Demarketing is "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".
other definition is "using of advertising to decrease demand for a product that is in short supply".
Also defined as "discourages consumers from buying".
Demarketing is "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".
other definition is "using of advertising to decrease demand for a product that is in short supply".
Also defined as "discourages consumers from buying".
Demarketing defines as the eliminating or shifting the demand temporarily but not the purpose to destroy permanently.
Applying demarketing depends on conditions face by organizations. Sometimes firms are unable to meet the demand for short supply or over demand or under productivity when the demands are irregular for the specific period of year, month or day. For example, amusement park, theater hall, tourist location ets. become over crowded in a specific time but not every day in a year. In that instances, firms may rise the selling price when demands are very high and offer some sales promotion when demands remain low. This technique to varying prices is called as synchronize marketing.
Managing these irregular demands cannot be resolved instantly because it requires installation of new production plant or outsourcing to manage the supply. Firms should only consider to go for large capital investment when these demands are regular though out the year. Thus demarketing is better marketing strategy to meet the prevailing irregular demands instantly.
There are a couple of interesting papers on demarketing in JM, JAMS, JBR and HBR. I recommend the seminal paper by Kotler and Levy (1971) in HBR that proposes a typology of demarketing strategies and raises the key issues related to demarketing.