'' DE-MARKETING, Let's Flip The Coin.''
Bhavesh Nathani
Lead - Project Management | Panel Management @ Cetas Healthcare | Qualitative & Quantitative
De-Marketing focuses on DISCOURAGING the customer demand, where in marketing motto is to stimulate/encourage customer demand.
*Holistic View*
De-Marketing is a science which reduces the demand for certain products and services.It is important to reduce the demand for vice products such as alcohol, tobacco, cigarettes and high calorie foods. Also it plays a pilot role in conservation of scarce resources like water, clean air, minerals and fuels. As recourses on blue planet are diminishing we have to move from the era of Marketing to De-Marketing.
*Let's Dig Deep*
Main aim of a company is to reduce consumption of a product. *But why* ?
Because,
*Demand is high,supply is low.
*Company wants to filter the wrong customer and let the right one enjoy the product.
Illustration :- Common and easy example to understand is of 5 star hotels. They maintain their exclusivity from keeping the high priced menu to many other expensive services.
*Extremely high advertising cost.
*Unavailability of right distribution channel.
*High selling price in a particular locality
*Types of De-Marketing*
1) General De-Marketing - It is done when company wants to demarket it's product for everyone and reduce entire demand.
Good example can be discouraging mass from using plastic bags before ban of plastic bags.
2) Discerning De-Marketing - For the interest of selective and loyal customers,firms target a class of consumers and aim their De- Marketing strategies at them so that loyal customers can get the maximum benefit.
3) Ostensible De-Marketing - This creates artificial shortage to encourage appetite of goods. Consumers will start stocking these products with less availability.
4) Crowding Cost De-Marketing - This strategy is used when firm expects a large crowd on a particular day. Mostly it happens on Black Friday, where crowding deter consumers who prefer paying a higher price to stay away from the crowd.
*4P's Of De-Marketing*
*Product - No warranty and capping on production
*Price - Massive increase in price of product
*Place - Less and restricted availability of products.
*Promotion - Cut down on advertising and campaigns to demote the product.
*Unexpected Outcomes*
Firms can face unexpected outcomes in subject to behavioral aspects that can go against the winds.
Boomerang effects occurs when aggressive campaigns on anti-drugs, tobacco, alcohol and unhealthy foods are into force. Psychology behind this is people may convey the idea that everyone's doing it, let's give a try.
So does De-Marketing really helps ?
De-Marketing works better when there is great public consensus that there should be capping on consumption of certain products and services.
The communication is crystal clear ' A Lamborghini is for a very select few
*Crème De La Crème* '
Don't Copy share humbly :)
*References* :-
*Marketing Insider.
*Kotler Philip and Sidney Levy (1971) 'De-Marketing ,Yes De-Marketing. HBR Nov-Dec, 74-80.
*Marketing 91.
*MbaSkool.
Disney Star - Senior Executive Advertising
5 年Nice one! Innovative and thoughtful because rarely people know about it ????
Building new business verticals at Disney Star | Economic Times Young Leader
6 年'De-marketing' rings a lot of bells doesnt it @Deepak Sonpar
Media Leader | Award-Winning Marketer | Managing Partner at EssenceMediacom India
6 年It's an interesting concept,very well articulated and explained.?
Associate Professor at CHM college
6 年Good job..keep it up ??
Analyst at Apollo Global Management Inc
6 年Nice article. But, if you see a product like Cigarettes that are demarket at beginning of movies, still people prefer smoking or consumption. I think that's the only way to make more customers from that advertisement, so it's positive advertisement and one can't say it's demarketing.