People always think that marketing is all about increasing demand for their products but sometimes this statement does not seems true because one of the important role of marketing is demanding management. Companies always face variable demand for their products in the market it can be very low, low, average, high and very high. This is the task of marketing management to maintain the demand of the products.
This is clear that every company have limited resources for production of goods means limited customers can get the product. If the demand of the product is more than supply then companies have to apply the concept of demarketing or demand management. Demarkeitng not vanish companies product demand but it temporary reduce or shift the demand to balance the things out. This practice remain for temporary duration to level out the demand at the level of supply or below the supply level.
The reason companies not go for over production due to limited facility of resource such as machinery, labor and raw material. In some cases company can raise the capacity but they knew that this fluctuation in only for limited time so they avoid to take risk.The aim of demarketing is not to destroy demand but only to reduce or shift it.
Popular restaurants are some times fully reserved, power companies have trouble meeting demand using the peak usage periods.