Demand in marketing is ... Types, formation and tasks

Demand in marketing is one of its key definitions. Its origin is based on the ability to combine any needs into a common flow. To create demand, you need two conditions: market and need.

The last factor means the desire of the user to purchase a service or product. And the market is the environment in which the sale of goods can take place. Given these conditions, it is possible to satisfy demand. It is on these concepts that the whole economy is based.

What is marketing demand?

The concept of demand is largely based on its characteristics, the main among which is primary.

Demand can function without a market. It may well exist independently, but its satisfaction provides an opportunity for the economy to develop. Its progress is only due to the satisfaction of customers and the emergence of new forms of organizations. If you give demand a definition based on its essence, it will look different.

What is demand?

Demand in marketing is the desire to satisfy 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 at all. The main generator of demand today is advertising. However, demand itself, as before, appears against the backdrop of the needs of customers and the market's ability to satisfy them. In other words, having a certain need, a person enters the market where the main rule in marketing reigns - this is demand.

The law of demand and its impact on marketing

The first rule of demand is that its value directly depends on the cost and quantity of the product. The higher the price of a product, the less consumers are willing to purchase it. This, at first glance, an elementary rule is of fundamental importance not only for marketing, but also for the entire economy. It is this law that describes the model of the market, which is estimated at 5000 years. In other words, this rule implies that there are two factors that influence demand - cost and quantity.

True, if you carefully study the market, you can understand that demand is not only compounded by the price and quantity of products, that is, it is affected by much more conditions.

The laws of demand imply several nuances. The first condition is a limited amount of product. Any market is limited by the production capabilities 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 cannot work.

Demand definition

If you look at demand on the other hand, you can understand that it implies a flawless market. But in fact, consumers are affected by a large number of different factors that cannot be taken into account in a two-factor model of description. 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 implement uninterrupted market activity 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 the desire to purchase a product, although the buyer may not have the funds at this point. This is a very important psychological aspect for the manufacturer. After all, he makes known a certain group of potential consumers who are familiar with the brand and make some efforts to accumulate money and acquire in the future.

Through the use of devices such as lending, sales at discounts, installments, potential demand can be converted into real transactions. Unsecured demand can be determined using focus groups or surveys. With the help of such market research, one can characterize the unsecured demand for goods in marketing - the attitude of buyers to the offer, how much they do not have enough to conclude a transaction, what kind of discount would be attractive.

Determination of Unsecured Demand

Equally important for marketers is the effective demand for a product manufactured by the manufacturer. In this situation, the buyer has every opportunity to purchase the goods without any discounts and installments. Consumers from this segment are considered the most attractive for any company, since there are no obstacles on their part to conclude a transaction, except desire itself.

In addition, a specific group of consumers is characterized by point demand, which is characterized by rapid exhaustibility and low depth. For example, actors or musicians touring populated areas can satisfy demand almost in full in just a couple of days. Then the auditoriums will be emptied with great speed, at the same time the revenues of the teams will decrease.

Companies that are 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 reality this state of affairs is quite familiar for new products. The characteristics of demand at the proposed price for the goods will become the basis that will help to calculate the return on the release of innovation and scientific developments. Without knowing the value of demand, it is impossible to determine the cost of products in the future, the time of their payback, and the profitability of the entire business.


All of the above means only one thing - the types of demand in marketing have a broader definition than in the economy. For marketers, all the described types of demand are significant for the company's product lines.

But at the same time, demand is a very volatile and difficult to predict indicator. In some cases, it suddenly appears 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 declare demand for. For example, a girl entering a cosmetics store cannot preliminarily say 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 alleged purchases, and he acquires the remaining 70% impulsively, under the influence of external factors.

Often, manufacturers have to guess the future demand and market the product that they expect intuitively. The product should be what the consumer is capable of purchasing. Indeed, in marketing, supply and demand are interrelated concepts.

It is in order to detect demand and control it that manufacturers study the behavioral and psychological foundations, including the needs and motives of customers.

Negative demand

There are several types of marketing, depending on demand.

A negative type means that most consumers refuse the product, regardless of its quality. It can be clothing that has gone out of fashion, or the manufacturer can release at least one product that has received a lot of criticism. Negative demand in marketing appears if most buyers do not want to purchase goods. And some consumers are even willing to incur losses for the sake of abandoning 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 familiarize yourself with the most effective ways to solve the problem - improving, changing the product, lowering the cost, conducting a powerful advertising campaign.

Lack of demand

It suggests a lack of interest in the purchase of the goods offered by 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 them as objects that have lost their value. For example, obsolete things, 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 poorly prepared for new products. For example, soy foods do not find a response in most domestic regions.
Lack of demand

As said, the type of marketing is selected from the state of demand. In order to overcome its absence, incentive marketing should be applied. It should be aimed at solving several problems:

  • or bring the product closer to the customer, awakening the need for it;
  • or place the product in various markets, having studied the optimality;
  • or more widely disseminate product information to 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, and non-alcoholic beer. The same demand exists for wholesome foods, safe medicines and effective exercise equipment.

The further situation is determined by the state of demand. The type of marketing that is effective in latent demand is developmental. It is he who allows us to solve the problem by making appropriate products. The goal of developmental marketing is to convert latent demand into real supply on the market.

Irregular demand

Another category of demand in marketing, in which the products offered on the market do not coincide in time 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, a rare visit to museums on weekdays.

In such a situation, the application of synchronous demand and marketing is required, the tasks of which are aimed at a flexible change in prices, as well as a change in the motive. For example, through seasonal discounts and sales, a propaganda and advertising campaign, the dissemination of information about the opening hours of enterprises.

Declining demand

This term means that sooner or later any product loses its attractiveness in the market and gradually begins to be superseded by other products. In this case, you need to use remarketing, which is aimed at creating a new product life cycle. You can achieve your goal by identifying previously unknown product benefits, improving the quality of service.

Full demand

This type implies the most desirable situation when there is a steady demand and market in marketing. Moreover, the needs of customers are growing at a pace that is fully consistent with the production capabilities of the enterprise.

In this case, you should use supporting marketing, which requires constant attention to conditions that can suddenly change demand. In addition, such marketing should solve tactical problems that are associated with the implementation of price policies, maintaining a high level of sales, enhancing commercial activity and controlling costs. At the same time, it is equally important to counteract competitors trying to oust goods from the market.

Excessive demand

This kind of demand is when demand for certain products significantly exceeds 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 of stimulating sales, switching demand from one product to another. Such marketing is needed not to eliminate demand, but to lower it.

marketing demand

Irrational demand

A situation in which the satisfaction of the needs of certain categories of customers leads to strong opposition from other people, organizations and institutions. Traditional examples: alcohol, cigarettes, drugs, political and religious subjects.

In this case, it is advisable to resort to counter-marketing. Depending on the demand, elimination or its substantial restriction on services or goods is used. For example, cigarette advertising on TV is banned in some countries, and anti-nicotine and anti-alcohol campaigns are regularly conducted.

What is demand generation?

Now let's talk about the process that affects marketing strategies designed to increase the recognition of the company and the interest of customers in its products. In marketing, the formation of demand means not only media activity, but also incoming marketing, email marketing, real marketing and all kinds of ways to retain consumers. But it does not concern 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. This can be done with the help of SEO, affiliate marketing, content marketing, social networks.

Real marketing

After people learn about the existence of the company, it is necessary to begin familiarizing the audience with the values โ€‹โ€‹of the company and its products. You can increase interest in products in various ways.

How to generate demand

The proposed strategies are aimed 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 that you: select several suitable platforms and social incentives, for example, in the form of gifts for likes under your content. True, do 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 total demand. The more content the company generates, the easier it will be for consumers to find it. And for this it is necessary to use SEO, tools for promotion, content for generating leads.

Thanks to the work done, you will notice that many more subscribers will appear on social networks, and search engines will become more supportive of your resources. To do this, you need to perform several steps.

  • SEO. Marketers primarily resort to this tool when it comes to supporting marketing strategies aimed at attracting potential buyers. SEO is the actions that a company takes to occupy the first lines of search results when users search for specific queries. How to achieve increased recognition of the enterprise by searching the network? Identify key phrases and words related to the business. Evaluate competition for selected queries. If the selected word dominates the competitor, create content that will exceed the competitorโ€™s identical content in quality. You can also pay attention to more rare queries. Create content with key phrases. And remember that your content must remain quality and detailed.
The formation of demand in marketing
  • Promotion of a resource. At this stage, you need to be as active as possible in the popular social networks and groups related to your company.
  • Using content to create leads. Content marketing cannot be effective if it does not contribute to the conversion of incoming traffic to solvent customers. Content is expected to make the audience reading it a leader.

And do not forget that even in the digital age, real-life marketing tools remain relevant. Job fairs, local meetings, various conferences - all this can show your company to those people who are really interested in the services or goods provided.


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