“Demarketing” - Why it Works

In a pushy world where every brand is trying to convince you of its own virtues, there are times when just the opposite is more effective.

Termed “demarketing,” it turns the so-called principles of marketing on its head: the process does everything with the reverse logic of marketing principles, ostensibly to make the brand more aloof from the consumer- and paradoxically draw the consumer closer to it. It is, in effect, the effort made by a company to reduce the consumption of a product.

While peddling executive management education early in my career, I had the opportunity to first reflect - then adopt - this technique. Our business model was like any other: we needed folks to enrol, pay up and fill our class-rooms. Conventional marketing would have dictated making this as easy as possible: one where executives could just sign up for the program and where we offered an attractive lower fee and flexibility in attendance. 

My experience was that this was having the opposite effect: maybe the program offered is too easy, and “not good enough” for me?

We changed tack, and tried the “demarketing” approach. (Demarketing, incidentally, has seen some scholarly work, with the redoubtable Philip Kotler having published a rather provocative essay in the HBR way back in 1971!) What was our experience? First and foremost, put in stiff stipulations for even applying: whether it be previous academic records, quantum and quality of work experience etc. Overnight, the number of approaches requesting exemptions multiplied. Our counsellors were instructed to be polite - but a trifle snooty. Maintain that “you may not be able to take in the rigour and level of this program.” 

We introduced an entrance test- ostensibly to test aptitude. In reality, it was just to ensure that applicants felt that they had “competed” - not just walked in and paid up. Most candidates were told they were on a wait-list, and could only be offered a place if a confirmed candidate dropped out. A third leg was to raise the fee very significantly - as a reflection of value.

Impact? Applications multiplied. These programs became a lot more aspirational - and were driven by consumer interest. Overall satisfaction shot up, because the participants felt convinced that they had “earned” their certification, overcoming significant barriers. From a marketer perspective, not a single eligible applicant was ever rejected. All applicants were “selected.”

You see the same play in effect when students apply to universities. If it is too easy to get in, no one is interested. All universities have more seats to fill than full-fee paying applicants: and therein lies the power of marketing.

Another example: the so-called exclusive social clubs - where wait-lists stretch into decades. The facilities offered may once have been unique and exclusive but that hardly holds true today. Yes, the lure of a complicated process, the difficulty of entry which gives a “made-it” thrill upon securing a much-coveted membership is the pay-off. And the ultra-snooty restaurants, where getting a reservation is itself made to feel like an achievement- after the effort and the expense, can you afford to say you did not really like it? 

Every situation requires its own form of marketing - and demarketing has its own uses, till such time that it loses power. Snoot and demarketing typically go hand in hand. It requires a certain level of confidence and faith in oneself to carry it through though.

Never forget that demarketing is just a form of marketing (with the classic 4-Ps inverted). So while you seemingly discourage, take care not to destroy the demand.