Demarketing

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