Scarcity Marketing involves motivating people to buy something by telling
them there is a Shortage in what is available and a limited time to act.
Scarcity in Marketing means to use the fear of Shortage to sell more.
It's a fairly simple psychological premise.
Here are some examples of the Scarcity principle
used in Marketing.
1. Petrol rate is increasing from tomorrow. So buy to day.
2. Gold rate is increasing from next week. So buy to day.
3. Silver rate is reaching Gold rate in this month. So buy to day.
4. Scarcity of Food grains, by next month, by increasing floods. So buy to day.
5. Coolers rate will be increased soon, because summer is coming. So buy to day.
6. Air Conditioners rates will be increasing 25% because next coming season is
summer. So buy today.
Consumers should have awareness:
So these are some examples, so consumers should aware of this carefully,
but certain extent, in some cases, it may be right. So you should have
you own plan and process, regarding these. So be alert.
Above Average Families should Purchase Food Grains in Whole sale:
Generally Food grains is better to purchase for every 6 months in whole sale
market. You can observe at least 15% difference, when compared to retail price.
If Surplus is there:
If surplus money is there, it is better to purchase Air Conditioners also,
because for common people, cannot get money, at the time of their requirement,
so if we purchase at the time of having surplus money in our time, is better
to purchase. Then you can utilize that AC in summer.
Advanced Purchase of Petrol:
Petrol is also, pre-intimated information, so certain extent, we can
purchase in advance, if such news are there.
Advance Purchase of Gold and Silver:
In case of Gold and silver, irrespective of the rates, it is better to
purchase some extent, because we can utilize the same for our children
marriages and equipment.
Scarcity Marketing is Marketing that capitalises on a customers fear
of missing out on something. It's based on the psychological principle
that people want what is difficult to acquire. Stores always have sales
that are ending soon. Or they offer discounts that expire on a certain date.
This is scarcity Marketing.
How is scarcity used in Marketing:
Boost Your Sales with Scarcity Marketing.
Purchase countdowns, Sale price countdowns.
Next-day shipping countdowns, Seasonal offers.
Low stock notices, Limited edition items.
Spotlighting customer behavior.
Using numbers that indicate popularity/demand.
Examples of scarcity:
Land – a Shortage of fertile land for populations to grow food.
Water scarcity – Global warming and changing weather, has caused
some parts of the world to become drier and rivers to dry up.
Labour Shortages, Health care Shortages, Seasonal Shortages.
Fixed supply of roads.
What does scarcity mean:
Scarcity refers to the basic economic problem, the gap between limited
that is, scarce – resources and theoretically limitless wants. This
situation requires people to make decisions about how to allocate resources
efficiently, in order to satisfy basic needs and as many additional
wants as possible.
What are the 3 types of scarcity:
Scarcity falls into three distinctive categories: demand-induced, supply induced,
and structural. Demand-induced scarcity happens when the demand of the resource
increases and the supply stays the same.
What are the four factors of production:
Economists divide the factors of production into four categories: land, labor,
capital, and entrepreneurship. The first factor of production is land, but this
includes any natural resource used to produce goods and services.
What causes Marketing:
Cause Marketing – the cooperative effort between a for-profit and a non-profit
for their mutual benefit - gives people the opportunity and knowledge they need
to help. Profit-generating, powerful global brands have the resources to raise
awareness of nonprofit organizations, while also promoting their product.
Causes of scarcity:
Demand-induced – High demand for resource.
Supply-induced – supply of resource running out.
Structural scarcity – mismanagement and inequality.
No effective substitutes.
How do you deal with scarcity:
If we only had more resources we could produce more goods and services and
satisfy more of our wants. This will reduce scarcity and give us more
satisfaction (more good and services). All societies therefore try to achieve
economic growth. A second way for a society to handle scarcity is
to reduce its wants.
Wishing you all the best,