Demarketing
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DeMarketing
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.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
History Demarketing is considered to be the reverse of marketing. The version of demarketing became a very hot issue in the early period of 1970's especially with the popular incident when the supply of a variety of items became very limited. According to Phillips and Sidney .
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Demarketing strategies involve raising ‣ ‣ ‣
High Prices Reducing Advertising or Promotion Activities Eliminating product benefits Demarketing does not aim to destroy the demand but only to lower it to make it level with the ability to produce the product.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Why Company Do This
1) A firm cannot supply in large-enough quantities. 2) Does not want to supply in a certain region where the high costs of distribution or promotion.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
There are three different forms of demarketing
‣
‣ ‣
General demarketing Selective demarketing Ostensible demarketing (perceived)
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
General Demarketing This form may probably need especially when a company plans to reduce the amount of total demand.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Selective Demarketing
This step takes place when a company decides to discourage the demand occurs from specific groups of customer.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Ostensible Demarketing (perceived) The final type of demarketing is referred to as an ostensible demarketing, which includes the feature of planning to discourage demand that acts as a device for the purpose of increasing the situation.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
WHAT MARKETING IS AND WHAT IT IS NOT
‣ Requirements for Marketing to Occur ‣ Two or More Parties with Unsatisfied Needs ‣ Desire and Ability to Satisfy These Needs ‣ A Way for the Parties to Communicate ‣ Something to Exchange
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
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.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
History Demarketing is considered to be the reverse of marketing. The version of demarketing became a very hot issue in the early period of 1970's especially with the popular incident when the supply of a variety of items became very limited. According to Phillips and Sidney .
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Demarketing strategies involve raising ‣ ‣ ‣
High Prices Reducing Advertising or Promotion Activities Eliminating product benefits Demarketing does not aim to destroy the demand but only to lower it to make it level with the ability to produce the product.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Why Company Do This
1) A firm cannot supply in large-enough quantities. 2) Does not want to supply in a certain region where the high costs of distribution or promotion.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
There are three different forms of demarketing
‣
‣ ‣
General demarketing Selective demarketing Ostensible demarketing (perceived)
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
General Demarketing This form may probably need especially when a company plans to reduce the amount of total demand.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Selective Demarketing
This step takes place when a company decides to discourage the demand occurs from specific groups of customer.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
Ostensible Demarketing (perceived) The final type of demarketing is referred to as an ostensible demarketing, which includes the feature of planning to discourage demand that acts as a device for the purpose of increasing the situation.
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
WHAT MARKETING IS AND WHAT IT IS NOT
‣ Requirements for Marketing to Occur ‣ Two or More Parties with Unsatisfied Needs ‣ Desire and Ability to Satisfy These Needs ‣ A Way for the Parties to Communicate ‣ Something to Exchange
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
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