THE STATES OF DEMAND Show
By Ray Guillette Integrating marketing with operations and the current operating environment is important for business to compete and succeed. In today’s operational environment organizations will encounter varied states of demand for their products and services. Business need to recognize and understand the state of demand for their product and the correct marketing mix to apply for each state. There are 8 states of demand: negative demand, no demand, latent demand, falling demand, irregular demand, full demand, overfull demand and unwholesome demand. One must understand how to manage the demand state. For each state of demand, there is a marketing task and a marketing technique.
Example of negative demand: Dentist, many people avoid seeing the dentist No demand- Here the target market may be uninterested or indifferent to the product. For example, a young couple may not be interested in adopting family planning. The marketing task is to find ways to connect the benefits of the product with the person’s natural needs and interests. Example: The first Cell phones 1980s Latent demand- Many consumers may share a strong need that cannot be satisfied by any existing product. There is a strong latent demand for more-efficient vehicles .The marketing task is to measure the size of the potential market and develop effective goods and services that would satisfy the demand. Example – Safe cigarette – Premiere 1980s Falling demand- Every organization, sooner or later, faces demand for one or more of its product. The marketer must analyze the causes of market decline and determine whether demand can be re-stimulated by finding new target markets, changing the products features or developing more effective communication. The marketing task is to reverse the declining demand through creative remarketing of the product. Example: High School student enrollments for college Irregular demand- Many organizations face demand that varies on a seasonal, daily, or even hourly basis, causing problems of idle capacity or overworked capacity. Museums are under visited during weekdays and overcrowded during weekends .Likewise, holiday resorts are visited more frequently during summer and winter holidays and are idle in other seasons .The marketing task, called synchro marketing , is to find ways to alter the time pattern of demand through flexible pricing , promotion and other incentives. Example: Restaurants and movie theaters on Cape Cod Full demand- This is an ideal situation .Organizations face full demand when they are satisfied with their volume of business. The marketing task is to maintain the current level of demand in the face of changing consumer satisfaction to make sure it is doing a good job. Example: New England Patriots ticket sales Overall demand- Some organizations face a demand level that is higher than they can or want to handle The marketing task called demarketing , requires finding ways to reduce the demand temporarily or permanently .General marketing and reducing promotion and service is one way of handling this situation .Selective de-marketing consists of trying to reduce the demand coming from those parts of the market that are less profitable or less in need of the service .De-marketing does not aim to destroy demand but only reduce its level, temporarily or permanently . Examples:
Beanie Babies or Tickle Me Elmo Unwholesome demand- Unwholesome products require organized efforts to discourage their consumption. Campaigns have been conducted against cigarettes, alcohol, hard drugs, etc. The marketing task is to help people give up the habit by using such tools as fear communications, price hikes, and reduced availability. Examples: Excessive Beer consumption Dr. Guillette is a cofounder of the Second Change Group, a higher education consulting and marketing partnership and a business professor at several Boston area colleges. Dr. Guillette has been named Faculty Member of the Year at two colleges. This post also was published at: http://lesserprofessor.com/understanding-the-sates-of-demand/ Correct Answer: Part of solved IBPS SO IT questions and answers : Exams >> Bank Exams >> IBPS SO IT Marketing Management  A) negative demand B) latent demand C) declining demand D) irregular demand E) nonexistent demand Answer: B The four unique elements to services include: A. Independence, intangibility, inventory, and inception B. Independence, increase, inventory, and intangibility C. Intangibility, inconsistency, inseparability, and inventory D. Intangibility, independence, inseparability, and inventory When consumers may share a strong need that Cannot be satisfied by an existing product it is known as?Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product.
When consumers dislike a product and are even ready to pay a price to avoid it is known as?Negative demand- This occurs when a major part of the market dislikes the product and may even pay a price to avoid it.
What would be the consumer's reaction to a product which has latent demand?Identifying latent consumer needs is especially important when it comes to creating and launching new products and technologies. When hidden needs are addressed by product or service design, customers are both surprised and delighted by the result.
Which one of the following is the demand state where consumers dislike the product and may even pay to avoid it?Negative demand—Consumers dislike the product and may even pay to avoid it.
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When consumers may share a strong need that Cannot be satisfied by an existing product?
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