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BY K. RAJESWARI 087MB142
SOCIETAL MARKETING CONCEPT – in brief
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. Under the Societal Marketing Concept organizations have to balance company profits, customers’ wants and the society's interests There seems to be a lot of confusion over what is meant by "societal marketing". For one thing, it has nothing at all to with using social networking sites as a marketing tool. Also, it is not the same as niche marketing, or the targeting of marketing towards particular social groups, although there are connections. It must also be distinguished from "social marketing", which refers to the deliberate use of marketing techniques to achieve a social end, or what might be termed social engineering via the marketplace. E.g. Marketing condoms with the stated aim of reducing HIV/Aids infection Societal marketing has only one meaning, which is the consideration of the wider social aspects of marketing a particular product to a particular group. It is therefore an aspect of ethical marketing. Societal Marketing has gained immense importance during the past years. It is basically the marketing decisions of a company that not only
consider the consumer's wants, the company's own requirements but also give importance to society's long term interests. It is based on the concept of social responsibility. It has become important because of changing consumer trends. People are now more concerned about the overall doings of a company. Consumers and investors increasingly appear to want to purchase products and services from and invest companies that act in social responsible ways. As a bonus, these companies earn both tangible and intangible in a socially desirable manner, it just makes good business sense to take actions the benefit society. E.g. People are really concerned about the use of child labor by companies such as Nike and it actually influenced the sales of its products. That is why, Nike is now trying to focus on the fact that it is not using child labor for its products and it is doing a lot for third world communities where its shoes are being manufactured. COMPANIES CONCEPT COCA-COLA Coca- cola is a soft drink company started early in the 90’s in USA. After gaining a good market value in the world the company looked out for promoting large people towards their products. 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-cola’s EMPLOYING THE SOCIETAL MARKETING
independent bottling 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 it 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 cocacola 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 access and thereby ensure that people in those areas can obtain information about the prevention and treatment of HIV/AIDS. Even Coca-Cola’s 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. LOBLOWS COMPANIES It is an integrated group of food wholesaling and retailing companies. The company more than the employing the marketing concept it introduced product that are environmental friendly. As a result, they formed the product which is called as the GREEN line. The Green-line launch had its origin in one of Dave Nichol’s buying trips to Germany in 1988, where he was struck by the number of grocery
products that were promoted as “ environmentally friendly “. He discovered that The green consumer guide, a “how- to” book for consumers to become best-seller in England. There were three products that have been recommended for the GREEN line: energy efficient light bulbs, toilet tissue made from the recycled paper or a high- fiber cereal. They added 100 products to the GREEN line and all of them were either environmentally friendly or healthy for the body. Loblaws contacted a number of prominent environmental groups to assist in the products. Thus by employing the social responsibility concept the company started producing a serious of products which ultimately became the products of the company. NIKE - "Just do it” 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 environmentally responsible, had become a
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 effects of 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 a framework for sustainability suitable for its Asian contract factories. MCDONALDS In April 2008, McDonald's announced that 11 of its Sheffield restaurants have been using a biomass trial that had cut its waste and carbon footprint by half in the area. In this trial, waste from the restaurants were collected by Veolia Environmental Services and used to produce energy at a power plant. McDonald's plans to expand this project, however the lack of biomass power plants in the U.S. will prevent this plan from becoming a national standard anytime soon. In addition, in Europe, McDonald's has been recycling vegetable grease by converting it to fuel for their diesel trucks.
The U.S. Environmental Protection Agency has recognized McDonald's continuous effort to reduce solid waste by designing more efficient packaging and by promoting the use of recycled-content materials. McDonald's report that they are committed towards environmental leadership by effectively managing electric energy, by conserving natural resources through recycling and reusing materials, and by addressing water management issues within the restaurant. When McDonald’s received criticism for its environmental policies in the 1970s, it began to make substantial progress towards source reductions efforts. For instance, an “average meal” in the 1970s—a Big Mac, fries, and a drink—required 46 grams of packaging; today, it requires only 25 grams, allowing a 46 percent reduction. In addition, McDonald’s eliminated the need for intermediate containers for cola by having a delivery system that pumps syrup directly from the delivery truck into storage containers, saving two million pounds of packaging annually. Overall, weight reductions in packaging and products, as well as the increased usage of bulk packaging ultimately decreased packaging by 24 million pounds annually. They have introduced products which are useful the societal environment. As they found the customers are more hygiene concerned and diet conscious they started to do research and development and they produced low fat and cholesterol content. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions.
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