Negative demand in marketing. Types of demand

What is demand? This is the most important characteristic market. In marketing, this is the main object of continuous observation, detailed study and influence on people.
Demand (by definition) is a need presented in the market and constantly supported by money. It is impossible to talk about its solvency, because demand of any kind is, by definition, solvent, otherwise it is just a need. This concept can also be defined as the ability and intention of the consumer to purchase a specific product in a specific place and at a specific time. Demand pitches are different.

Buying is a complex phenomenon that consists of different elements which have certain social, economic, demographic features, as well as regional ones. Such components make it possible to differentiate the types of consumer demand according to various signs. These actions make it easy to adjust. Today there are the following types of demand:

1. Negative (for goods or services). The market does not accept the product or service. in this case, it is to study the source of resistance and determine the ability of the marketing program to change negative attitudes to positive ones by upgrading the product and even more actively stimulating buyers.

2. Lack of demand. It happens that consumers are not attracted to the product or they are indifferent to it. What to do? How to act? We need to find ways to link the main properties of the product with natural (daily) and its interests.

3. Hidden. This is which is not. Many people dream of having a product that does not exist at all. In this case, the task of marketing will be to determine the size of the potential market and create effective products and services that can satisfy this demand.

4. What other types of demand exist? We analyze further: falling. When saturated with goods, it falls lower and lower. Marketers need to conduct a deep analysis of the reasons for its decline, and also to find out whether it is possible to stimulate the sale of goods (services) again by searching for new markets and modifying goods.

5. Irregular. Depending on the season and even the day, the sale of goods may fluctuate. We need to look for ways to smooth out such fluctuations and distribute demand over time using flexible prices, various incentives and other methods of inducing consumers.

6. Maintained. Usually in such a situation, the company is satisfied with its own turnover. Types of demand are characterized by its shortage, and in the case when demand is constantly maintained, this is the most pleasant situation. The task of marketing is to maintain the existing level, despite the constantly changing preferences and tastes of consumers, growing competition. The product must be of high quality, and the company's employees constantly evaluate the level of customer satisfaction in order to analyze the correctness of their own actions later.

7. Demand is excessive. In this state of affairs, he is above supply, the firm cannot (or does not want to) satisfy him. We need to look for ways to permanently or temporarily reduce such high demand. This can be done by raising prices or reducing service. This company policy is called demarketing.

8. Unwanted. for a product that has proven to be harmful to health. In this case, you need to convince consumers of "bad" goods to refuse bad habits; disseminate intimidating information, provide statistical data; drastically raise prices and limit the availability of this product.

So we looked at the types of demand in marketing.

Demand can be divided into:

Existing in this moment On the market;

Potential, determined by purchasing power and the number of potential consumers;

Desirable, from the point of view of the firm; at which the planned level of sales and the necessary profitability of production are ensured. Depending on the nature of the demand, the appropriate type of marketing is also used.

1. Demand is negative(negative demand). It corresponds to conversion marketing. With negative demand, goods on the market are rejected regardless of quality (dentistry, vaccinations, hiring former prisoners). Consumers are even willing to pay a price to stop using it. The task of conversion marketing is to investigate the cause of dislike for the product, the possibility of changing negative attitudes through advertising and alteration of the product, lower prices and more active stimulation. Conversion marketing is used, for example, by tobacco companies when the activity of health and education authorities, social insurance, and the public leads to a sharp decrease in the number of smokers. For example, in the United States, tobacco companies, in an effort to regain their lost positions, have undertaken the development and production of a number of special brands of cigarettes with a reduced tar content, i.e. carried out the renewal of products, accompanied by advertising: "the old flavor with a minimum resin content."

2. There is no demand. It corresponds to promotional marketing. In this case, the attitude of potential buyers to the product is indifferent due to different reasons. For example, a product is unknown to the public in terms of its consumer properties (new agricultural practices in farming) or the product represents a consumer value, but in a different market (a TV set in a place where there is no TV station). In these cases, the role of incentive marketing may include widespread promotion (rather than advertising) of the product, building a television studio, etc.

3. hidden demand. With such demand, developmental marketing is used. With latent demand, the goods available on the market do not satisfy the needs of some buyers. Hidden demand may be, for example, for harmless cigarettes, more fuel-efficient cars, houses in safe residential neighborhoods. Developmental marketing must assess potential demand and create products that can meet demand.

4. Falling demand. It matches remarketing. With falling demand, either the market is saturated or the product is replaced by a new one. Remarketing should find new opportunities to revive demand, i.e., give the product a market novelty, reorient the company to new markets. Thus, in the mid-1970s, a significant shift took place in the structure of alcohol consumption: consumers, focusing on low-calorie products, significantly reduced the demand for beer, preferring dry beer to it. grape wine. At that time, the Miller company launched a new brand of beer, Light, on the market, which had half the calorie content, due to which it outperformed many competitors in terms of sales and annual profit.

5. Irregular demand(fluctuating). It is eliminated by synchromarketing. Demand can change seasonally during the week (museum visits increase on weekends, hospital patients more at the beginning of the week) and even during the day (public transport).

Synchromarketing should incorporate market cyclicality into business plans to smooth out fluctuations through pricing, incentives, and so on.

6. Complete demand. Supportive marketing corresponds to it. In this case, the company is satisfied with its economic activity. The task of supportive marketing is to ensure the appropriate level of demand despite changing consumer preferences and competition. This is done with the help of prices, advertising, maintaining the quality of goods.

7. Excessive demand. It has a demarketing policy. Excessive demand occurs when businesses are unable or unwilling to meet demand. The task of demarketing is to find ways to temporarily or permanently reduce demand through prices, weakening promotional efforts, advertising activities, reducing service, etc. Sometimes they transfer the rights to manufacture a given product, licenses, know-how, etc. other companies, but using or mentioning the brand of this company.

8. irrational demand, to which counter-marketing corresponds. Irrational demand exists, for example, for goods that are potentially dangerous to humans (cigarettes, alcohol, drugs, weapons). Counter marketing convinces people to give up bad habits.

There are over a hundred various definitions marketing, the most successful of which include:

Marketing is a kind human activity, aimed at meeting needs and requirements through exchange (F. Kotler).

Marketing is the anticipation, management and satisfaction of demand for goods and services, organizations, people, territories and ideas through exchange (Evans and Berman).

Marketing is a system of management, regulation and market research (IK Belyaevsky).

In the practice of the Russian market activity there are distorted concepts of marketing. Many perceive marketing only as market research, identify it with advertising or aggressive forms of selling. Meanwhile, all these are just elements of the marketing system, the creation of which went through several stages and various forms of market regulation before marketing acquired a modern structure.

The type of marketing is determined by the state of demand. From this point of view, the following types of demand are distinguished: negative demand, lack of demand, hidden demand, falling demand, irregular demand, full demand, excessive demand, irrational demand.

Negative demand characterizes the state of the market when a significant part of it does not accept the product and may even pay a certain price for refusing to use it. For example, negative demand for vaccinations, for hiring ex-prisoners. With negative demand, conversion marketing is used. Conversion Marketing - a type of marketing, the task of which is to change the negative attitude of consumers towards a product (negative demand) to a positive one by reworking the product, lowering the price and promoting it more effectively. Conversion marketing is used, for example, by tobacco companies when activity government agencies health, education, social security, the public leads to a sharp decline in the number of smokers. Thus, in the United States, tobacco companies, in an effort to regain lost ground, undertook the development and production of a number of special brands of cigarettes with a reduced content of carcinogenic resins, i.e., they updated their products, accompanying them with advertising: “The former flavor with a minimum resin content.”

At lack of demand use promotional marketing. Incentive marketing is a type of marketing whose task is, in the absence of demand, to find ways to link the inherent benefits of a product with the needs and interests of potential consumers in order to change their indifferent attitude towards the product. Incentive marketing aims to overcome possible causes such a situation: complete ignorance by consumers of the capabilities of the product, removal of obstacles to its distribution, etc. The main tools of incentive marketing are a sharp price reduction, increased advertising, and other methods of promoting the product.

Hidden Demand characterizes the state of the market, when many consumers are not satisfied with existing products. For example, hidden demand for harmless cigarettes, for more economical cars. In this case, it is necessary to measure the magnitude of potential demand and develop New Product that satisfies him. When hidden, potential demand is used developmental marketing. Developmental marketing is a type of marketing that is used in conditions of latent, potential demand and whose task is to assess the size of a potential market and develop effective products that can turn demand into real. Development marketing tools are the development of products that meet new needs, the transition to a new qualitative level of their satisfaction, the use of advertising, the creation of a specific product image targeted at specific consumer groups.

At falling demand remarketing is used. Remarketing - a type of marketing whose task is to restore demand in the event of a fall based on a creative rethinking of a previously used marketing approach. It consists in finding new opportunities to revive demand: giving the product new properties, penetrating new markets, etc. So, back in the mid-70s, a significant shift took place in the structure of consumption of alcoholic beverages in the United States: consumers, focusing on low-calorie products, significantly reduced demand for beer, preferring dry grape wine. At that time, the Miller company launched a new brand of beer, Light, on the market, which had half the calorie content, due to which it outperformed many competitors in terms of sales and annual profit.

Irregular demand characterizes seasonal, daily and even hourly fluctuations in demand. For example, the demand for urban transport services changes during the day, museums are less busy on weekdays. With irregular, fluctuating demand, use synchromarketing. Synchromarketing is a type of marketing whose task is to find ways to smooth out fluctuations in demand (irregular demand) using flexible prices, promotion methods and other marketing tools. It may be necessary when trading seasonal goods, or subject to other cyclical or unpredictable market downturns. Effective remedy- successive, pre-planned transition to various geographical and other market segments (with subsequent return).

At full demand, i.e. when the organization is satisfied with the volume of sales, promotional marketing is used. Supportive marketing - a type of marketing, the task of which is, in conditions of full demand, to maintain the existing level of demand, taking into account changes in the system of consumer preferences and increased competition. A classic example of full-fledged marketing is the activity of General Motors, which in the twenties managed to overtake Ford by opposing the reliable, but standard-looking, Ford Model T, painted in the same black color, with its modern, wide color scheme automobile model.

At excessive demand i.e., demand, the value of which exceeds the ability and desire of the organization to satisfy it, demarketing is used. Demarketing - a type of marketing used in conditions of excessive demand, its task is to find ways to temporarily or permanently reduce demand in order to eliminate a number of negative market phenomena, such as speculation. Demarketing is also used to ensure that consumers do not create an unfavorable impression for the company about its low production capabilities. The main tools of demarketing are price increase, cessation of advertising work. Sometimes they transfer the rights to manufacture a given product, licenses, know-how, etc. to other firms, but using or mentioning the brand of this firm.

Irrational or irrational demand - it is the demand for products that are unhealthy or irrational from a social point of view (drugs, pornography, cigarettes). With irrational demand, counter-marketing is used. Counter marketing - a type of marketing whose task is to convince people to stop consuming harmful products by sharply raising prices, limiting their availability, combined with defamatory information.

At present, due to the increase social status rights, the concept of enlightened marketing appeared.

Types of marketing

On the modern market allocate various conceptual approaches and corresponding types of marketing. So, in marketing there are:

In addition to the functional stand out industry structure marketing: industrial (focused on corporate clients) and consumer (focused on the end consumer) marketing, marketing of industrial and marketing of food products, trade marketing (ideology: relationship to the intermediary as a client, consumer), marketing retail, agro marketing, smart product marketing, service marketing, etc.

Concept and types of demand

A person needs to purchase various goods and services to satisfy his needs. Every person in the market of goods and services is a buyer. The totality of these buyers forms the DEMAND for goods and services. Consequently, ever-increasing needs form demand. But desire alone is not enough to satisfy the needs. This desire must be supported by solvency. AT economic theory there is a generally accepted definition of demand.

Demand- the solvent need of consumers for various goods and services, the amount of goods and services that consumers want and can buy at a given price at a given time.

Consumer demand is a complex phenomenon, consisting of various elements having certain economic, social, demographic and regional characteristics. This makes it possible to differentiate demand according to a number of characteristics, which facilitates its regulation.

The classification of demand by market conditions helps the marketing firm to assess the demand in order to develop a specific market strategy. It is equally important for marketing to classify demand according to other criteria, which make it possible to identify patterns in the formation and development of demand, and take them into account when developing a market marketing strategy. Thus, the classification of demand by trends is directly related to the stages life cycle goods, and the identification of differences in demand for socio-demographic groups of consumers has crucial to segment the market and determine its capacity.

The classification of demand according to purchasing intentions opens up wide possibilities for the seller to influence the buyer both by means of advertising and by methods of direct influence. certain part of buyers (according to some estimates, about a quarter) succumbs to psychological pressure, actively responds to store demonstrations of goods. From this follows the need for optimal placement of goods in the store, ensuring the availability of goods for inspection and testing, originality and colorfulness of the exposition, and its informativeness (merchandising).

The sign of demand differentiation at the place of purchase is of interest to firms engaged in regional marketing. In a certain part, mobile demand is recreational, related to tourism and holiday trips. Identification of such demand is very important for firms specializing in servicing tourists and holidaymakers. It is necessary to know not only the size of recreational mobile demand, but also its geography and routes. In addition, information on the territorial differentiation of demand is necessary for regional and municipal authorities in order to control the consumer market and develop their own product policy.

Demand analysis according to the degree of satisfaction will allow the company to adjust its assortment and service policy, to find additional reserves for sales and sales growth.

In order to control and forecast demand, the types of demand are also distinguished by the time of formation and presentation on the market. Past demand is demand realized or unsatisfied for some past period of time, its assessment is necessary to identify trends and patterns, as well as to fulfill implementation plans. Current demand - demand at the moment, knowledge of the size of which allows you to quickly make adjustments to the planned marketing activities, is an element of market conditions. Future demand - demand for the next period, it is necessary to predict its volume and structure, taking into account the possibilities of production and the market.

The classification of demand according to these criteria orients marketing towards the application of a specific product and price policy, the choice of an appropriate competitive strategy, the organization of targeted advertising events, allows for multi-parameter market segmentation and requires the firm to carry out the necessary differentiated actions to regulate demand.

There are the following types of demand:

  • 1. Negative - buyers avoid buying this product, they are not interested and indifferent to it.
  • 2. Hidden - a need may exist, but it cannot be satisfied in the market for goods and services.
  • 3. Falling - a decrease in demand for one or more goods produced by the enterprise.
  • 4. Irregular - seasonal demand.
  • 5. Full - the level of demand, which fully satisfies the enterprise.
  • 6. Excessive - the level of demand exceeds the quantity of the goods offered.
  • 7. Irrational - the demand for goods that are harmful to health.

Demand is influenced by several factors (non-price): consumer tastes and preferences, the number of buyers in the market, the prices of substitute goods, the level of income of buyers, consumer expectations about future prices, income and availability of goods.

The price of a good and the quantity demanded for that good are inversely proportional. Economists call this feedback the law of demand. That is, when the price of a good decreases, the quantity demanded for that good increases, other things being equal. This relationship can be shown graphically using a demand curve, which is downward-sloping. But the exception here is the demand for rough (diamonds), the relationship between their price and demand volume is direct. A shift in the demand curve causes non-price factors.

Producers of goods proceed from the needs of people and produce goods and services that are sold on the market. The totality of commodity producers provides people with the satisfaction of their effective demand, that is, it forms an OFFER. Supply is the desire and ability of producers to provide goods for sale on the market. The ability to provide goods is associated with the use of limited resources, which are not always enough to satisfy the needs of all people.

Thus, offer- the quantity of goods and services that the seller can and wants to sell at a given price at a given time. Changes in supply can be caused by the following factors (non-price):

  • resource prices,
  • ・used in production of goods,
  • The effectiveness of the applied production technology,
  • taxes and subsidies, prices for other goods,
  • expectation of changes in the price of a given product,
  • The number of sellers of this product in the market.

In general, a change in the price of a good leads to a change in the quantity supplied of that good. This relationship is reflected graphically in the form of a supply curve, which has an upward character. A shift in the supply curve is caused by non-price supply factors.

Thus, on the market, on the one hand, there are Producers on the supply side and Consumers on the demand side. Therefore, the market is a real or imagined place where people meet and make a deal, i.e. buy and sell. In the market there is a meeting of the Producer and the Consumer, Demand and Supply, as a result of which the purchase and sale of goods is carried out. Well-known American economists K. McConnell and S. Brew define the market as follows: " Market is a mechanism that brings sellers and buyers together individual goods and services".

Graphically, the intersection of supply and demand curves determines the equilibrium state of the market: the equilibrium price of a good and the equilibrium volume of this good. The point of intersection of these graphs shows that the needs of buyers in this product correspond to the quantity of this product that manufacturers are able to offer to the market. A change in either demand or supply causes a change in the equilibrium price and equilibrium quantity of the product.

Depending on the state and nature of the market, there are 8 main types of demand, to which the corresponding types of marketing are applied.

1. Demand is negative - demand needs to be created. In this case, it is used conversion marketing .

With negative demand, the bulk of potential consumers in a given market reject a particular product, regardless of its qualities (for example, the product is not fashionable). In such cases, conversion marketing is about developing a demand generation and sales promotion plan that generates the right amount of demand and counteracts negative trends.

2. There is no demand - it is necessary to stimulate demand. used incentive marketing .

The attitude of potential buyers to the proposed product is indifferent for a number of reasons. An incentive marketing program should take into account the specific reasons for such indifference (for example, the complete ignorance of the buyer of the product's capabilities).

3. There is potential demand - you need to make it real. Applies developmental marketing .

Similar situations lot. The first step in turning potential demand into real demand is to create new product that satisfies the needs at a new qualitative level or in new areas of consumption.

4. Demand is declining - need to restore demand. used remarketing .

The principles of remarketing are to search for new opportunities to revive demand: for example, giving a product a market novelty. Often they resort to reorienting the enterprise to new markets and other measures.

5. Demand fluctuates - need to stimulate demand. Applies synchromarketing .

As a rule, this situation occurs when trading seasonal goods. To stabilize the demand for the goods offered and to minimize its fluctuations, it is necessary to clearly represent the needs (favorable) and muffle others. This will allow the Demand Generation and Promotion Service to act against fluctuations in demand.

6. Demand meets supply - demand needs to be stimulated. Applies supportive marketing .

In such a situation, competitors' products may appear on the market that satisfy the same needs, which will lead to a decrease in demand. To counter negative influences the head of the marketing service should carefully pursue a pricing policy, advertising work, systematically check the feasibility of spending on marketing operations.

7. Demand is excessive - it needs to be reduced. Applies demarketing .

The inability to meet high demand leads to a number of negative phenomena. Based on the goals of demarketing, they significantly increase prices, reduce or stop advertising work altogether. Since this entails the loss of customers, it is more profitable to sell a license for the right to produce these products under a different brand name.



8. Demand is irrational - it is necessary to reduce demand to zero. In this case, it applies counter marketing .

This situation can arise if the demand is contrary to the interests of society (materials that have a negative impact on health are used). Counter marketing is associated with stopping the release of a product, withdrawing it from trade and conducting a campaign against this product and its consumption.