Promotions. The common business function used for the purpose of driving company or product demand is promotions. This is the marketing component where you pay for advertising, use media opportunities with public relations and engage in personal selling activities with prospects and customers.
The demand for a good increases or decreases depending on several factors. This includes the product's price, perceived quality, advertising spend, consumer income, consumer confidence, and changes in taste and fashion.
The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion. We can look at either an individual demand curve or the total demand in the economy.
What are the strategies to use when demand is low?
If demand is low, offer discounts or incentives to encourage purchases. Allow customers to pre-purchase in exchange for a discount, free product, service or other high-value but low-cost item. Set up an annual payment plan or subscription model that encourages customers to pay monthly.
A demand generation marketing strategy starts by assessing how well a potential audience knows your brand, identifying ways to introduce that brand to a new buyer group, and then nurturing that relationship by gaining trust and authority.
Similarly, demand stimulation refers to arousing interest or enthusiasm in the minds of the customer so that they like the product and increase its demand in the market. Marketers use different techniques to promote a product in the market. One of them is demand stimulation.
Capacity can be managed to meet the demand by stretching the four primary resources namely time, labor, equipment, and facilities. Further, when it is not possible to stretch these factors, an organization can vary the basic mix and use these resources creatively to meet the demand fluctuations.
Movies. If movie ticket prices declined to $3 each, for example, demand for movies would likely rise. As long as the utility from going to the movies exceeds the $3 price, demand will rise. As soon as consumers are satisfied that they've seen enough movies, for the time being, demand for tickets will fall.
Remember that demand is made up of those who are willing and able to purchase the good at a particular price. Income influences both willingness and ability to pay. As one's income increases, a person's ability to purchase a good increases, but she/he may not necessarily want more.
