Demarketing: Targeted reduction of demand
Posted: Tue Dec 24, 2024 7:22 am
Classical marketing is aimed at increasing demand for goods and attracting new customers, while demarketing works in the opposite direction. It is implemented in a state of increased demand. Thus, demarketing (from English demarketing ) is a strategy of behavior in the market, which is aimed at suppressing demand among customers.
Who needs demarketing and why?
Reverse marketing is used for two reasons:
Demand exceeds supply . Sometimes a product is in such high demand that the company has no opportunity to increase the scale of production and sales of the product. In such circumstances, there is nothing left to do but reduce the demand indicator.
Adjusting the audience of buyers . It happens that customers who are interested in a product spoil the company's image , which can ultimately scare off the target audience .
Who needs demarketing and why?
Working demarketing schemes
Increase in the price of goods.
Restrictions or complete refusal of advertising promotion.
Change of market position.
Refusal of some clients.
Shifting focus to other company products.
Types of Demarketing
Depending on the goals that the company pursues by using the antarctica email list 5644 contact leads demarketing strategy, there are such methods of work to reduce demand among buyers.
Passive . This method of demarketing is used at the state level. The main goal is to reduce the rate of consumption of a specific product. An example is a campaign against alcohol and cigarettes. The set results are achieved through advertising, price increases, and legislative restrictions related to the sale and consumption of alcohol.
Active . Commercial firms use it to reduce demand for goods. Tools: increasing prices, changing the message to the target audience, abandoning advertising campaigns.
Absolute . This is when a certain group of goods is completely removed from the market. A striking example is a South Korean company that completely removed explosive Galaxy Note from sale.
In addition, demarketing is often used by companies that create artificial excitement around a product to increase sales. Some companies intentionally spread information about the demand for a product or its shortage ("limited collection", "not enough for everyone") to attract the attention of the target audience.
This scheme is also used to increase the cost of a product/service in order to increase demand before the price goes up. For example, a stockbroker warns clients that he is going to raise the price of his services soon, this motivates his clients to make more deals. 10-20% of clients will find another intermediary to make deals with, but most will agree to the proposed terms. The broker will receive a higher salary, doing the same job as before. However, if you do this trick too often, you can quickly lose some clients.
Types of Demarketing
Demarketing and Countermarketing: What's the Difference
These two terms are often confused, although they have completely different meanings. Thus, demarketing is a deliberate action by a company that is aimed at suppressing demand for goods. This strategy involves preserving business and reputation by reducing the scale of production, refusing to advertise, and being willing to lose some customers in order to maintain the goodwill of the most valuable ones for the company.
Counter-marketing is aimed at reducing demand for a competitor's products. These companies are ready to tarnish the reputation of another brand in order to lure customers to themselves. Discrediting other companies is mainly resorted to by those who have failed to effectively organize advertising of their products, so they launch anti-advertising on competitors.
When is demarketing justified?
Many marketers believe that demarketing should be used to filter out insolvent customers, thereby reducing expenses and increasing profits. If a company uses such a strategy, it is important to study its target audience, its requests, so that when filtering out, you do not scare away valuable customers.
Join us and choose thousands of products for wholesale and dropshipping from Ukrainian suppliers for your business, upload products to your online stor
Who needs demarketing and why?
Reverse marketing is used for two reasons:
Demand exceeds supply . Sometimes a product is in such high demand that the company has no opportunity to increase the scale of production and sales of the product. In such circumstances, there is nothing left to do but reduce the demand indicator.
Adjusting the audience of buyers . It happens that customers who are interested in a product spoil the company's image , which can ultimately scare off the target audience .
Who needs demarketing and why?
Working demarketing schemes
Increase in the price of goods.
Restrictions or complete refusal of advertising promotion.
Change of market position.
Refusal of some clients.
Shifting focus to other company products.
Types of Demarketing
Depending on the goals that the company pursues by using the antarctica email list 5644 contact leads demarketing strategy, there are such methods of work to reduce demand among buyers.
Passive . This method of demarketing is used at the state level. The main goal is to reduce the rate of consumption of a specific product. An example is a campaign against alcohol and cigarettes. The set results are achieved through advertising, price increases, and legislative restrictions related to the sale and consumption of alcohol.
Active . Commercial firms use it to reduce demand for goods. Tools: increasing prices, changing the message to the target audience, abandoning advertising campaigns.
Absolute . This is when a certain group of goods is completely removed from the market. A striking example is a South Korean company that completely removed explosive Galaxy Note from sale.
In addition, demarketing is often used by companies that create artificial excitement around a product to increase sales. Some companies intentionally spread information about the demand for a product or its shortage ("limited collection", "not enough for everyone") to attract the attention of the target audience.
This scheme is also used to increase the cost of a product/service in order to increase demand before the price goes up. For example, a stockbroker warns clients that he is going to raise the price of his services soon, this motivates his clients to make more deals. 10-20% of clients will find another intermediary to make deals with, but most will agree to the proposed terms. The broker will receive a higher salary, doing the same job as before. However, if you do this trick too often, you can quickly lose some clients.
Types of Demarketing
Demarketing and Countermarketing: What's the Difference
These two terms are often confused, although they have completely different meanings. Thus, demarketing is a deliberate action by a company that is aimed at suppressing demand for goods. This strategy involves preserving business and reputation by reducing the scale of production, refusing to advertise, and being willing to lose some customers in order to maintain the goodwill of the most valuable ones for the company.
Counter-marketing is aimed at reducing demand for a competitor's products. These companies are ready to tarnish the reputation of another brand in order to lure customers to themselves. Discrediting other companies is mainly resorted to by those who have failed to effectively organize advertising of their products, so they launch anti-advertising on competitors.
When is demarketing justified?
Many marketers believe that demarketing should be used to filter out insolvent customers, thereby reducing expenses and increasing profits. If a company uses such a strategy, it is important to study its target audience, its requests, so that when filtering out, you do not scare away valuable customers.
Join us and choose thousands of products for wholesale and dropshipping from Ukrainian suppliers for your business, upload products to your online stor