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Human nature and the marketing concept

Article  in  Marketing Theory· Dec 2004


by Rob Lawson and Ben Wooliscroft (University of Otago)

P RES E N TE D BY – P RA N AV N I J H AWA N ( P H D 2 11 0 )
About the Authors

Rob Lawson Ben Wooliscroft


Two Distinct Marketing
Philosophies
Introduction
Marketing Theory and Classifications – Implicit Assumptions Human nature
Product Groupings (Copeland, 1925), Consumer Behaviour
Human Nature – Degree of Motivation arousal , Attitude, Behavior, Self Serving Nature
Philosophy – General Rules about Reality, Nature, Knowledge, Existence, Rules Govern Behaviour
of Humans
This Article – Review some of important Writers works – Rousseau, Hobbes, Mc Gregor, Freud
Sartee, Foucault etc. – Philosophical Treatise (Contributions to Debate on Human Nature- Relevant
to some core ideas in Marketing Management)
In Particular – Contrasting Views of Human nature (implicit assumption buying behaviour) compare
it to two Contrasting Marketing Philosophies – Sales Concept and Marketing Concept (McGregor -
Theory X and Y and Hobbes & Rousseau ideas)
Is our Implicit Assumption of Human Nature true or is it something more to these contrasting
Marketing Philosophies and Ideas

Ultimately keep some of these ideas and how understanding the nature of
mankind is fundamental, help us to develop and understand Marketing Theories
Thomas Hobbes (1588-1679)
Considered as one of the founders of modern political
philosophy, with interest in wide array of subjects

Best known for his 1651 book Leviathan, formulation of


Social Contract theory

Gave the idea – Self serving and self interest nature of


man drawing parallels with Machiavelli.

Compliance with social systems is required to avoid


self-destruction basis of social contract

Transactions and relationships are ‘negotiated’ on the


basis of the utility – Basis of Social Exchange Theory

Essence of cooperation and competition.

View of Motivations , has been linked to contemporary


views of market place behaviour inherent in different
orientations that might be held by the firm
Jean Jacques Rosseau (1712-1788)
His political philosophy influenced the progress of
the Enlightenment throughout Europe, as well as aspects of
the French Revolution and the development of modern
political, economic, and educational thought.

Ideal citizen who is naturally inclined to God and Goodness –


Emilie (1762)

Human Nature, without artificiality and corruption of


Society, is pure and devoid of Evil

Naturally inclined towards Cooperation

His idea of Social Contract - where all men are born free and
equal and in their contract with the State, they surrender
none of their natural rights, forms the basis of Democracy.

Human Nature Self Directed but not Self interest

In market place allow consumers to behave in an


unconstrained, independent way where they voluntarily
participate in the market place as they wish –Underpinning
Market Regulation
Other Writings (19th and 20th
Century)
Previous views of Human nature by Hobbes and Rosseau reviewed- Aspects of human behaviour are influenced by our
genetic make-up and how mankind adjusted to and reflected the social environment in which they lived.
Emerson, Freud, Sartre, and Foucault - nature is related to, or determined by, its relationship with the environment in
addition or in contrast to intrinsic motivations.
Emerson (1803-1882) – In his book Nature (1836) - achieving self reliance and independence are portrayed as goals for
individual aspiration irrespective of the dominating social institutions – Degree of Independence
Sigmund Freud (1856-1939) - All behaviour is explicable if the unconscious processes are examined appropriately. Human
Mind functional system that guide motives, feeling and actions of individuals. Freud’s conceptualization of drives, especially
emphasizing sexual urges, has been very influential in determining practice in advertising. Idea of determinism – Grounded in
cognititive aspects of psychology – consumer research since 1950’s and attributable to defining mental constructs such as
attitudes etc.
Sartre (1905-1980) - Ego is created by consciousness and does not have a subliminal existence as a repository for different
drives. Second important feature – Transitory nature of this consciousness and consistent self-identity is impossible –
Implications for marketing particularly in Branding and Segmentation
Foucault (1926-1984) - No attempt to develop a single theme in his writings or employ a consistent methodology. He focuses
on structures, more than mankind, that determine and reflect the power of relationships in society. Thus , previously thought
naturally determined objective phenomena are socially constructed ideas. Human nature is created by the exercise of power
and emphasizes on Norms. Influenced Marketing ideas of McCracken
Further these ideas have also influenced Macro ideas of Marketing and Organization – Functionalism and Systematic view
(Behaviorist view)
McGregor's Theory X and Theory Y
Dichotomy – Human Nature
Theory X - People are inherently lazy, motivated by outside incentives,
similar to Hobbes view
Theory Y - people are self-motivated and self-controlled, Similar to
Rousseau’s view
This dichotomy – compared to consumer behavior concepts –
Marketing and Sales concept (Lawson, 1986)
Sales Concept – Theory X – Hobbes View
Marketing Concept – Theory Y - Rousseau’s view

Marketing Concept, a far more optimistic view as compared to sales view


Sales and Marketing Concept -
Revisit
Marketing literature have preached a uniform idea and documented how marketing Philosophies
changed over time (Keith, 1960; Kotler)

But certain Question remains – Marketing Concept as equivalent to Enlightment in Business?

Do Consumers Behave Differently during Different Time Periods ?

OR
Are these concepts and Philosophies mutually exclusive?

OR
Is it the change in the mindset of Organizations and Institutions and other contextual and external
factors that makes us bring in new concepts and shift in Philosophies ?

The key is to not mislead ourselves


with oversimplified Descriptions.
This will lead us develop better
Theory over time .
Conclusion and Learnings
Whenever we form a theory or concepts , assumptions should be made explicit -Specially
nature of mankind- Help to explain conflicting views
When seeking to develop theory – Consistently remind ourselves of dangers of
Oversimplification
Evolutionary Model far too simple
Hunts Resource Based Theory , Aldersons marketing Theory, Foxall’s consumer Theory etc.
Marketing is a subset of human, economic and social behavior
A simple dichotomy in marketing that is based on different assumptions concerning human
nature can be improved if the argument is placed in the appropriate historical context –
Better Acceptability
Be conscious of history and refer to Philosophy - – Ontology, Epistemology and
Methodology

All these ideas would help us to build a strong Foundation which can then pass the test
of time and legitimacy with general Audience
Thank You

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