Types of Demand

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. That is they dont want such people on job.

2] No Demands:

Target consumers may be uninterested in the product.

Eg: *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.

Eg: 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. Eg: Boy scout enrolment among Singapore students. The marketing task is to:

i. Analyse the cause of market decline.

ii.Determine whether the demand can be restimulated by changing target markets, changing product features and developing more effective goods.

iii. 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. Eg: 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:

i. Maintain the current level of demand in the face of changing consumer preferences and increasing competition.

ii. Quality should be improved.

iii. 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:

i. Raising prices.

ii. Reducing promotion and service.

iii. 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.

The marketing task is to:

i. Use fear communication.

ii. Price hike.

iii. Reduced availability.

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