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De Marketing

De Marketing

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Published by imad rehman
Efforts aimed at discouraging (not destroying) the demand for a product which (1) a firm cannot supply in large-enough quantities, or (2) does not want to supply in a certain region where the high costs of distribution or promotion allow only a too little profit margin. Common de-marketing strategies include higher prices, scaled-down advertising, and product
Efforts aimed at discouraging (not destroying) the demand for a product which (1) a firm cannot supply in large-enough quantities, or (2) does not want to supply in a certain region where the high costs of distribution or promotion allow only a too little profit margin. Common de-marketing strategies include higher prices, scaled-down advertising, and product

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Published by: imad rehman on Feb 27, 2011
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12/08/2012

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DE-MARKETING
  BY:-IQRA IMTIYAZRoll no. 22MBA Ist Sem
 
DE- MARKETING
The process of reducing the demand for a product or decreasing consumption is known as
De-marketing
Marketing aimed at limiting market growth; for example, some governments practice de-marketing to conserve natural resources and organizations use a de-marketing approach whenthere is so much demand that that are unable to serve the needs of all potential customersadequately.
Definition
Efforts  aimed  at  discouraging  (not  destroying)  thedemandfor  aproductwhich  (1) afirmcannotsupplyin  large-enoughquantities,  or  (2)  does  notwantto  supply  in  a certainregionwhere  thehighcostsof distributionor promotionallow  only  a  too  littleprofit  margin.Commonde-marketingstrategiesinclude  higher prices,  scaled-downadvertising,  and product  redesign.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. De-marketing strategies involve raising prices,reducing advertising or promotion activities, or eliminating product benefits. De-marketing doesnot aim to destroy the demand but only to lower it to make it level with the ability to produce theproduct.Marketers sometimes practice selective de-marketing, which attempts to lower the demand for aproduct in a particular market, usually where one market is less profitable than other markets for the product. This is often done where the cost to manufacture, advertise, or promote the productis greater in one market than in other markets.Governments in many countries are experimenting with alternative methods for reducing car use,including congestion charges, increased fuel taxation, and improved public transport. This paper raises another possibility. Not only could public transport be marketed as an alternative to theprivate car, but through targeted propaganda, the automobile could be
de-marketed 
as a statussymbol and a convenient accessory of modern life. In contrast with other public informationcampaigns, de-marketing would focus on people's self-image rather than their sense of publicduty.The authors draw on established theory in putting forward alternative themes aimed at particular categories of user and particular categories of journey, and briefly consider the strengths andweaknesses of each approach. Peer group pressure could be an important factor in helping to
 
change attitudes among potential car users at the opinion-forming stage during their life cycle.The agencies best positioned to deliver an effective national campaign are public transportcorporations, local authorities, health organizations, and environmental lobby groups; a co-ordinate approach could bring about a modest contribution towards travel reduction at arelatively low cost. There are various factors through which the demand of a product or a service can be reducedbecause of shortage in supply or to combat over-demand. One of the techniques through whichdemand can be reduced is through de-marketing. InDe-marketing, consumers are discouragedfor the use of a specific product or service like in India, IPCL sells its products and at the same time it promotes  "Save Oil, Save India".De -marketingis a concept which means to discourage the use of some product or good in thetimes of shortages. It is usually practiced by governments when shortage for any good or servicearise in short term. Businessesalso tend to de-market their products in order tocoupwith the shortages  created  in  short  run.There  can  different  reasons  for  the  creation  of  shortage.  It  can  be  the  fact  that  themanufacturers of goods do not have enough resources to produce the goods hence in this casedemand becomes greater than the supply. When this situation arise where demand exceedsavailable supply, prices tend to increase because more and more people will want to buy theproduct  which  is  already  less  than  its  demand.Supply Demand gap can be created due to many reasons. One of the important reason may benon-availability  of raw  materials to  produce  it.  If  raw  materials  are  present,  there  maybe scarcity of qualified human resource which can produce the good so there are different factorsbecause  of  which  de  marketing  is  done  deliberately  by  the  companies.Governments do it in order to discourage the price to rise beyond controllable levels or if thereare more serious social repercussions of the use of that good.De-marketing is a little known concept, whichaimsat dissuading customers from consuming or buying some things either because it is harmful or simply because the demand is more than thesupply.  This  could  be  on  a  temporary  or  permanent  basis.There could be general de-marketing where the company plans to reduce the total supply. Thecompany  may  have  production  problems  and  hence  is  facing  temporary  shortages,or chronicover popularity where it cannot meet the demands or it may want to eliminate aproduct.  In  selective  de-marketing  the  company  plans  to  discourage  specific  groupsof customersand in ostensible de-marketing  demand is discouraged to increase situation.

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