The Types of Demand

In Marketing it is vitally important to be clear about how our target market behaves. One of the ways to know this behavior is to classify the segments according to the type of demand it presents. In this article you will find a list with types of demand and the strategies to follow in each one.

The forecast of the demand it is an essential activity in sales and marketing. This is essential so that the company does not store huge inventories and, at the same time, does not underuse operating levels. Taking into account the considerations of the various types of demand in the market, the company can have adequate foresight and can plan its operations, its sales and the fulfillment of the company's objectives.

Types of demand in Marketing

Marketing management is tasked with influencing the levels, schedules, and composition of demand in a way that helps the organization achieve its goals. In addition, a seller has to take into account the different

The following are listed Types of demand best known:

Negative claim

Most or even all major segments in a market don't like the product, even to the point of being prepared to pay a price. To avoid this, for example, some people have a negative demand for dental care, and others have a negative demand for air travel .
Marketing strategy: The marketing task in this situation is generally to identify the cause of the negative demand and try to counter it. For example, if the product has a bad reputation or image, or its features are insufficient, the marketer will have to consider how alter the reputation of the product, either to change its characteristics and, in general, to determine how to ensure that the image that is created is the correct. The task of marketing is to analyze, why does the market not like the products?

Zero Demand

This demand is for products of no value to a particular market. In crime-free zones, for example, there may be no demand for security systems, because consumers do not appreciate the need for these types of products.
Marketing strategy: The task of marketing is to find ways to connect the benefits of products to the natural needs and interests of people. The number one marketing task is to stimulate demand for that product. In practice, this often means persuading consumers to buy or use a particular product or service. This element of persuasion means that stimulation marketing is criticized for being manipulative, but of course we must remember which can be beneficial in many cases, such as promoting vaccination (for diseases not covered by the government) and promoting Health.

 Latent demand

This type of demand happens because consumers can share a strong need that cannot be satisfied by any existing product. There is a strong latent demand for a specific product.
Marketing strategy: The task of marketing is to measure the size of the potential market and develop effective products and services that meet the demand.

 Demand Declining

In this case, the demand for a product is decreasing and this decrease represents something more serious than a temporary drop in sales. Examples might include train travel in the United States, vinyl records, or mechanical clocks of the past.
Marketing strategy: The task of marketing is to identify the causes of decline and to re-evaluate the nature of the product, its characteristics, technological changes, your target market and the marketing campaign in order to revive the demand for the product or simply remove it. We must bear in mind that attempts to revive a product must go beyond simply relying on large-scale advertising and promotional efforts, as these often act as an indication to the consumer that the particular product is experiencing difficulties.

 Irregular demand

Irregular demand is possibly one of the most common situations faced by anyone involved in marketing in the service sector. It is a situation in which the demand pattern is based on seasonal factors or other sources of volatility such as short-term economic fluctuations. There are many examples of this type of demand in food markets, holiday markets, tourism and travel.
Marketing strategy: The task of marketing management in this situation has to do with trying to synchronize demand and supply. Marketing may tend to focus primarily on the demand side, discouraging the purchase of the product when demand is stronger, encouraging its use when demand is weaker or the search for alternative markets with counter cyclical patterns of the demand. However, some consideration may be needed on the supply side and the possibility that the offer will be may increase through increased stocks in the warehouse, improved distribution and increased production.

 Full Demand

Demand is currently at a desirable level and consistent with existing marketing and corporate goals.
Marketing strategy: The main concern in this situation is to maintain this level of demand by monitoring Continues and adjusts marketing campaigns as attitudes change or threats appear from the competence.

 Over demand

Some organizations face a level of demand that is higher than normal, which they can or want to handle. The task of marketing is all about finding ways to reduce demand temporarily or permanently.
Marketing strategy: The task of marketing is to reduce but not eliminate the demand, perhaps making the product less available for less attractive market segments, reduce marketing campaigns, increase prices or limit the distribution.

Types of demand and their influence on the organization

As markets become more and more competitive and customers become more sophisticated and aware of the quality, the adoption of a marketing orientation becomes increasingly important to ensure success organizational. This marketing orientation requires that the consumer be seen as the central element of the company and that the organization focus its attention to identifying and responding to the needs of this consumer today and trying to anticipate the needs future. The key principle of marketing is being able to meet consumer needs more effectively than your competitors.