Pamantasan ng Lungsod ng Maynila Intramuros, Manila

Marketing Principles

Research on Social Criticisms on Marketing

Submitted by: Mary Jane Aguila Submitted to: Prof. Perry Tizon

SOCIAL CRITICISMS ON MARKETING In traditional business setting, marketing simply provides consumers the information they want about available products and where to buy them. However, in modern business setting, marketing does more than informing prospective consumers about the availability of products and where the products can be purchased. Marketing today is constantly involve in creating needs and wants, persuading to buy more products, preserving products good image and maintaining high-level of consumers interest. It does more than merely entertaining. It must move consumers to action by form of positive sales and brand preference. This is why marketing receives much criticism. Social critics claim that certain marketing principles hurt individual consumers, society as a whole and other business firms. (Kotler & Armstrong, 2011) Psychology plays an important role between marketing people and consumers. In the book Advertising and Its Mental Laws published in 1916 by Adams, there is an illustration of the way psychologists who were interested in advertising were thinking at that time. The book says: Psychology should be able to help men in two ways. In the first place, it should aid marketers to understand themselves, their strong points, and their limitations. The advertising man is a mental worker. His mind is an instrument that he uses in his work. He must employ workmen who are able to use the tools of their trade and use them not only correctly, but to the best advantage. Since the advertiser is the mental worker, he

should thoroughly understand his mental tool, knowing what it can do what is incapable of doing. A thorough acquaintance with the tool will make him more efficient. In the second place, Psychology should help him by giving the various laws of mental process, how to get and to hold the attention of the reader, how to arrange the advertisement so that it may be read, how to make the commodity remembered by those who read the advertisement under circumstances to use reason why, copy the kind of argument which is likely to appeal , what are the desirable emotions to arouse and how to arouse them; most important of all, how to bring about the desired action on the part of the reader. (Aguas, 2006) Social critics claim that due to heavy marketing practices, with too much psychology involve, individual consumers are being hurt through the following main points: high cost of distribution, deceptive practices, and high pressure selling. High Cost of Distribution One of many criticisms is that goods have higher price due to mark-up imposed by intermediaries. Critics charge that there are too many intermediaries that are inefficient and that they provide duplicate services. As a result, there is high cost of distribution and consumers shoulders these excessive costs in form of mark-ups. Take for example two convenience stores located at Anda St., Intramuros, Manila: 7/11 Convenience Store (owned by Philippine Seven Corporation ) and Almarios Store (local resident). Both are catering the same consumers: college students, foreigners passing by, and

the whole neighbourhood of Anda Street. Both act as a retailer of numerous products to consumers. The big difference is that 7/11 has an established business system and purchases directly to the manufacturers/ distributors. Above all these, it is practically open twenty-four hours daily, seven days a week while Almario store is open 9:00am to 10:00pm daily; six days a week. Citing one example of commodity being sold at both stores is Absolute Distilled Drinking Water (1 liter) that costs Twenty-seven Pesos (P 27.00) at 7-11 against Twenty-five pesos (P25.00) selling price of Almarios. For the purpose of this paper, the price difference of Two Pesos (P 2.00) is represented arguably as distribution cost. Intermediaries answers these criticisms saying that they do the work that otherwise have to be done by manufacturers or consumers themselves. Mark-up represents that consumers themselves wants, such as: more convenience, larger stores and assortments, longer store hours, return privileges and others. Modern marketing is also being accused of pushing up prices to finance heavy advertising and sales promotion. Marketing take advantage on psychological processes which are involved in the potential consumers becoming an actual consumer. In order for the consumer to recall a certain product, marketing people provides presentations that have strong and lasting impact on the senses of consumers. Most common practice is using visual demonstration through televisions, websites, and billboards. Thus, a heavily advertised product tends to have a greater number of memory recalls among consumers which will lead to larger market shares. Critics also contend that a popular product does not necessarily mean that the

product has a much better quality against the non-popular ones. Consumers are only being burdened by additional cost. On the other hand, marketers contend that advertising creates value to the product and provides positive image to the company. Although additional cost is being charge, advertising helps out companies to reach out to public by informing them about its brands and merit. Although branded products are pricey compared to generic ones, it gives assurance to the consumer through consistent quality and security in form of warranty. Marketing Encourages People to Purchase What They Do Not Need

Possibly the criticism most frequently made about marketing is that marketers are only concerned with getting customers to buy whether they want the product or not. The root of this argument stems from the belief that marketers are only out to satisfy their own needs and really do not care about the needs of their customers. While many marketers are guilty of manipulating customers into making unwanted purchases, the vast majority understand that undertaking such tactics will not lead to loyal customers and, consequently, is unlikely to lead to longer term success.

Marketers Embellish Product Claims Marketers are often criticized for exaggerating the benefits offered by their products. This is especially the case with the part of marketing that engages in customer communication, such

as advertising and salespeople. The most serious problems arise when product claims are seen as misleading customers into believing a product can offer a certain level of value that, in fact, it cannot. But sometimes there is a fine line between what a rational person should accept as a reasonable exaggeration and what is considered downright misleading. Fortunately, many countries offer customers some level of protection from misleading claims since such business practices may subject the marketer to legal action. Again, using such tactics is likely to lead to marketing failure as customers will not be satisfied and will likely not return.

Marketing Discriminates in Customer Selection A key to marketing success is to engage in a deliberate process that identifies customers who offer marketers the best chance for satisfying organizational objectives. This method, called target marketing, often drives most marketing decisions, including product development and price setting. But some argue that target marketing leads marketers to focus their efforts primarily on customers who have the financial means to make more expensive purchases. They contend that doing so intentionally discriminates against others, especially lower income customers who cannot afford to purchase higher priced products. This group ends ups being targeted with lower quality (and in some cases less safe) products or for some groups, no product options.

While this criticism is often valid, it is worth noting that while many lower quality products are inferior to current high-end products, comparison of their quality to similar products from just a few years ago shows there has been significant improvement. For instance, low cost

electronic equipment, such as digital cameras, offer more features compared to low cost cameras of just a few years ago. Thus, while certain customer groups may not be the target market for certain new product offerings they may eventually benefit from higher-end products. Marketing Contributes to Environmental Waste In recent years one of the loudest complaints against marketing concerns its impact on the environment. Those critical of marketings effect on the environment point to such issues as:

The use of excessive, non-biodegradable packaging (e.g., use of plastics, placing small products in large packages, etc.)

The continual development of resource consuming products (e.g., construction of new buildings, golf courses, shopping malls, etc.)

The proliferation of unsightly and wasteful methods of promotions (e.g., outdoor billboards, direct mail, etc.).

Marketers have begun to respond to these concerns by introducing green marketing campaigns that are not only intended to appease critics but also take advantage of potential business opportunities. For example, auto makers see opportunity by creating new fuel efficient hybrid vehicles, the demand for which has accelerated in the last few years. Also, certain retailers are finding financial opportunity and promotional value by asserting their marketing muscle to encourage customers to become more environmentally responsible. This can be seen with retailers, such as Wal-Mart, that are shifting its inventory of light bulbs from standard incandescent types to more efficient fluorescent products. It is expected that as environmental activism gains political clout and more consumer support, marketers will see even more opportunity to market environmentally friendly products.

Marketing Encroaches on Customers Right to Privacy In Marketing Research, gathering and analyzing information on the market in which marketers conduct business is a vital step in making good marketing decisions. Often the most valuable information deals with customers buying behavior and especially determining which factors influence how customers make purchase decisions. But to some consumer advocates digging deep into customer buying behavior crosses the line of what is considered private information. Of most concern to privacy advocates is marketers use of methods that track user activity. In particular, they are critical of the growing use of advanced technologies that allow marketers to gain access to customer shopping and information gathering habits. For instance, marketers can use highly advanced techniques to track user activity on the Internet. Some marketers do so using questionable practices, such as loading tracking software onto a users computer, without the knowledge or permission of the user. One type of software called adware allows marketers to monitor users website browsing activity and use this information to deliver advertisements based on users Internet habits. Privacy issues are not limited to concerns with online tracking; marketers also use techniques to track customers offline purchase activity. One example of offline tracking occurs when retail stores match sales transactions to individual shoppers. This is easy to do when customers use purchase cards (a.k.a. loyalty cards, discount cards, club cards, etc.) as part of the buying process. Privacy issues are not restricted to marketing research. Other areas of marketing have also experienced problems. For instance, there have been several recent incidences, most

notably those involving mishandled credit card payment information, where a breach in customer privacy has placed customers at risk. The issue of customer privacy is likely to become one of the most contentious issues marketers face in the coming years. If this continues marketers may soon face greater legal limits on how they conduct business.

We as future Marketers We are studying for our own personal agenda: progress, wealth, learning, and experience could be one among many reasons. We are being given the chance to have the overview of marketing principles and practices. Yet with regards to our social responsibility as future marketers, everything boils down to one main principle: know the right vs. wrong. What could be heavier than that? We could do two things in the future: first, we could grab the seatbelt and enjoy the ride and the flow of money. Second, we could sit back and ponder what mischievous deeds are there in our vast marketing arena, and sort of try to revolutionize the old dirty tricks. Big stuff, you may say. Well, thats why were studying. We could begin perhaps by doing the right things, at the right time, for the right reason. How about giving the right price that corresponds your products and services?

Works Cited Adams. (1916). Advertising and It's Mental Laws.

Aguas, J. J. (2006). Business Psychology: Compilation of Lectures. Manila: UST College of Commerce. Criticisms on Marketing. (2011, March). Retrieved from KnowThis.com: Marketing Tutorials, News, Know-hows: http://www.knowthis.com/principles-of-marketing-tutorials/whatis-marketing/criticisms-part-3/ Kotler, P., & Armstrong, G. (2011). Principles of Marketing . New Jersey: Prentice Hall.