Published by MBA Skool Team, Last Updated: June 27, 2015
What is Primary Demand Advertising?
When an entire product category is advertised, instead of a particular brand, the method of advertising is known as the primary demand advertising. This is generally done when customers are unknown to a new product or technology. It is also used to advertise a product, whose benefits are not that well-known to the general consumers.
It is generally used in two scenarios: i) either the product being launched is entirely new. ii). the product has already been launched, but is not that well-known. Generally, some business groups come together and advertise the product.
Example: National Egg co-ordination committee’s ‘Sunday hoy a Monday, roj khao ande’ campaign. This campaign was started with an objective to increase the consumption of Eggs in India. Various segments of the customers were targeted.
Some examples are shown below:
A company should use primary demand advertising, only if it meets the following requirements:
a. The company owns a significant market share of the product.
b. If there is a growth, all or most of it will go to the company.
c. If the company is advertising on behalf of a trade association.
Before launching a new product or starting a business unit, a company should conduct a research to know the primary demand of the product. Primary demand refers to the demand of the actual product. Not the demand of a particular brand. When primary demand is ascertained, the company may decide upon the production capacities and schedules, to achieve the desired profits. Primary demand helps us to understand who the buyers are, how do they buy the products, why do they buy the product, how do they buy the product etc. Thus, a company should conduct a thorough research to determine the primary demand of their product, before entering a given market.
Hence, this concludes the definition of Primary Demand Advertising along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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