type of demand

Excellent question, Tesfa 👏 — this one is core marketing logic.

Let’s go step-by-step to make it easy, practical, and deeply clear, with examples and strategies for each type of demand.

🔹 Meaning

Demand means the desire, willingness, and ability of customers to buy a product or service.

But demand is not always the same — sometimes people don’t want the product at all, sometimes too many want it.
So marketers classify demand into eight main types, and each needs a different marketing strategy.

🔸 1. Negative Demand

Meaning:
Customers dislike the product and may even avoid or oppose it.

Example:

• Vaccinations (some people fear injections)

• Dental treatment

• Life insurance

• Environmental taxes

Marketing Strategy:
👉 Convert negative into positive.

• Use educational marketing to correct misunderstandings.

• Offer incentives or reassurance (e.g., painless dental care).

• Build emotional appeal showing benefits.

Real Story Example:
The COVID-19 vaccine initially faced negative demand — fear, mistrust, misinformation. Governments and companies used awareness campaigns and trusted influencers to turn it into positive demand.

🔸 2. No Demand

Meaning:
Customers are not interested or unaware of the product.

Example:

• New technology (e.g., early years of smartphones).

• Retirement plans among young workers.

Marketing Strategy:
👉 Create awareness and interest.

• Use promotion and demonstration.

• Show how it improves life.

• Use influencers or word of mouth to spread curiosity.

🔸 3. Latent Demand

Meaning:
People want something, but no product exists yet to satisfy it.

Example:

• Before electric cars, people wanted eco-friendly transportation.

• Before smartphones, people wanted internet + phone + music in one device.

Marketing Strategy:
👉 Innovate and develop new products to meet that unmet need.

• Conduct market research to discover hidden desires.

• Invest in R&D and innovation.

Example:
Elon Musk identified latent demand for sustainable luxury transport → created Tesla.

🔸 4. Falling Demand

Meaning:
Demand for the product is declining over time.

Example:

• DVD players, traditional cameras, printed newspapers.

Marketing Strategy:
👉 Revitalize or reposition.

• Introduce new uses or markets.

• Offer discounts, new designs, or features.

• Change promotion or distribution.

Example:
Coca-Cola brings new flavors or nostalgia marketing to keep demand alive.

🔸 5. Irregular (Seasonal) Demand

Meaning:
Demand fluctuates by season, time, or situation.

Example:

• Ice cream (high in summer, low in winter)

• Hotels or airlines (high in holidays, low in off-season)

Marketing Strategy:
👉 Synchronize demand with supply.

• Use off-season discounts.

• Encourage alternative uses.

• Offer price adjustments or promotions during low demand periods.

Example:
Hotels use off-season promotions like “Stay 3 nights, pay for 2” to fill rooms.

🔸 6. Full Demand

Meaning:
Demand is steady and satisfactory — the company is happy with its sales.

Example:

• Basic utilities (electricity, toothpaste, salt).

Marketing Strategy:
👉 Maintain current level and improve quality.

• Focus on customer satisfaction and loyalty.

• Maintain consistent service and performance.

• Avoid complacency.

Example:
Colgate keeps improving toothpaste formulas and packaging even though demand is stable.

🔸 7. Overfull (Excess) Demand

Meaning:
Demand is greater than the company can supply.

Example:

• During product launches like the iPhone or PlayStation 5, demand exceeds supply.

Marketing Strategy:
👉 Reduce or control demand (Demarketing).

• Raise prices.

• Reduce advertising.

• Limit distribution.

• Prioritize profitable customers.

Example:
Apple uses limited supply and premium pricing to manage overfull demand.

🔸 8. Unwholesome Demand

Meaning:
Demand exists for harmful or undesirable products.

Example:

• Cigarettes, alcohol, junk food, drugs.

Marketing Strategy:
👉 Discourage demand (Counter-marketing).

• Use warning labels, public health campaigns, legal restrictions.

• Promote healthier substitutes.

Example:
Anti-smoking ads with health warnings are counter-marketing strategies.

🔹 Summary Table

💡 Practical Insight:

A smart marketer does not just sell — they analyze demand patterns and adjust strategies to match them.

Would you like me to show a visual diagram or story (like a case of Coca-Cola or Apple) to illustrate how a company handles different demand types in real life?