When it comes to making a sale, which do you think is more important? Educating a prospect on the realized benefits if they choose your product / service, OR sizing up your offering against the competition available in the market? The truth is they both are critical and represent a subtle shift in the type of demand you are hoping to generate.
Let’s examine the first – primary demand. You want to target primary demand when the potential client is thinking about trying your product / service for the first time. In a true primary demand case, none of your competitors are your direct competition. The difficulty lies in getting the customer to change the way they are currently doing things. So, the key is to educate the buyer on the idea you’re selling.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Stagflation
In economics, stagflation is the situation when both the inflation rate and theunemployment rate are persistently high. It is a difficult economic condition for a country, because when inflation and economic stagnation are occurring simultaneously, a policy dilemma results since actions that are meant to assist with fighting inflation might worsen economic stagnation and vice versa. Theportmanteau stagflation is generally attributed to British politician Iain Macleod, who used the term in a speech to Parliament in 1965.
The concept is notable partly because, in postwar macroeconomic theory, inflation and recession were regarded as mutually exclusive, and also because stagflation has generally proven to be difficult and, in human terms as well as budget deficits, very costly to eradicate once it starts.
In the political arena one measure of Stagflation termed the Misery Index (derived by the simple addition of the inflation rate to the unemployment rate) was used to swing Presidential elections in the United States in 1976 and 1980.
Source: Wikipedia
Martin Jacques: Understanding the rise of China
Speaking at a TED Salon in London, economist Martin Jacques asks: How do we in the West make sense of China and its phenomenal rise? The author of "When China Rules the World," he examines why the West often puzzles over the growing power of the Chinese economy, and offers three building blocks for understanding what China is and will become.
Long-run average cost curve (LRAC)
In the long run, all inputs (factors of production) are variable and firms can enter or exit any industry or market. Consequently, a firm's output and costs are unconstrained in the sense that the firm can produce any output level it chooses by employing the needed quantities of inputs (such as labor and capital) and incurring the total costs of producing that output level.
BRICs
In economics, BRIC (typically rendered as "the BRICs" or "the BRIC countries" or known as the "Big Four") is a grouping acronym that refers to the countries of Brazil, Russia, India, and China that are deemed to all be at a similar stage of newly advanced economic development. Despite lagging behind the other members in terms of economic growth, China formally invited South Africa to join the BRICs in 2010, and so the acronym changes from "the BRICs" to "the BRICS". South Africa thus became the first African country to be admitted to BRICS.
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