Essay on "Demand States in a Market"

Essay 13 pages (3929 words) Sources: 2 Style: APA

[EXCERPT] . . . .

Demand States in a Market

There are eight possible states of demand within a given market -- negative demand, nonexistent demand, latent demand, declining demand, irregular demand, full demand, overfull demand and unwholesome demand. The negative demand means that the majority of consumers in a market dislikes or avoids the product or service; the approach of the marketer should revolve around the identification or elimination of the forces which create the strong feelings of dislike and the emphasis on the features which bring benefit to the buyers. The nonexistent demand occurs when customers are unaware of the existence of a product within the market. The most useful approach is that of familiarizing the buyers with the respective products, focusing also on the less obvious benefits of the item. The latent demand occurs when the demands of the consumers cannot be met as the product they require does not yet exist. The most beneficial means of dealing with such a situation is that of collaborating with the research and development divisions in order to support the development of the desired product. Customer relations should emphasize on the efforts made to satisfy the needs of the clients.

In the declining market state, consumers purchase less of the respective product and general demand is declining. Marketers should work closely with the development teams in order to improve the product and make it appealing to the public. In the irregular demand state, the desire for the product is inconsistent, the most relevant examples being offered by seasonal products. Marketers should strive to promote the product onto new markets and increase customer access to the item. The full demand occurs when customers are buying all that is offered by the company and the approach to this state is that of maintaining the sales levels. Overfull demand occurs when there are fewer products available than the demand. The role of the marketers is that of communicating with production to increase output. Finally, the unwholesome demand describes a situation in which the product has harmful social effects and, due to the ethical complexities, it raises the most difficulties for the marketer (Grashaw, 2009).

2. The five core business processes

There are five core business processes which operate at two levels. At a first level, they individually perform their specific tasks. At a secondary level, they perform their tasks in a means that support the organization in reaching its overall goals; this type of operations also includes interactions between the processes. At the most generic level, one can identify five sets of core business processes -- product research and development, administrative processes, quality delivery, accounting and technological processes and finally, sales processes. The product research and development processes revolve around the design and manufacturing of the actual item. Elements included at this stage refer to the functionality of the product, its style and so on. The administrative process incorporates the totality of operations necessary for a proper functioning of the organization. It includes features such as managerial decisions, financial decisions and human resource management. The quality delivery process refers to operations which test and improve the quality of a given product or service. The parties involved in this process look at how well the product is able to comply with its stated benefits; they for instance assess how well an electronic gadget performs its main task and how well can it serve secondary benefits, such as energy efficiency. The accounting and technological processes are more complex. On the one hand, accounting handles financial responsibility operations, including the formulation of financial documents to be audited by external investigators. The technological processes strive to integrate innovation in both products, as well as internal processes. Sales and marketing processes support means by which the final product reaches the final customer.

3. Characteristics of good marketing research

Scientific Method -- in order to gather sufficient and relevant information to be used in the marketing efforts, marketers have to carefully observe the situation, formulate hypotheses, predict future events and test their beliefs.

Research creativity -- the usefulness of a marketing effort is also pegged to the levels of creativity involved, generally referring to the marketer's ability to use innovative ideas and create new solutions to existent problems.

Multiple methods -- a good marketer has to gather information from multiple sources and use multiple methods of assessment and generation of solutions. This approach increases the ultimate chances of success and reduces the adherent risks.

Interdependence of models and data -- a good marketing endeavor should recognize the fact that conclusions are driven from previous models and thesis and they, as such, should strive to explain the models which led to the formation of the conclusion.

Value and cost of information -- an effective and efficient marketing endeavor should also rely on the assessment of the report between the cost of gathering and processing the information and the value of the data.

Healthy Skepticism -- good marketers will learn to not rely entirely on the information they receive from other parties, but will maintain a certain dosage of skepticism and will as such analyze more features to improve the quality of their research.

Ethical marketing -- finally, despite the realization that marketing studies come to the benefit of both organization as well as consumer, it has to be noted that the research must comply with the norms of ethical marketing (Encyclopedia of Management, 2009).

4. Traditional vs. modern customer-oriented organizational charts

Much has changed in the surrounding environment and economic agents have strive to integrate all these changes within their organizational structures and affairs. A relevant example of such changes refers to the shift of managerial attention from production to customers and human resources. This change is also integrated within organizational charts. The traditional charts rarely included the presentation on the role and importance of the customers and generically perceived them as the force buying whatever the company was manufacturing or delivering. This basically means that the traditional chart was focused on internal processes and departments within the company. Production was the core element and productivity the main component of perceived business success. Additionally, it placed top management at the very top of the organizational pyramid. In the case of the modern organizational chart, this not only includes the customers, but presents them as the pivotal component to business triumph. Organizational clients are the ones telling the company what to produce and deliver. The modern customer-oriented chart recognizes the importance of customer satisfaction and outlines the crucial function of all internal processes to combine forces and satisfy the demand of the buyers. Less and less emphasis is placed on production and the top management, which is in fact depicted at the very bottom of the pyramid. Another important feature of the modern customer-oriented organizational chart is that it does not limit the presentation of the customers to a single entry, but argues that they are present at all organizational levels, and as such influence not only production, but also top and middle management.

5. Databases and marketing efforts

Recent business history has shown us that the introduction of innovative technologies within business processes is not only a means of upgrading and improving results, but also a necessity. The use of a database can bring about numerous benefits at all organizational levels. At a marketing level, it could be used to generate improvements in at least five relevant ways. For once, it could include references and information on all products ever manufactured and sold by the entity. The statistics adherent to each product marketed would inform the marketers of the demand for the respective item and would lead to the formation of solid conclusions and recommendations. Secondly, still relative to products, the database could inform on the period the products were introduced, the stages they have gone through and the current life cycle stage. This would allow marketers to make better informed product decisions in accordance to the product's state at an introductory, growth, maturity or declining stage. Third, the database would contain the contact information on all customers. The data could be used to conduct surveys or inquire the customers on their levels of satisfaction relative to the products purchased. Fourth, the results of the surveys would also be included in the database and they could be retrieved in order to help the marketing team identify any product complaints. The results would then be forwarded to the development team and improvements would be made. Finally, the fifth way in which the database could support the marketing process refers to its ability to store information on the partners which have been used throughout previous marketing campaigns. This would help with the selection of the future partners, by offering input on who was supportive and who was not.

6. Stages of market evolution

A market, just like a product, goes through four stages of evolution. Within the first stage, the market is created and emerges, ergo the name of the emergence stage. At this level, the non-existence… READ MORE

How to Reference "Demand States in a Market" Essay in a Bibliography

Related Essays:

Market Model Patterns of Change Research Paper

Market Model Patterns of Change

Business description and general pattern of change of the market model

healthcare industry is fast paced and is uniquely characterized by rapid growth and development… read more

Research Paper 4 pages (1403 words) Sources: 4 Topic: Healthcare / Health / Obamacare

---

Market Segmentation and Product Positioning: A Sporting Research Paper

Market Segmentation and Product Positioning:

A sporting goods and apparel shop for equestrians

Pursuing sporting activities has become more expensive than ever before. The economy is contracting, yet the prices… read more

Research Paper 4 pages (1207 words) Sources: 4 Topic: Fashion / Designers / Beauty

---

Market Segmentation Is a Way to Differentiate Research Paper

Market segmentation is a way to differentiate a group so that the seller of goods or services does not concentrate on the entire universe, but on a group of high… read more

Research Paper 4 pages (1039 words) Sources: 4 Topic: Business / Corporations / E-commerce

---

Market Failure the OECD Essay

Market Failure

The OECD defines market failure as a situation in which "market outcomes are not Pareto efficient." There are a number of causes of market failure, and some of… read more

Essay 2 pages (564 words) Sources: 1 Topic: Economics / Finance / Banking

---

Market for Milk Essay

Market for Milk

If more people start eating cereal for breakfast, the following things will happen. Some people will use soy milk or other milk substitutes, but the vast majority… read more

Essay 4 pages (1263 words) Sources: 4 Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>