What is Scarcity Marketing?
posted by John Spacey, October 12, 2016
Scarcity marketing is a type of marketing technique that's based on the principle that people want what is difficult to obtain. It includes product, promotion, pricing and distribution strategies.A common example of a scarcity marketing technique is an invitation-only event, product or service that is only distributed to high status individuals in a particular group. For example, a new technology platform may be initially released by invitation to a number of well known developers. This may create a sense of curiosity and jealously within a developer community. The goal is to generate demand as the platform opens up to wider availability.Scarcity marketing is also a factor in product design and pricing in areas such as luxury goods and collectibles. Collectibles such as toys may be valued for their scarcity. High end fashion also tends to offer scarcity such as bespoke and haute couture fashions that are completely unique to the customer.| Overview: Scarcity Marketing | ||
| Type | Marketing Strategy | |
| Definition | Marketing strategies based on the principle that customers tend to want things that are difficult to obtain. | |
| Examples | High pricesInvitation-only events and product releasesLimiting production to be far below demandCreating a large number of product variations in limited releases.Unique artifacts that result from creative effort such as a work of art.Things that are fundamentally rare such as precious metals or jewels. | |
| Related Concepts | Pricing StrategyPromotion StrategyProduct Strategy | |
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