Marketing management has the task of influencing the level, timings and composition of demand in a way that will help the organization to achieve its objectives. Also, a marketer has to take into consideration different types of demand for his product before he comes up with a strategy. Here are some effective marketing strategies for various types demand
Negative Demand Most or even all important segments in a market dislike the product, even to the extent of being prepared to pay a price to avoid it - for example, some people have a negative demand for dental care, and others have a negative demand for air travel. Marketing Strategy: The task of marketing in this situation is generally to identify the cause of negative demand and attempt to counter it. For example, if the product has a poor reputation or image, or its features or performance are inadequate, then marketing managers will need to consider how to alter the reputation of the product, whether to change its features and generally determine how to ensure that the correct image is created for that product. The marketing task is to analyze, why the market dislikes the products?
No Demand This usually covers products with no perceived value in a particular market. In relatively crime free areas, for example, there may be no demand for security systems because consumers may not appreciate the need for such products. Marketing Strategy: The marketing task is to find ways to connect the benefits of the products to the person’s natural needs and interests. The task of marketing then becomes one of stimulating 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 often subject to criticism for being manipulative, but of course we must remember that it may be beneficial in many cases such as encouraging vaccination and encouraging health screening.
Latent Demand One of the demand states that company may face in certain situations. This happens because consumers may 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 marketing task is to measure the size of the potential market and develop effective goods and services that would satisfy the demand.
Declining Demand In this case, the demand for a product is declining and this decline represents something more serious than a temporary drop in sales. Examples might include rail travel in the US, vinyl records or mechanical watches. Marketing Strategy: The task of marketing is to identify causes of decline and to reassess the nature of the product, its features, its target market and the marketing campaign with a view to either reviving demand for the product or deleting it. We should perhaps note that attempts to revive a product go beyond simply relying on large scale advertising and promotional efforts since these often act as an indication to the consumer that the particular product is experiencing difficulties.
Irregular Demand Irregular demand is arguably one of the most common situations facing anyone involved in marketing in the service sector. It involves a situation where the pattern of demand 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 and travel markets. Marketing Strategy: The task of marketing management in this situation is concerned with attempting to synchronies demand and supply. Marketing may tend to focus primarily on the demand side by discouraging use when demand is at its strongest, encouraging use when demand is at its weakest or finding alternative markets with counter cyclical patterns of demand. However, there may need to be some consideration of the supply side and the potential to which supply can be increased by the holding of larger stocks, improved distribution or increased output.
Full Demand Demand is currently at a desirable level and one that is consistent with the existing corporate and marketing objectives. Marketing Strategy: The main concern in this situation is to maintain this level of demand by continuously monitoring and adjusting marketing campaign as and when attitudes change or competitive threats appear.
Over Full Demand Some organizations face a demand level that is higher then they can or want to handle. Marketing task is De-marketing which requires finding ways to reduce the demand temporarily or permanently. Marketing Strategy: The marketing task is to reduce but not remove demand - perhaps by making the product less available to less attractive market segments or by making it generally less available by reduced promotions, increased price or limited distribution.
Unwholesome Demand Any positive level of demand is regarded as excessive because of the undesirable qualities of the product. This situation is probably most commonly associated with 'vice' products such as drugs, smoking and other 'social cause' products. However, counter-marketing may also be relevant in the business community when it may be used to phase out firms existing products. This may involve ending promotions, raising price or even, for some products, the implementation of legal restrictions. Marketing Strategy: These categories of demand demonstrate that the task of marketing management is much broader than simply creating and maintaining demand - rather it involves responding to and managing patterns of demand within the market place. However, it is important to stress that this demand management does not take place in isolation. Marketing must manage demand more effectively than the competition in order to be successful and must be prepared to respond and react to what happens in the marketplace, not only in terms of existing and potential consumers but also in terms of competitor’s activities.
As markets become more and more competitive and customers become more sophisticated and quality conscious, the adoption of a marketing orientation becomes increasingly important in ensuring organizational success. This marketing orientation requires that the consumer be seen as central to the business and that the organization focuses its attention on identifying and responding to consumer needs as they are at present, as well as trying to anticipate future needs. However, the type of products which can be developed will be affected by the organization’s own capabilities. The key principle of marketing is to be able to meet consumer needs more effectively than competitors.