Skip to content
 

3 Forms of Consumer Demand and their Value Implications pt 1

3 Forms of Consumer Demand

Part 1 of 3

Part 2 of 3

Part 3 of 3

(Editor’s Note: This snippet of content was pulled from our FREE 50 page business eGuide: How to Properly Vet a Value Proposition.  Watch the video promo for it, and then download the pdf version by clicking on the title.  Share the guide with colleagues, friends and others.)

There are three forms of consumer demand that pertain to value creation.  They are salient, incipient and latent demand.  Taken together, they bring us back to the notion of finding a need and filling it – and where necessary, doing it better than any competitor can.  At the same time, each has its own separate marketing strategy ramifications.

It’s worth noting that the last two in particular can affect the product lifecycle for an already established product or service in the market.  Sometimes they help to extend the lifecycle; sometimes they pose a threat to its continued existence; and sometimes it can go either way.

Starting with salient demand in Part 1 of this 3 part series, let’s take a closer look at the influence of each on value creation.

Salient Demand

Salient demand refers to serving current needs and motives in a presently active market.  The needs and motives are visible for everyone to see and understand.  Fast food is an example: the market is currently being served, and it has an active and ongoing demand.  Other examples include the demand for lawyers, accountants, garbage disposal services, heating/air conditioning products/services, automobiles, hotels and virtually anything else that is present and active.

The challenge of value creation with salient demand stems from its present and active state.  This typically translates into a market already filled with providers, sometimes to the point of being saturated by too many similar products and services.  Though there are exceptions, it characteristically involves products that either have reached the maturity stage of the product lifecycle or are on the brink of passing into it.  For this reason, it’s not unusual to find high barriers to market entry, and high levels of competition once entry is made.

Survival in this environment rests with aggressively forging a strong brand identity or presence.  This might be accomplished through the use of value-added benefits, strategic product positioning (differentiation), a particularly good location or a market niche concentration.  Let’s look at a few illustrative examples:

  • Burger King has tried several value-added propositions over time, including “Flame broiled,” “Have it your way,” and “It takes two hands to hold a Whopper.”
  • Wendy’s started with “Old Fashioned Hamburgers,” then switched to a “Where’s the beef?” campaign, and presently uses “never frozen fresh 100% North American beef.”
  • Meanwhile, a small family-owned fast food restaurant in Phoenix, Arizona – one that could hardly hope to compete with yet another type of hamburger – instead found success by carving out a market niche for itself after blending Chinese and Mexican food preparation into distinctly unique menu items.  (What really makes it work, however, is the leveraging of a key physiological trait that is well-known in the restaurant industry as cravability.  The product benefit rests with the psychological gratification that accompanies the act of satisfying a craving.)

Each of these examples reflects the challenge of finding the right mix of product/service attributes for positioning it well enough to gain a competitive edge in a highly competitive atmosphere.  As we’ll see in parts 2 and 3 of this series, this quest is somewhat unique to salient demand.  It requires a talent for making the enterprise stand apart in an otherwise crowded space.

In part 2, we’ll look at incipient demand – how it differs from salient and latent demand; and the ramifications that come with either actively trying to cultivate it, possibly defend against it, or necessarily confront the inescapable reality of being displaced by it.

Twitter: http://twitter.com/KenRudich
LinkedIn: LinkedIn: http://www.linkedin.com/in/KenRudich
Email: ken@marketing-strategy-management.com

14 Comments

  1. funda gafas oakley says:

    Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Basically Excellent. I am also a specialist in this topic so I can understand your effort.

  2. Adrianna says:

    If you wish for to grow your knowledge only keep visiting this website and be updated with the most recent news
    posted here.

  3. Thanks for your share, very good understanding. Your blog is good! I am pleased by the info that you have on this blog. It shows how well you comprehend this subject. Added this page, will come back for more. You, my friend, ARE INSANE! so thank you
    nike free flyknit 5.0 http://www.dezwartehond.nl/5166-110.html

  4. Burton Haynes says:

    I just want to mention I’m new to weblog and actually loved your web page. Probably I’m planning to bookmark your site . You actually have exceptional posts. Kudos for sharing with us your blog.

  5. Nathan Whiteside says:

    I’d personally favor Google. Both FB and Google would benefit from it, but we would likely benefit more from Google taking it over. In the case of Google+ it is just a matter of time. Facebook was lucky it didn’t genuinely should compete with something as “good” as facebook, the competition was just lacking a lot of features in addition to a global approach.Google+ is outstanding to Facebook, but it surely has a bigger challenge to acquire popular.Just examine VHS and Betamax. Betamax was better but lost due to bad marketing/licensing.Danny recently posted..Black & Decker NPP2018 18-Volt Cordless Electric Pole Chain Saw

  6. seo australia says:

    I am not sure where you’re getting your info, but good topic. I needs to spend some time learning much more or understanding more. Thanks for fantastic info I was looking for this info for my mission.

  7. バーバリー says:

    Awesome,thanks i’ll share it among my friends.

  8. AK Elite says:

    My spouse and I stumbled over here coming from a different
    website and thought I may as well check things out.

    I like what I see so now i’m following you. Look forward to looking into your web page yet again.

  9. I think this is one of the most significant information for me.

    And i am glad reading your article. But should remark on some general things, The web
    site style is great, the articles is really
    nice : D. Good job, cheers

  10. Online Job Killer says:

    Thanks for sharing your thoughts about branding.
    Regards

  11. Commission Supremacy says:

    Excellent post. I was checking constantly this blog and I am impressed!
    Very useful information specifically the last part :) I care for
    such information a lot. I was looking for this certain information for a
    very long time. Thank you and good luck.

  12. psoriaticarthritishq.com says:

    Hi I am so thrilled I found your weblog, I really found you by mistake, while
    I was browsing on Google for something else, Nonetheless I am here now and would just like to say thanks for a
    marvelous post and a all round entertaining blog (I also
    love the theme/design), I don’t have time to read it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read much more, Please do keep up the fantastic work.

  13. fat loss 4 idiots says:

    Thanks very nice blog!

  14. Ale says:

    What a joy to find soemone else who thinks this way.

Leave a Reply