours provides you with a new customer, give them back something of value. What should that value consist of? The first answer that comes to mind of course is "money", but that is not the only valuable commodity to your customer and it may not be an appropriate exchange. If you deliver a service, perhaps a portion of that service delivered at no cost. Perhaps movie tickets or dinner for two at a nice restaurant nearby.
Motivating your current customers to help you "find a demand" can be extremely productive for your business. There are four keys to this kind of thing:
1) Find out what IS valuable to your customers. What WILL motivate them to bring you new customers? The simplest way to determine this is to ASK them. Survey a nice handful of your current customers to determine what would really motivate them to refer new business to you. In this type of survey, you may want to list out four or five suggested items and see which item comes up the most popular.
2) Ensure that the item to be exchanged does not "break the bank". If you sell a high ticket item or service, then you can certainly afford to be more extravagant. Just make sure you've got that balance of "valuable to your customer" and "cost-effective to you".
3) Let ALL of your customers know that you are implementing an exchange program. Get the word out on every possible line. Send out letters, include a mention of it in every phone call, have fliers to hand out to people at the cash register.
4) Deliver the exchange on time. Don't be tardy when your customer's due his reward. If you set it up that the referral must become a paid customer (and not just an interested prospect), then the moment the referred customer makes payment, deliver the exchange with the customer who created the referral. This kind of speedy exchange can motivate even more referrals.
There are other ways to "find a demand". The people who purchase your product or service, where do they shop? What magazines do they read? What radio stations do they listen to? What internet sites do they visit? Which online and offline newsletters do they subscribe to?
You could put together a written survey to find out all kinds of things about your current client base. Ask them to fill out this survey while they are in your store or place of business. Or send out 100 or so by mail. You could give them a free item or a 10% discount for filling out the survey.
Every question you get answered will give you a clue where to look to find more "demand". If a vast majority of your customers listen to a particular radio station, consider advertising on that station. If you find your customers like a particular newsletter, see if that newsletter will take an ad from you. What if your customers patronize a handful of stores more than others? Contact that store and offer to do "cross marketing" with them. You'll have their fliers on hand at your cash register if they'll do the same with you. Or you'll mail out one of their fliers along with your monthly billing if they'll do the same with your flier.
Marketing can sometimes be a daunting subject. When you break it down into finding, strengthening and creating a demand, the subject becomes much more understandable. And easier to apply.
In our next newsletter, we'll discuss "strengthening a demand". Stay tuned!
Both Dock Murphy & Stan Dubin 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.
Dock Murphy has sinced written about articles on various topics from Home Based Business, Entrepreneurship and Computers and The Internet. Dock J. Murphy is owner of Plug in Profit and writes on a variety on a variety of subjects.To learn more about this topic Dock. Dock Murphy's top article generates over 74000 views. to your Favourites.
Stan Dubin has sinced written about articles on various topics from Careers and Job Hunting, Small Business and Family. Stan Dubin is the author of ?The Small Business Success Manual.? This 200-page book contains new and innovative tools to help you increase your income and expand your business. For more information on this book, go to. Stan Dubin's top article generates over 18100 views. to your Favourites.