Assignment on Societal Marketing Concepts

8/12/2019 Assignment on Societal Marketing Concepts

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A Brief Overview on Societal Marketing Concept & Practices


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Introduction

Business executives are often perplexed by the continuous expansion of society's expectations

of corporations. For example, in the corporate world, numerous laws and extensive

government regulation affect virtually every aspect of business activities. They touch almost

every business decision ranging from the production of goods and services to their packaging,

distribution, marketing, and service. Thus, not only are companies held responsible for

maximizing profits for the owners and shareholders and for operating within the legal

framework, they are also expected to support their employees' quality of work life, to

demonstrate their concern for the communities within which their businesses operate, to

minimize the impact of various hazards on the global environment, and to engage in purely

social or philanthropic endeavors.

The societal marketing concept is an enlightened marketing concept that holds that a company

should make good marketing decisions by considering consumers' wants, the company's

requirements, and society's long-term interests. It is closely linked with the principles of

corporate social responsibility and of sustainable development. The concept has an emphasis

on social responsibility and suggests that for a company to only focus on exchange relationship

with customers might not be suitable in order to sustain long term success. Rather, marketingstrategy should deliver value to customers in a way that maintains or improves both the

consumer's and the society's well-being.

Most companies recognize that socially responsible activities improve their image among

customers, stockholders, the financial community, and other relevant publics. Ethical and

socially responsible practices are simply good business, resulting not only in favorable image,

but ultimately in increased sales.

Societal marketing should not be confused with social marketing. The societal marketing

concept was a forerunner of sustainable marketing in integrating issues of social responsibility

into commercial marketing strategies. In contrast to that, social marketing uses commercial

marketing theories, tools and techniques to social issues.


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Social marketing applies a customer orientated approach and uses the concepts and tools

used by commercial marketers in pursuit of social goals like Anti-Smoking-Campaigns or fund

raising for NGOs.

The Societal Marketing Concept

The societal marketing is a marketing concept that holds that a company should make

marketing decisions by considering consumers' wants, the company's requirements, and

society's long- term interests. The social marketing concept holds that the organizations task is

to determine the needs, wants, and interests of a target market and to deliver the desired

satisfactions more effectively and efficiently than competitors in a way that preserves or

enhances the consumers and the societys well -being. Therefore, marketers must endeavor to

satisfy the needs and wants of their target markets in ways that preserve and enhance the well-

being of consumers and society as a whole. It is closely linked with the principles of corporate

social responsibility and of sustainable development.

The societal marketing concept holds that the organizations should concentrate on the

needs and wants of their customers, and then deliver the desired satisfactions more effectively

and efficiently than competitors, in a way that maintains or improves the consumer's and the

society's well-being. It considers as well the possible conflicts between consumer short-run

wants and consumer long-run welfare. Basically, taking care of society's well-being is good for

business. Societal marketing managers believe that consumers will respond more favorably to

companies which are socially responsible, and react unfavorably to companies which they feel

are not socially responsible. This gives socially-responsible companies a competitive edge over

their competitors.

Environmentally damaging developments should not be financed or should be financed

only following modification to make them more environmentally benign. Similarly, enterprises

and projects promoting environmentally friendly development should be supported. Banks
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Competitorshttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://en.wikipedia.org/wiki/Competitorshttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing


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actively advise their customers in terms of the consideration of environmental criteria in

project planning. Banks tries to adopt good environmental practices in respect of premises,

equipment and consumption of resources and, where practicable, will seek to:

reduce energy consumption and improve energy efficiency

conserve resources and use renewable or recyclable materials

minimize or recycle waste

dispose of waste in an environmentally responsible manner

reduce the use of chlorofluorocarbons (CFCs)

favor suppliers and contractors who adopt environmental initiatives throughsponsorship

History of Societal Marketing

The concept of Social Marketing emerged in 1972, promoting a more socially responsible, moraland ethical model of marketing, countering the consumerism way of thinking that had been

promoted by then.
http://en.wikipedia.org/wiki/Consumerismhttp://en.wikipedia.org/wiki/Consumerism


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It was introduced in an article by Philip Kotler, What consumerism means for marketers in the

Harvard Business Review Journal. The social and societal concerns had existed by then, but it

was not that they became incorporated explicitly in the marketing literature.

Kotler introduced in that period both the concept of Social marketing (extending marketingtechnologies into non-business areas) and societal marketing, arguing that the marketing

concept and its technologies must be tempered and ultimately revised by adopting a more

explicit social orientation.

Kotlers novelty to the marketing concept was the idea of long -run consumer welf are,

emphasizing that the short- term desires might not support the consumers long term

interests or be good for the society as a whole.

Evolution of Societal Marketing Concept

Five orientations (philosophical concepts to the marketplace have guided and continue to guide

organizational activities:

1. The Production Concept

2. The Product Concept

3. The Selling Concept

4. The Marketing Concept

5. The Societal Marketing Concept

The Five Concepts Described

The Production Concept-This concept is the oldest of the concepts in business. It holds

that consumers will prefer products that are widely available and

inexpensive. Managers focusing on this concept concentrate on achieving high

production efficiency, low costs, and mass distribution. They assume that consumers

are primarily interested in product availability and low prices. This orientation makes
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sense in developing countries, where consumers are more interested in obtaining the

product than in its features.

The Product Concept-This orientation holds that consumers will favor those products

that offer the most quality, performance, or innovative features. Managers focusing on

this concept concentrate on making superior products and improving them over time.

They assume that buyers admire well-made products and can appraise quality and

performance. However, these managers are sometimes caught up in a love affair with

their product and do not realize what the market needs. Management might commit

the better -mousetrap fallacy, believing that a better mousetrap will lead people to

beat a path to its door.

The Selling Concept-This is another common business orientation. It holds that

consumers and businesses, if left alone, will ordinarily not buy enough of the selling

companys products. The organization must, therefore, undertake an aggressive selling

and promotion effort. This concept assumes that consumers typically sho9w buyi8ng

inertia or resistance and must be coaxed into buying. It also assumes that the company

has a whole battery of effective selling and promotional tools to stimulate more buying.Most firms practice the selling concept when they have overcapacity. Their aim is

to sell what they make rather than make what the market wants.

The Marketing Concept-This is a business philosophy that challenges the above three

business orientations. Its central tenets crystallized in the 1950s. It holds that the key

to achieving its organizational goals (goals of the selling company) consists of the

company being more effective than competitors in creating, delivering, andcommunicating customer value to its selected target customers. The marketing concept

rests on four pillars: target market, customer needs, integrated marketing and

profitability.


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Distinctions between the Sales Concept and the Marketing Concept:

The Marketing Concept has evolved into a fifth and more refined company

orientation: The Societal Marketing Concept. This concept is more theoretical and will

undoubtedly influence future forms of marketing and selling approaches.

The Societal Marketing Concept- This concept holds that the organizations task is to

determine the needs, wants, and interests of target markets and to deliver the desired

satisfactions more effectively and efficiently than competitors (this is the original

Marketing Concept). Additionally, it holds that this all must be done in a way that

preserves or enhances the consumers and the societys well -being.

This orientation arose as some questioned whether the Marketing Concept is an

appropriate philosophy in an age of environmental deterioration, resource shortages, explosive

population growth, world hunger and poverty, and neglected social services.

Are companies that do an excellent job of satisfying consumer wants necessarily acting in the

best long-run interests of consumers and society? The marketing concept possibly sidestepsthe potential conflicts among consumer wants, consumer interests, and long-run societal

welfare.

Corporate Social Responsibility and Societal Marketing

The societal marketing concept introduces corporate social responsibility (CSR) into marketing

practices. Societal marketing incorporates a focus on the consumers and societys well -being

(Kotler, 2003). Research executed in many countries has consistently shown that consumersexpress a more positive attitude toward a company that practices societal marketing, and

additionally prefer to purchase the products of these companies. However, little research has

considered how and why this relationship between societal marketing and consumer attitudes

occurs, or to uncover the conditions favoring or hindering the development of this relationship.


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As a key member of society, a corporation should take into account the societal needs that are

expected to be met by business. These needs constitute a social demand. Thus, social demand

incorporates not only demand for a firm's products and services, but also extends to the

fulfillment of other societal needs. With this framework in mind, it can be stated that the scope

of a business organization, i.e., what products and services it provides, is determined both by

the organization itself and by society's expectations. Consequently, a firm's mission and

objectives should not only address traditional organizational concerns such as profitability and

markets served, but should also be concerned with determining and meeting various societal

expectations. One of the aspects of the societal marketing includes alliances that have arisen

between environmentalist groups and businesses in the last decade. The new relationships

have been described as path breaking and innovative. Typically, they are distinguishable from

the prior charitable and commercial relationships because they engage the expert knowledge

of the environmental group and involve it, to varying degrees, in joint problem solving or

strategic decision making with the corporate partner. In this category are green product

endorsements, audits by environmental groups of business programs or practices, and joint

projects of the type engaged in by green alliance between McDonald's and Environmental

Defense Fund, where the corporate partner's business practices are evaluated and improved

according to ecological criteria. Green alliances also function rhetorically in a more complexway than traditional business-environmentalist relationships. Green alliances, a strategy within

corporate environmental management, also have symbolic and political value - for both

partners. The corporation borrows not only the environmental expertise, but also the

credibility, of the ecology group, which by its allegiance implicitly or explicitly endorses

company actions. The partnership also brings corporate actors into the group of those to been

trusted with the work of saving the earth.

Social Marketing versus Societal Marketing A Comparison

Many a times people have confused social and societal marketing with even the marketers

sometime not getting to understand that both these terms are completely opposite to each

other. And the basic objective behind both these processes is totally different. The overall


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objective that both these processes have been used to achieve are 180 degrees opposite to

each other. So we just thought to try and shed some light on both these topics.

Social Marketing: - It is a marketing function that is used by the organizations to commercially

spread a social message so that it can benefit the individuals and the society on the whole by

educating the people and society about a social cause to improve their wellbeing.

Societal Marketing: - It is a marketing function in which the organizations identify the needs and

wants of the target market and then align the marketing activities of an organization in such a

manner that their marketing efforts are socially responsible and thereby help the organization

in gaining the trust of the society by having an image of a socially responsible organization, but

still remaining profitable.

Thus we can say that in societal marketing the main focus of the organization is still earning

profits, moving the business forward, but by still keeping the interest of the society in mind.

That means growing the profits, while still providing the benefits to the society. On the other

side social marketing focuses on improvement in living standards of people living in societies by

making improvements in the way they live their lives. So basically it aims on imparting benefits

to individuals and societies and not on profits as such. This shows that social marketing canhave a greater impact on the social well-being as these campaigns can influence even the policy

makers, and people who can influence the policy makers to change the policies to improve the

interests of the society on the whole.

Societal Marketing & Green Marketing

Concept of Societal Marketing: Societal marketing concept holds that the organization is todetermine the needs and interest of the target market and to deliver the satisfaction more

effectively and efficiently than competitors in a way that preserves or enhance the consumers

and socie tys wellbeing. Societal marketing aims towards optimizing the needs of the

consumers with relation to what the product offers. It concentrates on two major dimensions:


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1.TIME DIMENSION: It emphasis that an organization must differentiate between the short run

and long run welfare of the society and thereby plan strategies in keeping with the long run

welfare of both organization and society, rather than purely having a short run view point.

2. TIME DIMENSION: It emphasis that market does not include only the buyers of the product

but also some non users of these products who may be affected due to the production and

consumption of these products.

CONCEPT OF GREEN MARKETING

Green marketing refers to an organizations effort at designing, promoting, pric ing and

distributing products that will not harm the environment. It include all the activities designed to

generate and facilitate any exchanges intended to satisfy human needs or wants, such that the

satisfaction of these needs and wants occurs with minimum detrimental impact on the natural

environment. Green marketing generally involves:

Ecologically safer products.

Recyclable and biodegradable packaging. Energy efficient operations.

Better pollution control.

Todays consumers becoming more cons cious of the natural environment. Thus the businesses

are beginning to modify their own thoughts and behavior in an attempt to address the concerns

of consumers. Thus Green marketing is becoming more important to business

Consumer awareness of environmental issues has grown considerably in the past few years andpresents a good opportunity for companies to differentiate themselves through green

marketing. Green marketing is the marketing of products that are presumed to be

environmentally safe or friendly. Thus green marketing must take into consideration a broad


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range of activities, including product modification, changes to the production process,

packaging changes, as well as modifying advertising.

The term "Green marketing" refers to the planning, development and promotion of products or

services that satisfy the needs of consumers for quality, output, accessible prices and service,

without however a negative effect on the environment.

Green marketing has been around for longer than one might suspect in fact, a workshop on

ecological marketing was held by the American Marketing Association in 1975. Since then, the

definition has been refined and segmented into 3 main buckets:

Retailing Definition: The marketing of products that are presumed to be

environmentally safe.

Social Marketing Definition: The development and marketing of products designed to

minimize negative effects on the physical environment or to improve its quality.

Environmental Definition: The efforts by organizations to produce, promote, package

and reclaim products in a manner that is sensitive or responsive to ecological concerns.

All three of these definitions speak to the fact that green marketing involves informing

consumers about initiatives youve undertaken that will benef it the environment, with the

overall goal of improving sales or reducing costs.

Unfortunately, a majority of people believe that green marketing refers solely to the promotion

or advertising of products with environmental characteristics. Terms like Phosphate Free,

Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things

consumers most often associate with green marketing. While these terms are green marketing

claims, in general green marketing is a much broader concept, one that can be applied to

consumer goods, industrial goods and even services.

Green marketing has not lived up to the hopes and dreams of many managers and activists.

Although public opinion polls consistently show that consumers would prefer to choose a green


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product over one that is less friendly to the environment when all other things are equal, those

other things are rarely equal in the minds of consumers.

Companies Employing the Societal Marketing Concept

McDonald's is the leader of the fast-food industry, with worldwide operations employing

approximately 500,000 people in 11,000 restaurants and serving 22 million customers a day. At

the time Environmental Defense Fund (EDF) approached McDonald's, its entanglement in

controversy over its packaging frustrated the company. From EDF's perspective, McDonald's

leadership position, its problematic history of waste management, and the iconic value of waste

management as an environmental issue made the company an attractive candidate for

partnership. EDF saw significant opportunity for both environmental action and a major, high

visibility, opportunity to test its innovative approach to environmental problem-solving through

corporate partnerships. Plastic had been demonized by several environmentalist organizations.

The use-and-dispose philosophy at the core of McDonald's business and its distinctive plastic

clamshell sandwich boxes, which helped to make the company one of the largest single users of

polystyrene in the United States, had made McDonald's a continuing target of ecology groups.

Throughout the late 1980s, McDonald's instituted and publicized a number of environmentally

positive steps in its domestic operations. It reduced consumption, for instance, by using lighter


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weight paper in straws, paper bags and other items and recycled paper and cardboard

packaging. In 1987, it switched from polystyrene blown with CFCs, the family of chemicals

which destroy the ozone layer, to plastic foam that used hydrocarbon blowing. In 1989, the

company instituted a pilot program in 450 New England stores to recycle its plastic clamshells.

In April, 1990, it committed $100 million, or one quarter of the company's annual building and

remodeling budget, to buy recycled materials for restaurant construction, remodeling, and

operations under a program called "McRecycle"

In 1989 and 1990, McDonald's bolstered its environmental management practices with a

proactive public relations campaign. McDonald's also offered in-store flyers to educate

customers about the company's environmental management practices, policies, philosophies,

and positions on particular issues such as rainforest beef and the ozone problem. Brochures on

environmental topics, including packaging, were available from its public relations department.

In addition, McDonald's worked with several different environmental and nonprofit groups

(e.g., the World Wildlife Fund and the Smithsonian Institution) to coproduce elementary school

materials on the environment. McDonald's positions itself as having concerns ecological and

practical, social as well as economic. Second, McDonald's positions itself as one of a community

of stewards of the earth. McDonald's defends its environmental record by listing specific

actions that it has taken to manage waste and conserve resources by reducing, reusing andrecycling materials. It cites experts who support its position on plastic packaging and who point

out the small contribution of the entire quick-service restaurant industry to America's waste.

Coca- cola is a soft drink company started early in the 90s in USA. After gaining a good market

value in the world the company looked out for promoting large people towards their products.


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As a result they formulated an awareness program in the African countries about the HIV

awareness.

In the 2001 the Coco-Cola African foundations was formed to reduce the impact of HIV

AIDS on Coca-Cola 60000 employees and 40 independent bottlers in Africa. At present,

100 percent of the coca- colas independent bottli ng companies in 54 African countries

are enrolled in the foundations programs.

All their employees and the employees families are eligible to receive benefits,

including access to antiretroviral drugs, testing, counseling, prevention, and treatment.

The foundations outreach also extends beyond employees and into community.

It focuses its efforts on three factors which Coca- cola operates: healthcare, education,

and the environment. The many projects are supported by the foundation cost millions

of dollars each year, but coca- cola offers more than just funding. By using its

distribution network, one of the most extensive in Africa, coca-cola can transport vital

materials to the remote part of the continent.

It reach areas of Africa which the AIDS/HIV workers have not previously had easy accessand thereby ensure that people in those areas can obtain information about the

prevention and treatment of HIV/AIDS. Even Coca- Colas marketing expertise is being

used to raise awareness of key issues of such as HIV prevention. By leveraging its

corporate assets, Coca-Cola has made contribution to all African communities.


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Nike, Inc., a marketer of athletic shoes and sports apparel, has grown into a large multinational

enterprise through a marketing strategy centering on a favorable brand image.

In 1996, NIKE decided to design a new, state-of-the-art campus for its European

headquarters in the Netherlands. A complex of five new buildings, the campus was

designed to integrate the indoors with the surrounding environment, tapping into local

energy flows to create healthy, beneficial relationships between nature and human

culture.

We had come to see that our customers' health and our own ability to compete are

inseparable from the health of the environment," said Darcy Winslow, one of the early

leaders of the sustainability movement within the company. Product innovation and

performance remained Nike's first priority, she said, "but our sense of design excellence

had expanded to include a commitment to ecological intelligence, to fully understanding

the impacts of our products on the natural world."

Nike's first steps toward ecologically intelligent product design began with materials.

Together they sought to determine the chemical composition and environmental effectsof the materials and manufacturing processes. Using natural flows of energy and

nutrients as models, these product materials are designed to flow in closed loop cycles,

eliminating the concept of waste while enhancing and replenishing both nature and

commerce.

With its Management of Environmental Safety and Health program, for example, Nike

has merged health and safety metrics with a Nike management model to create aframework for sustainability suitable for its Asian contract factories.


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Body Shop: Body Shop is a cosmetic company found by Anita Roddick. The company uses only

vegetable based materials for its products. It is also against Animal testing, supports community

trade, activate Self Esteem, Defend Human Rights, and overall protection of the planet. Thus it

is completely following the concept of Societal Marketing.

Ariel is a detergent manufactured by Procter and Gamble. Ariel runs special fund raising

campaigns for deprived classes of the world specifically the developing countries. It also

contributes part of its profits from every bag sold to the development of the society.

British American tobacco Company: BAT is a British based Tobacco company. It was found in

the year 1902. BAT is involved in working for the society in every part of the world. It conducts

tree plantation drives as part of its societal marketing strategy.


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Conclusion

We have studies that affinity marketing initiatives, especially societal marketing initiatives, have

the potential to improve consumers attitudes about a brand in a number of different ways.

How much a given initiative will help or hurt a given brand will, of course, depend on the

characteristics of its target markets.

While consumerists and other critics of the selling concept regularly and loudly chastise

business organizations for employing marketing strategies and campaigns which are ostensiblybased upon assumptions of consumer ignorance and irrationality, these same guardians of

consumer interest are typically synonymous with those pushing organizations most forcefully

into programs of social responsibility and the societal marketing concept.

It must inevitably be those organizations which are encouraged to view their consumers as

ignorant or irrational that can and will most easily extend that notion to discover opportunities

for exploiting that ignorance and irrationality. It is for this reason that those espousing thesocietal marketing concept of business can be seen as the greatest danger to consumer

sovereignty and consumer welfare. Yet it is a corollary rule that in reducing one individual's

power, all others with whom that person deals have their relative power increased. By forcing

consumers into the roles of ignorant, helpless, and mindless children in need of protection and


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corporate welfare, advocates of the societal marketing concept have liberated consumers from

both responsibility and power, and have concomitantly made business more powerful.

Bibliography

http://jan.ucc.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.html

Source: Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New Jersey:

Prentice Hall.

http://basicmarketingfundas4u.blogspot.com/

http://en.wikipedia.org/wiki/Societal_marketing

Crane, A. & Desmo nd, J. 2002, Societal marketing and morality, European Journal of

Marketing, vol. 36, no. 5/6, pp. 548-69.

Hoeffler, S. & Keller, K. L. 2002, Building brand equity through corporate societal marketing,

Journal of Public Policy & Marketing, Spring, vol. 21, no. 1, pp. 78-89.
http://jan.ucc.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.htmlhttp://basicmarketingfundas4u.blogspot.com/http://basicmarketingfundas4u.blogspot.com/http://en.wikipedia.org/wiki/Societal_marketinghttp://en.wikipedia.org/wiki/Societal_marketinghttp://en.wikipedia.org/wiki/Societal_marketinghttp://basicmarketingfundas4u.blogspot.com/http://jan.ucc.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.html

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