Coursework: economic types of demand and their classification. Concept of supply and demand

An entrepreneur, in order to start producing or selling something profitably, first needs to find the needs that currently need to be satisfied. Need, along with need and request, are marketing objects.

Need- a feeling experienced by a person in the absence (lack) of something.

Need- the same need, but having specific outlines that are determined by the culture and characteristics of a person’s personality. The need is expressed in goods and services that satisfy the need in a way characteristic of a given society.

Request- a need supported by the purchasing power of the individual, that is, our income. Manufacturers and sellers are forced to link the types of goods produced and services provided with the needs of consumers and their financial capabilities.

This requires a needs analysis, a determination of how the needs will further develop. Usually the analysis begins with a description of the hierarchy of needs developed by the American scientist of Russian origin A. Maslow.

Maslow's theory of motivation explains why people are driven by certain needs and at certain times, why some take every effort to satisfy, say, physiological needs, while others strive to achieve a certain status in society. For this purpose, a hierarchical diagram has been proposed in which human needs are arranged in a certain sequence from “lower” material to “higher” spiritual, from more urgent to least urgent.

The usefulness of this list of needs for marketing lies in the ability to understand to what extent the consumer is willing to pay money to satisfy certain needs. It follows that the next, higher need is satisfied only when the previous ones are satisfied.

Also known S. Freud's theory of motivation, which is based on the recognition of the action of certain psychological forces that shape human behavior, and are not always realized by him. This can be represented as a kind of response to the action of market incentives of an internal and external nature. This theory is important for marketers because it views the buyer as a person with conflicting desires that must be satisfied in socially acceptable ways. If we fully accept this approach, then we must admit that a person is not fully aware of the motives of his behavior when purchasing, acting largely unconsciously. This must be taken into account when designing a product or advertising in order to stimulate these subconscious elements of the human psyche. Based on Freudian principles in trade advertising techniques, means mass media Symbols of courage, femininity, sexuality, uniqueness, etc. are still being played out in every possible way.

At the same time, there are also promising needs that are just emerging, but will work in the future. The task of marketing is to timely identify an emerging but promising need, which means success in the market not only today, but also tomorrow. Thus, a distinction is made between past, present and future needs.

According to the mass distribution, needs are distinguished between universal, regional and national.

Occupies a special place social factor, since part of the needs is determined by a person’s belonging to one or another social group. Within a certain social group The urgency of the need is influenced by income level, education, national and religious traits.

The degree of scale distinguishes between needs satisfied in a certain area of life or in several areas.

Based on the frequency of satisfaction, needs are distinguished between needs that are singularly satisfied, those that are periodically satisfied, and those that are continuously satisfied.

According to the complexity of satisfaction, needs are satisfied by one product, complementary goods or interchangeable goods.

It is also useful to know how public opinion perceives the need that you intend to satisfy with your product. This established attitude will inevitably be transferred to the created product. The assessment can be positive - for the creation of environmentally friendly food products, children's toys, comfortable clothes. A neutral perception from society and a negative reaction to the production of alcohol, tobacco products, and toiletries made from animal fur are possible.

The task of marketing is not only to predict changes in existing requests and take these changes into account, but also future, as yet unconscious needs, and take them into account when conducting research and production.

Types of demand, brief description

1.Negative demand. Most of the market does not like the product and even agrees to certain costs just to avoid it. For example, people have a negative demand for vaccinations, dental procedures, internal organ surgeries, and employers have a negative demand for hiring ex-convicts and alcoholics.

Marketing Objective: Analyze why the market dislikes a product and whether a marketing program can change negative market attitudes through product redesign, lower prices, and increased incentives.

2. Lack of demand. Target consumers may be uninterested or indifferent to the product. For example, farmers - a new agricultural technique, students - learning a foreign language.

The task of marketing is to find ways to link the inherent benefits of a product with the natural needs and interests of a person.

3. Hidden demand. Consumers may experience desire, which cannot be satisfied with the goods and services available on the market. For example, latent demand for harmless cigarettes, safe residential neighborhoods and more fuel-efficient cars.

Marketing task: to estimate the size of the potential market and create goods and services that can satisfy demand.

4. Falling demand. Sooner or later, any company will face a drop in demand for one or more of its products.

Marketing challenge: Reverse the trend of falling demand through a creative rethinking of the approach to product supply.

5. Irregular demand. For many companies, sales fluctuate on a seasonal, daily, and even hourly basis, which causes problems of underloading and overloading. For example, on weekdays there are few visitors to museums, but on weekends the halls are crowded.

Marketing task: to find ways to smooth out fluctuations in the distribution of demand over time using flexible prices and incentive measures.

6. Full demand. They speak of full demand when the organization is satisfied with its trade turnover.

Marketing task: to maintain the existing level of demand, despite changing consumer preferences and competition, by caring for the quality of goods and services.

7. Excessive demand. A number of organizations have higher levels of demand than they can or want to meet.

The task of marketing (demarketing): to find ways to temporarily or permanently reduce demand by raising prices, weakening incentive efforts and reducing service. The goal is not to eliminate, but to reduce demand.

8. Irrational demand. Countering the demand for products that are harmful to health takes effort. Campaigns are carried out against the distribution of cigarettes, alcoholic beverages, drugs, weapons, and against the creation of large families.

The goal of marketing is to convince hobbyists to give up their habits by disseminating discouraging information, sharply raising prices, and limiting product availability.

Types of marketing depending on types of demand

1. Conversion Marketing– marketing with negative demand, i.e. when the majority of market segments reject a given product or service.

2. Emerging Marketing– applicable in conditions of emerging demand for goods, i.e. when the process of turning potential demand into actual demand is the main task.

3. Synchromarketing– focused on conditions when demand exceeds production capacity, or vice versa, the volume of production of goods turns out to be greater than market needs.

4. Remarketing– necessary in a situation of declining demand, characteristic of all types of goods and any period of time, depending on the phase of the life cycle (falling demand).

5.Demarketing– a type of marketing aimed at reducing excessive demand for goods and services. Demarketing is used for prestigious, popular, expensive goods and services or during the period of launching production of new models.

6. Adversarial Marketing implemented in the event of irrational demand in order to ensure the well-being of the consumer and society.

7. Test marketing is concerned with selling a product in one or more selected regions and observing actual developments within the proposed marketing plan.

What is demand? This most important characteristic market. In marketing, this is the main object of continuous observation, detailed study and influence on people.
Demand (by definition) is a need presented in the market and constantly supported by money. It is impossible to talk about its solvency, because demand of any kind, by definition, is solvent, and otherwise it is simply a need. This concept can also be defined as the consumer's ability and intention to purchase a specific product in a specific place and at a specific time. Demand patterns vary.

Consumerism is a complex phenomenon that consists of different elements, which have certain social, economic, demographic, and regional characteristics. Such components make it possible to differentiate types of consumer demand by various signs. These steps make it easier to adjust. Today there are the following types of demand:

1. Negative (for goods or services). The market does not accept the product or service. in this case is to study the source of resistance and determine the ability marketing program change negative attitudes to positive ones by modernizing the product and even more actively stimulating buyers.

2. Lack of demand. It happens that consumers are not attracted to a product or are indifferent to it. What to do? How to proceed? It is necessary to find ways to connect the basic properties of the product with natural (everyday) and its interests.

3. Hidden. This is the one that doesn't exist. Many people dream of having a product that does not exist at all. In this case, the task of marketing will be to determine the size of the potential market and create effective goods and services that can satisfy this demand.

4. What other types of demand exist? Let's look further: falling. When saturated with goods, it falls lower and lower. Marketers need to conduct an in-depth analysis of the reasons for its decline, and also find out whether it is possible to again stimulate sales of goods (services) by searching for new markets and modifying goods.

5. Irregular. Depending on the time of year and even the day, sales of goods may fluctuate. It is necessary to look for ways to smooth out such fluctuations and distribute demand over time using flexible prices, various incentive measures and other methods of motivating consumers.

6. Supported. Typically, in such a situation, the company is satisfied with its own trade turnover. Types of demand are characterized by its shortage, and in the case when demand is constantly maintained, this is the most pleasant situation. The task of marketing is to maintain the existing level, despite the constantly changing preferences and tastes of consumers, and growing competition. The product must be of high quality, and company employees constantly evaluate the level of customer satisfaction in order to then analyze the correctness of their own actions.

7. Demand is excessive. In this state of affairs, it is higher than the offer; the company cannot (or does not want) to satisfy it. We need to look for ways to permanently or temporarily reduce such high demand. This can be done by raising prices or reducing service. This company policy is called demarketing.

8. Unwanted. for a product that has proven itself to be harmful to health. In this case, it is necessary to convince consumers of “bad” goods to refuse bad habits; disseminate frightening information, provide statistical data; sharply raise prices and limit the availability of this product.

So we looked at the types of demand in marketing.

Modern marketing is nothing less than one of the main disciplines for professional participants market relations, among whom are employees of the advertising field, retailers, managers of production of branded and new commercial products, marketing researchers and so on. One way or another, they need knowledge about describing the market and its classification into segments; assessing the needs, demands and preferences of consumers within the target market; design and testing of commercial products in order to identify those needed for the market consumer properties: conveying to consumers through price the main idea of the value of a commercial product; selection of skilled intermediaries in order to achieve wide availability of goods; advertising and selling products in such a way that consumers want to buy them.

Types of marketing depending on demand

The nature of demand is an explicit criterion for classifying a marketing system into the following groups:

Developmental.
Conversion.
Synchromarketing.
Remarketing.
Incentive Marketing.
Demarketing.
Counter-marketing.
Supportive marketing.

Examples of each of the presented types of marketing can be considered as you read the materials in this article.

Conversion

To begin with, it would be advisable to study the conversion type of marketing as an independent category in the marketing system. It is important to note that it is used in case of negative or negative demand. The market is in a state of demand negative character when a significant proportion of potential consumers do not like commercial products. Thus, society agrees to costs only in order to avoid acquiring it. A striking example in this case, it may be low-quality commercial products or the services of an unscrupulous dentist). Among the reasons negative demand in marketing The following points stand out:

Harmfulness of commercial products to human health.
Commodity products going out of fashion.
The presence of unpleasant sensations in case of consumption of a commercial product.
Negative image characteristic of a company producing commercial products.

The main task of marketing in this case is to analyze the situation and answer the question: for what reasons the market cannot overcome hostility towards a product and whether the development of a new marketing plan or program is capable of changing the negative attitude of the market, for example, by improving the product, reducing prices, more active promotion and advertising?

Stimulating

Among those that are relevant today, the stimulating option plays an important role. It is important to note that it is used subject to the absolute absence of demand from consumers. Under such circumstances, the latter may not show interest in commercial products or feel indifference to them. Among the reasons for the lack of demand, it would be advisable to highlight the following provisions:

Lack of information about the product.
Novelty of commercial products.
Complete mismatch of the sales market.
Loss of value of a marketable product.

The task incentive marketing in this case, it is to identify methods for linking the benefits inherent in commercial products with the natural needs and interests of a person. It is important to note that the main tools of the type of marketing under consideration here are the following elements: a fairly sharp reduction in current prices, strengthening of the advertising campaign and other methods of promoting the product.

Remarketing and developmental marketing

When analyzing types of marketing depending on demand It’s impossible not to mention remarketing. It is used in case of declining demand for a product. The reasons for this serious situation are the following:

Decrease in quality characteristics of commercial products.
The appearance of substitute products on the market.
Obsolescence of commercial products.
Decrease in the prestige of the product.

The demand curve in this case has a negative slope, and the task of marketing is nothing more than an analysis of the reasons for the decline in demand from consumers, assessment of the prospects for its recovery, as well as the development of a set of measures related to the revival of demand.

Developmental marketing is used in the case of latent demand, which occurs when a consumer desire appears that cannot be satisfied through commercial products available on the market. The objective of this type of marketing is to timely identify demand for products, assessment of the size of the future (potential) market, as well as the formation of effective commercial products (services, works) at a new, highest quality level. Such a product must fully satisfy consumer demand, in other words, it must be transformed from imaginary (potential) into actual (real). Among the development marketing tools, it is important to note the following points:

Development of products that meet new consumer desires (needs).
Application of advertising.
Transition to a new level in terms of product quality in order to fully satisfy consumer demand.
Formation of a product image aimed at certain consumer groups.

Synchromarketing and supporting marketing

In addition to the categories presented above, the system types of marketing depending on demand contains synchromarketing. It should be noted that it is used for fluctuating or irregular demand. In this case, sales fluctuate on an hourly, daily and seasonal basis. The main task of synchromarketing is nothing more than finding methods for smoothing out fluctuations in the distribution of demand over time through flexible prices. It is important to add that the most effective tool, which one way or another belongs to the presented category, serves as an alternate transition to different market segments, for example, in accordance with the geographical factor.

As a system of relations between a seller and a buyer regarding the exchange or purchase and sale of goods, it is noted that the main elements of the market mechanism are demand, price and supply. Specific forms of market relations are manifested in the quantitative and qualitative relations of the main elements of the market. Under the influence of these elements, the proportions between the production and consumption of goods are formed. The relationship between supply and demand determines the price of a product on the market.

Acts as the most important element of the market, since it is based on. The absence of needs determines the absence not only of demand, but also of supply, i.e. absence of market relations at all.

Demand is the total sales volume of a product or service that will be purchased at a specific price over a specific period.

Demand is expressed in monetary form and is determined by the consumer who agrees to buy a product or service at a certain price.

An important element of the market taken into account in commercial activities, is the environment in which the process takes place purchase and sale goods. The environment can be: open or closed, competitive or regulated.

Open market environment - These are conditions that ensure the free entry of enterprises into and out of the market. In such an environment, there are practically no obstacles to the organization of commercial activities by enterprises in a certain product market (food, furniture, etc.) or in a certain territory.

Closed market environment is determined by various regulations, which create obstacles to the entry of new enterprises into the market: relevant laws: quota and licensing systems, customs barriers, etc. In almost all developed economies, a mechanism of state protectionism operates in relation to domestic producers and commercial structures.

Competitive market environment presupposes the presence of many small and medium-sized enterprises - sellers and buyers, providing freedom of choice of goods, as well as conditions for free competition. Such a market environment makes it possible to equalize supply and demand and create prices close to the cost of the goods. This environment is most favorable for commercial activities.

Adjustable external environment - this is an environment in which the state creates a rigid planning and distribution system, through which almost all aspects of the enterprise’s activities are regulated. In this environment, only the distribution and exchange function of commercial activity is manifested in the virtual absence of commercial risk and commercial success. Buyers are competitors.

Types of demand by degree of satisfaction

When organizing commercial transactions, take into account different shapes manifestations of demand that influence decisions about the purchase (sale) of a product.

By degree of satisfaction distinguish between: real demand, satisfied and unsatisfied.

Real demand represents the amount of actual sales of goods for a certain period, expressed in physical or value terms. It is determined by the amount of money allocated for the purchase of goods at a certain price level for them.

Satisfied (or realized) demand constitutes the bulk of solvent needs. It is less than the real demand by the amount of unsatisfied demand for the product.

Unmet demand - this is a demand for goods that was not satisfied for any reason: lack of availability, low quality, high price and so on.

Unmet demand can be:

explicit - when the buyer, having certain financial capabilities, cannot purchase the product he needs at various reasons;
hidden - manifests itself when purchasing a product or service that is not a full-fledged substitute for the missing product or service or is not at all related to it in a reciprocal relationship;
deferred - demand deferred for a while for various reasons. For example, the need to accumulate a certain amount of money to purchase specific goods, the mandatory purchase of goods for a specific event, etc.

Based on the frequency of occurrence, we consider:

everyday demand - presented almost daily (food, soap);
periodic - presented at certain intervals (shoes, clothes);
episodic - presented occasionally, “from time to time” (jewelry, delicacies).

In addition, there are:

Emerging demand- this is the demand for new and little-known goods and services, which develops as buyers study the consumer properties of goods, their quality, packaging, etc., as well as under the influence of measures taken by manufacturers and intermediaries to promote these goods.

Potential demand- the potential volume of demand of buyers of a given trading enterprise for all goods, certain groups of goods or for a certain brand of goods. It reflects the ability of consumers to spend a certain amount of money on the purchase of goods and services.

Aggregate demand - it is the actual volume of goods that consumers, businesses, and governments are willing to purchase at a given price level. Aggregate demand can be equated to market capacity.

Types of demand depending on buyer intentions

Depending on the intentions of buyers, there are:

stable demand (conservative, firmly formulated, tough) - premeditated demand is presented for a certain product and does not allow its replacement by any other, even homogeneous, product. Usually installed on everyday goods that are constantly reproduced in the same quantities and assortment (bread, milk, etc.);
alternative (unsustainable, soft, compromise) demand is finally formed in the store in the process of direct familiarization of customers with the product and its features. Alternative demand allows for the interchangeability of goods within a product group or subgroup (confectionery, shoes);
impulse (spontaneous) demand- presented by buyers without prior thinking, arises directly at the point of sale under the influence of advertising, display of goods or seller’s offers. Most often this is a demand for little-known or new products.

At negative demand the majority of buyers in this market reject the product, regardless of its quality (kerosene for lamps, some office supplies, etc.).

At irregular demand sales fluctuate on a seasonal, daily and even hourly basis (demand for umbrellas, medicines, etc.).

Increased demand exceeds the capacity of production and imports to satisfy it.

Types of demand depending on the influence of price

Depending from the influence of price distinguish:

demand is elastic tends to change when the price of a product or the income of the population changes (demand for cars, electrical household goods, etc.);
demand is inelastic tends to remain unchanged regardless of changes in the income of the population and the price of goods (demand for goods that ensure human life - goods in the consumer basket).

These basic forms of demand, individually or collectively, shape market conditions.

- the relationship between supply and demand in the market for goods and services. It is necessary to take into account the socio-psychological aspects of the manifestation of demand and, in accordance with this, make the final decision on the purchase and forms of sales of goods.

It says: all other things being equal, the demand for goods in quantitative terms changes in inverse relationship from the price. The law of demand does not apply in three cases:

in case of rush demand caused by an expected increase in prices;
for some rare and expensive goods that are purchased as an investment;
when demand switches to higher quality and more expensive goods.

Demand formation factors

Demand is formed under the influence of many factors, which can be combined into the following groups:

economic forces, the level of development of production of goods, cash incomes of the population, the level of retail prices and their ratio, the degree of achieved availability of goods;
social factors: social culture of society, professional composition of the population, level of cultural development, etc.;
demographic factors, population size, ratio between urban and rural population, gender and age composition, family size and composition, population migration;
natural and climatic factors, geographical and climatic conditions, traditions, living conditions, etc.;
political factors, unforeseen emergencies.

Non-price factors also influence changes in demand:

change in cash income of the population;
changes in prices for substitute goods;
government economic policy;
changing consumer preferences.

Along with demand, an important element of the market is the supply of goods. For commercial operations, this is the most significant factor that determines the saturation of the market, its structural changes, etc.

Offer is the quantity of a good or service that producers are willing to sell at a certain price during a certain period.

The proposal includes two elements:

the manufacturer’s readiness to alienate this product or service;
a set of conditions under which the seller is willing to sell the product.

Law of supply states: supply, other things being equal, changes in direct proportion to changes in price. Supply may change not only under the influence of price factors, but also due to other reasons:

changes in production costs as a result of technical innovations;
changes in sources of resources, tax policy, cost of production factors;
entry of new manufacturers or importers into the market, increasing supply regardless of prices;
actions of natural and political factors, etc.

The interaction of supply and demand in market conditions forms the price.

Market price - the result of the interaction of supply and demand.

Laws of market pricing:

the price tends to a level at which demand equals supply;
When demand increases and supply remains constant, the price will increase and vice versa.

At the level of coincidence of supply and demand, the price corresponds to the value, i.e. socially necessary expenses.

Price there is a balance of interests of buyers and sellers, i.e. equilibrium of marginal utility (price and demand) and production costs (price and supply).

Price equilibrium in a market economy is designed to perform three functions:

Function exceptions(sanitizing), i.e. Sellers whose prices (costs) for goods exceed the cost of production are forced out of the market.
Function alignment, those. through price, the interests of the seller and buyer are aligned, and the price approaches the value of the product (the market price is a measure of the scarcity of the product).
The regulation function, i.e. through price, the market displaces goods that do not meet the requirements of buyers in terms of costs, quality and other parameters.

Formation of prices that bring them closer to cost is possible in conditions of pure (perfect) market competition, when there are at least 6-8 free sellers on the market, ensuring market saturation and competing with each other. In this situation, the role of the state in regulating prices is negligible. In conditions of monopoly and oligopoly, the state, through the antimonopoly mechanism, influences the setting of monopoly prices. Usually this is either strict price regulation, or indirect - through increased taxes and other enforcement measures.

Demand, supply and price are interdependent and are taken into account as a whole in commercial activities.

The degree of change in demand and supply under the influence of one or another factor characterizes their elasticity. A quantitative measure of the interaction of these elements of market relations is elasticity.

Elasticity - a measure of the response of one quantity to a change in another. It shows by what percentage one variable changes when another changes by 1%.

Ep = Percentage change in quantity demanded (Q) / Percentage change in price (P)

Er - price elasticity coefficient;
Q- the quantity of goods for which there is demand;
R- market price of the product.

Elastic demand - coefficient more than one, i.e. quantity demanded changes by a larger percentage than price or income.

Inelastic demand - the elasticity coefficient is less than one.

Demand with unit elasticity is price and quantity demanded change by the same percentage.

Elasticity is fairly constant over time and can be used to determine the strategy for purchasing and selling products. In addition, using this indicator, the government develops tax policy (the correct application of indirect taxes increases tax revenues to the budget) and methods of state regulation of the market.

To develop a business strategy great importance has such an indicator as the elasticity of supply.

Elasticity of supply shows how the production and supply of a particular product reacts to price changes:

E = Percentage change in S / Percentage change in P

E - supply elasticity coefficient;
S- offer;
R— price.

When determining volumes of purchase (sales) of products important has interchangeability (complementarity) of the product.

Substitute goods (substitutes) - such pairs of goods, an increase in the price of one of which leads to an increase in demand for the other.

Complementary products (sets)- such pairs of goods, an increase in the price of one of which leads to a fall in demand for the other (an increase in prices for cars leads to a fall in demand for fuels and lubricants).

If the elasticity coefficient is greater than one, then the product is interchangeable; if it is less, it is complementary.

When there is an excess amount of money in circulation, the relationship between supply and demand changes. The relationship between the elements of the market mechanism is shown in Fig. 6.1. Thin arrows show direct the relationship between changes in the size of market elements, and thicker lines - reverse addiction.

The laws of supply and demand are related to the amount of money in circulation.

Rice. 6.1. Relationship between market elements

Depending on the type of demand they use various methods studying it:

realized demand is studied using the operational method (the code is read), the balance method;
unsatisfied demand - by registering sheets of unsatisfied demand, registering facts of lack of goods, taking into account the number of days when the goods were unavailable, registering orders, analyzing customer complaints.

Emerging demand is studied at exhibitions, fairs, tastings, and through surveys.

Operation market economy- formation of prices for goods, determination of production volumes and product range - comes from the work of certain mechanisms, the elements of which are supply and demand. The system of relations between buyers and sellers in the market is formed under the interaction of elements of market mechanisms. Exist different types demand, the diversity of which depends on the factors influencing its nature and magnitude. Knowledge of the classifications of buyers' solvent needs helps firm managers in making management decisions.

Elasticity

Demand is general characteristic buyer behavior. The volume of purchases of goods and services directly depends on their cost. And the prices of goods sold and the behavior of buyers due to their fluctuations determine the classification of demand according to its elasticity.

The law of demand is based on the inverse relationship between the price of a good and its need. That is, when the cost of, for example, taxi travel increases, the number of people willing to spend money for this service decreases.

IN economic theory The following types of price elasticity of demand are distinguished:

Sensitive (elastic) consumer behavior. The reaction of buyers to the price reduction is due to a serious increase in demand. In such a situation, the elasticity coefficient is greater than 1.
Inelastic demand is when buyer behavior does not change much when there is a large price shift. The elasticity coefficient (percentage change in sales volume to price) is less than 1.
Unit elasticity is a situation in which there is a uniform change in demand from price. The elasticity coefficient is equivalent to 1.

Limit cases

Types of price elasticity of demand can form extreme cases, which are characterized by absolutely elastic and inelastic conditions for the purchase of goods. In the first situation, there is only one price for the good, which corresponds to a certain volume of its acquisition. The elasticity coefficient tends to infinity, and any price fluctuation (sharp increase or, conversely, decrease) entails refusal of the product or an absolute increase in demand for it, respectively.

When the price elasticity coefficient is zero, then the market position is completely inelastic: the price varies, but buyer behavior remains unchanged.

The demand function looks like the graph below.

Demand functions

Any function is a dependency. The dependence of the volume of demand on price and non-price determinants is called its function. Non-price factors influencing the amount of demand are household incomes, prices for other goods, preferences and tastes of buyers, inflation and others. If we accept the condition that non-price factors will be constant, and the price of the good of interest will be variable, then there is a function of demand on price. It is linear, and any fluctuation in the cost of a good does not affect the demand function, but only changes its volume. That is, the straight line does not change its position on the chart; its shift (to the right or left) may be due to the influence of non-price determinants.

Types of demand functions:

The direct line is the dependence of the volume of demand on the price of the good.
The inverse (law of demand) is the dependence of the price of a product on the quantity that buyers are willing to purchase.
Single-factor functions – the dependence of the consumption of a good on the income of buyers.

Non-functional demand

There are situations when buyer behavior does not correspond to the basic rule: demand increases after the price of a product decreases. Types of non-functional demand:

Veblen's paradox is characterized by the prestigious consumption of goods that are limited in access to the general public by a high price.
Griffin's paradox occurs when prices for low-value goods increase, but consumers' desire to buy them does not decrease due to certain circumstances. The effect was first noticed during the famine years in Ireland: the increase in the cost of potatoes kept the product in the inexpensive category and forced consumers to abandon higher-quality food products in favor of a relatively cheap vegetable.
Irrational demand comes from the spontaneous acquisition of goods.
Speculative need arises in conditions of shortage of goods.

Offer

A market phenomenon that is formed under the influence of demand is called supply. The totality of goods that producers can sell at a given price determines the quantity supplied. The intersection of the demand and supply functions on the graph determines the equilibrium price and volume of the product.

The types of demand and supply are identical in terms of elasticity; the only difference is the emergence in practice of absolutely elastic and inelastic supply. While limiting cases of demand elasticity occur only in theory.

Need from product life cycle

The life phase of a product from the moment of its entry into the market and exit from it differentiates the following types of demand for a product: potential, emerging, developing and mature.

Potential need is the maximum possible buyer behavior that precedes the product's entry into the market. This demand is increased through advertising.

Emerging demand arises for new goods/services and depends on the consumer properties of the good offered by producers.

The developing behavior of buyers to purchase any good orients the manufacturer towards the approval of a new product on the market.

The formed buyer behavior corresponds to the maturity stage of the product life cycle.

Types of market demand

The sales volume of a particular brand of product in a particular market over a specified period is called market demand.

Types of demand that characterize the situation on the market of the analyzed products:

The negative state is expressed by consumers' antagonism towards the product. The manufacturer’s task is to determine the reasons for the negative behavior of customers towards products and change the situation by adjusting the price or packaging.
Consumers' disinterest in the good being sold or insufficient information about it can create a lack of demand in the market. The reason may also be an incorrectly chosen place for selling products.
Products already on the market may trigger latent purchase behavior among buyers that is characterized by an inability to satisfy their needs.
Irregular demand has the characteristic of constantly changing over a specific period of time.
An excessive need for a good appears when buyers have a desire to purchase a product, but there are no offers on the market from manufacturers. This state contributes to the emergence of new products and firms. The period of excessive desire to buy a product is short-term.
Customers' desires to purchase products that are harmful to health form an irrational need.

Knowledge of market demand is necessary for selecting the target segment and marketing products.

Classification by degree of satisfaction

Real demand is measured by the actual volume of products sold in monetary or quantitative terms. Consists of satisfied and unsatisfied demand.