Marketing management generally is related to creation of demand. However, in certain situations, the manager has to restrict the demand. The job of Marketing Managers, in these situations would be to find ways to reduce the demand temporarily by reducing the expenditure on promotion or increasing the prices. This concept of demand being more than what the company can or want to handle is called _____
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Overfull Demand
Option (1) Overfull Demand — Correct. Overfull demand is demand greater than what the company can or wants to handle. The marketer’s job then is to reduce demand for a while, for example by spending less on promotion or raising the price. India faced this in many consumer goods before liberalisation in the early 1990s.
Option (2) Irregular Demand — Incorrect. Irregular demand rises and falls at different times of the year. The marketer tries to smooth it out, not to cut it down.
Option (3) Seasonal Demand — Incorrect. Seasonal demand, as for fans or woollen clothes, is an example of irregular demand. It changes with the season; it is not more than the company can handle.
Option (4) Negative Demand — Incorrect. Negative demand means customers dislike the product and avoid it. The marketer then has to create a liking for it, the opposite of restricting demand.
NCERT (2026-27 Edition): “Marketing Management … Marketing management generally is related to creation of demand. However, in certain situations, the manager has to restrict the demand. For example, if there is a situation of ‘overfull demand’, i.e., the demand being more than what the company can or want to handle, (like what the situation in our country was before the adoption of policies of liberalisation and globalisation, in early 90’s, in most consumer products be it automobiles or electronics goods or other durable products. The job of marketing mangers, in these situations would be to find ways to reduce the demand temporarily by say reducing the expenditure on promotion or increasing the prices. Similarly, if the demand is ‘irregular’, such as in case of seasonal products, (say fans, woollen clothes) the marketer’s job is to change the time pattern of demand through such methods as providing short-term incentives, to the buyers. …” |