Demand States

Demand

Demand is created when individuals seek to purchase a product or a service to satisfy a need. In order for demand to exist there should be the desire, the ability and willingness to buy.

According to Philip Kotler one of the most influential researches in marketing: 'Marketing Demand is not so neatly linear' .Therefore, market demand for a product has different demand states

One of the tasks of marketing management is to regulate the level, timing and character of demand inorder to meet the organizations objectives.

Demand States

* Negative Demand:

It is a state of demand where a major part of the market dislikes the product or may even pay a price to avoid it. In the state of negative demand there is a supply for the product but the level of demand is less than the supply.

Some of the examples of negative demand are: going to the dentist, going to the doctor, Products tested on animals

* Nonexistent Demand

In this state of demand the consumer is unfamiliar, unaware or not interested in the product. Here there is a supply for the product but there is no demand for the product.

* Latent Demand

In this state of demand there is need that cannot be satisfied by an existing product. Therefore there is a demand for a certain product but the product does not exist

Examples of latent demand: Wanting a phone battery that lasts longer hours, wanting a drug that cures cancer.

* Declining Demand

When the level of demand declines and continues to fall it is a state of declining demand or faltering demand. The level of demand will continue to fall unless the marketer takes steps to reverse or halt it

Example: type writers, tapes, Floppy Disks

* Irregular Demand

Most organizations face this type of demand - the demand changes on periodic basis, could be daily, monthly, yearly, seasonal or even hourly basis. Here the level and timing of demand is not equal to the level and timing of supply

Examples of irregular demand: hotel booking...