Dictionary of Marketing Terms: demarketing
demarketing
marketers attempt to reduce the demand for a product when the demand for the product is greater than the manufacturer's ability to produce it. Demarketing strategies involve raising prices, reducing advertising or promotion activities, or eliminating product benefits. Demarketing does not aim to destroy the demand but only to lower it to make it level with the ability to produce the product.
Marketers sometimes practice selective demarketing, which attempts to lower the demand for a product in a particular market, usually where one market is less profitable than other markets for the product. This is often done where the cost to manufacture, advertise, or promote the product is greater in one market than in other markets.
