Demand Shaping

It is influencing the demand of a product to achieve a desired goal. If the demand of a product is expected to be greater than supply, the supplier/customer may shape (more appropriately re-shape) the demand by increasing its price and/or by cutting down the promotion. It may also try to drive down its demand by promoting substitutes. If, on the other hand, the demand is expected to be less than supply, supplier/customer may shape the demand by lowering its price and/or by promoting it more heavily.