1. The use of monetary and fiscal policy to influence the level of aggregate real effective demand in the economy. Possible targets for demand management are: a high and stable level of activity and employment; a somewhat lower level designed to cure inflation; or improving the balance of payments. The use of demand management was based on the ideas of Keynesian economics. It was central to macroeconomic policy during the 1960s and 1970s but then faded from use until the financial crisis of 2008 required the boosting of demand to avoid prolonged recession.

2. The activities of a firm directed towards the forecasting and management of the demand for its products and services. Demand management is part of the general process of business planning.