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Home » Marketing management articles » Different Types of Demand

Different Types of Demand

February 28, 2020 By Hitesh Bhasin Tagged With: Marketing management articles

Demand forecasting is an essential activity in sales and marketing. The demand forecasting has to be done so that the company does not store huge inventories and at the same time, does not under utilise its operation setup. By taking into considerations the various type of demands in the market, the firm can thereby have a proper forecast and can plan its inventories accordingly, meeting the objectives of the firm.

There are mainly 8 type of demands in Marketing which have to be taken into consideration by the marketing manager during demand forecasting. The various type of demand, and how to tackle the challenges for marketers in these various demands, is discussed below.

different Types of demand product

Type of demand

Table of Contents

  • 1) Negative Demand
    • b) forms of demand in Insurance, which people should have but they delay buying an insurance policy.
      • Similarly, people would like to avoid heart attacks and hence may pay for a full body check up where the results might be negative, but still the customer has to pay. The marketer has to solve the issue of no demand by analyzing why the market dislikes the product and then counter acting with the right marketing tactics.
  • 2) Unwholesome demand
  • 3) No demands
  • 4) Latent Demand
  • 5) Declining demand
  • 6) Irregular demand
  • 7) Full market demand
  • 8) Overfull demands
    • Related posts:

1) Negative Demand

Negative demand is a type of demand which is created if the product is disliked in general. The product might be beneficial but the customer does not want it. Example of negative demand is a) Dental work where people don’t want problems with their teeth and use preventive measures to avoid the same.

b) forms of demand in Insurance, which people should have but they delay buying an insurance policy.

Similarly, people would like to avoid heart attacks and hence may pay for a full body check up where the results might be negative, but still the customer has to pay. The marketer has to solve the issue of no demand by analyzing why the market dislikes the product and then counter acting with the right marketing tactics.

2) Unwholesome demand

Unwholesome demand is the other side of Negative demand. In negative type of demands, customer does not want the product even though product might be necessary for the customer. But in unwholesome demand, the customer should not desire the product, yet the customer wants the product badly. Best example of unwholesome demand are cigarettes, alcohol, pirated movies, guns etc.

Also Read  Promotional mix - What are the different types of promotions?

3) No demands

Certain products face the challenge of no demand. The best example for the same can be education courses where there is very low demand or no demand at all. Such cases are very hard to counter.

4) Latent Demand

Latent demand is, as the name suggests, a demand which the customer realizes later. Thus, while buying the product, he might not desire some features. But later on, he might think about those features and buy the product. The best example of latent demand are normal phones vs smart phones.

People nowadays want more and more features in the smartphone. They might settle for a normal phone, but then later on they get the itch to buy a smart phone. Similarly, people might buy a petrol car. But most likely their second car will be a diesel car. A marketing managers job is to find out the features which people might be looking for later and market them to the customer in such a manner that he immediately wants them.

5) Declining demand

Declining demand is when demand for a product is declining. For example, when CD players were introduced and IPOD came in the market, the demand for walkman went down. Although there was still a demand for the product, the demand was a declining demand. A marketers job in such a case to think ways to revive the product so that the demand is not declining.

6) Irregular demand

Irregular demand can be demand which is not consistent. The best example of irregular demand is seasonal products like umbrellas, air conditioners or resorts. These products sell irregularly and sell more during peak season whereas their demand is very low during non seasons. The best way to counter irregular demand is to introduce incentives for the customer to buy the product.

7) Full market demand

In an ideal environment, a company should always have full demand. Full demand means that the demand is meeting the supply potential of the company. It also means that the markets are happy with the products of the company and that people want to buy from the same company. The marketing challenge in this type of demand is to maintain the same level of interest in the product and the company.

Also Read  New product adoption

8) Overfull demands

Overfull demands happen when the companies manufacturing capacity is limited but the demand is more than the supply. This can be observed in the cement industry occasionally. Generally, most cement industries have limited manufacturing capacity. And hence, brand switching in cement industry is high. Many companies use de-marketing techniques to counter act overfull demands. This is because if the company keeps marketing, but it is not able to supply the material, then the company might suffer badly in brand equity.

Above are the 8 type of demand which a marketing manager has to forecast and manage at all times. Each type of demand has its own challenges and the marketing manager needs to be quick on his feet to manage all the different type of demands.

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BCG Matrix - 3Above 30 Marketing and strategy models and concepts brand colors - 310 different brand colors and what they stand for What is Market DemandMarket Demand: Definition, Examples and How to Calculate What is Demand Analysis? Benefits of Demand ManagementDemand Management – Importance, Components and Benefits DemandWhat is Demand? Definition, Meaning and Determinants Product LaunchWhat is Product Launch – Examples, Types, Advantages Types of Buzz MarketingWhat is Buzz marketing ? Types, Tips, Examples, Advantages For Your Brand What is Latent Demand - 1What is Latent Demand? Concept, Importance and Usage Cross elasticity of demandWhat is Cross Elasticity Of Demand? 3 Types of Cross Elasticity
Also Read  Marketing Environment - Definition, Types, Importance and Examples
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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Comments

  1. nimika says

    thanx a ton.. very informative..

    Reply
    • Makenzi says

      Thanks, I understand coz the explanation are full enough

      Reply
  2. june'x says

    it is the same to the book?

    Reply
  3. yelyn says

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

    Reply
  4. shoaib says

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

    Reply
  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

    Reply
    • Chuy says

      Do you have facebook? or tweeter account??

      Reply
      • Hitesh Bhasin says

        Yes. Just check the sidebar.

    • Nayima says

      Will u pls help me by getting information about characteristics of types of demand??

      Reply
    • Salman Khan says

      sir please explain overfull demand with solid example

      Reply
  6. Deepika says

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

    Reply
  7. DANISH AHMAD says

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

    Reply
  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

    Reply
  9. Hammed says

    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!!!

    Reply
  10. swapnil says

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

    Reply
  11. chemi says

    thank you all for making me understanding.

    Reply
  12. emmanuel navarro says

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

    Reply
  13. masudEWU says

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

    Reply
  14. Chris says

    Pls can u elaborate on faltering demand giving few examples thanks

    Reply
  15. Irgim says

    Thanx, it very easy to understand with example

    Reply
  16. Priya says

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

    Reply
  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..

    Reply
  18. Md.Masud Rana says

    tanx for your information

    Reply
  19. Mukerem shikuro says

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

    Reply
  20. Nagina says

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

    Reply
  21. Gopal says

    Why no specific examples of Full Demand??
    Can you please give some examples of Full Demand?

    Reply
    • Krb says

      Full demand generally doesn’t happen however if there is monopoly market then all the people will have one choice hence all people will opt for one org.

      E.g. State electric board
      People will have constant demand for electricity and that is also from state board only hence it will create full demand environment.

      Reply
  22. DJ says

    excellent.
    plz provide more example and strategies to improve it.

    Reply
    • Hitesh Bhasin says

      Glad that you liked the article on types of demand. Always trying to write as much as possible on marketing and strategy.

      Reply
  23. Pranav Priyadarshi says

    thank you..i get lots of information about marketing kindly write also article on indian spectacle industry & its future in India.

    Reply
  24. Akanksha Singh says

    Plz can u tell me What is a demand Curve ? what are the three types of demand? what do we mean by the terms elasticity of demand and cross elasticity of demand? In this question they ask what are the three types of demand ? but 8 types of demand so what to do ?

    Reply
    • Hitesh Bhasin says

      Wikipedia has a fantastic article on demand curve though i have not written it on my website. Elasticity of demand can be found on my site. Well, as per my knowledge there are 8 different types of demand. Maybe they are asking write only 3 types?

      Reply
  25. sohail says

    But three types of demand is not present here ,is like that
    1. Price demand
    2. Income demand
    3. Cross demand
    You can tell me about that,

    Reply
    • Thiago says

      No,I think u tried to write types of Elasticity…not demand actually…

      Reply
      • James morris says

        i like
        the article

  26. Esperanza Takyi says

    Thanks for the article, it’s really nice. But please do we have ‘awesome’ as a type of marketing demand? If yes ,can you explain.

    Reply
  27. BENXD says

    Plz explain change in demand and change in quantity demand using a diagram

    Reply
  28. MITRA says

    can you give me imformation about Production economy?
    For example, teaching a lesson files with the issue and demand estimates as well as the benefits and costs.
    PLZ Urgent need!!!

    Reply
  29. Baba. says

    Hello,distinguish 4 levels of demand (from competitive point )

    Reply
  30. sumukh says

    You have mentioned that latent demand is a demand which the customer realizes later. Thus, while buying the product, he might not desire some features. But later on, he might think about those features and buy the product. But Kotler in his book mentions that latent demand is a demand that cannot be satisfied by an existing product as the product may not exist. There is a conflict in your meaning and in the meaning given by eminent people like Kolter

    Reply
  31. Baraki Teshale says

    I like the article very much. I have got a deep know how on the levels demand. Really, I thanks you. Keep it up!!!!!

    Reply
  32. mohammad hamza says

    stages and types are same or they are different ?

    Reply
  33. Joshua says

    love dis forum, it say more about d marketing.

    Reply
  34. Shubham says

    can you help me to frame Demand Curves for each type of the 8 demand types?

    Reply
  35. suyan moshy says

    Thank you it’s helpful for me!

    Reply
  36. Makenzi says

    Thanks, I understand coz the explanation are full enough

    Reply

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