SOCIAL RESPONSIBILITY, CONSUMERISM, AND THE MARKETING CONCEPT Robert D. Winsor, Loyola Marymount College ABSTRACT This paper compares the often-criticized “promoting orientation” or “promoting idea” with the commonly-praised “societal advertising and marketing idea “from the views of shopper rationality and persuasibility. It’s advised that each orientations view customers as comparatively irrational and as simply liable to manipulation by entrepreneurs. The implications of this similarity are explored from the views of consumerism and social duty. INTRODUCTION
Critics of promoting have persistently attacked the self-discipline for discounting customers’ intelligence and capability for rational selection and for intentionally confounding customers of their efforts to make rational, knowledgeable, unbiased, and free financial decisions. At the identical time, societal developments have pushed U. S. companies in the path of accelerating concern for social points and consideration to long-run shopper welfare. The aforementioned criticisms and pressures for rising social duty are largely pushed by the identical social paradigms and constituents.
But, it’s noteworthy that the final results of an expanded social duty of enterprise is the concomitant diminishment of free shopper selection. Furthermore, this obstruction of shopper discretion is the inevitable consequence of presumptions of shopper irrationality. Thus, whereas teams similar to consumerists have usually criticized entrepreneurs explicitly for rejecting notions of shopper rationality, these identical teams and sentiments have forcefully promoted the social duty of enterprise and the societal advertising and marketing idea as developments in enterprise thought and follow.
In consequence, contradictions may be seen to exist inside the consumerist agenda, and are obvious (however unacknowledged) in the “societal advertising and marketing idea” and requires rising the duty of enterprise towards social points and considerations. The aim of this paper is to show these contradictions and to elaborate upon their implications for enterprise and society basically. THE EVOLUTION OF THE MARKETING CONCEPT In January of 1960, the advertising and marketing self-discipline entered a brand new age.
On this 12 months, we have been offered with no ground-breaking principle, no pioneering methodology, no sensible adaptation of one other self-discipline’s assemble, and no monumental grant. We have been, nevertheless, given one thing we’d come to treasure way more extremely than any of those. We have been supplied a raison d’etre and a philosophical basis. It was on this date that the Journal of Marketing revealed an article by Robert Keith (1960) entitled “The Marketing Revolution. And, since its publication, entrepreneurs have been in a position to really feel justified in believing that their efforts weren’t solely indispensable, however that they’ve been instrumental in bringing about sweeping enhancements in the evolution of enterprise follow. Though the revolution described by Keith has been tamed to grow to be the “evolution” of the advertising and marketing idea, and the generalizablity of the evolution it described has been questioned by some (e. g. Fullerton, 1988), the transformation in American enterprise described by Keith’s mannequin has nonetheless served as a supply of clarification and justification for advertising and marketing academicians.
The “post-evolution” entrepreneurs have been lent a level of dignity and a way of objective which was conspicuously missing earlier than. Previous to this date, entrepreneurs have been perceived to be at greatest superfluous, and at worst dishonest or unscrupulous. Not that the common citizen considers advertising and marketing in any completely different mild as we speak, however the perception in an evolution of the advertising and marketing idea has allowed the tutorial advertising and marketing group a sure diploma of self-respect. In his article, Keith described 4 “eras” or durations of thought and follow by means of which his group, The Pillsbury Firm, progressed.
Keith believed that these eras have been attribute of most companies which have been contemporaries of Pillsbury, and thus speculated that an general motion was in proof. Since the publication of Keith’s article, different writers have modified, refined, and prolonged the primary thesis advancing this evolutionary course of: Probably the most noteworthy and well-known of those descriptions is that of Philip Kotler. Kotler describes 5 various ideas or philosophies by means of which most companies have developed.
Though any given enterprise can function beneath any of the philosophies, the underlying principle of the evolution thesis is that these philosophies kind a hierarchy, with later philosophies being superior to these of earlier eras (Keith, 1960; Kotler, 1994). The implication is that to maneuver from a decrease stage (earlier) philosophy to that on the next stage (later) just isn’t solely insightful, but additionally good enterprise. The primary eras or enterprise philosophies are termed the “product” and the “manufacturing” ideas.
The product idea emphasizes product high quality and/or efficiency, and assumes that at the least some customers are educated sufficient to acknowledge and respect superior attributes in these areas. The manufacturing idea focuses upon programs for producing massive volumes of merchandise in an effort to drive down prices by exploiting economies of scale. This philosophy is predicated upon the assumption that the majority customers not solely acknowledge, however favor excessive worth (advantages – worth) choices and are educated and rational in deciding on amongst various merchandise.
A later period is called the promoting idea, and is predicated upon the premise that buyers are comparatively uninformed relating to product attributes, or base their choice upon trend or different “non-rational” standards. Furthermore, this orientation assumes that buyers are simply influenced. In consequence, organizations using the promoting idea sometimes resort to aggressive promoting and promotional efforts, with the aim of seducing or coercing prospects into buying the product. A significantly increased aircraft of enlightenment is represented by the advertising and marketing idea period.
The advertising and marketing idea is taken into account to be a quantum leap up the evolutionary hierarchy, and continues to be embraced by a large number of advertising and marketing students and companies. The advertising and marketing idea “holds that the key to attaining organizational targets consists in figuring out the wants and desires of goal markets and delivering the desired satisfactions extra successfully and effectively than opponents” (Kotler, 1994, p. 18; 1977a). The motto of the advertising and marketing idea is “discover a want and fill it,” and its credo is “The Buyer is King. Like the product and manufacturing ideas, however in contrast to the promoting idea, the advertising and marketing idea is based upon the assumption that buyers are educated, clever, and rational, and base their product purchases upon a cautious consideration of the relationship between their very own wants and product attributes. In consequence, the elementary premise of the advertising and marketing idea turns into a concentrate on the shopper as the pivotal level for all enterprise exercise (Barksdale and Darden, 1971).
The considering underlying the advertising and marketing idea was espoused as early as the 1940’s and 1950’s (Samli, Palda, and Barker, 1987; Bell and Emory, 1971). In 1958 the time period “advertising and marketing idea” was coined to explain the philosophy behind this method (see McKitterick, 1958), and “by 1965 virtually all introductory advertising and marketing texts included some dialogue of the ‘new’ advertising and marketing idea” (Bell & Emory, 197 1). The explanation that the advertising and marketing idea was thought of a serious breakthrough in enterprise philosophy is that it represented the antithesis of the product, manufacturing, and promoting ideas.
Somewhat than taking an present product and endeavoring to switch demand for it by including options, lowering worth, or various promotional method, the advertising and marketing idea holds that companies ought to first decide the present wants in the market and then design and produce a product to fulfill this want. On this sense the advertising and marketing idea is pushed by the wants of the market, quite than the present talents of the agency.
The fifth, and supposedly highest stage of evolution in advertising and marketing philosophies is what Kotler phrases the societal advertising and marketing idea. In every of his writings referencing the advertising and marketing idea, Kotler (1972, 1977b, 1994) clearly states his perception that the societal advertising and marketing idea embodies the next and extra enlightened aircraft of promoting thought and follow, and means that this new idea represents an try to harmonize the targets of enterprise to the often conflicting targets of society.
As such, it postulates that the “the group’s process is to find out the wants, desires, and pursuits of goal markets and to ship the desired satisfactions extra successfully and effectively than opponents in a means that preserves or enhances the shopper’s and society’s well-being (Kotler, 1994, p. 29). It must be famous that the societal advertising and marketing idea is based upon one dominant and vital proposition.
That is the assumption that “customers’ desires don’t all the time coincide with their long-run pursuits or society’s long-run pursuits,” and that, given this, entrepreneurs ought to place the “emphasis on ‘long-run shopper and societal nicely being” (Kotler, 1977b). In consequence, the societal advertising and marketing idea represents an endorsement and justification for the social duty of enterprise in modern society, and a refutation of Milton Friedman’s notorious assertion that “the social duty of enterprise is to make a revenue” (Friedman, 1962). THE CONSUMERISM MOVEMENT AS THE CATALYST FOR THE
SOCIETAL MARKETING CONCEPT The newest consumerism motion is a trigger that has been accumulating momentum for over 30 years in the U. S. , and its disciples assert that each one customers have an inherent proper to merchandise that are: secure in use (and even misuse), efficient for the use designed, economical, dependable, actually labeled and marketed, and benign of their impacts upon the setting. Furthermore, consumerists have been very proactive in seeing that these “rights” are assured to particular person customers, both by the corporations promoting the merchandise, or by the authorities of this nation.
Adherents of consumerism are inclined to consider that companies are so overwhelmingly motivated by the want to make a revenue that they generally compromise the high quality of the product choices, thereby jeopardizing the security of customers. Consumerists cite examples of this “greed,” similar to the Beech-Nut case involving the sale over 10 years of hundreds of thousands of instances of “apple juice” which was in actuality solely sweetened, flavored water (Enterprise Week, 1988).
The truth that such a big quantity and number of these instances exist and proceed to be uncovered frequently lends quite a lot of credibility to the consumerism motion and its underlying assumptions. In explaining the rise of consumerism, Peter Drucker blamed the entrepreneurs for failing their customers and publics in utilizing the advertising and marketing idea: We now have requested ourselves the place in the advertising and marketing idea consumerism matches or belongs. I’ve come to the conclusion that, up to now, the solely means one can actually outline it inside the complete advertising and marketing idea is as the disgrace of the complete advertising and marketing idea.
It’s primarily a mark of failure of the idea… (Drucker, 1969) This quote is now well-known to advertising and marketing practitioners, students, and critics alike, and the legitimacy of Drucker’s view is mostly conceded. In the identical 12 months that Drucker made this accusation, Enterprise Week (1969) additionally asserted that “In the very broadest sense, consumerism may be outlined as the chapter of what the enterprise colleges have been calling the ‘advertising and marketing idea. “‘ These condemnations of the advertising and marketing idea mirrored a basic assumption inside each the enterprise and tutorial spheres relating to the implications of consumerism’s rising reputation.
A considerable portion of students and managers surveyed in 1971, for instance, believed that the rise in consumerism was a direct reflection of the inadequacy of the advertising and marketing idea (Barksdale and Darden, 1971). As the presumed response to the failure of the advertising and marketing idea, then, the consumerist motion grew to become the basis for “a revised advertising and marketing idea” which Kotler (1972) proposed as the successor to the “failed” advertising and marketing idea. As in earlier phases of the advertising and marketing philosophy evolution, the “societal advertising and marketing idea” was ostensibly constructed upon the ruins of its fast predecessor.
Since the most up-to-date consumerist motion in the U. S. served as the catalyst for as we speak’s conceptualization and implementation of the societal advertising and marketing idea, it could appear necessary to know the fashionable origins of this motion. ORIGINS OF THE MODERN CONSUMERISM MOVEMENT Writing in 1987, the Auto Editors of Client Information described one automotive as “maybe the most subtle (definitely one in all the most formidable) automobiles ever to return from Detroit” (Langworth and Robson, 1987, p. 51). These authors went on to proclaim that these have been “the type of automobiles we should always have had in the 1970’s, and did not. The automotive was the Chevrolet Corvair of the 1960’s, and its conspicuous absence in the 1970’s was the direct results of what many contemplate to be each consumerism’s explosive postwar debut and additionally its most interesting hour. Certainly, the tomb of the Corvair grew to become the basis of consumerism as we all know it as we speak. Whereas enterprise historian’s (e. g. , Halberstam, 1986) are desperate to criticize Detroit’s obvious indifference and ineptitude relating to the 1970’s invasion of small, economical vehicles from overseas international locations and the oil disaster which precipitated this invasion, this blame has been clearly misplaced and undeserved.
In 1959, Normal Motors, acknowledging an present want in the market for a small, cheap, sporty, and fuel-efficient vehicle, designed and marketed a car to fill this want. This vehicle, the Corvair, was certainly revolutionary in lots of respects, having four-wheel impartial suspension, a rear-mounted air-cooled six-cylinder engine, the choice of turbo-charging (a primary), and an exhaust system design which might be used on a majority of vehicles for years to return.
Each the Corvair and its practical, however significantly extra primitive predecessor, the Volkswagen Beetle, have been designed, constructed, and marketed with the highest regard for the advertising and marketing concept–offering lower-income customers the alternative to personal a cheap, dependable, and fun-todrive vehicle. Each automobiles have been sturdy sellers, and appeared to fulfill plenty of preexisting wants in the market. In 1960, Client Experiences praised the Volkswagen for its good workmanship, and dealing with and roadability which have been “nicely forward of the U.
S. common”. Moreover, about the worst factor that Client Experiences might discover to say about the Corvair was a comment about its “unimpressive trim high quality” (cf. Abernathy, Clark, and Kantrow, 1983). Sadly for a lot of customers, Ralph Nader would use these automobiles as a catapult for his profession, and in so doing, would grow to be synonymous with the consumerism motion. In 1965 he wrote a guide entitled Unsafe at Any Pace, through which he criticized Normal Motors as being irresponsible, grasping, and unconcerned for the public’s security.
Nader used the Corvair as the guide’s major instance, creating an elaborate, scathing, but additionally comparatively misplaced criticism of the Corvair. Resulting from the adverse publicity which the guide generated, the guide dealt a dying blow to the Corvair, which instantly started a downward gross sales spiral towards its eventual extinction in 1969. Impressed by the “success” of Unsafe at Any Pace, an equivalently brutal and defective criticism of the Volkswagen Beetle was written in 1971 by a colleague and ally of Nader, and was entitled Small—On Security (Dodge, 197 1).
Since, by the time of this guide’s publication, hundreds of thousands of Volkswagens have been on the highway and have been well-regarded as offering dependable, economical, and serviceable transportation, the guide failed to attain any credibility, and did little hurt to Volkswagen’s gross sales. What ought to have been evident to readers of both guide and to customers basically, however was maybe not appreciated till a lot later, was that it was bodily unattainable to assemble a small economic system automotive which was as secure as the leviathan Cadillacs, Lincolns, and Chryslers of the identical interval.
Had a well-designed automotive similar to the Honda Civic (or every other modern compact vehicle) been launched into the market in the 1960’s, it too would have definitely been labeled as unsafe, and pressured off the market. THE SOCIETAL MARKETING CONCEPT AND THEORY X The societal advertising and marketing idea is essentially congruent with the “a number of constituency mannequin of organizations” (Kimery and Rinehart, 1998), and basic notions of the duty or obligation of companies to social and environmental stakeholders.
Contrasted to the advertising and marketing idea or orientation, which posits the direct and easy relationship between organizational profitability and responsiveness to buyer wants and considerations, the societal advertising and marketing idea or a number of constituency mannequin means that success is very dependent upon a company’s attentiveness to all constituencies concurrently (Kimery and Rinehart, 1998). But as a consequence of the widespread opposition between fast shopper wants and long-term societal and particular person wants, the simultaneous “satisfaction” of all of those calls for is regularly troublesome if not unattainable.
Furthermore, the focus upon “un-stated” or long-term buyer wants and a concomitant discounting of said shopper needs have distinct overtones of company or governmental paternalism and the assumptions of producer or governmental sovereignty, which this angle essentially implies. Briefly, the place the advertising and marketing idea is the financial equal of the democratic course of, the societal advertising and marketing idea is antithetical to the tenets of democratic equality and extra similar to financial fascism.
In an eloquent paper outlining the conceptual foundations of his societal advertising and marketing idea, Kotler tailored Douglas McGregor’s managerial “Concept X / Concept Y” for example various views of shoppers (Kotler, 1977b). In line with McGregor, Concept X managers view their workers as being lazy, ignorant, gullible, suspicious, and disloyal. In distinction, Concept Y managers view their workers as knowledgeable, clever, motivated, distinctive, and rational (McGregor, 1957, 1985).
In his adaptation, Kotler makes the assertion that companies subscribing to the philosophy embodied inside the societal advertising and marketing idea make assumptions about their prospects that are in keeping with Concept Y (versus Concept X). In different phrases, Kotler believes that the societal advertising and marketing idea is philosophically consonant with a perspective of the shopper as knowledgeable, clever, and rational, suggesting the increased aircraft of enlightenment shared by adopters of this idea and alluding to the idea’s supposed capability for shopper empowerment.
Though Kotler makes a invaluable contribution in adapting this managerial framework to the advertising and marketing self-discipline, he grossly errs in his interpretation. A much more believable statement is that the societal advertising and marketing idea is solidly constructed upon Concept X assumptions about customers on the a part of the marketer. In line with Kotler (1977b), “societal entrepreneurs are extra attuned to the consumers’ unexpressed wants than overexpressed desires,” and place an emphasis upon “long-run shopper and societal nicely being. Due to this, the societal advertising and marketing idea clearly forces or compels entrepreneurs to make judgments about what’s “greatest” for customers, and what wants are legitimate (as opposed to those who are spurious or unwholesome). It’s on this means that the societal advertising and marketing idea turns into the final subscriber and underwriter to the Concept X mentality. The conceptual basis of the societal advertising and marketing idea (in addition to of the consumerism motion) rests eavily upon the perception that the particular person shopper is unable to “look out for him/herself,” is gullible, ignorant, simply misled, doesn’t know what is definitely in his/her personal greatest curiosity, and thus must be shielded from highly effective and unscrupulous entrepreneurs. On this means, the perception that the position of the marketer is to interpret what’s “greatest” for society and people necessitates the assumption that people don’t and can’t know what’s greatest for themselves. Neither is this an overstatement of the societal advertising and marketing idea’s targets and assumptions.
Bell and Emory (1971, p. 40), proponents of this idea, assert that “The standard shopper is at such an obstacle that he can’t guarantee his personal effectiveness. Enterprise has the duty to Help him, and if enterprise fails then the authorities or different events should act on the shopper’s behalf. ” As well as, in circumstances “the place the purchaser is unwilling or unable to make rational choices,” Bell and Emory consider that “It’s the obligation of enterprise to advertise correct consumption values” (Bell & Emory, 197 1, p. 40, emphasis added).
But these are exactly the “paternalistic” attitudes which characterize the Concept X “supervisor” in line with McGregor. The truth that some customers might select to purchase a subcompact vehicle as a result of they like economic system over a sure diploma of security, or that some select to subsist on McDonald’s hamburgers, fries and milkshakes regardless of their “unhealthfullness” doesn’t indicate that these people are silly, or gullible, or that they have to be “enlightened” by consumerism or societal advertising and marketing methods, That is in truth the exact level at which the “evolution” of the advertising and marketing idea breaks down.
The advertising and marketing idea holds that entrepreneurs ought to attempt to produce merchandise for each shopper want, supplied these wants usually are not grossly threatening to society, and that “any determination the buyer makes to serve his personal perceived selfinterest is rational” (Bauer & Greyser, 1967). It’s thus unattainable to interpret the societal advertising and marketing idea as something however a transfer backward into the interval the place the promoting idea ruled–where customers have been “ignorant,” “irrational,” and simply anipulated by extra insightful entrepreneurs. CONCLUSIONS AND IMPLICATIONS Whereas consumerists and different critics of the promoting idea frequently and loudly chastise enterprise organizations for using advertising and marketing methods and campaigns that are ostensibly primarily based upon assumptions of shopper ignorance and irrationality, these identical guardians of shopper curiosity are sometimes synonymous with these pushing organizations most forcefully into packages of social duty and the societal advertising and marketing idea.
But, as famous above, the agenda of social duty in enterprise is clearly primarily based upon assumptions of equal (and even higher) levels of shopper ignorance and irrationality. Disciples of the societal advertising and marketing idea seem like largely oblivious to the comparatively absurd ranges that companies have been pushed by forces in live performance with their agenda. (Witness the warning on McDonald’s espresso cups: “Warning: HOT! . . . CAUTION: CONTENTS HOT! … Warning: HOT! . . . Warning: HOT! . . . WARNING: HOT! … /! .. ” that are mixed with a corollary discount in the temperature of the liquid itself — actions which have been necessitated by the notorious multimillion greenback authorized declare towards the firm — a lawsuit which was applauded by quite a few consumerist teams. ) However, as Levitt famous in 1958, “self-conscious dedication to social duty might have began as a purely defensive maneuver towards strident assaults on huge companies and on the ethical efficacy of the revenue system. However protection alone now not explains the motive. The motive for company social duty and the overwhelming push for social duty in the pursuit of gross sales now arises out of the industrial sector’s near-total dependence on social developments and the sentiment of a minority of customers. Companies which were overwhelmed into submission by frivolous lawsuits and which are afraid to arouse consumerist accusations of indifference have been pressured to pander to the lowest widespread denominator of shopper passivity, ignorance, and laziness.
As predicted by McGregor, these Concept X attitudes and actions have subsequently bred and bolstered the very passivity, ignorance, and laziness in customers they have been designed to anticipate and amend. Satirically, the similarities between the promoting idea and the societal advertising and marketing idea relating to their shared assumption of shopper ignorance may be seen as forming the good basis for both societal altruism or, alternatively, opportunistic exploitation.
In lots of instances, these efforts may be troublesome to tell apart from each other, and obvious acts of altruism or social duty can present the good camouflage for exploitation. As a result of organizations are quickly turning into conscious of the energy of “greenconsumers,” for instance, there’s a vital temptation to advance this agenda by means of the advertising and marketing program as a robust machine for cultivating buyer loyalty and anesthetizing shopper prudence and vigilance.
As Kotler (1994, p. 30) notes, “plenty of corporations have achieved notable gross sales and revenue features by means of adopting and practising the societal advertising and marketing idea. ” Considered one of the two shining examples Kotler cites is The Physique Store, began by Anita Roddick in 1976. This group has skilled phenomenal gross sales development by actively selling its merchandise as all-natural, environmentally pleasant, and non-animal-tested, and its enterprise practices as sociallyconcerned.
Furthermore, Roddick has regularly and publicly ridiculed different cosmetics corporations, noting that they’re “run by males who create wants that do not exist” (Zinn, 1991). Certainly, The Physique Store grew to become in the 1980’s the prototype that each one “earth-friendly” companies would search to emulate. As the vanguard of social duty, The Physique Store and its founder grew to become the beneficiary of giant volumes of constructive publicity, worldwide acclaim, and shopper goodwill.
But current explorations into The Physique Store’s merchandise and enterprise practices have discovered parts which yield a stark distinction to the public photos and perceptions famous above. Merchandise of the firm have been discovered to be largely petrochemical-based and of comparatively poor-quality, and a big proportion of them have been examined on animals. As well as, the “socially-enlightened” enterprise practices of this firm have been uncovered as inventive public relations efforts, and the FTC has nvestigated the agency for fraudulent enterprise dealings (Entine, 1993; Buszka, 1997). Clearly, it should inevitably be these organizations that are inspired to view their customers as ignorant or irrational that may and will most simply lengthen that notion to find alternatives for exploiting that ignorance and irrationality. It is because of this that these espousing the societal advertising and marketing idea and the social duty of enterprise may be seen as the biggest hazard to shopper sovereignty and shopper welfare.
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