Demarket

To intentionally reduce or eliminate the marketing efforts, promotion, and distribution activities associated with a particular product, service, or brand. This strategic decision is often made to decrease demand, shift focus to other offerings, address capacity constraints, or manage brand perception. Demarketing strategies can involve reducing advertising spend, raising prices, limiting distribution channels, or making a product less accessible. The goal isn't necessarily to kill the product, but to manage its lifecycle or direct attention elsewhere, or to cater to a premium or exclusive market. Often it is not meant to be permanent but part of a cyclical process.

Demarket meaning with examples

• Faced with overwhelming demand and production bottlenecks, the airline decided to demarket its economy class flights during peak season. They raised ticket prices, eliminated some routes, and reduced advertising, aiming to encourage business class travel instead and balance overall demand. This strategic move allowed them to improve profitability and customer service by focusing on a smaller, more manageable segment.
• A prestigious watchmaker, wanting to maintain exclusivity and combat counterfeit products, chose to demarket its entry-level timepieces. They reduced the availability through independent retailers and online channels. Their focus shifted towards higher-end models. This allowed them to preserve the brand's luxury image, making the lower price point watches less desirable to casual consumers.
• Due to environmental concerns and resource limitations, a bottled water company chose to demarket its product in certain regions with water scarcity problems. They reduced advertising and, where legally permitted, ceased distribution, prioritizing the sustainability of its overall brand. This strategy was designed to support responsible resource use and mitigate any future negative PR.
• A university with limited spots for a sought-after degree program opted to demarket the program to prospective students. They reduced the number of open days, limited advertisements in certain demographics, and increased admission requirements. This approach aimed to control enrollment numbers, preserve the program's quality, and reduce the strain on university resources.