MARKETING AND DEMAND MANAGEMENT

Introduction

 Marketing management can be defined
as the analysis, planning, implementation, and control of programmes
designed to create, build, and maintain beneficial exchanges with target buyers
for the purpose of achieving organisational objectives.

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The common
impression people often have of the marketing manager is to stimulate demand
for the company’s products. This is however, a small bit of the range of
marketing tasks carried out by marketing managers. The actual situation is that
marketing management has the task of influencing the level, timing, and
composition of demand in a way that will help the organisation achieve its
objectives. That is, marketing management is demand management.

It is usual
for an organisation to form an idea of a desired level of transactions with a
target market. One may then find that at times, the actual demand level may be
below, equal to, or above the desired level. This in effect means, there may be
no demand, weak demand, adequate demand, and excessive demand. Marketing
management therefore has to cope with these different demand situations.

There are actually eight different common states of demand
and the corresponding tasks facing marketing managers. Marketing managers usually cope with these tasks by carrying out marketing research, marketing
planning, marketing implementation, and marketing control. Within
marketing planning, for example, marketers must make decisions on target
markets, market positioning, product development, pricing, channel of
distribution, physical distribution, communication, and promotion.

DIFFERENT
DEMAND SITUATIONS AND THE CORRESPONDING MARKETING TASKS

The eight different common states of
demand together with the corresponding tasks facing marketing managers
include the following:

NEGATIVE DEMAND

A market is
said to be in a state of negative demand if a major part of the market dislikes
the product, and may actual y offer to pay a price in order to avoid it. For
example, people have negative demand for surgical operations for hernia,
cataracts, etc. In addition, employers general y feel a negative demand for
ex-convicts and alcoholic employees. The marketing task under this negative demand situation, therefore, is to analyse why the market dislikes the product or service, and
then determine whether a marketing programme through product re-design,
lower prices, and more positive promotion can change the market’s beliefs and attitudes.

NO DEMAND 

Under the situation of no demand,
the target consumers may not be interested in or indifferent to the product.
For examples, farmers may not be interested in changing from their
traditional farming methods to improved ones. Similarly, college students are
usual y not interested in mathematics.

The marketing
task here is thus to find ways to connect the benefits of the product or
service with the persons natural needs and interests.

LATENT OR HIDDEN OR CONCEALED DEMAND

A latent demand is one that is not
visible or undeveloped, but definitely capable of being developed. For
instance, a substantial number of consumers may hold a strong desire for something that cannot be satisfied by
an existing product or service. For instance, there is a strong latent
demand for safer neighbourhoods and more-fuel-efficient cars. The marketing
task, therefore, is to measure the size of the potential market and develop
effective goods and services that would satisfy the demand.

FALLING DEMAND

Every organisation, sooner or later, faces falling demand for one or more
of its products. For example,
some churches have witnessed their memberships decline. Similarly, certain
hospitals and colleges have also experienced dwindling patronages. The task of
marketing management here is to analyse the causes of market decline and to
determine whether demand can be
re-stimulated through finding new target markets, changing the
product’s features, or developing more effective communication. The efforts are
to reverse the declining demand through creative re-marketing of the product.

  IRREGULAR DEMAND

An irregular demand varies on a
seasonal, daily or even hourly basis, thereby causing the twin problems
of idle capacity or overworked capacity. In mass transit systems, for example,
much of the fleet of vehicles are idle during peak hours. The marketing task
is to find ways to alter the time pattern of demand through flexible pricing,
promotion, and other incentives.

FULL DEMAND

An organisation is said to face full demand when it is
pleased with its amount of business. That is, its actual demand level tallies with the desired level of transactions with its target market. The marketing
task is to maintain the current level of demand in the face of changing
consumer preferences and increasing competition. The organisation needs
to carefully keep up its quality and continually measure consumer satisfaction
to make sure it is still doing a good job.

OVERALL DEMAND

It happens at times, that an organisation faces a demand
level that is higher than they can or want to handle. The major concern here is that facilities may be
overstretched, and may
result in dangerous consequences. For example, the National Stadium often
witnesses huge crowds of football spectators during international matches between
the National team and foreign teams. 

The marketing task, called de-marketing,
requires finding ways to reduce the demand temporally or permanently. General
de-marketing seeks to discourage overall demand and consists of such steps as
raising prices and reducing promotion and service. Selective de-marketing
consists of trying to reduce the demand coming from those parts of the market
that are less profitable or less in need of the service. Please note that de –
marketing does not aim to destroy demand but only to reduce its level.

  UNWHOLESOME DEMAND

The demand for something is said to
be unwholesome if that particular thing is perceived to be unsound,
tainted in health, taste or morals. Hence, unwholesome products usually attract organised efforts to
discourage their consumption. For example, fierce campaigns are being carried out against cigarettes, alcohol, hard drugs and commercial sex hawking. The
marketing task is to set people who engage in the consumption or practice of
the particular vice to give it up, using such tools as fear communication,
price hikes, and reduced availability.