Types of Demand

Marketing management has the task of influenc­ing the level, timings and composition of demand in a way that will help the organization to achieve its objectives.  Also, A marketer has to take into consideration different types of demand for his product before he comes up with a strategy.

1 ] Negative Demand

The market is in a state of negative demand if; a major part of the market dislikes the product and may even pay a price to avoid it.
Eg: People have a negative demand for

  • Vaccination
  • Dental work
  • Vasectomies
  • Gall bladder operation Employers feel a negative demand for
  • Ex-convicts
  • Alcoholics

The marketing task is to analyse, why the market dislikes the products?

2] No Demands
Target consumers may be uninterested in the product. Ex – People have no demand for

  • Farmers may not be interested in new farming methods
  • College students may not be interested in a foreign language course.

The marketing task is to find ways to connect the benefits of the products to the person’s natural needs and interests.

3] Latent Demand:
Many consumers may share a strong need that cannot be satisfied by any existing products.

  • Latent demand for harmless cigarettes.
  • Safer neighborhood.
  • More fuel efficient cars.

The marketing task is to measure the size of the potential market and develop effective goods and services that would satisfy the demand.

4] Declining Demand
A substantial drop in the demand for products.

  • Boy scout enrolment among Singapore students.

The marketing task is to:

  1. Analyse the cause of market decline.
  2. Determine whether the demand can be re-stimulated by changing target markets, changing product features and developing more effective goods.
  3. To reverse the declining demand through creative remarketing of the product.

5] Irregular Demand
Organizations face demand that varies on a seasonal, daily or even hourly basis, causing problems of idle capacity or overcrowded capacity.

  • Markets :- visited on weekends, not on weekdays.
  • Hospitals   :- OT’s booked for early weak

The marketing task is called Synchro Marketing (alter pricing, promotion & other incentives)

6] Full Demand
Organizations face full demand when they are pleased with there volume of business.

The marketing task is to:

  1. Maintain the current level of demand in the face of changing consumer preferences and increasing competition.
  2. Quality should be improved.
  3. Continuously measure consumer satisfaction.

Eg: Maruti at the time of bookings made open.

7] Overfull Demands
Some organizations face a demand level that is higher then they can or want to handle. Marketing task is De-marketing which requires finding ways to reduce the demand temporarily or permanently.

Steps involved in de-marketing:

  1. Raising prices.
  2. Reducing promotion and service.
  3. Selective de-marketing(less profitable markets)

Eg: Quota system for new car registration by a fixed percentage annually.

8] Unwholesome Demand
Unwholesome products will attract organized effort to discourage their consumption. Un-selling campaigns have been conducted against cigarettes, alcohols, hard drugs, handguns and pirated movies.

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About Hitesh Bhasin

A very enthusiastic Marketing professional with an aim to make this website one of the best marketing resources on the web. How did you like the post? Contact me for Feedback OR Subscribe to marketing91 for daily marketing updates. You can also follow me on Google plus

Comments

  1. thanx a ton.. very informative..

  2. it is the same to the book?

  3. thank you..i get lots of information about marketing it helps me to make my assignments easy..

  4. any one who can tell me the types of demand with a reference. i am very thankful.
    Regards,
    shoaib

  5. Hitesh Bhasin says:

    Dear Shoaib, i have provided an example with each type of demand. Are you looking for nething specific?? Do elaborate so that i can help u out

  6. Deepika says:

    Thanx, it very easy to understand with example and it is very helpful for understand the topic of demand.

  7. DANISH AHMAD says:

    any one who can tell me the types of demand with a reference. i am very thankful.

  8. Hitesh Bhasin says:

    Dear Danish, Examples are mentioned in each type of demand. And one single company can have only one type of demand. Thus references are not possible to one single company. Hence i have given references of different products altogether

  9. I am a marketer and i think i can contributed alot to this forum,feel free to contact me on any marketing issues.God is in control.Great marketer!!!

  10. plz can i get more examples??/ it would b very helpful

  11. thank you all for making me understanding.

  12. emmanuel navarro says:

    thank for those people who put an information about different kinds of demand.. may he LORD bless us

  13. this is good but i need more information and examples about every topics.

  14. Pls can u elaborate on faltering demand giving few examples thanks

  15. Thanx, it very easy to understand with example

  16. Thanks Hitesh. I am in the midst of preparing for my final examination.. and this is a great help… :-)

  17. Sewvandi says:

    Dear,
    I am reading for my degree..
    This is very helpful..
    Hope if you can put more EXAMPLES…

    Thank You so much..

  18. Md.Masud Rana says:

    tanx for your information

  19. Mukerem shikuro says:

    Oky 10Q for this statment continue by this way!!!

  20. This article is amazing but plz ad some more clear examples regarding this topc

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