What is Demarketing? Why does the company use demarketing? with Examples

In this article, we are going to discuss demarketing with an example. Why does the company use demarketing?

What is Demarketing?

In simple words, Demarketing is the reverse of marketing In marketing, we used different ways to sell to grow the business. But in Demarketing we used different ways to reduce sell.

Demarketing is a strategic effort made by a company to reduce the consumption of a product or demand for a product.

Why does the company use demarketing?

Let’s say my product demand is high in the market and I cannot produce that much.

The Demand for products in the Market is 7 lakh in a month but the company can only make 1 lakh. If a company is unable to available product. This will decrease company branding people will think this company isn’t able to make products and ultimately will affect the image of the company.

That’s why the Company increased the price of the product. If the lamp worth is 5 thousand Rupees then the company will sell at 7 thousand Rupees. Ultimately demand will decrease. Demand will be equal to supply.

Example of Demarketing

Water Park

Let says there is a water park There is a rush every Saturday and Sunday. So if the family will come to the water park and they come to know that its houseful.  Ultimately the family will carry a bad experience from that water park.

So what water park do? They give started 30% discount from Monday to Friday Here 30% discount means that person will think Monday to Friday will be fine. So many people will be thinking of coming on the weekends. They will think of coming from one day from Monday to Friday

This concept is used by those companies whose sales are high and whose production is not that much.

FAQ

1. What is demarketing?

Answer: Demarketing is a strategic effort made by a company to reduce the consumption of a product or demand for a product.

2. Which companies used demarketing?

Answer: Companies whose sales are high and their production are not that much.

3. When do companies use demarketing?

Answer: When demand is high than production.

Video on Demartketing