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potential demand

Enterprise terminology
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Potential demand means that consumers in the market have a strong desire for a certain commodity, but because there is no realistic or ideal commodity in the market, they can only wait to buy; Or the market already has ideal goods, but because consumers' real purchasing power is insufficient, they can only buy them later. In view of this potential demand in the market, the task of enterprise marketing is to strive to develop new products, try to produce and provide products and services that can meet the potential demand of consumers, or provide consumers with various consumer credit and credit services, so as to transform the potential demand in the market into real demand. [1]
Chinese name
potential demand
Foreign name
Latent Demand
Type
Insufficient purchasing power
Features
subjectivity

concept

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potential demand It refers to the demand that consumers have a clear sense of desire, but have not yet shown clearly due to various reasons. Once conditions are ripe, potential demand will be transformed into apparent demand, providing endless business opportunities for enterprises. Potential demand is very important Consumer buying behavior Most of the demand is caused by the potential demand of consumers. Therefore, if enterprises want to win in the fierce market competition, they should not only focus on emerging demand, but also capture the potential demand of the market, and then take effective development measures.
The market should be further subdivided and repositioned. For example, people's demand for harmless cigarettes, safe residential areas and fuel efficient cars.
It should also be that the company has found some needs of customers in marketing, but there is no similar product in the market to meet the needs of customers

type

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First, Potential demand with insufficient purchasing power This means that a certain commodity already exists in the market, and consumers have Desire to buy However, the purchase is temporarily restricted and cannot be realized, which makes purchasing behavior Is in a potential state. This type of goods are mostly high-end durable consumer goods , such as houses, cars, etc.
Second, Potential demand of marketable goods shortage This means that because the existing goods on the market do not meet the needs of consumers, consumers are in a state of waiting for purchase, and once there are marketable goods, the purchase behavior will occur.
Third, Potential demand for unfamiliar products This means that consumer demand is in a latent state because consumers do not know about a certain commodity, or even do not know it at all.
Fourth, Potential demand of market competition tendency This means that because there are many manufacturers, the market competition for similar goods is fierce, and consumers have strong selectivity, the demand for a certain enterprise's products is latent before selection.

Institutional characteristics

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(1) subjectivity The essence of potential demand is a kind of psychological activity, which is an unbalanced state between consumers and the surrounding environment caused by some physiological or psychological factors, and exists in the subconscious.
(2) Coexistence Because it is a psychological activity, the form of potential demand does not have the strict direction of manifesting demand. It may be a potential demand at the physiological level, or a potential demand at the self realization level, or more of both or more. In a certain period, some potential demand plays a major role.
(3) Transformability The realization process of potential demand is: potential demand leads to Buying motivation ——Purchase behavior - demand satisfaction - new potential demand. This transformation occurs between potential demand and apparent demand.

Development significance

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(1) Once large enterprises know the potential demand of consumers through market research, they can grasp the market leadership position with abundant financial resources and advanced technology on the premise of fully grasping the market dynamics. The car industry in Japan stands out. After the 1970s, the Japanese car industry realized that energy saving, light weight, household use and low cost are the development trend of future cars, and quickly developed a new generation of energy-saving cars. It lowered the price by improving labor productivity. After it was put on the market, it became very popular and replaced the leading position of the American car industry in the world.
(2) small and medium-sized enterprises By meeting the potential needs of consumers, we can achieve the goal of survival and growth. Appearing demand is the goal of competition among major manufacturers in the market. If small and medium-sized enterprises join the competition, they are likely to be in trouble due to small capital and scale. However, potential demand is different. It can only be understood through investigation, analysis and judgment. It depends on the experience and intuition of decision makers, and often exists in areas that most enterprises do not attach importance to. After development, it can make countless profits.
(3) Enterprises meet the potential needs of consumers, emotionally close to consumers, and create“ Self effect ”It is easy to create loyal consumers, so as to lay a good foundation for future marketing activities.