DeMarketing

Demarketing

What is De marketing?

By definition, demarketing is an attempt made to reduce the demand of products in the market. Several practices are followed to reduce the demand of product such as raising prices, introducing new products or eliminating product benefits. In simple terms demarketing is actually reverse of marketing and it is mostly used as a differentiation strategy in marketing field.

Last year when Paramount launched Star trek movie, it downplayed its promotions intentionally. The strategy was success because movie exceeded the expected revenues. So question arises when  can  we adopt Demarketing  and how?

1. The purpose of Demarketing is to create image in the market at the cost of current sales. This is to substantiate position in the market as a different seller with unique products. One example is of Hush puppies manufactured only selective and limited editions of certain designs in late 90’s

2. Demarketing is successful only when buyers are sufficiently unclear about the quality of product. One aspect which is to be considered here is that it is the strategy for late adopters. Late adopters are those people who get influenced by early adopters and this trend is usually seen in the fashion industry.

3. Several firms prefer to spend thriftily on the product launch. This kind of marketing is known as deliberate marketing or marketing which is kept at low intentionally. In recent years, we have seen such kind of marketing adopting by some of the well established companies in the world market. Selective demarketing helps the seller to quit undesirable markets where the potential of generating revenues is less.

4. In conclusion, demarketing works closely with two underlying principles i.e. limited quantity satisfies customer’s needs for uniqueness and scarcity of products may signal high quality.

There are three different types of demarketing:-

1. General Demarketing

2. Ostensible Demarketing

3. Selective Demarketing

In fact, all the companies in one way or other follows demarketing in their operations and thus it is  vital to the overall development of any company as a whole.

Some of the examples of demarketing are:-

1. HPCL selling its own products  using the tagline as "Save Oil, Save India" is an example of demarketing.

2. Tata adopted demarketing for Nano by not doing extensive marketing on its launch. 

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