Question

When demand exceeds what a company can handle, what condition is this referred to as, and what action might managers take?

पर्याय

• Irregular demand; managers increase production to meet all customer needs

• Negative demand; managers eliminate the product from the market

• Seasonal demand; managers offer discounts to boost sales

• Overfull demand; managers may reduce promotion or increase prices to reduce demand temporarily

Answer 1

Overfull demand occurs when demand exceeds the company's production capacity or strategic business goals. In such situations, marketing managers use demand reduction strategies such as decreasing promotional activities or raising prices to temporarily decrease demand to manageable levels. This represents an important aspect of demand management.