Demand forecasting is an essential activity in sales and marketing. The demand forecasting has to be done so that the company does not store huge inventories and at the same time, does not underutilize its operation setup. By taking into considerations the various types of demand in the market, the firm can thereby have a proper forecast and can plan its inventories accordingly, meeting the objectives of the firm. There are mainly 8 types of demands in Marketing which have to be taken into consideration by the marketing manager during demand forecasting. The various types of demands, and how to tackle the challenges for marketers in these various demands, are discussed below.
Negative Demand vs. Full Demand –
Negative Demand – Negative demand is a type of demand which is created if the product is disliked in general. The product might be beneficial but the customer does not want it. It occurs when customers who dislike a product or service and may often even pay to avoid the product or service. The product may be helpful but the consumer does not want it. For example – Dental work where people don’t want problems with their teeth and use preventive measures to avoid the same. Insurance, which people should have but they delay buying an insurance policy. Similarly, people would like to avoid heart attacks and/hence may pay for a full body check up where the results might be negative, but still, the customer has to pay. The marketer has to solve the issue of no demand by analyzing why the market dislikes the product and then counteracting with the right marketing tactics. Negative demand can be a positive one by doing some things. Have a look-
- Try to create awareness rather than promotion.
- Inform the customers about the importance of your products.
Full demand – In an ideal environment, a company should always have full demand. It is a market state wherein consumers are prepared to buy all units of a particular product. Full demand means that the demand is meeting the supply potential of the company. Here consumers are adequately buying all products put into the marketplace. In a perfect environment, a company should always have full demand. It also means that the markets are happy with the products of the company and that people want to buy front the same company. The marketing challenge in this type of demand is to maintain the same level of interest in the product and the company. Full demand means that the demand is meeting the supply potential of the company. The marketing challenge in this type of demand is to maintain the same level of interest in the product and the company. It also means that the markets are pleased with the products of the company and that people want to buy from a similar company. It is a situation that arises when the market’s cumulative purchases of a manufactured good equate to its manufacturer’s capability to generate it.
The products have a similar demand all over the year. For example, medicines constantly have full demand. Whatever the doctor suggests, consumers buy this. But if Pharmaceuticals Company decreases or discount on the price of medicine, consumers aren’t prepared to pay for this.