{"id":6287,"date":"2021-12-07T10:00:00","date_gmt":"2021-12-07T09:00:00","guid":{"rendered":"https:\/\/www.sortlist.co.uk\/blog\/?p=6287"},"modified":"2025-09-17T09:28:22","modified_gmt":"2025-09-17T07:28:22","slug":"demarketing","status":"publish","type":"post","link":"https:\/\/www.sortlist.co.uk\/blog\/demarketing\/","title":{"rendered":"Demarketing: How Marketing Backwards Is the New Solution"},"content":{"rendered":"<p>Everyone&#8217;s heard of marketing, which involves increasing people&#8217;s interest in a product or service. However, <strong>demarketing<\/strong> is a concept you might not know much about.<\/p>\n<p>Implementation strategies include price discrimination, bait and switch, stock outage, crowding cost, and differentiation. You can find many examples of businesses and governments using such tactics to reduce demand for a product or tourist location.<\/p>\n<p>To craft an effective <strong>demarketing strategy<\/strong>, you first need an awareness of customer behaviour. You can then look at the 4 Ps of marketing and set clear goals. You also need to be alert for possible unintended outcomes.<\/p>\n<p>In this article, you&#8217;ll learn:<\/p>\n<ul class=\"wp-block-list\">\n<li>What demarketing is<\/li>\n<li>When to use it<\/li>\n<li>3 types of demarketing<\/li>\n<li>Demarketing strategies<\/li>\n<li>Practical examples<\/li>\n<li>How to develop a successful demarketing strategy<\/li>\n<\/ul>\n<div id=\"module_key_takeaways--block_3a0ededa09c57a585197a3940771d8a3\" class=\"sl_custom_module module_key_takeaways is_preview\">\n<div class=\"module_key_takeaways__wrapper\">\n<h3 class=\"wp-block-heading\">Key Takeaways<\/h3>\n<ul class=\"wp-block-list\">\n<li>Demarketing reduces demand for a product or service without eliminating it entirely.<\/li>\n<li>It involves strategies like price discrimination, bait and switch, stock outages, crowding cost, and differentiation.<\/li>\n<li>Demarketing can manage shortages, avoid resource depletion, minimise harm, maintain exclusivity, and solve production issues.<\/li>\n<li>Crafting an effective demarketing strategy requires understanding customer behaviour, setting clear goals, and being mindful of unintended outcomes.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\">What Is Demarketing?<\/h2>\n<p>In 1971, Philip Kotler and Sidney Levy wrote an article for the Harvard Business Review. They explained that <strong>demarketing<\/strong> could be as necessary as marketing, and defined the concept as discouraging customers from purchasing. <\/p>\n<p>Companies can choose to reduce demand in general or select a specific consumer segment, using the strategy on a temporary or ongoing basis.&nbsp;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Demarketing<\/strong> aims to reduce the customer base and decrease demand for a product or service without destroying demand. <\/p>\n<\/blockquote>\n<p>Often, <strong>demarketing<\/strong> serves as a tool to encourage clients to purchase a different product.<\/p>\n<p>There are three main types of <strong>demarketing<\/strong>: <\/p>\n<ul class=\"wp-block-list\">\n<li>General<\/li>\n<li>Selective<\/li>\n<li>Ostensible <\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">When Might You Need a Demarketing Strategy?<\/h2>\n<p>We&#8217;ve already established that <strong>demarketing<\/strong> aims to lessen demand. What specific situations might make that necessary?<\/p>\n<h3 class=\"wp-block-heading\">Managing Shortages<\/h3>\n<p>In some parts of the world, there are water shortages, and governments need to ration the use of this resource. When droughts make hydroelectric power generation difficult, electric companies try to educate their customers about the benefits of conserving energy.&nbsp;<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/use-only-what-you-need-denver-water-sukle-1.jpeg\" alt=\"\" class=\"wp-image-6269\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/www.demilked.com\/use-only-what-you-need-denver-water-sukle\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">deMilked<\/a><\/figcaption><\/figure>\n<\/div>\n<p>Companies may face production or distribution challenges and use <strong>demarketing<\/strong> to solve the problem. They might do so when the cost of producing or <a href=\"https:\/\/www.sortlist.co.uk\/advertising\/united-kingdom-gb\" target=\"_blank\" rel=\"noreferrer noopener\">advertising<\/a> a specific product is exceptionally high. Reducing the demand could also be necessary when distribution channels are inadequate or absent.&nbsp;<\/p>\n<p>Businesses may stop <a href=\"https:\/\/www.sortlist.co.uk\/blog\/billboard-design\/\">advertising<\/a> a product that brings little to no income and encourage buyers to purchase one with higher profit margins.&nbsp;<\/p>\n<p>Some companies also face challenges producing enough of a product to meet the demand. In this case, they can use <strong>demarketing<\/strong> strategies to weaken demand.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Avoiding Shortages<\/h3>\n<p>Many natural resources can become depleted by overuse. For example, governments and businesses put restrictions in place to protect the fish supply and avoid forest depletion.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Minimising Harm to People<\/h3>\n<p>Certain products can be harmful to people&#8217;s health, including alcohol, drugs, and cigarettes. Governments and nonprofits may participate in campaigns that warn of the dangers of these, as well as foods that contain too much salt, sugar, or fat.&nbsp;<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/pages-from-portion-campaign-ads.jpeg\" alt=\"\" class=\"wp-image-6267\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/ivona497.wordpress.com\/2013\/09\/20\/week-2\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Class Blog Adv<\/a><\/figcaption><\/figure>\n<\/div>\n<h3 class=\"wp-block-heading\">Reducing Risk to the Environment<\/h3>\n<p>In tourism, the government might identify a problem with overcrowding at national parks. They then release information encouraging people to attend on different days or warning of the potential harm to nature or resources.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/dont-buy-this-jacket-patagonia.jpeg\" alt=\"\" class=\"wp-image-6268\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/designindustries.art.blog\/2019\/10\/01\/sustainability-as-a-selling-point\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Design Industries<\/a><\/figcaption><\/figure>\n<\/div>\n<h3 class=\"wp-block-heading\">Maintaining Exclusivity<\/h3>\n<p>High-end hotels and restaurants may increase prices to limit access and guarantee that only the very wealthy can use their services. It&#8217;s a way of maintaining exclusivity, keeping the general public from accessing the establishment.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Solving Production or Distribution Problems<\/h3>\n<h2 class=\"wp-block-heading\">Three Primary Concepts of Demarketing<\/h2>\n<p>The three main types or concepts of <strong>demarketing<\/strong> include selective, ostensible, and general <strong>demarketing<\/strong>.  It can be difficult to get to grips with these kinds of unusual marketing techniques, so think about hiring a qualified <a href=\"https:\/\/www.sortlist.co.uk\/advertising\/london-england-gb\" target=\"_blank\" rel=\"noreferrer noopener\">advertising agency in London<\/a> to help you get started before launching yourself in.  <\/p>\n<h3 class=\"wp-block-heading\">Selective Demarketing<\/h3>\n<p>In selective <strong>demarketing<\/strong>, a company tries to lessen demand from specific classes of consumers. As explained above, this allows the business to maintain an exclusive group or protect <a href=\"https:\/\/www.sortlist.co.uk\/blog\/customer-loyalty-how-to-retain-customers\/\" target=\"_blank\" rel=\"noreferrer noopener\">loyal customers<\/a>. In real estate, this focus on specific population segments can guarantee a neighborhood will contain mostly adults or primarily families with children.&nbsp;<\/p>\n<p>A soda company might notice that fruit-flavored drinks bring higher profits than colas. So, marketers could release <a href=\"https:\/\/www.sortlist.co.uk\/blog\/billboard-design\/\">advertising<\/a> that points out the risks of coke and indicates other options are better for people&#8217;s health.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Ostensible Demarketing<\/h3>\n<p>This type of <strong>demarketing<\/strong> involves creating an artificial or perceived shortage to encourage consumers to purchase more. Buyers tend to stockpile items that seem hard to get. BMW saw this response in 1997 when it restricted its supply in the UK.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">General Demarketing<\/h3>\n<p>General demarketing means shrinking the level of total demand. Electricity and water suppliers can use such campaigns when production is low.&nbsp;<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/pingouin-dp-ang.jpeg\" alt=\"\" class=\"wp-image-6270\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/www.adsoftheworld.com\/media\/print\/save_energy_penguin\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Ads of the World<\/a><\/figcaption><\/figure>\n<\/div>\n<p>It also occurs when a business wants to decrease overall demand for a product or when governments warn against the dangers of alcohol and drugs.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Demarketing Strategies<\/h2>\n<p>There are several common <strong>demarketing<\/strong> strategies that governments and businesses use. They include price discrimination, bait and switch, stock outage, crowding cost, and differentiation.<\/p>\n<h3 class=\"wp-block-heading\">Price Discrimination Demarketing<\/h3>\n<p>This strategy involves making it more costly to obtain a specific product. A company can create transaction costs to discourage consumers from getting the lowest price.&nbsp;<\/p>\n<p>For example, some stores offer reduced prices from 8 to 11 am on Saturday. Buyers who want the lowest price endure the discomfort of getting up early. Those who prefer shopping at a convenient time pay more for the desired item.&nbsp;<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/anin-it-says-the-cost-of-the-flight-went-up-32613864.png\" alt=\"\" class=\"wp-image-6262\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/me.me\/i\/anin-it-says-the-cost-of-the-flight-went-up-21683745\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Meme<\/a><\/figcaption><\/figure>\n<\/div>\n<h3 class=\"wp-block-heading\">Bait and Switch Demarketing<\/h3>\n<p>When a company advertises a product with the intent of selling another, it may be using the bait and switch technique. In this case, the business offers a price that&#8217;s too good to be true. When people try to purchase the product (the bait), they discover it&#8217;s not available.&nbsp;<\/p>\n<p>The seller then offers a similar item with a higher price as a substitute (switch). Since this technique relies on deception, it&#8217;s typically considered illegal.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Stock Outage Demarketing<\/h3>\n<p>A firm may plan a stock outage to encourage customers to purchase. When clients find a product is unavailable at one store, they&#8217;re more likely to buy when they find it at another location.&nbsp;<\/p>\n<p>Businesses may also offer rain checks or pre-orders that guarantee the buyer will receive the item as soon as it&#8217;s back in stock. The apparent shortage makes people willing to pay in advance, and the company can use the amount paid to help finance production.&nbsp;<\/p>\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/screenshot_1.png\" alt=\"stock outage demarketing\n\" class=\"wp-image-6265\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/www.ecwid.com\/apps\/design\/back-in-stock-alerts\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Ecwid<\/a><\/figcaption><\/figure>\n<h3 class=\"wp-block-heading\">Crowding Cost Demarketing<\/h3>\n<p>This strategy is helpful on days when a store expects large numbers, such as on Black Friday. Prices may rise during the day as crowding decreases. Some shoppers are willing to pay more to obtain the same product without waiting in long lines.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Differentiation Demarketing<\/h3>\n<p>A company might choose to deter consumers from purchasing their product, allowing them to choose a competitor instead. It can do so by reducing attractiveness using one of the 4 Ps of marketing:<\/p>\n<ul class=\"wp-block-list\">\n<li><em>Product<\/em>: Removing any warranties or accessories previously offered<\/li>\n<li><em>Price:<\/em> Increasing the amount charged<\/li>\n<li><em>Place<\/em>: Limiting availability in some geographical regions<\/li>\n<li><em>Promotion<\/em>: Decreasing promotion of the product&nbsp;<\/li>\n<\/ul>\n<p>A business might use this strategy to keep its products\u2019 value high or avoid price wars with competitors. It might reduce supply to a specific location if profits are low in that area.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Examples of Demarketing in Action<\/h2>\n<h3 class=\"wp-block-heading\">Canadian Healthcare System<\/h3>\n<p>In the 1990s, the Canadian healthcare system was in crisis due to overuse or inefficient use. Dr. Gurprit Kindra of the University of Ottawa suggested adding co-payments and user fees to discourage consumption. He also proposed that requiring a referral from a primary care physician could limit the number of visits to specialists. Offering privatised fast-lane services at a higher cost could reduce strain on the system.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Tata Motors<\/h3>\n<p>Tata Motors discontinued the Nano when it was in short supply with increasing demand. To accomplish this, they promoted other products, completely halting <a href=\"https:\/\/www.sortlist.co.uk\/blog\/billboard-design\/\">advertising<\/a> of the Nano.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Lego<\/h3>\n<p>Lego also had to use <strong>demarketing<\/strong> at one point when sales rose 25% in one year. The toy company couldn&#8217;t manufacture enough to keep up with the demand, so they used strategies to reduce consumer interest.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Finite Natural Resources<\/h3>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img decoding=\"async\" src=\"https:\/\/www.sortlist.co.uk\/blog\/wp-content\/uploads\/sites\/7\/2021\/11\/rebatesforartificialgrassinthestateofcalifornia.jpeg\" alt=\"\" class=\"wp-image-6266\"\/><figcaption class=\"wp-element-caption\">From <a href=\"https:\/\/www.heavenlygreens.com\/blog\/rebates-for-artificial-grass-in-the-state-of-california\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Heavenly Greens<\/a><\/figcaption><\/figure>\n<\/div>\n<p>Demarketing paper products is one way to preserve forests. Several states, including Pennsylvania, Texas, and Wisconsin, have switched to issuing electronic vehicle titles.&nbsp;<\/p>\n<p>When severe drought struck California, the government restricted water usage while providing tax rebates for installing artificial grass.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Crafting Your Marketing or Demarketing Message<\/h2>\n<p>How can you work toward a successful <strong>demarketing<\/strong> experience? Understanding customer behavior is one of the first steps.<\/p>\n<h3 class=\"wp-block-heading\">Understanding Customer Behavior<\/h3>\n<p>Behavioral economics is a growing field that combines economics and psychology to explain why people act as they do when making choices about money. When you try to curb demand for a specific product, you might need to study concepts like habit extinction, deconditioning, learning, and reinforcement.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Developing a Demand Management Strategy<\/h3>\n<p><strong>Demarketing<\/strong> poses difficult choices. To inform your strategy, you need to define the following terms for your business:<\/p>\n<ul class=\"wp-block-list\">\n<li>Under demand<\/li>\n<li>Adequate demand<\/li>\n<li>Over demand&nbsp;<\/li>\n<\/ul>\n<p>Then, you&#8217;ll craft a game plan to keep your company in the range of adequate demand, implementing <a href=\"https:\/\/www.sortlist.co.uk\/blog\/marketing-strategy-for-dummies\/\" target=\"_blank\" rel=\"noreferrer noopener\">marketing strategies<\/a> if there&#8217;s under demand and <strong>demarketing<\/strong> when there&#8217;s over demand.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\">Setting Clear Goals<\/h3>\n<p>What are you trying to achieve? Are you aiming for a certain percentage of increase each year? You might have a modest growth goal or even a zero growth goal.<\/p>\n<p>As you gain a deeper understanding of your company\u2019s needs, you can set clear objectives that drive your marketing and <strong>demarketing<\/strong> efforts. If you&#8217;re looking for expert assistance, consider working with a <a href=\"https:\/\/www.sortlist.co.uk\/design\/london-england-gb\">design agency in London<\/a> to better define and achieve your business goals.<\/p>\n<h3 class=\"wp-block-heading\">Beware of Unintended Outcomes<\/h3>\n<p>Sometimes <strong>demarketing<\/strong> can have effects that go against the original intention. For example, research shows that overexposure to certain anti-drug ads may lead to increased substance abuse.&nbsp;<\/p>\n<p>In the same way, you might find that a <strong>demarketing campaign<\/strong> ends up encouraging customer behavior that you meant to reduce. Because of this, it&#8217;s essential to keep records of the strategies used and their outcomes. It may be a process of trial and error, but you&#8217;ll be able to adjust quickly, if necessary.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">In Summary<\/h2>\n<p>Demarketing can be as critical a strategy as marketing. It&#8217;s essential to meet with your team and determine your goals before beginning any new approach. Paying close attention to customer behavior and outcomes can lead to success in demarketing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Everyone&#8217;s heard of marketing, which involves increasing people&#8217;s interest in a product or service. However, demarketing is a concept you might not know much about. Implementation strategies include price discrimination, bait and switch, stock outage, crowding cost, and differentiation. You can find many examples of businesses and governments using such tactics to reduce demand for [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":12180,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_sb_show_comment_boards":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[47,46],"class_list":["post-6287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","category-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Demarketing: How Marketing Backwards Is the New Solution<\/title>\n<meta name=\"description\" content=\"Discover what demarketing is and how businesses can use strategies to reduce demand without eliminating it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sortlist.co.uk\/blog\/demarketing\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Demarketing: How Marketing Backwards Is the New Solution\" \/>\n<meta property=\"og:description\" content=\"Discover what demarketing is and how businesses can use strategies to reduce demand without eliminating it.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sortlist.co.uk\/blog\/demarketing\/\" \/>\n<meta property=\"og:site_name\" content=\"Sortlist Blog\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/wearesortlist\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-07T09:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-17T07:28:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/7\/2021\/12\/article-covers-for-com-and-uk-26.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1093\" \/>\n\t<meta property=\"og:image:height\" content=\"775\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anne-Ga\u00eblle Sy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Anne-Ga\u00eblle Sy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.sortlist.co.uk\\\/blog\\\/demarketing\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.sortlist.co.uk\\\/blog\\\/demarketing\\\/\"},\"author\":{\"name\":\"Anne-Ga\u00eblle Sy\",\"@id\":\"https:\\\/\\\/www.sortlist.co.uk\\\/blog\\\/#\\\/schema\\\/person\\\/8d4a5bb98d175a2cf139c713b2651cd1\"},\"headline\":\"Demarketing: How Marketing Backwards Is the New Solution\",\"datePublished\":\"2021-12-07T09:00:00+00:00\",\"dateModified\":\"2025-09-17T07:28:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.sortlist.co.uk\\\/blog\\\/demarketing\\\/\"},\"wordCount\":1820,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.sortlist.co.uk\\\/blog\\\/demarketing\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cdn.blog.production.sortlist.cloud\\\/wp-content\\\/uploads\\\/sites\\\/7\\\/2021\\\/12\\\/article-covers-for-com-and-uk-26.jpg\",\"articleSection\":[\"Advertising\",\"Advertising &amp; 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