WHAT ARE THE BUSINESS ACTIONS TOWARD SOCIALLY RESPONSIBLE MARKETING? CHRISTINE NYANDAT 26 Oct, 2013 Definition: Socially responsible marketing is a marketing philosophy that states a company should take into consideration what is in the best interest of society in the present and long term In other words: In recent years the number and variety of issues raised by the public has increased. One reason for the increase is the growing perception that marketing organizations are not just sellers of product but also have an inherent responsibility to be more socially responsible, including being more responsible for its actions and more responsive in addressing social concerns. Why is it important? In addition to the economic implications, marketing exerts a significant impact on the values of the society. The advocates of socially responsible marketing argue that the current system creates false wants, i.e. encourage people to buy more than they actually need, injects constant desire for material possession, and leads to excessive spending. Too much obsession with material goods in the long run may cause damage to the society as a whole. Corporate profit should not eclipse the collective benefit of the society. Thus, socially responsible marketing draws attention to the “social costs Lecture notes Corporate Social Marketing, or CSM, usually refers to marketing efforts that have at least one social related objective, such as charity founding, among its goals. Typical examples are releasing a certain percentage of the final sale product to a charity related to the product, or sponsoring events that encourage social well-being such as the Olympic Games. Corporate Social Marketing benefits a company in many ways, but its main goal is to improve the image the public has of the company. A company that appears committed to improving the lives or others, the environment or other worthy causes is seen in a better light than one who doesn't, and more and more business are hoping to benefit from that. Since firms exist to make a profit, consumers may spend considerable energy in an attempt to infer motives related to the profit-oriented goals. An example - consumer may be suspicious of a tobacco company that undertakes a campaign to prevent underage smoking. If this is successful, the company would be affected and the cigarette sales will be lowered. So, in this situation, consumers’ suspicions may lead them to infer motives that would actually protect the companies financial condition - as they are trying to improve their image to sell more cigarettes to adults. However, if a tobacco company undertook a CSM Campaign, that would sustain their business consumers may be able to infer profit motives more easily and then have a more favorable attitude toward the partnership. So it can be concluded that the attitude of the consumers could be better if they knew more about the motives of the companies and they were more obvious. Enlightened marketing refers to a company’s marketing effort supporting the best longrun performance of the marketing system and consists of five principles: • Consumer-oriented marketing means that a company should view and organize its marketing activities from the consumer’s perspective • Customer-value marketing means that the company should put most of its resources into customer-value-building marketing investments—long-term customer loyalty and relationships—by continually improving the value consumers receive from the firm’s market offerings • Innovative marketing requires the company to continually seek real product and marketing improvements Sense-of-mission marketing means the company should define its mission in broad social terms rather than narrow product terms Societal marketing means the company makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and society’s long-run interests • Views societal problems as opportunities Business Administration > Introduction to Marketing > Marketing and Society Page 1 of 2 WHAT ARE THE BUSINESS ACTIONS TOWARD SOCIALLY RESPONSIBLE MARKETING? CHRISTINE NYANDAT 26 Oct, 2013 • Designs pleasing and beneficial products Deficient products have neither immediate appeal nor long-term benefits • Bad-tasting and ineffective medicine Pleasing products have high immediate satisfaction but may hurt consumers in the long run • Cigarettes and junk food Salutary products have low appeal but may benefit consumers in the long run • Seat belts and airbags Desirable products give both immediate satisfaction and high long-term benefits • Tasty and nutritious breakfast food Marketing Ethics • Corporate marketing ethics are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards Philosophies • Issues are decided by the free market and legal system • Responsibility is not on the system but in the hands of the individual company and managers Business Administration > Introduction to Marketing > Marketing and Society Page 2 of 2