Mgt301 FinalTerm Short Notes PDF

Negative demand occurs when potential customers hold unfavorable or biased views about your product. For instance, in a community where people believe only fresh food is healthy, frozen food is seen as unhealthy and faces negative demand. In such cases, marketers must use a conversion marketing strategy to change the public perception of frozen food and demonstrate its benefits.

No demand is a situation typically encountered during the initial stages of a business. Here, customers are simply unaware of your product or its advantages. To create awareness and spark interest, companies employ creative and stimulating marketing techniques. These methods aim to introduce the product to the market and create a desire for it among potential buyers.

Latent demand describes products or services that could be in demand, but the demand isn’t immediately apparent or expressed by customers. A classic example is the early days of insurance policies. Initially, people didn’t show much interest in insurance because they weren’t fully aware of its value. Once marketers highlighted the benefits, such as financial protection and peace of mind, people started to see insurance as a necessity, and demand grew.

Declining demand occurs when a product or service is losing its appeal and demand starts to fall. This can happen for various reasons, such as changing trends or the introduction of newer, better alternatives. In these cases, marketers use remarketing strategies to breathe new life into the product. This could involve adding new features, updating the product’s design, or repositioning it in the market to reignite customer interest.

Full or regular demand represents an ideal scenario where the demand for a product matches the company’s production capacity. This balance is also known as adequate or sufficient demand. In such a situation, marketers focus on maintaining this demand level by continually engaging with customers and reinforcing the product’s value proposition. The goal is to extend this period of full demand for as long as possible to maximize benefits and profitability.

Irregular demand is seen when the demand for a product fluctuates at different times. A good example is the sale of air conditioners, which soar during summer but decline in winter. To handle these fluctuations, marketers use demand-shifting and synchro-marketing strategies. This can involve promotional discounts during off-seasons or special campaigns to encourage demand when it’s low.

Overfull demand is when the demand for a product exceeds the company’s production capabilities, creating a challenging situation. To manage this overwhelming demand, marketers implement de-marketing strategies. For example, electricity companies may raise prices to control usage during peak times when supply is limited. The goal of de-marketing is not to eliminate demand entirely, but to reduce it to manageable levels.

Unwholesome demand refers to demand for products that are considered harmful or undesirable, such as narcotics, cigarettes, or other unhealthy items. In these situations, marketers use counter-marketing strategies. This involves campaigns designed to discourage the use of such products, like public service announcements highlighting the dangers of smoking and promoting healthier alternatives.

In addition to these demand situations, marketers are guided by different underlying philosophies or orientations that shape how they approach the market:

The production concept believes that customers mainly want products that are easily available and reasonably priced. This leads companies to focus on mass production and achieving economies of scale, ensuring that goods are readily accessible to the market.

The product concept holds that consumers prefer items that deliver top-notch quality, excellent performance, and innovative features. However, an overemphasis on product quality without considering actual customer needs can lead to marketing myopia. A notable example is the mouse trap phenomenon in the United States. Companies focused on producing better mouse traps, assuming that’s what people wanted, while failing to recognize that customers actually wanted a broader solution to get rid of mice, not necessarily just traps. As a result, many of these companies struggled to sell their products.

The selling concept assumes that customers won’t purchase enough unless the company puts in significant effort through sales and promotions. While this “telling and selling” approach can generate short-term sales, it’s not sustainable if the product itself doesn’t meet customer expectations. In the long run, customers will move on to better alternatives.

The marketing concept emphasizes that achieving organizational goals depends on understanding and meeting the needs and preferences of the target market more effectively than competitors. This philosophy puts the customer at the center of all marketing activities, ensuring that the company adapts to changing customer desires and market dynamics.

Freemium pricing: Offering a basic version for free (such as a 30-day trial) and charging for advanced features or continued use.

Reframing pricing: Breaking down the price to make it seem more affordable, such as showing a course’s price per day instead of the full fee.

Pay-Per-Click Advertising (PPC)

PPC ads appear on search engine results pages whenever users type in specific keywords. Advertisers only pay when someone actually clicks their ad, which is why it’s also called keyword advertising. Ads that appear are tied to keywords and are part of a bidding system known as ad auctions. This system guarantees that ads are closely matched to what users are searching for.

Location-Based and Mobile Marketing

With the widespread use of smartphones, mobile marketing has created new opportunities for reaching consumers. Everyone carries their mobile phone almost everywhere, using apps and social media to stay in touch. Marketers can now deliver targeted messages to users based on their physical location, thanks to GPS tracking. By using location-based APIs (application programming interfaces), marketers can access real-time data on a user’s whereabouts and send promotions specific to that area.

Social Media Marketing (SMM)

Social media marketing is all about promoting products and services through platforms like Facebook, Twitter, YouTube, and blogs. In the past, ads on TV or radio would vanish once aired. Social media has changed that by keeping your message alive and visible for as long as you want. This type of marketing has a clear advantage over traditional methods because it allows real-time interaction and direct engagement with consumers.

  1. The data highlights just how far social media can reach:
  2. ·        Facebook has around 350 million active users.
  3. ·       Over 346 million people read blogs, and 184 million people write their own blogs.
  4. ·       Twitter alone boasts over 14 million registered members.
  5. ·       YouTube claims more than 100 million viewers each month.

Every minute, more people are joining these platforms, offering marketers an extensive audience to connect with and promote their products.

Conclusion:

Understanding these different demand situations and marketing philosophies is crucial for any business aiming for long-term success. By recognizing how demand changes and which marketing approaches work best in each scenario, companies can tailor their strategies to better connect with customers. Whether it’s countering negative demand, stimulating hidden demand, or sustaining full demand, a deep understanding of these concepts allows businesses to stay competitive and responsive in today’s dynamic market environment.

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