Declining demand refers to a good’s decreasing sales compared to its previous sales numbers. In other words, a product’s declining sales figures are indicative of its declining demand. This decline in demand could be due to the introduction of a new and more innovative competitor offering, or the product deteriorating in quality over time. The slow and gradual decline in the sales of Blackberry and Nokia phones after the introduction of Android and iOS is a real-world example of declining demand.
Pushing Up the Demand
A declining demand scenario means the product still has a market but it is not substantial like before. Therefore, a company that is at the receiving end of plummeting sales should come up with a strategy to revive the slowly dying product or company and get it back on track like before.
The marketing team would have to look for decline causes and reassess the product’s nature, its features, target market and marketing campaign. In case no marketing or promotion effort can turn fortunes for the product, the company should consider scrapping it altogether.