Demand may be specific or general. The demand made by certain individual for certain goods or services is called specific demand. The market demand as a whole is called general demand. The Aggregate demand of all customers is market demand.
The aggregate demand for certain goods or services of all brands to satisfy particular type of need is called primary demand. Such demand is common. The aggregate demand for goods or services sold by any industry is primary demand. For example, aggregate demand for noodles of different brands is primary demand. The aggregate demand of all brands of noodles produced and sold by different firms is primary demand of the noodle industry. Increase in aggregate demand means increase in demand for the product of all firms.
Secondary Demand
Secondary demand is very specific. The demand for goods or services produced by only one firm is called secondary demand. Secondary demand is analyze to know how high is pressure of demand for what brand among certain class of products. This analysis is also useful to know why the consumers select only specific brand among various available brands. On the basis of the conclusion drawn from analysis, marketing manager becomes able to take proper marketing decisions on market segmentation, promotional effort, distribution channel etc.
Primary Demand
The aggregate demand for certain goods or services of all brands to satisfy particular type of need is called primary demand. Such demand is common. The aggregate demand for goods or services sold by any industry is primary demand. For example, aggregate demand for noodles of different brands is primary demand. The aggregate demand of all brands of noodles produced and sold by different firms is primary demand of the noodle industry. Increase in aggregate demand means increase in demand for the product of all firms.
So, it is necessary as well as important for each firm to have knowledge about primary demand and analyze it, because the goods to be sold by a firm is a part of aggregate demand. On the other, it is necessary for firms to analyze primary demand to find out who the buyers of the goods are, why and how they buy goods. From such analysis, opportunity can be identified to increase production volume of particular goods or particular class products.
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Secondary Demand
Secondary demand is very specific. The demand for goods or services produced by only one firm is called secondary demand. Secondary demand is analyze to know how high is pressure of demand for what brand among certain class of products. This analysis is also useful to know why the consumers select only specific brand among various available brands. On the basis of the conclusion drawn from analysis, marketing manager becomes able to take proper marketing decisions on market segmentation, promotional effort, distribution channel etc.
In this way primary demand covers aggregate demand for all brands of particular products, while secondary demand covers only specific brand of certain class of product.
