As usual, I spent an hour reading marketing books on Saturday afternoon. Today, the choice was to read Philip Kotler's book on Marketing Management in the Arab World. The author discussed the general characteristics of product demand types without delving into the details, which I will explain in this article.
Here it is:
In marketing, understanding and effectively dealing with different demand states is crucial for tailoring your strategies to meet the needs and preferences of your target audience. Demand states refer to various stages or conditions of consumer demand for a product or service. Here are eight demand states and how marketers can deal with each of them:
Negative Demand:
Situation: Consumers actively dislike or avoid a product or service.
Marketing Approach: Identify the reasons for the negative sentiment and work on addressing these issues through product improvements, rebranding, or effective communication of benefits and solutions.
Nonexistent Demand:
Situation: There is little to no awareness or interest in the product or service.
Marketing Approach: Create awareness through marketing campaigns, educate potential customers about the benefits, and generate interest through compelling value propositions and promotions.
Latent Demand:
Situation: Consumers have an underlying need but may not be aware of a specific solution.
Marketing Approach: Identify the latent needs and develop products or services that fulfill these needs. Educate consumers on how your offering can address their unmet needs.
Declining Demand:
Situation: Demand for a product or service is decreasing over time.
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Marketing Approach: Investigate the reasons behind the decline (e.g., changing consumer preferences, competition) and adapt your marketing strategy. Consider product innovation or diversification to revitalize interest.
Irregular Demand:
Situation: Demand fluctuates unpredictably, often due to seasonal factors or external events.
Marketing Approach: Implement flexible pricing strategies, supply chain management, and marketing campaigns that adapt to changing demand patterns. Promotions and discounts during peak demand periods can also help smooth out irregular demand.
Full Demand:
Situation: Demand matches or exceeds the available supply.
Marketing Approach: Maintain quality and customer satisfaction, consider price optimization, expand production capacity, or explore opportunities to upsell or cross-sell to existing customers.
Overfull Demand:
Situation: Demand exceeds the available supply, leading to shortages.
Marketing Approach: Increase production capacity, manage customer expectations transparently, implement waiting lists, and consider premium pricing during periods of scarcity. Focus on building long-term customer relationships.
Unwholesome Demand:
Situation: Demand for products or services that may have negative social or ethical implications.
Marketing Approach: Assess the ethical implications of meeting such demand and consider whether it aligns with your company's values. If not, explore alternatives or educate consumers about more responsible choices.
In dealing with these demand states, effective market research, customer feedback, and adaptability are essential. It's also crucial to align your marketing strategies with the specific characteristics of each demand state to maximize your chances of success in the marketplace.
