2012

Fundamentals of Marketing
The Demand Vs Major Tasks of Marketing

Assignment No. 1

IBA University of the Punjab, Lahore. Submitted to Professor Zia-u-Rehman. Submitted By Muhammad Awais Naseer. Roll Number 93. Program MBA-Evening-Section B. nd Semester 2 . Session 2012-2014.

5/14/2012

Assignment # 1

Fundamentals of Marketing

The Demand Vs Major Tasks of Marketing

THE popular image of the marketer is that he is a professional whose job is to create and maintain demand for something. Unfortunately, this is too limited a view of the range of marketing challenges he faces. In fact, it covers only two of eight important and distinct marketing tasks. Each task calls for a special type of problem-solving behavior. Four specific demand states make up under demand: negative demand, no demand, latent demand, and faltering demand. Two specific demand states make up adequate demand: irregular demand and full demand. Finally, two demand states make up over demand: overfull demand and unwholesome demand. These eight demand states are distinguished primarily with respect to the level of current demand in relation to desired demand; although two additional factors, the timing of demand (irregular demand) and the character of demand (unwholesome demand), are also important. The set of demand situations is fairly exhaustive and the order fairly continuous. Each demand situation gives rise to the specific marketing task described in column 2 of Table 1. Negative demand results in attempts to disabuse it; no demand, in attempts to create demand; latent demand, in attempts to develop demand; and so on. Each of these tasks

is given the more formal name shown in column 3.

1)Conversional Marketing
State of demand
Negative demand State of demand
Consumers dislike the product and may even pay a price to avoid it. Avoiding something even when costly.

Elaboration Negative Demand: Negative demand might be defined as a state in which all or most of the important segments 2|Page

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of the potential market dislike the product and in fact might conceivably pay a price to avoid it. Negative demand is worse than no demand.

Basic Marketing Task

Disabuse demand Occurs when supply is greater than demand or demand is negative. Negative demand State of demand
Consumers dislike the product and may even pay a price to avoid it. Avoiding something even when costly.

2) Stimulational Marketing
State of demand
No demand
Consumers may be unaware or uninterested in the product. Simply dont want it possibly unaware. Elaboration: There is a whole range of objects and services for which there is no demand. Instead of people having negative or positive feelings about the object, they are indifferent or uninterested. No demand is a state in which all or important segments of a potential market are uninterested or indifferent to a particular object.

Basic Marketing Task

Create Demand.
When we have no demand, than we need to create demand.

3) Developmental Marketing
State of demand
Latent demand
Consumers may share a strong need that cannot be satisfied by an existing product. The demand exists the product doesnt. Elaboration: A state of latent demand exists when a substantial number of people share a strong need for something which does not exist in the form of an actual product. The latent demand represents an opportunity for the marketing innovator to develop the product that people have been wanting. Examples of products and services in latent demand abound. A great number of cigarette smokers would like a good-tasting cigarette that does not yield nicotine and tars damaging to health.

Basic Marketing Task

Develop Demand
When you have Latent demand, than we need to create develop demand.

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4) Re-Marketing
State of demand
Declining demand.
Consumers begin to buy the product less frequently or not at all. Lower than during prior period.

Elaboration: All kinds of products, services, places, organizations, and ideas eventually experience declining or faltering demand. Faltering demand is a state in which the demand for a product is less than its former level and where further decline is expected in the absence of remedial efforts to revise the target market, product, and/or marketing effort. For example, the natural fur industry is in deep trouble today as demand declines in the face of the trend toward more casual living, the emergence of artificial furs, and the attacks of ecologists who see the fur industry as preying on endangered species.

Basic Marketing Task

Revitalize demand
When there is declining demand, than we need to revitalize demand.

5) SynchroMarketing
State of demand
Irregular demand
Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. Peak/off-peak seasonality.

Elaboration: Very often an organization might be satisfied with the average level of demand but quite unsatisfied with its temporal pattern. Some seasons are marked by demand surging far beyond the supply capacity of the organization, and other seasons are marked by a wasteful underutilization of the organization's supply capacity. Irregular demand is defined as a state in which the current timing pattern of demand is marked by seasonal or volatile fluctuations that depart from the timing pattern of supply. Many examples of irregular demand can be cited. In mass transit, much of the equipment is idle during the off-hours and in insufficient supply during the peak hours. Hotels in Miami Beach are insufficiently booked during the off-seasons and overbooked during the peak seasons

Basic Marketing Task

Synchronized demand
When there is Irregular demand, than we need to Synchronized demand.

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6) Maintenance Marketing
State of demand
Full demand
Consumers are adequately buying all products put into the marketplace. Demand matches maximum supply.

Elaboration: The most desirable situation that a seller can face is that of full demand. Full demand is a state in which the current level and timing of demand is equal to the desired level and timing of demand. Various products and services achieve this condition from time to time. When this state is achieved, however, it is not a time for resting on one's laurels and doing simply automatic marketing. Market demand is subject to two erosive forces that might suddenly or gradually disrupt the equilibrium between demand and supply. One force is changing needs and tastes in the marketplace. The demand for barber services, engineering educations, and mass magazines has all undergone major declines because of changing market preferences. The other force is active competition. A condition of full demand is a signal inviting competitive attack. When a new product is doing well, new suppliers quickly move in and attempt to attract away some of the demand. Thus the task of the marketer in the face of full demand is to maintain it. His job is maintenance marketing.

Basic Marketing Task

Maintain Demand
When there is Full demand, than we need to maintain demand.

7) De Marketing
State of demand
Overfull demand
More consumers would like to buy the product than can be satisfied. Demand exceeds supply.

Elaboration: Sometimes the demand for a product substantially begins to outpace the supply. Known as overfull demand, it is defined as a state in which demand exceeds the level at which the marketer feels able or motivated to supply it. It is essentially the reverse of the situation described earlier as faltering demand. The task of reducing overfull demand is called demarketing. More formally, de-marketing deals with attempts to discourage customers in general or a certain class of customers in particular on either a temporary or permanent basis. There are two major types of de-marketing situations: general de-marketing and selective de-marketing. General de-marketing is undertaken by a seller when he wants to discourage overall demand for his product. Selective de-marketing occurs when an organization does not wish to reduce everyone's demand but rather the demand coming from certain segments of the market.

Basic Marketing Task

Reduce Demand.
When there is Overfull demand, than we need to reduce demand.

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8) Counter Marketing
State of demand
Unwholesome demand
Consumers may be attracted to products that have undesirable social consequences. E.g. Cigarettes are harmful to society but attract more and more consumers to use. Demand that is considered detrimental.

Elaboration: There are many products for which the demand may be judged unwholesome from the viewpoint of the consumer's welfare, the public's welfare, or the supplier's welfare. Unwholesome demand is a state in which any positive level of demand is felt to be excessive because of undesirable qualities associated with the product. The task of trying to destroy the demand for something is called counter marketing or un-selling.

Basic Marketing Task

Destroy Demand
When there is unwholesome demand, than we need to destroy demand.

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References
1) http://wiki.answers.com/Q/What_are_the_basic_marketing_task 2) http://scribed.com

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