Question: “Marketing management is the demand management”-discuss the statement. / Analyze the states of demand and indicates its relevant marketing strategies.
Answer: Marketing management is the process of planning, organizing, implementing and controlling marketing strategies. The task of marketing management is to increase the demand of his products. For this, he has to create demand for his products in time, maintain the expected level of demand and try to fulfill the demand. So it is said that, marketing management is the demand management.
According to Evans & Berman, “Marketing includes anticipating demand, managing demand and satisfying demand.”
We know, demands are wants for specific products backed by an ability to pay. Many people may have wants for a product, but only a few are willing and able to buy. We will consider those, who have willingness and ability to pay to fulfill the wants. This demand can be changed time to time. To meet up these changing demands, marketing management has to take different strategies.
Various types of demand and marketing management’s task to cope with these demands are discussed in below-
1. Negative demand: Negative demand indicates the situation, when consumers dislike the products and may even pay a price to avoid it.
For example: Vaccines of cholera. People dislike it because of its health hazards.
a. To investigate the causes of dislike the product.
b. Implement new marketing strategies to change the customer’s attitude regarding the products.
c. Re-design the product.
d. Reduce the price of the products.
As the function of marketing management is to convert negative demand into positive demand, so these types of task of marketing management are called conversional marketing.
2. No demand: No demand indicates the situation, when consumers may be unaware or uninterested in the product. In case of new product or due to lack of promotional activities, no demand can be created.
For example: Language course for S.S.C level students. Actually Unsought products, demand of washing machine for solvent housewife of village.
Management task: Marketing management can create demand for the product, which has no demand by the following way-
a. Include the product in the existing product line.
b. Provide exciting information about the product quality and use of the product, so that the customers become stimulated and attracted to purchase the product.
c. Invention of substitute products.
These types of task of marketing management are called stimulating marketing.
3. Latent demand: Latent demand indicates the situation, when consumers may share a strong need that cannot be satisfied by an existing product.
For example: Insulin as oral pill.
This latent demand creates opportunities for the marketers. If anyone can convert the latent product into reality, then he will earn much profit.
a. Measuring the actual demand of the product.
b. Determine the number of probable customer.
c. Try to convert the latent demand into reality.
These types of task of marketing management are called development marketing.
4. Declining demand: Declining demand indicates the situation, when consumers begin to buy the product less frequently or, not at all.
For example: The use of typewriter is reducing.
Management task: The main task of marketing management is to establish a new life cycle for the products. For this, management has to perform the following task-
a. Identify the causes of reducing demand.
b. Search for new customer.
c. Distribute the product at lower price.
These types of task of marketing management are called remarketing.
5. Irregular demand: Irregular demand indicates the situation, when consumer purchases vary on a seasonal, monthly, weekly, daily, or even early basis.
For example: In holidays, demand for amusement park increases.
a. Through marketing activities, convert the irregular demand into regular demand.
b. Through price, promotion and other incentives, try to increase the demand on off peak season.
These types of task of marketing management are called synchromarketing.
6. Full demand: When the demand and supply of a product is equal, then it is called full demand. Full demand indicates the situation, when consumers are adequately buying all products put into the market place.
Example: Demand of sunsilk, rin power white detergent et.
Management task: Under the full demand situation, marketing management tries to hold the demand for the product. For this, marketing management has to perform the following task-
a. Investigate the overall condition of the product time to time.
b. Maintain reasonable price.
c. Provide incentives to the dealers.
d. Control the marketing cost of the product.
These types of task of marketing management are called maintenance marketing.
7. Overfull demand: When the actual demand is greater than the company’s expected demand then it is called overfull demand.
For example: In Bangladesh, the demand for electricity is always greater than the supply.
Management task: Marketing management has to perform the following task-
a. Increase public awareness through promotional effort.
b. Increase the price of the product.
c. Reduce the quality of the product.
d. Reduce the service.
e. Reduce the supply of the product into less profitable market.
These types of task of marketing management are called De marketing.
8. Unwholesome demand: Unwholesome demand indicates the situation, when consumers may be attracted to products that have undesirable social consequences. That means, when the demand for products threatened the social wellbeing then this type of demand is called unwholesome demand.
For example: Demand for tobacco, cigarettes, drugs etc.
a. Destruction of demand for the product.
b. Creation of public awareness regarding the bad effects of the products.
c. Increase the price of the products.
d. Make the product scarce.
These types of task of marketing management are called counter marketing.
In each case, marketers must identify the underlying causes of the demand state and then determine a plan for action to shift the demand to a more desired state.