MARKETING MANAGEMENT

FACULTY : DR. BIRANCHI NARAYAN SWAR

DE-MARKETING
BY: ARUNANSU KUMAR

WHAT 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

ACTIVITIES
ELIMINATING PRODUCT BENEFITS
De-marketing doesnt aim to destroy the
demand
but 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-MARKETING

This form of de-marketing is followed

when the company plans to reduce the
amount of total demand.

SELECTIVE DE-MARKETING

This form of de-marketing is followed

when the company wants to discourage
the demands from specific group of
customers.

OSTENSIBLE DE-MARKETING

This 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.

EXAMPLES

 A 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, and obesity, among other issues.
Electricity companies today are trying to educate people
to turn off their lights and even unplug their computers
when not in use to save electricity, even though their
revenue will fall.

THANK YOU!

ANY QUERIES??