Scarcity Principle: Important Tool in Marketing

Introduction

The scarcity principle is an important tool in marketing and negotiations involving rival parties. The principle relies on the motivation generated out of fear of losing something which makes people to act. Scarcity can arise because of limitation in supply of a commodity or lack of time, prompting individuals to respond in order to obtain the item. In a conflict, when the freedom of individuals is under threat, it evokes a human response that involves enhanced desire to retain the freedom as well as the benefits that come with it. Persuading parties involved in a conflict to accept a mutual agreement that helps them meet their needs is important in conflict negotiations. Other marketing techniques that can persuade individuals involved in a conflict to reach an agreement include liking and social proof which involves the act of people coping with other people’s actions, consistency to an idea, and/or reciprocity to a favor granted earlier.

Compliance Techniques in Negotiations

In salesmanship, the scarcity principle is important in evoking demand for an item. A salesman employs the scarcity techniques by “claiming that the items are in limited quantity or by giving deadlines by which purchase is possible” (Cialdini, Sagarin, & Rice, 2001, p.142). This trend seeks to inform people to act instantly or forfeit the opportunity of ever buying the commodity. Skilled negotiators likewise use the scarcity principle to persuade the rival groups to accept certain terms and conditions or forever lose that chance.

Salespeople also employ liking as a technique of persuading the customers to purchase their products. A likeable individual usually persuades customers to buy products as people are more likely to buy products if they like the seller. This insight explains the use of models or celebrities to promote certain products because majority of the people adore them. Skilled negotiators on the other hand learn the lifestyles, language and culture of the parties involved in a conflict making them more likeable to the conflicting parties. In the process it becomes easier to persuade the rival groups to come to a compromise.

Social proof is another technique employed by both the negotiators and salespeople. In advertising, salespeople use social proof techniques that involve use of models with similar attributes as the target market segment thus encouraging others to follow suit and buy the products. In negotiations, social proofs employed entail use of leaders of the opposing camps to influence their followers. This strategy may involve use of a gesture handshake for peace causing the other people to emulate them and reach an agreement to prevent the conflict.

Consistency involves the commitment of people to a common goal or objective which makes them more likely to strive towards achieving the stipulated. The commitment allows individuals to change their behavior and gradually act in a manner consistent with certain goals or objectives. Salespeople employ this strategy to sell products in small amounts to their customers and in the process change the perception of the customer who then becomes a loyal customer. Skilled negotiators build gradually towards achieving peace by transforming the perceptions of the rival groups step by step.

In advertising, social proof strategies are used to promote sales of a new product. Ads normally use models that bear close resemblance to the target clients. The models such as young celebrities are shown using the products and they give a personal account of its usefulness. Social proofs influences other people to emulate the model hence contribute to increased sales for a product. According to Cialdini et al. (2001), advertisers also employ liking persuasion strategy (p.151) which involves the use of famous figures such as popular sportsmen and film actors to promote products. These personalities command much adoration from many people and using them to promote products helps to remove misperceptions about the products and promote sales. The persuasion techniques particularly social proofs and liking are also important in conflict resolution and negotiations. Supporters of a particular leader respond positively to gestures or messages of peace delivered by the leader. In addition, use of a negotiator liked by both of the rival parties influences the parties to abandon their hard line stand and arrive at a compromise.

My last encounter with a salesman was in a technology conference where different technology companies were showcasing their advanced technologies. The salesman informed the audience of the uniqueness of iPads while mentioning prominent personalities who own the same products. He also implied that the items were in limited supply and their price is projected to rise. In this case, the salesman used the principle of scarcity and social proof to persuade me and the rest of the audience to purchase the item.

Both the negotiator and salesman employ persuasion strategies to try and win the clients. Their verbal skills and body language are suggestive and aim at influencing the target persons. However, a salesman cannot make an effective negotiator because while negotiator skills aims at convincing rival parties to reach an agreement by providing an acceptable solution to both parties, the salesman focuses on promoting the products regardless of the problems the items might have.

Conclusion

Negotiation skills employ various persuasion strategies in order to influence the rival parties to arrive at a mutual agreement. Salesmanship also employs the same tactics to influence customers to purchase their products. However, negotiators in addition to influencing people to leave their hard line positions, they offer solutions to a crisis while salespeople only promote sales of their products.

Reference

Cialdini, R., Sagarin, B., & Rice, E. (2001). Training in ethical influence: Social Influences on ethical behavior in organizations. New Jersey: Erlbaum.

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