smoothing (verb, smooth-ing, \ ˈsmuːð ɪŋ \) demand (noun, de-mand, \ dɪˈmænd \)
Definition: is a marketing method, which is used when a company’s capacity for production is overstrained. A smoothing demand implies decreasing the customers’ demand for the company’s product by various marketing activities, for instance, by withdrawing the promotional materials (advertisements) from the market. This is a temporary step, which is supposed to remain in action until the company’s production capacity is returned to its normal state. However, a smoothing demand may also include the process of stimulating the demand, when the business’s production capacity is in an underutilized state. Therefore, smoothing demand may refer to both: decreasing the demand during the very active, peak business seasons and driving up the demand when the period is slow and inactive.
In a Sentence:
- When it comes to smoothing demand, trying to increase the production capacity is more expensive than actually managing the demand.
- One of the steps of smoothing demand that we can take is scheduling the customers’ arrival and using a system of advanced reservations.
- During a slower period, we can offer the discounts as a part of the smoothing demand.
Synonyms and related words: marketing management, marketing method, derived demand, demand risk, smoothing, demand inflation, demand density