What is market demand

Impact on consumers and the formation of needs for a product or service in the market is one of the key objectives of marketing. Under the need refers to the need to consume goods and services in specific market conditions.

Concept of market need

Demand is one of the key market indicators; it denotes a need, which is supported by the real purchasing power of the population. Demand for products arises due to the formed needs of customers. After all, each person under the influence of certain factors is forced to acquire something.

According to D. Trout’s book “22 Immutable Laws of Marketing”, marketing is not a battle of products, but a battle of perceptions.

The most popular in marketing is Maslow's theory, according to which the following levels of needs are distinguished, which motivate a person to act:

- physiological needs of consumers (basic);

- needs for comfort;

- social needs;

- needs for self-esteem;

- the need for self-realization and self-expression.

Each product (or service) that is sold on the market is aimed at satisfying certain needs and has value (usefulness) for customers. In marketing, the concepts of aggregate and marginal utility are distinguished. Marginal utility expresses the degree of customer satisfaction that occurs after the consumption of all goods.

In each market, the law of diminishing marginal utility is implemented. Its essence lies in the fact that each subsequent unit of goods brings the consumer less satisfaction than the previous one.