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Utility, Elasticity, & Demand
Econ202/M2-A2
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UTILITY, ELASTICITY, & DEMAND
A shampoo is a liquid used to wash our hair and the product leaves the hair clean as well as a
nice smell. Healthy hair is important to everyone, so shampoo is recommended for most people.
Considering this, our target audience is young people specifically ladies. Our hope here to collect
adequate interest to this specific group so as to convince them to trust our product and try it. In
addition, our vital goal for this item promotion is to acquire our target market to buying the
product (Carnes, (n.d.).).Eventually, we don’t want the target market to at least try the shampoo;
the company want the purchase to continue. After achieving this goal, the final impacts must be
increased in sales, therefore improving our returns that will suddenly assist us shield our
expenses.
To attain all these, we should carry on the exploration on our target market. Therefore, increasing
our knowledge about the market supply. Clearly, the more we are acknowledged, the better the
opportunities of keeping them involved. Updating the target market should keep them involved,
and the paramount method to do this is to market the regular as well as gentle elements, which
we use in the product. We have to ensure that clients feel more interested in our shampoo for
strong and healthy hair. It is also our duty to demonstrate the product to be the best choice in
comparison with other similar products. Our product is ordinary, a price favored and verified to
be the best solution of your hair than other types. Attracting the target market devotion, there
must be an advert in commercials that is in radio and television practicing it during shows and
times that attract our specific target market. It’s my belief that one area to get most of the
attention is on social media (TUMBLR, Twitter, and Facebook). We may offer free samples in
the stocks where we will be marketing the products and offering free samples online. As a result
of brand product. Furthermore, there are two other alternatives which can be considered that
include distributing a voucher for our product and offering a free product for about 100 buyers
who come first at any store which will attract more customers (Gannon, (n.d.).
To start with, we need to consider our immediate goals. The most significant is to ensure we
market the needed quantity of products in a certain period and that we stretch our target as well
as particular environmental areas. The components of the way to surpass deal with and our
contestants together with the way the business is going to grow as well as implement each day
must be uppermost of our list on matters to deal with first, not only for today but also for
tomorrow. Being strategic in our concepts, and our prices should remain constant enough that
our consumer prices must indicate the product quality to be high and not high priced. The market
should be managed by our costs by having the highest prices on the market, but we are going to
work our way to that main purpose. Considering the accessibility matter and the way our clients
could be affected if the presence were to reduce is what we need. It is good to know the way we
are going to issue our shampoo product. There are numerous choices we have; sales on the
website, full-service retail sales, self-service retail or direct sales, (Business Plans). We begin
with little by utilizing the only approach and slowly move through the other one. Moving on to
price elasticity and the need for our product. The success of our product is vital at this time as it
will show us how satisfied our clients are with our product. We will have inadequate ability to
determine the value until there is ready growth in sales. We are there supposed to look into our
customer manners and the need for the produce (Riley, 2012).
In demand, the aspect is critical to look for what demand is in our target market. Do our
customers want shiny hair, the volume or more hydration? These just few of the numerous
questions we should ask ourselves. Some factors too are considered; if the customers buying
certain types of shampoo at specific times of the year. We should look at whether consumers are
more willing to buy certain shampoos for their specific needs at higher prices. When we put
together all these factors in the campaign, it will help us to be more successful after launching
our shampoo in stores as well as online (Entrepreneur. (n.d.)).
The chart below shows an anticipated impacts on marketing campaign. Market equilibrium
regarding price as well as quantity.
The chart below shows customer quality and price elasticity of demand.
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7
Price and Quantity Adjustments
price Quantity demand quantity supplied
0
1
2
3
4
5
6
7
8
9
1 2 3 4 5 6 7 8 9
Consumer Utility
customer utility quantity consumed
References
Strategic Marketing Plan. (n.d). Retrieved June 17, 2015, from
http://www.businessplans.org/market.html
Scheiber, N., “As a Center for Outsourcing, India Could Be Losing Its Edge,” New York Times,
May 9, 2004, p. BU3.
Carnes, D. (n.d.). Examples of Promotional Strategies in a Product | Chron.com. Retrieved from
http://smallbusiness.chron.com/examples-promotional-strategies-product-17706.html
Entrepreneur. (n.d.). Marketing Campaign Definition | Small Business Encyclopedia. Retrieved
from http://www.entrepreneur.com/encyclopedia/marketing-campaign
Gannon, D. (n.d.). How to Market a Brand New Product. Retrieved from
http://www.inc.com/guides/201106/marketing-a-brand-new-product.html
Netmba. (n.d.). Pricing Strategy. Retrieved from http://www.netmba.com/marketing/pricing/
Riley, G. (2012, September 23). Price elasticity of demand. Retrieved from
http://www.tutor2u.net/economics/revision-notes/as-markets-price-elasticity-of-demand.html

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