Societal Marketing
Societal Marketing
Societal Marketing
SOCIETAL MARKETING
1. Societal Marketing
2. Societal Marketing V/s Managerial Marketing
3. Developing a Model of the Impact of Societal Marketing on
Corporate Image
4. Public Policy Towards Marketing
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SOCIETAL MARKETING
Societal Marketing
The societal marketing concept is an enlightened marketing concept that holds that a
company should make good marketing decisions by considering consumers' wants, the
company's requirements, and society's long-term interests. It is closely linked with the
principles of corporate social responsibility and of sustainable development.
The concept has an emphasis on social responsibility and suggests that for a company
to only focus on exchange relationship with customers might not be suitable in order to
sustain long term success. Rather, marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer's and the society's well-being.
Most companies recognize that socially responsible activities improve their image
among customers, stockholders, the financial community, and other relevant publics. Ethical
and socially responsible practices are simply good business, resulting not only in favorable
image, but ultimately in increased sales.
Societal marketing should not be confused with social marketing. The societal
marketing concept was a forerunner of sustainable marketing in integrating issues of social
responsibility into commercial marketing strategies. In contrast to that, social marketing uses
commercial marketing theories, tools and techniques to social issues. Social marketing
applies a “customer orientated” approach and uses the concepts and tools used by
commercial marketers in pursuit of social goals like Anti-Smoking-Campaigns or fund
raising for NGOs.1
This theory emphasizes that organizations should not only think of cut-throat policies to
achieve targets and jump ahead of competitors but should have ethical and environmental
policies and then back them up with action and regulation.
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SOCIETAL MARKETING
It may sound appropriate and ethical, but societal marketing concept is hard to
implement as not all companies have a social conscience. Whether it is legal and essential in
industries like the tobacco and liquor industry needs analysis as they have a tremendous
influence on consumer welfare.
Many people are critical of some industry practices – saying that they are the sort of
unethical, socially irresponsible marketing behavior that ultimately leads to government
regulation.
E.g. In case of automobile marketing we consider social aspects of auto production and use
– air pollution, traffic congestion etc. with the planning of marketing mix.2
Marketing executives have a three fold responsibility – to their firm, to their workers
and to their customers. For their firms their job is to provide a satisfactory net profit over the
long-run. For their employees, their responsibility is to provide a good working environment.
For their customers their job is to market want-satisfying goods and services at the lowest
reasonable cost.
Marketing executive should have a high degree of social responsibility simply because
it is morally correct thing to do. While this is simple and beautiful in concept, it is far more
difficult to put into operation.
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SOCIETAL MARKETING
A societal orientation is needed to build the public confidence in business and to justify
the privilege of operating in our economic system. A socially responsible attitude is needed if
business is to retain its social power.
Despite the increasing support for CSR and societal marketing, a scarcity of research
still exists in this field, particularly in relation to corporate image.8 Hence the purpose of this
research is to develop a model of the influence of a societal marketing program on the
attitudes of consumers to corporate image. This model will then be used as the basis for
future empirical testing.
Given the purpose of this research, model development begins by defining corporate
social responsibility and its link to societal marketing before exploring the impact of societal
marketing on corporate image. Next, we define corporate image and outline various models
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SOCIETAL MARKETING
of corporate image formation. On this basis our model of factors influencing consumer
attitude to corporate image is proposed.
The societal marketing concept introduces corporate social responsibility (CSR) into
marketing practices. Societal marketing incorporates a focus on the consumer’s and society’s
well-being.11 Research executed in many countries has consistently shown that consumers
express a more positive attitude toward a company that practices societal marketing, and
additionally prefer to purchase the products of these companies However, little research has
considered how and why this relationship between societal marketing and consumer attitudes
occurs, or to uncover the conditions favoring or hindering the development of this
relationship.
Corporate Image
The Model
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SOCIETAL MARKETING
Societal Marketing
Program
Program Symbolism
Behavior
Corporate
Marketing Program Demographic
Communication Communications Characters
Primary
Gender
Communication
Age
Secondary
Communication Education
Level
Tertiary
Communication Income
Level
Consumer’s Attitude
towards
Corporate Image
Source: Cornelissen, J., 2000. Corporate Image: An Audience Centered Model, Corporate Communications: An International
Journal. 5(2), 119-25; Stuart, H., 1998. Exploring the Corporate Identity/Corporate Image Interface: An Empirical Study of
Accounting Firms, Journal of Communication Management. 2(4), 357-71; Balmer, J.M.T. and Gray, E.R., 2000. Corporate
Identity and Corporate Communications: Create a Competitive Advantage, Industrial and Commercial Training. 32 (7), 256-62.
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Hence Proposition 1 is :
The second factor proposed to influence attitude to corporate image is based on the
features of the specific societal marketing program adopted by the company. Three key
components of the societal marketing program are: symbolism, behaviour of management
and employees and finally communications regarding the specific societal marketing
program. Elements of symbolism include visual identity and other tangibles such as logos or
names that specifically idenitfy a particular societal marketing program. Management
behaviour considers the support and value given to the societal marketing program by
management, while employees’ behaviour addresses the quality of service delivered by
employees involved in the societal marketing program. Similarly to general corporate
marketing communications, communication specifically concerned with the societal
marketing program used to communicate the details of the program to the target audiences.
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SOCIETAL MARKETING
Hence Proposition 2 is :
Finally, demographic factors have also been shown to influence corporate image. Our
model includes the specific demographic variables of gender, educational level, age and
income level. Briefly, females tend to have more positive attitudes toward firms
implementing societal marketing than males.15 Additionally, highly educated and higher
income consumers were shown to be more favorable to companies supporting causes.16
However, the influence of age on attitudes toward firms implementing societal marketing is
still controversial.17 Marital status was shown to have a slight relationship but the scarcity of
research on this demographic factor makes the results inconclusive.
Female consumers will have a more positive attitude toward a firm implementing a
societal marketing program than will males.18
Younger consumers will have a more positive attitude towards a firm implementing a
societal marketing program than will older consumers.
Consumers with a higher educational level will tend to have a more positive attitude
toward a firm that implements a societal marketing program than will those of lower
educational level.
Consumers with a higher income will tend to have a more positive attitude toward a
firm that implements a societal marketing program than will those of lower income.
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SOCIETAL MARKETING
Building corporate brand equity for one’s own is considered as one of the most
important governance responsibilities by most of the Indian companies today. This paper is
an attempt by the authors to identify the factors that drive the process of corporate brand
equity building up via the societal marketing route.
The various perspectives on the development of marketing theory are in reality the
differences in perspective, with some researchers viewing it not simply as a managerial and
economic activity but also as a social process.19
The quintessence of the marketing concept which reached its apotheosis in the early
1960s has been described by Kotler and Keller as a “customer orientation backed by
integrated marketing aimed at generating customer satisfaction as the key to attaining long-
run profitable volume.”20
It was Bell and Emory who first identified its three basic elements as a customer
orientation, an integrated effort, and a profit orientation.21 By the 1970s, however, as it
became clear that society’s resources were finite and its environment damageable, some
authors became critical of the emphasis on material consumption without consideration of
the societal benefit.22
Authors like Kotler and Dawson have implicit faith in the theory that what is good in
the long run for society is good for business. Other aspects of the societal marketing
viewpoint are its emphasis on communication between the business and its environment in
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SOCIETAL MARKETING
CSM could be used to satisfy multiple objectives. Goals for companies that implement
successful CSM programmes include “create a differential advantage through an enhanced
24
corporate image with consumers” and “differentiate themselves from the competition by
building an emotional, even spiritual, bond with consumers”.25 Corporate societal marketing
programmes are poised to play a more important role in creating brand equity.26
Brand Equity is a set of brand assets and liabilities linked to the brand’s name and
symbol, which can subtract from as well as add to the value provided by a product or service
and provides value to the customers as well as to the firm.27
Corporate brand equity once established in favor of the firm could be expected to
enhance the efficiency and effectiveness of the firm’s future marketing programmes and
projects. Corporate brand equity will usually provide higher margins for the firm’s product
offers by permitting premium pricing and reducing reliance on promotions. The corporate
brand could also provide a platform for growth by brand extensions and distribution equity.28
Case Study
Manorama, the largest newspaper network (in terms of reach and readership) operating
from Kerala, India earn an unparallel brand equity through build an awareness among the
people who live in both rural and urban areas, regarding the ideal behavior toward the CSM
concepts of public participation for making Kerala, A Clean Kerala and the programme was
given the name ‘Sukrita Keralam’ under which waste disposal, solid waste management,
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SOCIETAL MARKETING
The role of Manorama does not end by merely creating awareness; they also provide a
platform for the public to produce various useful byproducts such as biogas, electricity;
compost and vermin compost. Manorama as part of their venture for community
development has also introduced awards up to Rs.10 lakhs for the best panchayat /
municipality/ corporation which implements their programme.
Marketing executives of the 21st century will face many challenges. They have
abundant marketing opportunities because of technological advances and the new forms of
transportation, recreation, communication and infrastructure. At the same time, forces in the
socioeconomic environment will increase the constraints under which marketing can be
carried out. Those companies that are able to create new values and practice societal
responsible marketing will have a world to conquer.
A societal oriented marketer wants to design not only pleasing but salutary products.
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Immediate Satisfaction
Low High
High
Even the conscientious marketers will face many moral dilemmas. The best thing to
do will often be unclear. Since not all marketing executives have fine moral sensitivity,
companies need to develop corporate marketing policies. Policies are broad fixed guidelines
that everyone in the organization must adhere to and that are not subject to exception.30
Each marketer must work out a philosophy of proper behavior. Every moral system is
predicated on some conception of the good life and the relation of one’s welfare to that of
others. Once the marketer works out a clear philosophy, he can deal with the many knotty
questions posed by marketing and other human activities.
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SOCIETAL MARKETING
Future public policy must be guided by a set of principles that will improve the
marketing system’s contribution to the quality of life. Following principles might guide the
formulation of public policy toward marketing.
To the maximum extent possible, marketing decisions should be made by consumers and
producers under relative freedom.
This principle states that a high level of marketing freedom is important if a marketing
system is to deliver a high standard of living. People are able to achieve satisfaction in their
terms rather than in terms defined by others. It is a cornerstone of a dynamic marketing
system.
The political intervenes in producer or consumer freedom only if serious harm would
occur in the absence of intervention.
In a free enterprise system, producers produce products for markets that are willing and
able to buy. If certain groups lack purchasing power, they may go without essential goods
and services, causing harm to their physical or psychological well-being. Use economic and
political interventions to bring social output closer into line with need priorities such as
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SOCIETAL MARKETING
progressive income taxes, the surplus income of the rich are transferred to the poor through
welfare payments and improved social services.
4. Economic Efficiencies
The marketing system strives to supply goods and services efficiently and at low prices.
5. Innovation
Process innovation seeks to bring down the costs of production and distribution while
product innovation seeks to formulate new products to meet changing consumer needs and
desires
The marketing system invests heavily in consumer education and information to increase
long-run consumer satisfaction and welfare.
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7. Consumer Protection
The marketing system must supplement consumer education and information with
consumer protection in certain product and market practice area.
Consumer education and information cannot do the whole job of consumers cannot buy
them with confidence in the terms of features like safety, standard output, technical know
how etc. A government agency has to review and judge the safety level of various foods,
drugs, toys, appliances, fabrics, automobiles and housing.
Consumer protection also covers production and marketing activities that are
environmentally destructive. The consumers may buy the products but fail to understand the
environmental consequences.
The assumption behind these principles is that the goal of the marketing system is not
to maximize producer’s profile or total consumption or consumer choice, but rather to
maximize life quality. Life quality means meeting basic needs, having available varied and
good quality products and enjoying the physical environment and cultural environment.
Since the marketing system has a major impact on the quality of life, it must be managed on
principles consisting with improving the quality of life.
One of the aspects of the societal marketing includes alliances that have arisen
between environmentalist groups and businesses in the last decade. Typically, this new
relationships are distinguishable from the prior charitable (e.g., donations to or sponsorships
of environmental causes) and commercial relationships (e.g., calendars, T-shirts produced for
environmental groups) because they engage the expert knowledge of the environmental
group and involve it, to varying degrees, in joint problem solving or strategic decision
making with the corporate partner.
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and improved according to ecological criteria etc are the joint projects covered in this
alliance.
Case Study
EDF saw significant opportunity for both environmental action and a major, high
visibility, opportunity to test its innovative approach to environmental problem-solving
through corporate partnerships.
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SOCIETAL MARKETING
Businesses currently involved with the environmental movement have noticed the
increasing number of markets influenced by environmentally concerned consumers, and
naturally are hoping this trend can boost their companies' long run profits.
Proactive companies like McDonald's are attempting to take leadership roles in the
area of environmentally friendly products in order to gain a competitive advantage.
For McDonald's, environmental marketing has become one of the primary societal marketing
tools.
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