Derived Demand: defined by the Sticky-Marketing.com monthly magazine |
|
Derived Demand is a demand that is produced as a by-product of demand for another item or service. It can be argued that all demands are derived by some generic want or need but for the purposes of marketing derived demands are usually understood to be demands away from consumer markets into the realms of the supply chain behind them. Thus increased standards of living in China and demand for white goods, cars and the suchlike may drive a global demand for steel. The demand for steel therefore would be derived from the increased demand for white goods and cars in China.
See also accelerator principle, demand 27/10/2004 Use your browser back button or
click here to visit the Sales & Marketing Glossary of Terms
| 
Home