Academic journal article Advances in Management

Demarketing - A Different Marketing Strategy to Sustain the Consumers

Academic journal article Advances in Management

Demarketing - A Different Marketing Strategy to Sustain the Consumers

Article excerpt

Abstract

Demarketing basically refers to when a company discourage its customers to buy the product produced by them. This paper shows that demarketing can be a profitable alternative when differentiation through product improvements is not cost effective. Behavior is a mirror in which everyone shows his or her image. Behavior is the process of responding to stimuli. Consumer behavior is to do with the activities of individuals in obtaining and using the goods and services, it compasses the decision making process that proceeds and determines purchases. The decisions are simply automated by the influence of marketers.

The demarketing is a 360° process including demand, supply, profit, satisfaction and development and again the concept is to maximize the profit against the mass demand by discouraging the consumer, where ever sometime this demarketing process will hamper the organization and vanish the positioning from the consumer mind. As it is a parallel process of marketing with suppliers and consumer both, the demarketing decision will be definitely vital for the organization.

Keywords: Denmarketing, Consumers, Sustainability.

Introduction

Demarketing activities discourage demand. This stands in sharp contrast to the objectives of marketing: create utility and enhance exchanges. In their provocative article "Demarketing, Yes, Demarketing," Kotier and Levy distinguish three types of demarketing situations.

General demarketing: It occurs when a seller shrinks the level of total demand. Suppliers of electricity and water use advertisements and publicity campaigns during periods of excess demand.

Selective demarketing: It occurs when a company discourages demand for certain classes of consumers. Adult communities demarket properties to families with children and producers of goods with a snob appeal avoid lowimage retailers.

Ostensible demarketing: It occurs when a seller creates an artificial or perceived shortage to whet consumer appetites. Limited distribution of goods may induce consumers to stockpile these "hard-to-get" items.

A Changing Marketing Orientation

The functions of marketing have characteristically emphasized the task of creating and maintaining demand in an environment of abundance. However, recent changes in the business environment have focused attention on a wider range of marketing tasks which include that of reducing overfull demand or demarketing. Marketing management's strategy response during times of shortages tends to vary considerably depending upon the company's perception of the severity or permanence of the shortages. Despite temporary pressure on the relevance of a marketing approach, it is generally believed that marketing will remain an essential part of management decision making and emerge in a healthier form.

To assess the nature and extent of re-orientation necessary to develop effective marketing management in the increasingly dynamic business environment, it is valuable to reconsider the central elements of marketing philosophy. These elements are: an integrated approach, a customer orientation and long-term profitability in relation to customer satisfaction.

An Integrated Approach

Marketing has been characterized as the management of change with respect to opportunity assessment in the market and the integration of change into organizational decision processes. After some months of shortage-related marketing problems, however, it is apparent that it is change, both extensive and rapid, which marketers have not been readily able to integrate into existing marketing orientations and strategy.

In reacting to this change, it is important that the marketing programs chosen for implementation consider long-term effects as well as the more identifiable short-term effects. Likewise, the demarketing situation requires that a firm knows more, not less, about the effects of its action on its relationship with customer. …

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