Exploring Demarketing: Purpose, History, and Strategies
School
Modesto Junior College**We aren't endorsed by this school
Course
MBUSAD MKT3410
Subject
Marketing
Date
Dec 12, 2024
Pages
11
Uploaded by MagistrateDangerLark20
Demarketing: A Strategic Approach In Marketing Demarketing: A Strategic Approach In Marketing “Understanding its Purpose, History and Applications”By Shareil Bot “Understanding its Purpose, History and Applications”By Shareil Bot
What is DemarketingWhat is DemarketingDefinition: Demarketing refers to strategies used by companies to reduce demand for a product or service, often intentionally.Purpose: To manage supply shortages, discourage certain market segments, or align with social responsibility goals.Examples: Limiting sales of water during droughts or reducing cigarette advertising to discourage consumption.
The Origins of Demarketing The Origins of Demarketing The term was introduced in the 1970s by Philip Kotler and Sidney Levy. It became popular during the energy crisis in the ’70s to encourage people to conserve energy. Over time, it’s been used in public health campaigns and even by luxury brands to keep their products exclusive.The term was introduced in the 1970s by Philip Kotler and Sidney Levy. It became popular during the energy crisis in the ’70s to encourage people to conserve energy. Over time, it’s been used in public health campaigns and even by luxury brands to keep their products exclusive.
The Role of Demarketing in Marketing The Role of Demarketing in Marketing Demarketing is basically the opposite of what we usually think of in marketing—its goal isn’t to sell more but to control or reduce demand. It’s used for managing supply issues, targeting specific audiences, and aligning with values like sustainability. It’s still marketing but with a very different purpose.
Different Approaches to DemarketingDifferent Approaches to DemarketingGeneral Demarketing: Reducing demand across the board (e.g., cutting back energy usage during peak times). Selective Demarketing: Targeting certain groups to limit their consumption (e.g., making prices higher to filter out certain customers).Ostensible Demarketing: Pretending to limit availability to make something seem more exclusive (common with high-end brands).
Why Demarketing Can Be Controversial Why Demarketing Can Be Controversial Ethics: Is it okay to manipulate demand or create fake scarcity? Discrimination: Selective demarketing can exclude certain groups, which might come off as unfair. Profit vs. Values: Some argue that companies use demarketing as a way to boost profits, not because they actually care about social issues.Ethics: Is it okay to manipulate demand or create fake scarcity? Discrimination: Selective demarketing can exclude certain groups, which might come off as unfair. Profit vs. Values: Some argue that companies use demarketing as a way to boost profits, not because they actually care about social issues.
Examples of DemarketingExamples of DemarketingHealth Campaigns: Graphic anti-smoking ads to discourage tobacco use. Resource Conservation: Water districts encouraging people to cut back on water use during droughts. Luxury Brands: Companies like Louis Vuitton limit production to make their products feel exclusive and more desirable.
The Good and Bad of Demarketing The Good and Bad of Demarketing Pros: Helps prevent overuse of resources. Can support public health and social good. Makes luxury products feel more premium. Cons: Might alienate certain customers. Could backfire if people feel manipulated. May lead to loss of revenue if done poorly. Pros: Helps prevent overuse of resources. Can support public health and social good. Makes luxury products feel more premium. Cons: Might alienate certain customers. Could backfire if people feel manipulated. May lead to loss of revenue if done poorly.
How Demarketing Fits in Today’s World How Demarketing Fits in Today’s World It’s often tied to sustainability efforts and corporate responsibility. Companies use demarketing to tackle big issues like climate change and overconsumption. Social media has made demarketing campaigns more targeted and effective, especially for reaching specific audiences. It’s often tied to sustainability efforts and corporate responsibility. Companies use demarketing to tackle big issues like climate change and overconsumption. Social media has made demarketing campaigns more targeted and effective, especially for reaching specific audiences.
Final Thoughts Final Thoughts Demarketing is a creative strategy that’s about reducing demand instead of increasing it. It’s not just about business—it’s about balancing consumer needs, company goals, and sometimes even social good. Whether it’s conserving resources or promoting healthier behaviors, demarketing can be a powerful tool when used responsibly. Demarketing is a creative strategy that’s about reducing demand instead of increasing it. It’s not just about business—it’s about balancing consumer needs, company goals, and sometimes even social good. Whether it’s conserving resources or promoting healthier behaviors, demarketing can be a powerful tool when used responsibly.
Works Cited Works Cited https://www.redalyc.org/pdf/631/63153388003.pdfhttps://www.marketingjournal.org/welcome-to-the-age-of-demarketing-an-excerpt-from-philip-kotlers-autobiography-philip-kotler/https://www.indeed.com/career-advice/career-development/demarketing#:~:text=Demarketing%20is%20a%20process%20in,product%20use%2C%20price%20or%20demand. https://www.geeksforgeeks.org/demarketing-meaning-types-strategies-and-examples/https://www.redalyc.org/pdf/631/63153388003.pdfhttps://www.marketingjournal.org/welcome-to-the-age-of-demarketing-an-excerpt-from-philip-kotlers-autobiography-philip-kotler/https://www.indeed.com/career-advice/career-development/demarketing#:~:text=Demarketing%20is%20a%20process%20in,product%20use%2C%20price%20or%20demand. https://www.geeksforgeeks.org/demarketing-meaning-types-strategies-and-examples/