DEMARKETING

FACULTY : DR. BIRANCHI NARAYAN SWARMARKETING MANAGEMENTBY: ARUNANSU KUMARDE-MARKETINGWHAT IS IT..??Marketers attempt to reduce the demand for a product when the demand for the product is greater than the manufacturer's ability to produce it.

The concept came to fore back in 1971 when Kotler and Levy defined it as discouraging customers ingeneral or a certain class of customers in particular on either a temporary or apermanent basis.How is it done..??HIGH PRICES

REDUCING ADVERTISING AND PROMOTION ACTIVITIESELIMINATING PRODUCT BENEFITS

De-marketing doesnt aim to destroy the demandbut only to lower it to make it level with the ability of the producer to produce the product.

WHY IS IT DONE..??The firm do not have the ability or capacity to produce in-tune with the demand.

The firm doesnt want to supply in certain region due to high cost of distribution or promotion i.e. pin-pointing upon the most profitable consumers and staying away from the costly consumers.THERE ARE 3 DIFFERENT FORMS OF DEMARKETING GENERAL DEMARKETING

SELECTIVE DEMARKETING

OSTENSIBLE DEMARKETING (PERCEIVED) GENERAL DE-MARKETINGThis form of de-marketing is followedwhen the company plans to reduce theamount of total demand.SELECTIVE DE-MARKETINGThis form of de-marketing is followedwhen the company wants to discouragethe demands from specific group ofcustomers.OSTENSIBLE DE-MARKETINGThis form of de-marketing is employed when a firm wants to create shortage of the product to increase consumer appetite. Much of this can be found with many products which command higher demand due to the perceived or actual scarcity of the product. Many gulf nations are blamed of doing the same with their oil reserves to increase oil prices.exampleSA vivid example is available from California communities that have faced a chronic water shortage. Local governments have had to adopt a de-marketing strategy to reduce industries and consumers water consumption. We need to combat over-fishing, energy waste, overeating, andobesity, amongother issues.Electricity companies today are trying to educate people to turn off their lights andeven unplug their computers when not in use to save electricity, even though their revenue will fall.

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