In: Operations Management
A.When De- marketing occurs?
B.Why De-marketing is not a negative marketing?
C.Give two examples of of De-marketing occured on goverment level and one example on private level?
A)De marketing occurs when a firm wants to lessen the demand for the product or to promote the exclusivity of the brand. For eg. If a firm has more demand for a product than what it can supply, then the firm will stop promoting its products in order to lessen the demand and thereby allwoing the demand to match the capacity.This ensures that consumers are not put off by the delays from the brand and prevents the negative effect of less supply. It also occurs when a brand wants maintain exclusivity. For eg: The price of accessing a first class lounge at airport is deliberatley kept high in order than only few people can access it, thereby maintaining its distinct features from normal lounges. This ensurs fewer people access and the resulting comforts.
B)Demarketing is not a negative marketing since it is used to prevent the negative effects of excess marketing, It ensures that people are not dissapointed in case a company is not able to meet the expectation of its consumers. Demarketing allows a company to match the demand with its capacity and also helps in providing the best service to its target market.
C)De marketing on Government level
1)Government wants to encourage use of alternative fuels, therefore, it reduces the marketing of cheap petrol and kerosene and regulates the prices.
2)Government looking to encourage the use of digital transactions and paperwork will stop the advertising of the physical touchpoints of its offices.
De marketing at private level.
Coca cola reducing the marketing of its sub brand Thumps in order to increase its coke brand sales in india is an example of demarketing.