TOPIC:

SOCIETAL
MARKETING
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Overview
• Evolution of societal marketing and
Value
• Societal marketing approach to create
value
• Case study- Amazon

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 Societal Marketing Management
Orientations

Production Product Selling Marketing Societal

concept concept concept concept concept

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Marketing Management Orientations

Production concept is the idea that

consumers will favor products that
are available or highly affordable
•This seems a viable strategy in a
developing market where market
expansion is the survival strategy
for the business
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Marketing Management Orientations

Product concept is the idea that

consumers will favor products that offer
the most quality, performance, and
features. Organization should therefore
devote its energy to making continuous
product improvements.

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Marketing Management Orientations

Selling concept is the idea that consumers

will not buy enough of the firm’s products
unless it undertakes a large scale selling
and promotion effort
- The selling concept is practiced most
aggressively with unsought goods, goods
that buyers that do not think of buying
such as insurance, encyclopedias and
cemetery spots

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Marketing Management Orientations

Marketing concept is the idea that achieving

organizational goals depends on knowing
the needs and wants of the target markets
and delivering the desired satisfactions
better than competitors do
Emerged in 1950s
Dell computer- Not the perfect computer but
provides product platforms on which each
customized as per consumer requirement
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Marketing Management Orientations

Societal marketing concept is the idea

that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run
interests

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Designing a Customer-Driven Marketing
Strategy

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Sustainable Marketing

•Sustainable marketing is the adoption of

sustainable business practices that create
better businesses, better relationships and a
better world.
•This emergence with societal marketing,
ecological marketing, green marketing and
environmental marketing

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Sustainable Marketing

•Emphasize the triple bottom line of

environmental, economic and social issues.
•http://www.ethical.org.au/
•http://www.ecostore.com.au/products/laund
ry-powder-top-and-front-loader

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What can be marketed?

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What can be marketed?

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What is Marketed? • Goods (products)
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas

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Marketing is all about making
our lives better, rather than the
myth of it being an evil tool
used by forceless corporation to
exploit their customers

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The Marketing of Value

•Value- the benefits (tangible or

intangible) a customer receives from
buying a good or service
•Marketing communicates these benefits
as the value proposition to the customer

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 Customer Value Reflects Benefits
&Costs
• Customer value concerns the difference between the
benefits a customer sees from a firm’s market offering
and the costs of obtaining those benefits

The customer’s view of costs

and benefits is not just
limited to economic (or even
rational) considerations--and
a low price may NOT result in
superior value.

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 Customer value requirements
•Offer products that perform
•Give consumers more than they expect
•Avoid unrealistic pricing
•Give the buyer facts
•Offer organisation-wide commitment in service
and after-sales support
•Organisation-wide commitment to ethical
conduct and sustainable business practices
https://www.youtube.com/watch?v=rbPCQZvVE
K8
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 Customer Perceived Value
Examples
Nike
- endorsed in professional NBA player Michael Jordan
- a special line of shoes - the Air Jordan(s).

- With commercials of Michael Jordan doing the "impossible," who could resist
such hype?
- Air Jordans released a limited edition every year with a set amount available
- these shoes go for more than $500.00 on eBay

In reality,
- Do Air Jordans really make you become a better basketball player?
- Does it actually help you run faster, jump higher, and do the impossible?

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Value example
You need to buy a pair of shoes…
What are your considerations..?

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 Value Proposition
Value proposition Set of benefits or values a
company promises to deliver to customers to
satisfy their needs

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 Value Proposition

https://www.youtube.com/watch?v=ku3SDndo_F4
Volvo
Core positioning:
• Safety

Other benefits:
• Good performance
• Design
• Environmentally friendly

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 Satisfaction

A person’s feelings of pleasure or

disappointment that result from
comparing a product’s perceived
performance to (or outcome) to
expectations.
https://www.youtube.com/watch?v=vC58URpEqn4&list=PLB8E30F7A71C92
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Discussion: What is your experience on any product or service satisfaction or
dissatisfaction or DELIGHTED?
 Customer Satisfaction

Expectations

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 Building Customer Relationships

•Relating with more carefully selected customers

uses selective relationship management to
target fewer, more profitable customers
•Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks

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Customer Relationship Management (CRM)

the process of carefully managing

detailed information about individual
customers and all customer “touch
points” to maximize loyalty.

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Capturing Value from Customers

Creating Customer Loyalty and Retention

Customer lifetime value is the value of the
entire stream of purchases that the customer
Would make over a lifetime of patronage
https://www.youtube.co
m/watch?v=gtvPxWQ097g

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Value chain

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Marketing: A value chain
perspective -an integrated process

Configure

Understand Communicate

Deliver
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The Reality of Marketing

Limited Resources
Budgetary Constraints
Market share vs Profits

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Delivering value

Making marketing value decisions

Understanding customers’ needs

Creating the value proposition

Communicating the value proposition

Delivering the value proposition

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Preparing an Integrated Marketing Plan
and Program
The marketing mix: set of tools (four Ps) the
firm uses to implement its marketing
strategy. It includes product, price,
promotion, and place.
Integrated marketing program:
comprehensive plan that communicates and
delivers the intended value to chosen
customers.

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 The Changing Marketing Landscape

- Uncertain Economic Environment

• New consumer frugality
• Marketers focus on value for the
customer

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The Changing Marketing Landscape

- Digital Age
• People are connected continuously to
people and information worldwide
• Marketers have great new tools to
communicate with customers
• Internet + mobile communication devices
creates environment for online marketing

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Value from society’s perspective

- Environmental friendly
- Green marketing
- Sustainable marketing
http://www.virginaustralia.com/au/en/about-
us/sustainability/carbon-offset-program/

Coles Australia Sustainability

https://www.youtube.com/watch?v=wZp-
HJdUZIU
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So, What Is Marketing?
Pulling It All Together

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Case study

Amazon
• A good example of a company taking a
societal marketing perspective

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