Marketing Assignment:Demarketing

Marketing Assignment:Demarketing

The business world is competitive, and many companies spend a lot of money marketing their products or services. However, there are situations when the industry decided to do demarketing to reduce the demand for goods and services. Therefore, demarketing is the process in which a firm or organization discourages the consumption or use of their product and services. It can also be defined as advertising goods and services to reduce the demand that is in short supply; thus, it discourages consumers from acquiring the said products.

An example or case scenario of demarketing in business has been witnessed with the TATA group. Since the production of Tata Nano by TATA Company, its demand kept on increasing daily. With time its need outweighed its supply. To carry out demarketing, the firm stopped marketing Tata Nano and focused on other products produced by the same company.  The choice was beneficial to the company since, in the long-run, they generated massive profit from the sales of other products as well as from the Tata Nano that was still available.

However, demarketing happens because of various reasons. First, when the demand is higher than the expected supply. Secondly, when the natural resources being used for production have to be conserved. Also, when there is inadequate or no distribution channel, and when the cost of advertising the goods and services is high. Additionally, a company might opt to demarket a product because of the harm the commodity might have to the consumer, such as alcohol or cigarette.  Finally, when the price of selling a particular commodity in some regions is higher.

International Expansion

International expansion is the involvement of a business to reach other nations worldwide. The firm enters the oversea market, establish a growing presence, and generate enough revenue (Hoffman, Munemo, & Watson, 2016). An example of a company that has successfully expanded internationally is Amazon. Amazon.com is one of the companies that are well known worldwide for its success. It is a United States-based e-commerce ‘giant.’ It owns a broad product portfolio, which enables it to reach many customers. The company offers its customers one shopping environment where they can get apparel, groceries, and electronics. The firm has expanded to reach many nations globally. It has numerous warehouses geographically spread in various countries. Additionally, it offers free shipping costs. Further, the firm has ‘e-tailing’ that enables its customers to purchase goods online without reaching their warehouses.

The expansion of Amazon Company internationally is among the thriving industries that have had positive benefits for its development. The strategy was successful. It has enabled it to reach many of its customers and cater to customers’ needs. The company has also generated profit and operated internationally for over six years. Further, it has enabled shopping easier through the e-shopping found online (Blagova, 2015). Additionally, it has already owned a significant market share in many developed and developing western nations. Finally, the firm has adept at maintaining supplier prices pressures at bay. However, the company is also experiencing competition from other businesses such as Wal-Mart, which are striking a strategy to combat Amazon’s growth.

How to Develop a Pharmaceutical Company Portfolio

Many pharmaceutical industries are facing competition in the fast-moving global market. Therefore, pharmaceutical companies have opted to implement project portfolio management to manage their new products in the market correctly. Project portfolio management requires a team that is independent of various factors. It a dynamic decision process that facilitates assessment, selection, and prioritization of the new product to be advertised. A typical pharmaceutical company would organize its R&D portfolio by therapeutic category. Nonetheless, each class of the drugs targets a specific population.

However, for the development of a pharmaceutical portfolio, there are various stages a company undertakes. According to Regulatory Compliance Associates (2017), the first stage is to carry out a needs analysis of a pharmaceutical company. Here the firm considers the therapeutic areas and product strategies to advertise it. Secondly, there is an evaluation of assessing the process. This is often followed by the partnership and strategic alliances to implement the portfolio. The firm then carries out R&D portfolio prioritization. Finally, there is stage-gate governance, where the portfolio aligns all product development with the available resources and monitors the progress against deliverables.