Social Criticism of Marketing

Chapter 4 p.108-118
Marketing’s Impact on Individuals
Chapter 4 (pages 109-115)
 High prices due to high costs of distribution
– advertising + promotion costs
– excessive mark-ups
 Deceptive practices (‘green washing’ vrs true greening of the environment)
 (See Air Canada pricing article)
 High pressure selling
 Shoddy or unsafe products (Canada Packer’s tainted meat with Listeria; X-L
Foods with E. Coli; Mattel toys with lead paint)
 Planned obsolescence
 Poor Service to disadvantaged consumers ie 2 tiered medicare
system
Marketing’s Impact on Society
Chapter 4 (pages 116-118)
 False wants & too much materialism
 Too few social goods (highway repairs vs. vehicles)
 Cultural pollution (billboards everywhere. See article re Plateau Montreal area bylaw)
 Too much political power
(the oil, tobacco, auto industries)
Intro to Marketing
Chapter 1
Universal Functions of Marketing
Internal
 Transactional:
– Buying & selling (exchange & promotion process)

 Logistical:
– Transporting & storing (material handling & distribution)

 Facilitating:
– Assorting (6 pack of cereal)
– Sorting (bulk breaking)
– Grading (into quality standard)
– Risk taking (obsolescence, shrinkage, etc)
– Marketing information
– Quality control & testing
– Financing (to provide credit)
Marketing Tasks & Goals
External
 Conversional (Aleve, Advil)
 Stimulational Bayer Aspirin for pain relief & heart attack prevention
 Developmental (Arm & Hammer baking soda) or Bayer Aspirin as noted above
 Remarketing Las Vegas = ‘sin city’, Carlos Santana, ‘diamond’ shape Shreddies,
Rambo # 4, The ‘Expendable’ actors)
 Synchromarketing (Summer/X-mas movies, ‘Windows 8 vrs Windows 8.1
software or Iphone 5 vrs Iphone 5s)
 Maintenance Marketing
 Demarketing (to limit consumption: Seagrams, Shell Oil, Grand Canyon
overcrowding; Loto Quebec re gambling)
 Counter Marketing (to destroy consumption: Vioxx, Coke Classic, Rely Tampons,
Tylenol, Perrier, Baush & Lomb – ‘Renue’ contact solution); Maple Leaf Foods ref Listeria outbreak.


 Q: How do we ‘counter’ cigarettes ? ie make them ‘limp’ cigs for males???
Levels of Marketing
 Micro - a firm’s performance of accomplishing it’s objectives of
providing a correct flow of goods & services.

 Macro - a socioeconomic process directing the flow of
supplies to those flows of demand and accomplishing the short &
long run objectives of society.
Macro – Micro dilemma
 Casinos, pesticides, alcohol, guns, cigarettes, etc. are good for some
industries, but may be harmful to our society in the long run.

 What’s the solution?
Purpose of Marketing

 Attract new clients with superior value.

 Keep & grow clients by delivering satisfaction.


Definition of Marketing
Old AMA definition: ... a series of business activities characterized by the flow of
products & services from producer to the consumer.

 Flaws in the above:
a) Needs of the consumer are not defined

b) Definition sounds like strictly a distribution
activity

c) Fails to recognize the use & need of
marketing by non-profit or non business
organizations. (Churches, hospitals, museums, etc.)
Non-profit / Non-business Organizations
For Example:

Organization Product Target market
Government Honest government Voting public
Museum Cultural appreciation General public
University Education Students
Police Safety General public
Church Religious experience Members
Kotler’s definition: a human activity directed at satisfying needs
& wants through exchange processes.
Definition of Marketing
Marketing Management Defined
 The activity, set of institutions, & processes for creating, communicating,
delivering, & exchanging offerings that have value for customers, clients,
partners, & society at large. AMA 2007


 The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in
return (page 5)







Production era


Sales era


Marketing concept era


Market orientation era
1860 1880 1900 1920 1940 1960 1980 2000

Four different orientations in the history of North American
business
Designing a Customer-Driven
Marketing Strategy
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Marketing Management Orientations

Sustainable Marketing
Chapter 4 (page 108)
 Marketing that meets the present needs of consumers &
businesses while preserving or enhancing the ability of future
generations to meet their needs.


(The societal concept focuses on business’ current needs, not future ones à la
‘sustainable marketing’)
Sustainable Marketing
Meeting needs of consumers while preserving the
ability of future generations to meet their needs


Figure 20.1

Quick summary
Time Focus Emphasis Objective Method
Pre 1960 Producers Selling Consumption Advertising
1960-1973 Consumers Marketing Customer satisfaction Product development
1973-1989 Resources Demarketing Conservation Customer research
1990- Expansion Global New marketing NFTA, EEC
2010- Sustainable
Marketing
Resources Future of planet Ethical & long term
selling
Marketing Concepts ( p.10-11)
 Production – affordability and availability.
 Product – quality and innovation.
 Selling – promotion and hard selling.
 Marketing – customer satisfaction and relationships.
 Societal – long-term value to both customer and society.
Marketing Management Philosophies
 The Production Concept
– Management focus on production and distribution efficiency (ie.
Economies of scale)
– Consumers favour
 Readily available products
 Affordable products
Marketing Management Philosophies
 The Product Concept
– Consumers favour products offering
 Highest quality
 Best performance
 Most innovative features
 ie. ‘new & improved’
Marketing Management Philosophies
 The Selling Concept
– Sell what you make
– Typically for unsought goods
– Focus on sales transactions
– Driven by excess capacity
– Assumes hard sell customers are satisfied
Marketing Management Philosophies
 The Marketing Concept
– Focus on customer wants and needs
– Delivering satisfaction
 More effectively than competition
 More efficiently than competition
Marketing Management Philosophies
 The Societal Marketing Concept
– Maintain or improve well-being of consumers and society
 Focus on customer wants and needs
– Delivering satisfaction
 More effectively than competition
 More efficiently than competition
– Maintains or improves consumers’ and society’s well-being
Marketing Management Philosophies
make & sell vrs sense & respond (Fig 1.3 p.11)
Factory
Existing
products
Selling and
promoting
Profits through
sales volume
Market
Customer
needs
Integrated
marketing
Profits through
satisfaction
Starting
point
Focus
Means Ends
The production / selling concept
The societal - marketing concept
Differences in Outlook
Topic Societal marketing Production Orientation
Attitude Customer needs
determines plans
Please clients by cost
cutting & innovation
Product offering We make what we sell We sell what we make
Market research Starting point ‘After the fact’ process
Profit Critical objective Accounting residual
Innovation Discover opportunities Focus on technology
Packaging Selling / information
tool
Product protection
Advertising focus Show benefits Show features &
manufacturing detail
Customer credit Customer service Necessary evil
Marketing Myopia (p.7 )
existing wants vrs underlying needs
 What business are you in? (see also Table 2.1 p. 44)
Firm Production oriented
answer
Societal oriented
answer
Film Memories
Phones Communications
Gasoline Energy
Cosmetics Hope
Photocopy machines Automated office
systems

Companywide Strategic Planning

Company Product-Oriented
Definition
Market-Oriented
Definition
Amazon.com We sell books, videos,
CDs, toys, consumer
electronics and other
products online
We make the Internet
buying experience fast,
easy, and enjoyable—
we’re the place where
you can find and
discover anything you
want to buy online
Disney We run theme parks We create fantasies—
a place where dreams
come true and America
still works the way it’s
supposed to
Nike We sell athletic shoes
and apparel
We bring inspiration
and innovation to every
athlete* in the world
(* if you have a body,
you are an athlete)
Growing share of customer – to get more of client’s purchasing into your firm’s other
product lines; ie Amazon with books, jewelry, music, toys, gifts, etc. Virgin brand
products & services. (p.22)

Customer Equity – keep & grow clients long term. The more loyal...the higher the
equity. (Perhaps this is more important than market share or sales). Apple has a high
customer equity..why? (p.23)

Value Proposition – (p.10) Why should I buy your brand rather than a competitor’s?

[Remember that retaining & growing current clients may be more important than
acquiring new ones. This will help increase customer equity.]


Customers (p.24)

The Changing Marketing
Landscape
Digital age
Rapid
globalization
Ethics and
social
responsibility
Not-for-profit
marketing
Major Developments

The New Marketing Landscape
 Challenges
– The Digital Age
– Rapid Globalization
– Ethics and Social
responsibility
– Not-for-profit
Marketing
 Advances in
computers,
telecommunications
information,
transportation
– Customer research and
tracking
– Product development
– Distribution
– New advertising tools
– 24/7 marketing through the
Internet
The New Marketing Landscape
 Challenges
– The Digital Age
– Rapid Globalization
– Ethics and Social
responsibility
– Not-for-profit
Marketing
 Geographical and
cultural distances
have shrunk
– Greater market
coverage
– More options for
purchasing and
manufacturing
– Increased competition
from foreign
competitors
The New Marketing Landscape
 Challenges
– The Digital Age
– Rapid Globalization
– Ethics and Social
responsibility
– Not-for-profit
Marketing
 Marketers need to
take great
responsibility for the
impact of their actions
– Caring capitalism is a way
to differentiate your
company
The New Marketing Landscape
 Challenges
– The Digital Age
– Rapid Globalization
– Ethics and Social
responsibility
– Not-for-profit
Marketing
 Many non-profit
organizations are
realizing the
importance of
strategic marketing
– Performing arts
– Government agencies
– Colleges
– Hospitals
– Churches
Marketing Connections in Transition
Old marketing thinking:
 Sales/product centered…
 Practice mass marketing…
 Focus on product/sales…
 Make sales to customers…
 Get new customers…
 Grow share of market…
 Serve any customer…
 Use mass media…
 Standardized products…
 Sales/marketing responsible for
customer satisfaction/value…
 Go it alone…
 Market locally…
 Profit responsibility…
 Corporations…
 Use marketplaces…
New marketing thinking:
 Market/customer centered
 Selected market segments
 Focus on customer satisfaction/value
 Develop customer relationships
 Keep old customers
 Grow share of customer
 Serve profitable customers
 Connect with customers directly
 Customized products
 Enlist all departments to deliver
customer satisfaction/value
 Partner with others
 Market locally and globally
 Social/environmental responsibility
 Non-profits
 Use market spaces
The distribution activity should not be a concern of the marketing department. The
function of the marketing dept. is to sell the product…Let the rest of the company
handle production and distribution. Comment

The principle of ‘societal marketing’ and the company’s goal of ‘profit maximization’
are contradictory to one another. Comment

How can society ‘counter’ cigarettes?

What is marketing myopia?

The Production & Societal approaches to marketing are similar in terms of the role of
profit, the role of marketing research and advertising. Comment
Questions to consider