Demand in marketing is one of his key definitions. Its origin is based on the ability to combine some needs into a common flow. To create demand, two conditions must be present: the market and the need.
The last factor means the user's desire to purchase a service or product. And the market is the environment in which the sale of goods can be carried out. In the presence of these conditions, it becomes possible to meet demand. It is on these concepts that the entire economy is based.
What is demand in marketing
The concept of demand is largely based on its features, the main one being primacy.
Demand can function even without a market. It may well exist independently, but its satisfaction makes it possible for the economy to develop. Its progress occurs only through the satisfaction of the needs of customers and the emergence of new forms of organization. If demand is defined in terms of its essence, it will look different.
Demand in marketing is desiresatisfy needs through the purchase of a service or product. From this concept follows the basic law of demand. It is based on two conditions - the quantity and value of the goods. For the existence of demand, the existence of both factors is not necessary. Advertising is considered the main generator of demand today. However, the demand itself, as before, appears against the backdrop of the needs of buyers and the ability of the market to satisfy them. In other words, having a certain need, a person enters the market, where the main rule in marketing is demand.
The law of demand and its impact on marketing
The first rule of demand says - its value directly depends on the cost and quantity of the product. The higher the price of a product, the fewer consumers are willing to buy it. This seemingly elementary rule is of fundamental importance not only for marketing, but for the entire economy. It is this law that describes the model of the market, which has been calculated for 5000 years. In other words, this rule implies that demand is influenced by two factors - cost and quantity.
True, if you carefully study the market, you can understand that demand is formed not only by the price and quantity of products, that is, it is influenced by many more conditions.
The laws of demand involve several nuances. The first condition is the limited quantity of the product. Any market is limited by the productive capacity of the economy. The second condition is that the cost of goods is limited by purchasing opportunities. If these factors are not taken into account, the market cannotwork.
If you look at the demand from the other side, you can understand that it implies a perfect market. But in fact, consumers are influenced by a large number of different factors that cannot be taken into account in a two-factor description model. It is marketing that makes it possible to regulate the demand for services and products by influencing the cost and quantity of goods. By controlling this process, you can realize the smooth operation of the market and fully satisfy the needs of customers.
Marketers Opinion
Specialists are interested in several types of marketing, depending on demand. The first important factor is considered to be the desire to purchase the product, although the buyer at this point may not have the funds. This is a very important psychological aspect for the manufacturer. After all, it makes known to a certain group of potential consumers who are familiar with the brand and make some effort to save money and purchase in the future.
Through the use of devices such as lending, discount sales, installment plans, potential demand can be converted into real deals. Unsecured demand can be determined using focus groups or surveys. With the help of such market research, it is possible to characterize the unsecured demand for a product in marketing - the attitude of buyers to the offer, how much they lack to conclude a deal, what kind of discount would be attractive.
Equally important formarketers effective demand for the product produced by the manufacturer. In such a situation, the buyer has every opportunity to purchase goods without any discounts and installments. Consumers from this segment are considered the most attractive for any company, since there are no obstacles for them to conclude a deal, except for their own desire.
In addition, a certain group of consumers is characterized by point demand, which is characterized by rapid exhaustion and low depth. For example, actors or musicians touring settlements can meet the demand almost in full in just a couple of days. Then the audience halls will be emptied at a high speed, at the same time, the revenues of the teams will also decrease.
Businesses preparing to launch a new product on the market are interested in the estimated or possible demand for the product in marketing. It would seem that the situation looks paradoxical - there is no product itself, but there is already a demand for it. But in fact, this state of affairs is quite familiar to new products. The characteristics of demand at the proposed price for the product will become the basis that will help calculate the payback of the release of innovation and scientific developments. Without knowing the magnitude of demand, it is impossible to determine the cost of products in the future, their payback time and the profitability of the entire business.
Features
All of the above means only one thing - the types of demand in marketing have a broader definition than in economics. For marketers, all the described types of demand for product lines are significant.company.
But at the same time, demand is a very volatile and difficult to predict indicator. In some cases, it appears abruptly and suddenly disappears. And sometimes it is stable for many years and even decades. Sometimes, even the consumer himself cannot say exactly what he needs and what he is ready to demand. For example, a girl entering a cosmetics store cannot say in advance which particular product she will like and what exactly she will buy.
It is noteworthy that each visitor to supermarkets makes only 30% of the intended purchases, and the remaining 70% he buys impulsively, under the influence of external factors.
Manufacturers often have to guess future demand and put on the market the product that he intuitively expects. The product must be what the consumer is able to purchase. Indeed, in marketing, supply and demand are interrelated concepts.
Precisely in order to detect demand and control it, manufacturers study the behavioral and psychological foundations, including the needs and motives of buyers.
Negative demand
There are several types of marketing, depending on demand.
Negative type indicates that most consumers refuse the product, regardless of its quality. It can be clothes that are out of fashion, or the release of at least one product by the manufacturer that has received a lot of criticism. Negative demand in marketing appears if the majority of buyers do not want to buy a product. And some consumers are even willing to beardamages for discontinuing this product.
What determines the type of marketing used? From the state of demand. So, to overcome the negative attitude of buyers to the product, you should resort to conversion marketing. Its essence is to get acquainted with the most effective ways to solve the problem - improvement, product change, cost reduction, a powerful advertising campaign.
No demand
Assumes a lack of interest in the purchase of the proposed product on the part of consumers. Perhaps buyers are completely indifferent to the product. There are several common causes for this problem.
- Products known to the buyer are perceived by him as objects that have lost their value. For example, things that are out of fashion, outdated electronic and household appliances.
- Products are perceived as valuable, but not in this region. For example, summer clothes in cold areas.
- The market is ill-prepared for the release of new products. For example, soy foods are not well received in most domestic regions.
As mentioned, the type of marketing is selected from the state of demand. To overcome its absence, incentive marketing should be used. It should be aimed at solving several problems:
- or bring the product closer to the buyer, awakening the need for it;
- or place the product in various markets, having studied the optimality;
- or promote the product more widelyamong potential buyers.
Hidden demand
Potential (hidden) demand is a situation where buyers need a product, but the need is not satisfied for a long time due to the lack of the necessary product on the market. For example, there has long been a hidden demand for decaffeinated coffee, safe cigarettes, non-alcoholic beer. There is a similar demand for wholesome foods, safe medicines and effective exercise equipment.
Further situation is determined by the state of demand. The type of marketing that is effective with hidden demand is developmental. It is he who allows you to solve the problem that has arisen by making appropriate products. The task of developmental marketing is to transform latent demand into real supply in the market.
Irregular demand
Another category of demand in marketing, in which the goods offered on the market do not coincide with the needs due to seasonal, daily or weekly changes in market conditions. For example, rush hours in public transport, reduced demand for summer clothes in winter, rare visits to museums on weekdays.
In this situation, the use of synchronous demand and marketing is required, the tasks of which are aimed at flexible price changes, as well as changing incentives. For example, through seasonal discounts and sales, propaganda and advertising campaigns, dissemination of information about the opening hours of enterprises.
Declining demand
This term means that sooner or later any product loses itsattractiveness in the market and gradually begins to be replaced by other products. In this case, it is necessary to use remarketing, which is aimed at creating a new product life cycle. You can achieve your goal by identifying previously unknown benefits of the product, improving the quality of service.
Full demand
This kind implies the most desirable situation where there is a strong demand and market in marketing. Moreover, the needs of customers are increasing at a pace that is fully consistent with the production capabilities of the enterprise.
In this case, it is worth using supportive marketing, which requires constant attention to conditions that can suddenly change demand. In addition, such marketing must solve tactical problems that are associated with the implementation of a price policy, maintaining a high level of sales, enhancing commercial activity and controlling costs. It is equally important to counteract competitors who are trying to force products out of the market.
Excessive demand
This type of demand is when the demand for certain products significantly exceeds the supply. In such a situation, demarketing should be used, which is necessary to solve such problems: reducing excess demand by increasing the cost of a service or product, by stopping advertising and other ways to stimulate sales, switching demand from one product to another. Such marketing is needed not to eliminate demand, but to reduce it.
Irrational demand
A situation in which the satisfaction of the needs of some categories of buyers leads to strong opposition from other people, organizations and institutions. Traditional examples: liquor, cigarettes, drugs, political and religious items.
In this case, it is advisable to resort to counter marketing. Depending on the demand, the elimination or its significant restriction on services or goods is used. For example, in some countries advertising of cigarettes on TV is banned, anti-nicotine and anti-alcohol campaigns are regularly carried out.
What is demand generation
Now let's talk about the process that involves marketing strategies designed to increase brand awareness and customer interest in its products. In marketing, demand generation means not only media activity, but also inbound marketing, email marketing, real marketing, and all sorts of ways to retain consumers. But it does not apply to advertising and PR.
The first part of the formation of demand is the work aimed at disseminating information about the existence of the company itself and its products. You can do this with the help of SEO, affiliate marketing, content marketing, social networks.
After people learn about the existence of the company, it is necessary to begin to familiarize the audience with the values of the company and its products. There are many ways to increase interest in products.
How to generate demand
Suggested Strategiesaimed at presenting the company to those consumers who may be really interested in its products or services.
- Social media. To increase audience reach and increase brand awareness, it is recommended: to choose several suitable platforms and social incentives, for example, in the form of gifts for likes under your content. True, we should not forget that the work done will bring the first results only after a few months.
- Content marketing. It occupies an important place both in increasing the recognition of the enterprise, and in the formation of general demand. The more content a company generates, the easier it will be for consumers to find it. And for this you need to use SEO, promotion tools, content for lead generation.
Thanks to the work done, you will notice that a lot more subscribers will appear on social networks, and search engines will become more supportive of your resources. This requires a few steps.
SEO. Marketers use this tool first of all when it comes to maintaining marketing strategies aimed at attracting potential buyers. SEO consists of the actions that a company takes to occupy the first lines of search results when users search for certain queries. How to increase the recognition of the company with the help of search in the network? Identify key phrases and words related to the business. Assess the competition for selected queries. If the chosen worddominates the competitor, make content that will surpass the competitor's identical content in quality. You can also pay attention to more rare requests. Create content with the addition of key phrases. And remember to keep your content high quality and detailed
- Resource promotion. At this stage, you need to be as active as possible in popular social networks and groups related to your company.
- Using content to generate leads. Content marketing can't be effective if it doesn't convert incoming traffic into paying customers. Content is expected to get the audience that reads it to become a lead.
And don't forget that even in the digital age, real marketing tools are still relevant. Job fairs, local meetings, various conferences - all this can show your company to those people who are really interested in the services or products you provide.
