The 8 States of Demand: Influence Your Demand Generation Marketing Strategy to Drive Smarter Growth

Most marketing advice skips the hardest part. 

It assumes people already care about your product. It rarely mentions those instances when you build a great campaign, polish incredible conversion-optimized messaging, eagerly hit launch, and… nothing.

No clicks. No traction. No results.

It’s not your effort. It’s not your strategy. It’s not your offer.

It’s demand. Not whether demand exists, but what kind of demand you’re actually dealing with.

This isn’t a new idea. It was outlined decades ago by Philip Kotler, who is often referred to as the father of modern marketing.

In 1973, he introduced a framework that remains relevant today.

Kotler's 8 States of Demand is based on the idea that marketing isn’t just about answering demand—it’s about managing it. He argues that the role of marketing is to influence the level, timing, and type of demand to match business goals.

That might sound theoretical, but it’s not. Especially now.

In a world of automation, AI, and performance dashboards, it’s easy to forget there’s a human on the other side of every click. A person with their own emotions, hesitations, and internal logic shaping their behaviour.

And that behaviour is driven by demand—its presence, absence, and everything in between.

That’s what makes Kotler’s framework so powerful today. It gives you a lens to understand where your audience is and how to move them forward. With that, you can shape your messaging, positioning, and campaigns to meet people exactly where they are.

These are the 8 States of Demand with examples, takeaways, and ideas to connect with each state.

1. Negative Demand: When the Market Resists You

Negative demand is more than just disinterest—it’s active resistance.

In this state, consumers not only avoid your product or service, they may resent or oppose it. It’s not that they don’t know about your offering; it’s that they’ve formed a negative perception of it.

Modern Example:

Consider airline baggage fees or payday loans. These services are used out of necessity, not desire. The underlying sentiment is clear: “I’ll use it because I have to, not because I want to.”

Marketing Takeaway:

This state of demand signals a brand trust or positioning issue, not necessarily a product flaw. Misaligned messaging, poor delivery, or unmet expectations may be driving resistance.

Demand Gen Insight:

If your brand is experiencing this state of demand, the best way to move forward is to start listening. 

Use social listening, surveys, and feedback loops to uncover:

• What objections are surfacing?
• What stories are shaping public opinion?
• What’s causing frustration or distrust?

Rebuild trust through transparency and reframe your value with empathy. Effective demand gen here means shifting perception, one honest message at a time.

Bottom Line: 

Negative demand isn’t fixed with more promotion or typical lead generation. It will need to be gradually improved with clarity, trust, and strategic repositioning.

2. No Demand: When Awareness Is Absent

No demand means your audience doesn’t see a problem or doesn’t know your solution exists.

Modern Example:

Before EV cars went mainstream, consumers weren’t actively searching for alternatives to gas-powered cars.

Marketing Takeaway:

This is a classic awareness and education challenge. This stage is especially common in B2B demand generation, where complex solutions often require a deeper level of education and context.

Your audience isn’t rejecting your product, they simply don’t know it exists, or don’t yet recognize the problem it solves. Successful demand gen in this stage doesn’t come from pushing harder—it comes from helping your audience see what they haven’t yet realized.

Demand Gen Insight:

Lead with content that reveals hidden pain points. Use educational blogs, webinars, and explainer videos to answer:

• What pain do people tolerate by default?
• What assumptions block awareness?
• How can we show up earlier in the buyer journey?

Help your audience see a new possibility, and guide them toward your solution with a long-term content strategy in order to develop and create high-quality leads.

Bottom Line: 

When demand is absent, demand gen campaigns must educate, empathize, and inspire curiosity with potential customers before a purchase is even considered.

3. Latent Demand: When the Need Exists, But the Solution Doesn’t

Latent demand exists when a clear need is felt, but no obvious solution is available—or consumers don’t know to look for one.

Modern Example:

Noise-canceling headphones, ride-sharing apps, and standing desks are great examples. They are innovations people adopted instantly once they appeared.

Marketing Takeaway:

This is a category creation opportunity. Instead of responding to an existing demand, you're activating it.

This is where new demand gen campaigns shine. Focus on creating awareness with visionary messaging, bold storytelling, and education that reframes how your audience thinks about the problem.

Demand Gen Insight:

Lead with visionary content that reframes reality. To unlock latent demand:

• Illuminate unspoken pain points.
• Share stories that show life with and without your solution.
• Build early credibility through thought leadership and social proof.

You’re helping people recognize a need they haven’t yet named.

Bottom Line: 

You’re not just launching a product—you’re redefining what’s possible. Wake the market up to a better way.

4. Faltering Demand: When Growth Slows Down

Faltering demand happens when a once-successful product loses traction. Early adopters are in, but the broader momentum fades.

Modern Example:

Fads like fidget spinners or Pokémon GO lost steam quickly. Even legacy SaaS tools can falter if they stop evolving.

Marketing Takeaway:

Faltering demand is often a sign that your value proposition no longer aligns with shifting expectations—from both your existing customers and your potential customers.

What once resonated may now feel outdated, overpromised, or irrelevant in a changing market landscape. So it's time to make a shift in your demand generation messaging.

Demand Gen Insight:

Focus on reactivation and retention. Ask yourself:

• Are we still solving a relevant problem?
• Is our messaging dated?
• Are we evolving with our audience?

Then take action:

• Relaunch with refreshed positioning.
• Use intent data to re-engage lapsed customers.
• Gather feedback to inform updates that reignite interest.

Bottom Line: 

Faltering demand is feedback. With smart lifecycle marketing and repositioning, it can spark your next growth phase.

5. Irregular Demand: When Demand Is Seasonal or Sporadic

Irregular demand comes in predictable waves, shaped by seasonality, market cycles, or cultural trends.

Modern Example:

Tax software peaks during filing season, then fades. Retail, tourism, and fitness often follow similar rhythms.

Marketing Takeaway:

Spikes aren’t the problem—inactivity in between is. Without off-season engagement, you risk being forgotten.

Don't ignore your marketing channels in the off season!

Demand Gen Insight:

The goal is consistency around peak periods. Strategic off-season engagement not only smooths out revenue but also increases customer lifetime value by keeping your brand relevant year-round.

To manage the dips:

• Address adjacent needs with new offerings or content.
• Launch off-season nurture campaigns.
• Keep retargeting and light-touch ads always on.
• Build community through webinars or loyalty programs.
• Use peak-season insights to plan smarter for the slow months.

Bottom Line: 

You don’t need to eliminate seasonality. Just soften its impact. Stay relevant year-round to turn spikes into sustained growth.

6. Full Demand: When Supply and Demand Are in Balance

Full demand is the sweet spot. It's when your supply meets market demand exactly, without excess or shortfall.

Modern Example:

SaaS leaders like Zoom or Slack at their peak are great examples with high adoption, consistent renewals, and ongoing value delivery.

Marketing Takeaway:

Full demand signals strong product-market fit, but it’s not a finish line.

To sustain it, you need to double down on your demand generation marketing efforts. That means continuously engaging your audience, reinforcing your value proposition, and staying ahead of evolving customer expectations.

Even at peak performance, markets change, competitors adapt, and buyer needs evolve. Brands that maintain full demand are the ones who never stop refining, optimizing, and communicating value—before their customers ask for it.

Demand Gen Insight:

Focus shifts from growth to optimization. Keep demand steady by:

• Nurturing leads with personalized, behavior-driven content.
• Strengthening sales-marketing alignment.
• Investing in enablement to boost retention and lifetime value.
• Monitoring for churn signals and adapting proactively.
• Innovating through features, upsells, and user experience improvements.

Bottom Line:

Full demand is earned every day and demand generation programs make a big impact. Keep evolving or risk falling behind.

7. Overfull Demand: When Supply Can’t Keep Up

Overfull demand occurs when interest exceeds your ability to deliver. It’s exciting, but risky if mismanaged.

Modern Example:

iPhone launches, sneaker drops, or viral product releases that sell out instantly. Think Supreme and other hype-focused brands.

Marketing Takeaway:

Scarcity builds buzz, but transparency and trust must come first. Failing to manage expectations can hurt your brand long-term.

Demand Gen Insight:

Redirect marketing from conversion to expectation management:

• Create waitlists with nurture sequences and early-access perks.
• Reward loyal customers with exclusives.
• Use FOMO ethically, never overpromise.
• Gather feedback to improve delivery and scale.
• Share updates frequently to keep buyers informed and engaged.

Bottom Line: 

High demand is a gift, but only if you manage it well. Turn hype into loyalty, and momentum into long-term growth.

8. Unwholesome Demand: When the Product Causes Harm

Unwholesome demand exists when people want something that’s ultimately harmful—socially, physically, or ethically.

Modern Example:

Cigarettes, gambling, exploitative financial tools, or addictive digital platforms.

Marketing Takeaway:

In these industries, growth must be balanced with responsibility. The risks are high, for the customer and your brand.

Demand Gen Insight:

Values-based marketing and an ethical demand gen strategy is non-negotiable. 

To build trust:

• Be transparent about risks and responsibilities.
• Promote harm reduction and informed decision-making.
• Ensure full regulatory compliance.
• Support social good through programs or partnerships.
• Prioritize credibility over clicks.

Bottom Line: 

Unwholesome demand can’t be ignored. It has to be handled with care. Responsible marketing builds long-term trust in spaces that need it most.

Stop Chasing Demand. Start Shaping It

Kotler’s 8 States of Demand reminds us that effective marketing doesn’t start with messaging.

It begins with understanding demand.

Before you build your next campaign, ask yourself:

• What kind of demand are you working with?
• And how can you meet it with the right strategy, at the right moment?

When your marketing aligns with the state of demand, you’ll have a product or service that connects with a consumer need, achieves market awareness, and moves closer to meeting full market demand.