Certified Supply Chain Professional (CSCP) Practice Exam

What does demand shaping involve?

1. Setting production policies

2. Improving supplier negotiations

3. Using the four Ps to influence demand

4. Focusing on after-sales services

The correct answer is: Using the four Ps to influence demand

Demand shaping primarily involves the use of the four Ps—product, price, placement, and promotion—to actively influence customer demand. This strategic approach allows organizations to align their offerings with market needs and preferences, ultimately guiding customers toward desired purchasing behaviors. By effectively managing these elements, companies can adjust the way their products or services are perceived and positioned in the marketplace, thereby impacting overall demand. Utilizing the four Ps enables businesses to leverage marketing strategies to create demand, manage inventory levels, and optimize sales performance. For example, a company might lower prices to boost demand during a slow sales period or enhance product features to attract a different customer segment. This strategic manipulation of demand through marketing tactics underscores the significance of demand shaping in supply chain management.