Question

Explain Different types of demands and how marketers can make use of demand and create a demand with examples

Answer 1

There are 8 different types of demands as shown below:

1) Negative Demand

This demand for a product gets created when the product is not liked or disliked by customers. The perfect example is a pure life insurance product, where the person who gets insured doesn’t get anything by paying premium till he is alive. Other examples can be medical products like medicines who people don’t like having but need to take it to get well.

2) Unwholesome demand

This type of demand is the one which people don’t generally have or take, but once if they take it once or twice, they want the product very badly. Typical examples include alcohol, cigarettes, drugs, etc.

3) No demands

This type of demand doesn’t exist, but its rather created by extra marketing efforts by influencing the needs of a bunch of people or a large group of people. Examples include educational courses, which enroll very few students.

4) Latent Demand

This type of demand exists but is not known to the conscious mind of the customer. The customer may not even realize that he/she needs the product, but after using it he may like the convenience it gives him/her. The best example is a smartphone which people didn’t need but since smartphones helped people do a lot of things faster, people started buying them more and more.

5) Declining demand

This type of demand keeps declining overtime and the product gets less desirable overtime. Examples include feature phones, CDs/DVDs. Here, marketers need to decide how to upgrade the product by including additional features so that customers start liking it.

6) Irregular demand

This demand doesn’t stay consistent with time and is usually seasonal or cyclical in nature. For example, demand for umbrellas, air conditioners, etc. Marketers can use the seasonality index for demand forecasting and schedule their production accordingly.

7) Full demand

This is the normal demand of a normal product where demand = supply. All groceries, staples, etc have full demand.

8) Overfull demands

Here, the demand is usually more than what companies can supply. Typical example in today’s time is Tesla electric car where company is not able to catch up with the demand that people are putting up.