The needs as objectification of needs

The demand leads to the purchase of goods and services

For marketing and advertising in particular is the question of why and how needs, of fundamental importance.

In the economic theory is a need a sense of a defect with the desire to eliminate these. The total economic activity, ultimately serves the purpose of goods, needs to fully or at least partially to satisfy, and thus the associated lack feelings to reduce or eliminate.

Needs are mainly met by consumption. In addition, there are needs that are not directly related to consumer goods have been addressed, such as the need for security and preparedness, by which savings can be satisfied.
Need categories

For the systematization of needs often differ according to whether it is vital needs (eg food, clothing, housing, etc.) or luxury needs (cars, world travel), respectively related to social needs (for example, the need for love, contact with peers , self-fulfillment in the workplace etc.). With increasing social welfare-related needs are absolutely and relatively more important so important thing is to use non commercial free personal finance software for simply and easy home budget.

Other categorizations needs differ depending on whether it is unique or recurring needs or private or public needs. The distinction between private and public needs, primarily in the 1980s, gained importance when it comes to the thesis was that the so-called needs of private wealth in the society have largely were satisfied, while the collective needs such as education, social security, environmental protection etc. to a large extent yet to be satisfied.
Importance of needs in marketing

The questions of why and how needs are and whether or not needs to influence, is not the subject of economics, but other areas of science such as psychology. Nevertheless, knowledge about the game creation, the types and ways of influencing the needs for marketing and advertising in particular, a not insignificant role.

In addition, for economic theory, the question of significance, if any, to the satisfaction of needs for the purchase of consumer goods in a rational way, or other behavioral maxims done. To answer these questions is usually between Rational behavior, impulse or emotional behavior, social behavior and habit dependent behavior.
When needs demand will

Needs are in the business management theory and practice particularly relevant when the needs derived from the flesh and desires to lead purchasing.

Since under normal circumstances many needs simultaneously occur, and therefore compete with each other, it was a matter, in terms of their intensity in a hierarchy to bring. After taking into account the available disposition sum (income, assets, credit) and the existing prices of goods the individual demand for certain goods can be derived.
The needs as objectification of needs

Only a few economic concepts are used as mixed as that of the demand. However, most definitions agree at least that the need – other than the needs – to quantify.

Example: The need, pleasant to live, will remain economically irrelevant, as it does not contain information on square in housing, residential location, property or family house, etc. is specified. Only then can the housing needs of a family, a city, a country so determined.

The essential feature of the need therefore exists in the objectification of needs and the purchasing power behind the demand. Analog needs may also be needed between the essential and non-essential needs, private and public needs, once and return requirements, normal and luxury or elastic demand and inelastic demand can be distinguished.
Numerical detection of needs

In an effort to establish the objective nature of the need to capture both numerically, are always calculations on typical and significant demand types have been employed. In operational practice needs and requirements are primarily in the production and sales planning with monthly budget planner. While they are primarily in the production of optimal care in an enterprise with the means of production are used, it is in the context of sales planning, above all, effective demand and possible sales trends to forecast as accurately as possible.

Artists Social Welfare Fund: tighter controls

Risk estimate itself – definitely not threaten arrears

The average income of freelance artists and publicists in Germany, despite the financial crisis in just two years by 18 percent. Why?

Selling art and culture precisely now better than before? Or have a particularly large number of freelance artists and publicists won the lottery? The average income of 162,734 self-employed, on 1st January 2009 on the Artists’ Social Welfare Fund (KSK) were insured, has since January 2007 has increased from € 11,094 to € 13,103.

More Artists sample by social class

The main reason for the miraculous multiplication income considers the KSK since the fall of 2007 tightened controls on the income projections. The federal government had the KSK was obliged to annually 5 percent of the insured to the actual amount of their income to control – and with four years ago reaching sampling. Many insured then apparently ran up a sweat and lifted its earnings forecast.

Artists should avoid poverty in old age

The Künstlersozialversicherung Act adopted in 1983, it serves the “social protection in the statutory pension, health and long-term care” and is free-lance artists and writers from acting, under the age of the poverty line to fall. Who ever and freelancing in the areas of word, visual art, music or performing arts activities, is supported by the KSK insured. The state gives each insured for a grant in the amount of 50 percent, ie a kind of employer that he is working for publishers, museums and other artistic entities other than tax back.

Earnings estimate

Absolutely unique in comparison to other professions, the income method of estimating the insured will be invited to their annual income (after deduction of any operating costs) to estimate in advance and can do this during the year to revise as often as their situation changes, will always be billed at beginning of the following month.

Earnings forecast: at least € 3,900

Experts suspect that few of the insured her real income in the estimation to determine how to Make a Personal Budget. Some members tend to under-insurance, to save money or because they are the ’safe’ pensions’ distrust of BfA: You insure themselves just slightly above the minimum limit of € 3,900 annual income (325 € a month) and give the money for private retirement rather from if at all. Advantage: The health insurance contributions are thus also low. Disadvantage: The state pension expectation is low, and risky assets can be lost depending on the carelessness of the artist. Also, these debts in case attached, this comes at uncertain “business situation” be present.

Income Forecast: maximum € 64,800

Other insured persons are below the minimum threshold but want to not lose their insurance coverage and therefore give an income of about € 3,900. Some will turn to the other extreme and declare an income that is above the statutory ceiling for the pension is (64,800 € in 2009, in the new Länder € 54,600). The result: You pay while high contributions (currently just under 900 € a month), but also get a large government grant, and acquire higher pension entitlements.

KSK threatened with fines and anger

To perform such tricks in one direction or the other, reducing the federal government demanded more controls. The guide “mediafon” for self-employed in the trade union ver.di therefore raised the forefinger warningly: “He no longer can demonstrate that he or artistically self-publishing activities should be based on considerable anger lie in wait. Anyone who deliberately false information, such as higher subsidies for private health insurance to wrongfully, can even become a verdonnert be fine. “

KSK members threaten no arrears

Too massive insecurity for freelance journalists, musicians, stage designers, directors, non-salaried actors and other self-employed but resulted in black painting media reports, for example, in the article Personal Budget Planning: “If it is found that the KSK members have achieved higher incomes than previously estimated they have to pay contributions. “The excitement was great, sometimes holding up today, but it is unfounded: The KSK adjusts the income estimate and thus the contributions due to the control only for the future of the figures of the income tax notice of. There is no legal basis for a retroactive adjustment and arrears.

How it works: Example

This procedure would also have non-lawyers be obvious: It may not have rights, as the following example. An artist who fill Budget Spreadsheet unexpectedly in December 2008 sold a large sculpture and to get a high amount, say € 10,000, can this income (after deduction of operating costs) in the same month, according to the report KSK and thus theoretically be declared annual income increase, retroactively changes for the past year but not in its “balance sheet”. Extend for December was the pension contribution ceiling is taken into account (this was 5300 € and 4.500 € in the new federal states) in January and make a contribution deducted. But the message came too late for the KSK accounting, nothing happened except a call, the forecast for 2009 to review and possibly modify.