What Is Market Demand?

Market demand refers to the quantity that a certain customer is willing and able to purchase for a certain product or service under a certain region, a certain time, a certain marketing environment and a certain marketing plan. It can be seen that market demand is the sum of consumer demand; it is also an important subject of demand-side management or reform in theory and practice. Since market demand is derived from individual needs, the amount of market demand depends on the factors that determine the demand of individual buyers. Therefore, market demand depends not only on the price of an item, but also on the buyer's income, preferences, expectations, and the price of the related item. It also depends on the number of buyers. [1]

Market demand

Market demand
The main factors affecting demand are:
Market demand is the foundation of all marketing tasks. Failure to properly analyze and grasp market demand will disorient marketing efforts. According to the demand level, time and nature, eight different demand conditions can be summarized.

Market demand 1. Negative demand

Negative demand refers to a demand situation where the vast majority of people are disgusted with a product and are even willing to pay to avoid it. In the case of negative demand, you should analyze why the market does not like this product, and whether you can change the market's beliefs and attitudes through positive marketing solutions such as product redesign and lower prices, and turn negative demand into positive demand .

Market demand two, no demand

No demand refers to a demand situation where the target market has no interest or indifference to the product. Generally, the market has no demand for products for the following reasons: (1) things that people generally consider to be worthless to individuals; (2) things that people generally think are valuable but are worthless in a particular market; (3) new products or Unfamiliar items, etc. When there is no demand, marketing should be stimulated, that is, through vigorous promotion and other marketing measures, strive to combine the benefits provided by the product with the natural needs and interests of people.

Market demand III. Latent demand

Latent demand refers to a situation in which a considerable number of consumers have a strong demand for something, and existing products or services cannot meet it. The main work under the condition of latent demand is to develop marketing, that is, to carry out marketing research and potential market range measurement, and then develop effective goods and services to meet these needs, and turn the latent demand into a real demand.

Market demand

Declining demand refers to a demand situation where the market demand for one product or several products is decreasing.
In general, demand inherently has the "demand of downward slope of demand: when the price of an item rises (while other conditions remain unchanged), its demand decreases. Or, in other words: if an item is on the market There are a large number of put on the market, then-other things being equal-it can only be sold at a lower price. " [2]
"Therefore, it is clear that the first important reason why the downward trend in demand is correct is that lower prices bring new buyers.
Positioning and analysis of requirements
The second equally important reason is not so obvious. The second reason is that each time the price decreases, it can entice every buyer of the item to buy more quantities; in other words, the increase in price will make us buy less quantities. [2] "At the same time, when the price went up, I also felt that I was actually poorer than before ... I would naturally reduce my consumption of most general goods. " [2]
The main work when reducing demand is to revive marketing, that is, to analyze the causes of the decline, and then develop new target markets, improve product features and appearance, or use more effective communication methods to re-stimulate market demand and start old products. New life cycle and reverse demand decline through creative product remarketing.

Market demand V. Irregular demand

Irregular demand refers to a demand situation where the market demand for certain goods or services fluctuates greatly during different seasons of the year, or on different days of the week, or even at different times of the day. The work under irregular demand is to coordinate marketing, that is, to change the time pattern of demand through flexible pricing, vigorous promotion and other stimulus methods, so that the market supply of goods or services and demand are coordinated in time.

Market demand

Adequate demand refers to a demand situation where the current level and time of demand for a good or service is equal to the expected level and time of demand. This is the most ideal situation for a company. However, in a dynamic market, consumer preferences are constantly changing and competition is becoming increasingly fierce. Therefore, marketing needs to be done under sufficient demand conditions, that is, to strive to maintain product quality, constantly measure consumer satisfaction, maintain reasonable prices by reducing costs, and encourage salespeople and dealers to vigorously promote sales and do everything possible to maintain Current demand levels.

Market demand

Excessive demand refers to a demand situation where the market demand exceeds the level that the enterprise can supply or supply. In the case of excessive demand, marketing should be reduced, that is, by increasing prices, rationally distributing products, reducing services and promotions, etc., to temporarily or permanently reduce the level of market demand, or to try to reduce the market from less profitable or less service Level of demand. It should be emphasized that reducing marketing is not to eliminate demand, but to reduce the level of demand.

Market demand 8. Harmful demand

This demand refers to the market demand for certain harmful goods or services. In the case of harmful demand, we should do a good job of anti-marketing, that is, persuade consumers who like harmful products or services to give up this hobby and demand, vigorously publicize the serious harm of harmful products or services, greatly increase prices, and stop production. Supply etc. The difference between reducing marketing and anti-marketing is that the former is to take measures to reduce demand, while the latter is to take measures to eliminate demand.

Summary of market demand

The above eight requirements are all in the demand side management and even reform. For example, for negative demand, negative demand should be transformed into positive demand; for harmful demand, measures should be taken to eliminate this demand; for irregular demand, the job at this time is to coordinate marketing, that is, through flexible pricing, vigorous promotion and Other stimuli to change the time pattern of demand, so that the market supply of goods or services and demand are coordinated in time ...

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