In the
commercial advertising world many companies always try to increase its demands
for products and services . The concept of demarketing may be considered as
‘reverse marketing’ which means to promote product or services to increase the
demand which are short in supply through different mode of Advertising.
According to
Philip Kotler and Sidney Levi defined Demarketing as ”aspect of marketing that
deals with discouraging customers in general r a certain class of customers in
particular n a temporary or permanent basis”. Demarketing is strategic
marketing approach of not serving certain customer segments. It is a concept to
reduce the demand of products and services by increasing the price for certain
reasons:
- · Marketing companies cannot able to meet all the demands of customers
- · For the sake of the society
- · Protecting the goodwill by brand and customer mix.
A recent
survey says a certain percentage of people wants to achieve the standard of
living of the developed countries and exploit the natural resources so
intensely that future generation cannot the accept the low standard living. So
to sustain its business operations , companies have to develop their basic
production and marketing strategies. To sustain companies must clearly define
the criteria in mew product development programs and services to balance the
growth and sustainability.
Demarketing is important as Marketing
- · Consumers feel the reason that companies can deliver at right time prefers those.
- · So companies can stay away from whimsical customers.
- You don’t have to change your product or service mix for the customers.
- · Ensures core customers to stay away from wrong customers.
Demarketing Stragtegy
- · Managing existing shortage
- · Avoiding potential shortage
- · Reduce exploiting among customers
- · Minimization of natural resources
Forms of Demarketing
·
General Demarketing
When a public or private firm reduce the demand of its products or
services to maintain its supply. Ex- Govt wants to demarket the vice products(
cigarettes and alcohol and illegal
drugs).
·
Selective Demarketing
Targeted customers are discouraged from buying to take care of core
customers. Ex- A landlord might demarket the college students or working
professionals to increase the demand for family for rent purpose.
·
Ostensible Demarketing
Selling companies creates artificial or perceive shortages for whimsical
customers. Ex- BMW announced due to lack of supply it has to restrict its
demand in UK Car Segment.
4Ps of Demarketing
Bihar Govt
discourages its citizens from prohibiting alcoholic beverages. Its initiative
to reduce/eliminate alcohol from Bihar.
·
Product
– govt may banned the product so that customers cannot buy. It might also low
the production volume so that supply can be hampered.
·
Price
– Increase the price of these discouraged drinks.
·
Place
– Govt may stop the retail outputs and logistics of these products so that
distribution stops.
·
Promotion
– Govt. can run awareness capmpaigns and programs of these discouraged products
which are harmful for their health.
So
Demarketing poses threat in individual freedom and product &services. In
Demarketing process consumer consumes much of products and services. To for
effective use of demarketing concept consumption of products or services should
be reduced.
References
- 1. “Welcome to the Age of Demarketing” – Philip Kotler
- 2. Demarketing – Tool for Social good
- 3. demarketing, by- Kishore.T.S,
- 4. Demarketing – Six Reasons For Turning Away Customers
- 5. Demarketing: The Next Wave In Marketing
