Demarketing the 360 Degree Marketing Strategy to Sustain
the Consumers


By

Prof. Swagat Kumar Rath
B.E, MBA (Marketing and HR)
Assistant Professor MBA
Shri D.B. Pawar College of Management
University of Pune
Maharashtra

Prof. Soumyamoy Maitra
B.E, PGDBM, PH.D (P), NET
Assistant Professor MBA
NSIBM
Chaibasa
 


ABSTRACT

Consumer behavior is a dynamic and psychological process, even some time consumer does not know what he has already purchased. The decisions are simply automated by the influence of marketers. The Demarketing is a 360* Process including Demand,Supply,Profit,Satisfaction and development & Again the concept is to maximize the profit against the mass demand by discourages the consumer, where ever sometime this Demarketing process will hamper the organization and vanish the positioning from the consumer mind. As it's a parallel Process of marketing with suppliers and consumer both, the Demarketing decision will be definitely vital for the organization.

INTRODUCTION

Demarketing is a psychological involvement in the mind of the consumer so that he will be distracted from the purchase, it does not mean that the product will be vanished but to maintain quality and long term focus on profit.

In Simple way Demarketing is the concept to minimize the blind production. In Simple it's the reverse process of Marketing Myopia. Demarketing Concentrate to either parallel the demand over popularity or maintain the relationship with consumer with Quality and developed product.
In other direction Demarketing is also concentrate on sustainability of profit with long term focus and satisfy the suppliers as well.

Demarketing is a complex decision by the marketers to maximize the profit with a enduring relationship with the consumers by providing the quality products & Maintain the Supply and demand so effective according to the need of customers.

OBJECTIVE OF THE STUDY

* To understand the Process of Demarketing
* To understand how Demarketing is strengthen the Brand
* To understand the stability after Demarketing with suppliers
* To Understand the Stability and sustainability with consumer
* To analyzing Budget allocation both in Production and Communication
* To understand Marketing myopia over Demarketing
* To Understand the effect on Existing Customers after Demarketing

NEED OF DEMARKETING-

* WELL TRAINED SALES FORCE FOR BETTER PROFIT-

Demarketing Maximize the role of the sales Manager and given time to prepare the sales force to again maximize the consumerism in market. The changing in Market and preparing the new sales force to achieve the target.

* NEW COMMUNICATION GATE FOR EXISTING AND POTENTIAL CUSTOMERS-

The Best way to prepare new camping planning and new commercials for the upcoming products and the existing products. During Demarketing the Production Department is in relationship with the campaigning planning department so that they can understand the new product strategy and prepare the campaign planning for the upcoming products.

* BUDGET ALLOCATION ACCORDING TO PRODUCTION-

Again the Demarketing Help to take proper decision on Budget Allocation according to demand, Market Analysis, Competitors Products, Sales Ratio.

* NEW METHODS ON CRM-

Again Demarketing helped the organization to prepare some new methods in Customer Relationship Management (Loyalty Programs) for the Loyal and In-basket Customers.

* MAKING SUPPLIERS HAPPY-

Well this is the Main part of Demarketing, Later It's described below. The Suppliers have time to maintain the demand of production & a parallel flow for the future demand

* NEW PRODUCT DEVELOPMENT AND MODIFICATION-

The Demarketing Process gives a chance to the marketers to prepare new products according to the demand of the customers or change so attributes of the products according to the Need of the existing product in the market.

* LONG TERM OBJECTIVE WITH QUALITY PRODUCT-

The Process provided time to change the quality enhancement of the product so that the product will be re-lunched by same name but with different quality. Its Maximize the satisfaction and Values against the money

DEMARKETING IS A PROCESS OF 360 DEGREE PROCESS


The Demarketing is the 360 degree Process where all the Marketing Activities have been taken place by the marketers. The Marketer Prepare the Advertisements, Budget Allocation for Future Demand, Suppliers Relationship, Customer relationship, Market Segmentation and Positioning Process.

THE REALITY OF DE-MARKETING & CONSUMERISM

It's a Mystery that Demarketing is related to Consumerism; well somehow both are related to each other. Demarketing Distract the Consumer from the Product for certain period of the Time Again the consumerism affects the consumer to purchase.

Well Demarketing is happened when the demand is over the production and Organization is not willing to spread the production. Well Its Does not mean that Organization do not want to get the profit but the availability of Raw Materials, Employees, Modification to Products hampered.

So the Marketers made decision to withdraw the product for certain period of time from the market and after that the Marketers prepare consumerism planning to attract the consumer for the new Products

CASE ON DEMARKETING (YAMAHA RX-100 TO YAMAHA FZ)

DEMARKETING AND CONSUMER BEHAVIOUR BY YAMAHA


As Consumer Behaviour is a Process to Involve in the Decision Making of Personnel purchase. Well The Internal and external Factors are affected by the Demarketing Process & the Behavioral Patterns are changed according to the decision of the marketers.

The Internal & External Factors consumer Factors are affected by the Demarketing the example of Yamaha Rx-100 to Fazer and Again Fazer to FZ a Quality Success with Brand Loyalty

YAMAHA RX-100 DEMARKETING-

Yamaha Utilized the Success of Yamaha Rx-100 the One and Only Bike 2-Stroke with Dashing Look and Great Pick Up, Well the Organization wanted to maintain Brand enduring with the existing and potential customer.

Demarketing Decision of Yamaha Rx-100 Because

* The Customers are attracted to the 4-stroke engines

* Yamaha Has a Maximum Production of 2-storke engines Like Yamaha RXZ,RX-100,Rx-135

* The Mass Production of 2-stroke engines made maximum supply and assembling cost

* The Competitors like Hero Honda (CD-100, CD-100SS) & Bajaj Lunched the Product 2-Stroke Bajaj Endura, KB 100 and 4 Strokes

* Yamaha Demarketed of Rx-100 and 135 for make the consumer sustain for the Future Products

* Yamaha Need a Budget allocation and New Product Development for Making Customer satisfy the customers.

* Making the Customer loyal by the Positive aspects of the Organization

Consumer Behaviour for YAMAHA after Demarketing

Affecting the Internal factor and Making the Consumer Loyal for the Brand and waiting for the new Products

* Motivations-Consumers are highly motivated by the brand and after Demarketing they steal waiting for Yamaha Rx-100, because the utility of the product is high and affordable to all the middle class people

* Attitude-The Positive Attitude for the Brand after Demarketing because the value which Yamaha provided is excellent.

* Group-As Yamaha is a Brand associate with ESCORT India, Every Group is Loyal to this Yamaha Brand and Highly Satisfied with Product

* Social Class- Every Social Class Upper Class, Middle Class, & Lower Class are satisfied with Brand and the Product as well.

That Means after Demarketing (With Draw) of Product YAMAHA HAS A GOOD WILL AND A GREAT BRAND NAME in India

THE SUCCESS STORY CONTINUE AFTER DEMARKETING

The Yamaha is simply with draw its product and the Competitors like Hero Honda, Bajaj Taking Lead after Yamaha

Now Yamaha Wanted to re-launch its Product along with the same Good Will & Same Style but due to Demarketing the Market Situations has been changed and the consumer preference has been change

YAMAHA FACING PROBLEM AFTER DE-MARKETING

* Due to Demarketing of Product Consumers are changed their Preferences.

* New Consumers have Different Living Standard & Living Style.

* The Consumers are not associated with the Pipeline Products

* The Heavy Product lines Made by the Competitors like Pulser, CBZ are the market leaders

THE MARKETING MIX AND POSITION BY YAMAHA FOR FZ

After a long period of Demarketing the Yamaha Brand wanted a Quick Market lead and Profit

The Marketing Decision Made by Yamaha for Lunching Quality and New Products Yamaha FZ

* Product-

The Product is Simply Different than the Competitirs, acceptable by the society & Different Attributes like Digital System, Stylish Look, Sir Suspension in Middle, Specially Designed for the Male & look is Sporty Look. Yamaha Made a different strategy by lunching this product to attract the new generation consumers and defense against the Market Leaders like Pulser and CBZ

* Price-

Now the Main part is Price, As Yamaha itself a great brand image but due to maximum product lines with different pricing structure, the costumers are in confused to purchase bikes, and Yamaha Made the pricing strategy not penetrating but Follow the leader Pricing, Means the price is as equivalent with the leaders products

* Promotion-

The Promotion Made by YAMAHA is simply greatest among all the campaign planning, YAMAHA Made the Campaign of DHOOM Movie for lunching the FZ in Market by the Brand Ambassador Mr.Jhon Abraham

* Place-

The Yamaha lunched his Product in Metros and Big Cities initially to check the response and after that commercial the product all over in India.

MARKET POSITIONING BY YAMAHA FZ

Yamaha Generally using Niche Marketing Strategy for the Young generation by making Dhoom Campaign as Brand Slogan

Yamaha Made the Colors and Designs different than competitors and Positioning in a different attributes inside the mind of the consumer.

FINDINGS

My Findings throughout this study is

* Demarketing is Essential for the marketers to take appropriate decisions against the Budget allocation and Product Modification.

* Again Demarketing not only make the Demand and Supply Parallel but minimize the Weakness of a brand by making thirst for the product.

* Demarketing Strengthen the Brand and Emotional Bonding with the Consumer.

* Demarketing is a Process to take appropriate decisions for the Marketing Mix and Positioning of the products.

CONCLUSIONS-

Marketing is an unending process, yesterday is not like today and tomorrow is different than today, So Continuing with same strategy will hamper the organization growth and good will. Demarketing is a vast decision to withdraw the product for modification and development. But somehow it's flexible to take this decision for future growth.

Demarketing is always a part of consumer satisfaction and sustains the consumer with quality products, The Marketers need time to parallel the supply and Demand, It's related to maintain the Bargaining power of both Buyers and Suppliers.

At-last Demarketing is a decision made by the marketers for 360 degree analysis of the marketing aspects.

REFERENCES

* Relationship behavior between customers and service providers in demarketing situations: What makes customers try to improve their relationships Received (in revised form): 3 rd November 2011, Munshik Suh, Taeseok Rho, Henry Greene.

* Kotler on Strategic Marketing by John Roberts, Alvin Silk, Glen Urban (volume editor), and Jerry Wind.

* Has marketing come full circle? Demarketing for sustainability Kamaljit Sodhi.

* David Cull wick Positioning Demarketing Strategy

* Demarketing Strategy by Eitan Gerstner, Department of Business Administration North Carlonia State University & James Hess John M Olin College of Management, Washington University, Wujin Chu Sloan School of Management

* Narshmiha, Chakaravarti Price Discrimination Strategy.

* Consumer Behaviour and its Impact For Biju Pattnaik University of Technology, Odisha,Kalayani Publication House  Vol-I,2006 Edition
 


Prof. Swagat Kumar Rath
B.E, MBA (Marketing and HR)
Assistant Professor MBA
Shri D.B. Pawar College of Management
University of Pune
Maharashtra

Prof. Soumyamoy Maitra
B.E, PGDBM, PH.D (P), NET
Assistant Professor MBA
NSIBM
Chaibasa
 

Source: E-mail August 21, 2014

          

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