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What are the main differences?
Negative, marketing for a luxury good requires higher marketing level than necessity goods as you must seduce the customer the benifits of having such commidity
A luxury good is a good for which demand increases more than proportionally as income rises, in contrast to a "necessity good", for which demand is not related to income
Greetings!!!
Agreed to both Mr. Mahmoud Samir Mossilhy Abu Elfadi & Mr. Abdul Samad Nadeem Malik.
NECESSITY PRODUCT: A product is considered as "Necessity" where we don't increase our purchase very much when our income rises. e.g., car, breakfast, water etc.
To buy necessity product, people mostly depends on quantities.
LUXURY PRODUCT: A product is considered as "Luxury" where we purchase a lot of it when our income rises. e.g., Porsche, Audi etc.
To buy luxury product, people mostly depends on qualities.
Car is a necessity but Porsche is luxury, similarly daily breakfast is a necessity, but daily BF in a7Star hotel is a luxury.
Maketing is phenomena where the tried & true often works best. You have to adapt one of the two entirely different strategies as per the product you want to sell. Because selling luxury is sntirely different from selling necessity.
Ofcourse not... Marketing a neccessity products first relies on mass production and selling (quantity), however luxury products concentrate mainly on quality which is why there is specific customers that should be targeted.
Its the market to define a product as NECESSITY OR LUXURY. At a certain level of purchasing power both these terms are co-related where Luxury truns to necessity to show power or influence.
But below that certain level, there is no place for luxury, and least marketing is required for necessity products, which turns a luxury level to their own capacity without marketing.
So, necessity is the basic thing which may truns into luxury as per the levels of incomes or purchasing power.
Marketing is to transform yesterday's luxury product into today's necessity.
Its True!! Necessity requires less marketing than luxury.
Today for me buying a smart phone is necessity which was luxury for me4 years back. So it all depends on the audience which you are targeting.
