Easy Understanding of Determinants of Marketing


Marketing is to convey the features of your product in such a way that it attracts many eager buyers to purchase your product or service. For successful marketing first of all we need to make a marketing plan or strategy. To make a plan we need to know the determinants of Marketing. Or simply the factors that affect the sale of your product.


Determinants of Marketing

Marketing is affected by the market demand. This is the total number of people wanting the same product at a specific cost in some time. You can also say the number of demands of your product by consumers.

Determinants of Marketing

The first paragraph is going to be about defining the determinants. In the second paragraph, we’ll use the techniques of introspection and role playing where you will see how the determinants affect sales.

Right Price

The cost of the product is the most important determinant for your customers. Lower the price the more people could afford and want to buy it. More the cost of your service the fewer people can buy it.

Lowering the price of your product works more in an oligopolistic market structure. The oligopolistic market structure is a small number of companies targeting the same kind of consumers, these companies are selling a product that satisfies the same need of those consumers.Best Markt brand

If I go to the market and find two companies providing the same kind of chocolate chip cookies then I will definitely buy the ones which have less cost. Rather than the one that is going to give me the same thing with more money. So, basically, this is what you also thought and what majority of buyers think. If you do have to sell a same kind of product for more money then you would have to provide something that your competition does not provide.

Associated Goods

Goods that are associated with each other means they complement each other or be substitutes each other. Products that go along with one another are said to complement each other. The products that satisfy the same need as one another are called substitutes. We have products that complement each other like bread and butter, milk and cereal, jam and peanut butter etc. Or the products that are each other’s substitute like coca cola or Pepsi, milk, butter, noodles of different companies. The change of cost in one product can change the demand for the product that it complements or is a substitute of.

Related goods

When I will go to the shop to buy Pepsi and the cost of coca cola is less than I will definitely buy coca cola. When buying cereal and milk, If the cost of cereal is high and I cannot afford it then I will not buy milk as well because the only reason I wanted to buy it was to eat with cereal. Or vice versa.

Customer’s Income

So anyone who is going to buy your product is giving money from his or her income. So, the sale of the product depends on the customer’s pocket. The more the income the more expensive things he or she will be able to buy. Lower the income, mostly only essential products can be bought.

Determinants of Marketing Income

The products or goods can be categorized into four types. These are:

Necessary or Essential Goods:

These necessary goods are basic necessities of life and are used by everyone. This can be flour, salt, cooking oil, clothes, and shelter etc. The demand of these products can increase with the increase of income but only to some extent. Only the quality of these products can increase with an increase in income.

Inferior Goods:

Inferior goods are goods whose demand decreases with the rise in customer’s income to a certain extent. They are like pulses, bajra, millet etc.

Normal Goods:

Normal goods are goods whose want or demand increases with the increase in the customer’s income. For example houses, carpets, furniture, clothing, vehicles and household appliances etc. To some extent, the demand for these goods increases with increase in income or salary.

Luxury Goods:

Luxury goods are those goods which add to the luxury, pleasure, comfort and prestige of the customer without enhancing the income. Luxury goods are such as sports cars, jewelry, the material of clothes etc. The want and demand for luxury goods increase with the increase in the consumer’s earnings.

Customers’ Likings

Customer’s taste, liking, and preferences play a really big role in determining a market demand for a product. Likings and dislikings of a person mostly depend on the culture, lifestyle, hobbies, social customs, gender and age of the consumer and how their religion encourages to accept or reject that particular product. Changing in any of the above factors will change the views of the consumers, in turn, changing the demands of the consumer for different products.

Determinants of Marketing Consumer's Preference

My little twelve-year-old sister goes to buy shoes and she chooses those adorable little black ballet shoes with adorable pink flowers. But my elder sister is a diehard fan of heels. I am sure you have changed your choice of shoes or clothing or even food from time to time. Or your choice has differed from your brother’s or sisters at some point. So the product’s demand is so based on one’s liking depending on the above-mentioned factors.

Spending on Advertisement

The advertisement is done to draw attention to a product so it sells. It informs a consumer about the following four things to stimulate demand of a product:

  • Availability of a product.
  • Enhancing and highlighting the feature this product has which nobody else has.
  • It can manipulate consumer to select our product over any rival’s.
  • Setting new trends in fashion.

The effect of advertisement is said to be rewarding as the demand for that product increases as the expenditure of advertisement increases.

Deterninants of Marketing Advertisement

So, there is a phrase in Urdu (a language) that pretty much means the more sugar you put in, the sweater it’s going to be. The more money spent on advertisement, the more aware your customers are of your quality product. Hence, the more sale of your product.

Okay, So I went to the shop and the first thing I literally picked up was Cocomo because their catchy slogan had been drilled into my brain. Although I have tasted them before but in the advertisement they said new and improved and I knew I had to try it at the spot. I admit that not everybody is that gullible but believe it or not these things actually work.

Expectations of Customers

Consumer’s expectations in regard to their earnings, future prices of a product and it’s supply situation has a pivotal role for demand of a particular product. If the consumer expects increase of cost of a product in future then they will try to buy more of it in the present which increases the demand of the product. On the other hand if a consumer expects a product’s price to drop then they will wait for that moment, mostly for unnecessary goods.

Similarly, in case of limited goods, if consumer expects that production of a certain product will stop in the future. Then they will buy the product in current higher costs.

Determinants of Marketing

My brother being the techno fanatic that he is. A person who enjoys the new model of the mobile as the next guy, always waits for the prices to drop before buying his precious mobiles.

Demonstration effect

The new models of an existing product are bought often by rich people. Some people buy goods due to have excess purchasing power or their genuine needs. Once the product is famous in market, many people’s buy them for genuine needs but some are purchased it. Purchases made by such people arise out of feeling as jealousy, competition, status consciousness. These purchases effect on the account these factors in demonstration.

Determinants of Marketing Demonstration

My mom has a beautiful garden full of blooming flowers this time of year. I personally think mom has helped employ a lot of gardeners in our suburb. Saying that because after three years in a row my mom’s garden being the only one to bloom, now I see a lot of other gardens filled with colors of the spring.

Distribution of national income

National income is one of the basic determinants of the market demand for a product. Such as higher national income and higher demand for all normal goods. The distribution pattern of national income also determines the overall demand for a product. Like if the national income is unevenly distributed.

Determinants of Marketing National distribution

If national income is balanced among the masses than people getting what they earned then you can hardly acclaim the earnings of the sale of your product.

Population of the country

They determines the total domestic demand for a product of mass consumption. For a given level of tastes, preferences, price, income etc. The larger the size of population the larger the demand for a product and vice versa.

Determinants of Marketing population

The more the population and all that population is accredited to the same culture then there are maximum chances that they’ll want the same thing. The demand of that product will increase very much.

Consumer credit facility

The credit that is available to the customer also determines the demand for a product. Credit extended by sellers, banks, friends, or other sources that bring the customer to buy more what would have not been possible in the absence. The consumers who borrow more credit consumes more than ones who borrow less.

Determinants of Marketing credit

This is the classic the more you borrow the more you spend and the less you borrow the less you spend.


If you found my anecdotes helpful in understanding the factors that affect marketing then please share. And if you can relate to any of the stories then do comment and share your colorful encounters and crazy people in your life.



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