DEMARKETING

KISHORE .T.S
MSNIMT

Definition of demarketing
Kotler and Levy define demarketing as discouraging
customers in general or a certain class of customers in
particular on either a temporary or a permanent basis.

Meaning
Demarketing basically refers to when a company
discourage its customers to buy the product produced by
them.
Its because of shortage of supply
want to promote their other products and the company is not
having so much profit with the sale of that product.

Examples
This happened in case of Tata Nano, when the demand for Tata

Nano increased from its supply level then Tata started promoting
their other products and completely stopped the promotion of Tata
Nano.
When Maruti A-star was launched, for the promotion of A-star

Maruti started discoursing its customers to buy Maruti Xtilo.

4ps of demarketing
Increase price.

Restrict availability.

Cut down on
advertising.

Different forms of demarketing

Demarketing can be three forms:

1. General Demarketing
2. Selective Demarketing
3. Ostensible Demarketing

1. General Demarketing
To reduce demand in general. General demarketing is used when a
firm (or government) wants to demarket to everyone. General
demarketing is required when a company wants to shrink the level
of total demand.
Example: the government demarkets cigarettes and alcohol
(discouraged goods) and illegal drugs (a banned good)

2. Selective Demarketing
Here a target set of consumers are discouraged from purchases. It is to
protect the core/loyal customers.
Example: A landlord might demarket its property to a group of students if
he prefers family for rent purposes.

3. Ostensible Demarketing
Occurs when a seller creates an artificial or perceived
shortage to whet consumer appetites.
Limited distribution of goods may induce consumers to
stockpile these hard-to-get items.
Example : BMW announced in 1997 that it was having to
restrict supply to the UK market

Demarketing strategies
Can be categorized as

1.

Passive de-marketing

2.

Active de-marketing

3.

Complete de-marketing

1. Passive de-marketing

Here only consumers unaffected

bydemarketingprogram continue to use the
product.
Example: Warning on cigarettes and
highlighting harmful of cigarettes on health
comes under purview of passivedemarketing

2. Active de-marketing
It uses the marketing mix to decrease demand
in several or every market segment.
Example: Regulating prices to reduce
consumption of products

3. Complete de-marketing

It ceases sales of the product.

Example: Recall of products from market in case
of unsuitability to the market.