SOCIETAL MARKETING CONCEPT

 

 SOCIETAL MARKETING CONCEPT

MBA / BBA MARKETING MANAGEMENT QUESTION PAPER 2020 

PUNE UNIVERSITY

INTRODUCTION •

 It is a marketing concept that holds that a company should make good marketing decisions by considering consumer’s wants, company’s requirements and society’s long term interests . • It is a term closely related to CSR and sustainable development. • It emphasizes on social responsibilities and suggest that to sustain long term success ,the company should develop a marketing strategy to provide value to the customer’s to maintain and improve both the customers and society’s well being better than the competitors. • It is done to create a favorable image for the company and increase the sales. It is not same as the terms social marketing and social media marketing.

“social marketing” was first used by Kotler and Zaltman (1971) to refer to the application of commercial marketing principles in the context of socially desirable goals.

Definition marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests

the Societal Marketing Concept puts Human welfare on top before profits and satisfying the wants.

Societal Marketing emphasizes on social responsibilities and suggests that to sustain long-term success, the company should develop a marketing strategy to provide value to the customers to maintain and improve both the customers and society’s well being better than the competitors.

The societal marketing concept has developed out of the conflict between individual consumers’ short-term needs and society’s long-run well-being.

This concept is also termed as “the human concept,” “the intelligent consumption concept,” and the “ecological imperative concept.”

 

Definition of The societal marketing

 The societal marketing is a marketing concept that holds that a company should make 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

 

Examples of Societal Marketing

The most recent examples of societal marketing are the super bowl 2017 ads of several companies.

Most ads took on issues like the environment and immigration. These come after President Donald Trump implemented executive orders that raised controversies.

Kia’s “Hero’s Journey” commercial starring Melissa Mccarthy is the prime example of societal marketing.

CocaCola releases an ad that shows people of different ethnicities and singing “America is Beautiful” in different languages.

Airbnb’s #WeAccept super bowl 2017 ad.

Budweiser ad showing how its immigrant founder founded a company.

Why Societal Marketing ?

 The reason is that the past two decades have led to tremendous degradation of environment.

The issue of global warming has become central topic of debates in almost all international conferences .

Moreover, increasing awareness about pollution has created amass awareness in citizens of various nations.

Now as aware customers, people are purchasing products that are eco- friendly.

From light bulbs to plastics.

Today’s consumers ensure that they can at least, to some extent, contribute in curbing of the threats of pollution.

 

 

 Purpose and Strategy 

The purpose of societal marketing is for a company to meet its needs and the needs of a consumer while considering the long-term good of society.

 In this type of marketing, a company uses its socially conscious stance as a way to attract consumer

s who may appreciate the company's desire to market its products with consideration for society.

As a result, the company's concern for society, seemingly over profit, positions the company in a favorable light and may help sell more products.

 

EVOLUTION

• Started in 1970’s to provide marketing concepts which involve ethical practices and tune with the social needs. • In 1960’s and 70’s the unethical practices of many companies became public. • These concepts evolved from older concepts of CSR and sustainable development and implemented by several companies to improve their public image through activities of customer and social welfare

CONCEPT

 • The societal marketing concept can be defined as the organizations task which tries to identify the needs and interests of the consumers and delivers quality services or products as compared to its competitors and in a way that consumer's and society's well being is maintained. • In other words organizations have to balance consumer satisfaction, company profits and long term welfare of society.

Societal marketing can be achieved by following principles 1. It should always be remembered that consumer's needs are of paramount interest. 2. Improvements in products which are both real and innovative should be carried out to give long term value to the product; 3. Do what is good for the society with a sense of mission and trust. 4. Focus shifts from transaction to relationships. 5. Should have ethical and environmental policies and back them up with actions and regulations.

OBJECTIVES

Ø  To maintain long term relationship with customers.

Ø  To create a better image in the society for the company than it’s competitors.

Ø  To carry out it’s social responsibilities. Developing community awareness towards it’s brands.

Ø  To increase the consumer base and market share.

Ø  To maintain a long-term relationship with customers

Ø  To create a better image in the society for the company than it’s competitors.

Ø  Developing community awareness towards its brands

Ø  To increase the consumer base and market share.

Ø  profit-making and wealth maximization.

Ø  To maintain a long-term relationship with customers.

Ø  To create a better image in the society for the company than it’s competitors.

Ø  To carry out its social responsibilities.

Ø  Developing community awareness towards its brands.

Ø  To carry out its social responsibilities.

Ø  To increase the consumer base and market share.

Ø  Societal Marketing Concept Advantages and Benefits

Ø  It helps to build a better image for the company.

Ø  It gives a competitive advantage over the competitors.

Ø  Useful in customer retention and long-term relationships.

Ø  Increases sales and market share.

Ø  Facilitate expansion and growth in the long term.

Ø  Products and company policies should prioritize social welfare and society in general.

Ø  Economic resources are properly used.

Ø  Societal marketing raises the living standard of people in society.

Ø  It ensures economic planning more significant and more fruitful to society.

 

AREAS OF APPLICATION

• Environmental-producing biodegradable products , reduce emission of hazardous substances and proper disposal of wastes. • Educational-creating awareness about various social issues through promotional campaigns. • Technological-new innovative products having unique features may serve the consumer’s as well as the whole society’s interest.

BENEFITS

• It helps to build a better image of the company. • Gives a competitive advantage over the competitors. • Useful in customer retention and long term relationships. • Increases the sales and market share. • Facilitate expansion and growth in long term.

DRAWBACKS

• Useful for mass marketing products but difficult to implement for products aimed at a specific target market. • Social conscience is not present in all companies. • Lack of adequate encouragement from the government.

 

There are many ways a company can accomplish Societal Marketing

 1-Consumer Health 

Marketing campaigns that emphasize consumer health are campaigns that fall into the societal marketing strategy. This concern for consumer health becomes a strong point in the marketing process. Products that place a high value on consumer health fulfill the societal marketing criteria of meeting consumer needs, company needs and the long-term benefit of society or its members.

2-Eco-Friendly Marketing 

Companies that place an emphasis on recycled products and organic products that aren't going to damage the ozone layer fall under the societal marketing strategy. Companies that make products from recycled materials can market themselves as a company concerned about the long-term impact on society.

3-Supporting Farms and Local Business

 Companies that don't import raw materials practice a more contained form of societal marketing by marketing products made with materials obtained from local sources.

basis of difference between social and societal marketing Societal mkt. is concerned about the consumer and long term benefit of the company. Social mkt. is entirely focused on the society

 

Example-

 

Indian Tobacco  Corporation

•  Industry -   Conglomerate • Founded - 24 August 1910 (as Imperial Tobacco Company of India)

 • Headquarters - Kolkata, West Bengal, India

• Key people - Yogesh Chander Deveshwar, (Chairman),            Sanjiv Puri, (Chief Executive Officer) • Products - Consumer goods        Tobacco                   Hotels        Agribusiness        Paperboards & specialty papers        Packaging        Information technology

• Revenue -  53,748 crore (US$8.0 billion)₹ 9

 

ITC’s One Paisa Campaign 

 

• ITC has partnered with the National Highway Authority of  India (NHAI) in its initiative to develop eco-friendly  National Highways (NH) by spearheading an extensive  tree plantation initiative along the highways

Social initiative by ITC e – Choupal  link directly with rural farmers via the Internet for procurement of agricultural and aquaculture

 Social & farm Forestry  13,000 hectares of wasteland under Social forestry benefiting more than 16,000 poor households in 466 villages.

Agricultural development  form agri-business societies,  pool Knowledge and resources,  improve productivity and quality  reach out beyond local markets to sell at better margins. 13

Small -Scale and Cottage Units FMCG sector, the company Commenced marketing agarbattis sourced from small-scale and cottage units in 2003

NGOs • Banwasi Seva Ashram • Lotus Medical Foundation, Kolhapur • Nana Palkar Smruti Samiti (NPSS), Mumbai • Step Up Foundation, Pune • SOS Children's Villages of India • ADHAR - Association for Development of Human and Community Rebuilding - Kolkata, West Bengal • Just Being Center

History of Societal Marketing Concept

In the 1960s and ’70s, the unethical practices of many companies became public. The concept of Social Marketing surfaced in 1972, a more socially responsible, moral, and ethical model of marketing, countering consumerism. Philip Kotler introduced the concept of social marketing and societal marketing.

The societal marketing concept evolved from older concepts of CSR and sustainable development and implemented by several companies to improve their public image through customer and social welfare activities.

Marketers reassessed the adequacy during the early eighties of the marketing concept as a basic management philosophy. The reasons were the environmental and social conditions such as increased environmental pollution, energy shortages, population boom, neglected social services, hunger and poverty around the globe, and so on.

Martin L. Bell and C. William Emory, citing the critics of the marketing concept, maintained that customer orientation’s operational interpretation had not approached the philosophical meaning of providing long-run customer satisfaction and society’s broader needs as the ultimate goal of marketing.

It is argued that the role of marketing must be related to social improvement rather than economic gain. It should also be related to human aspirations rather than only human needs and wants. Marketers should emphasize conservation rather than consumption.

They should also consider customers and themselves as integral parts of the greater society, not as economic factors. Because of such demands, marketers today face dilemmas; they find difficulties determining how much emphasis is given to social consideration and how much consumer needs satisfaction.

 

Societal marketing concept three considerations

Companies should balance three considerations in setting their marketing strategies: company profits, the consumer wants, and society’s interests.

 

1.Society (Human Welfare)

Companies must make sure the products, services, actions, investment innovations servers society first.

2.Consumers (Satisfaction)

Products and services should be satisfying the consumer’s needs.

3.Company (Profits)

Building long-term customer relationships, being socially responsible, and providing satisfactory products are important for profit-making and wealth maximization.

Societal Marketing Concept Video and Slideshow

Watch this video explaining marketing concepts and societal marketing concept.

 

 

 

Instruments of Societal Marketing

Philip Kotler identified four categories of products based on long-term benefits and immediate satisfaction:

 

Deficient products bring neither long-run nor short-term benefits.

Pleasing products bring a high level of immediate satisfaction but cause long-term harm long in society.

Salutary products bring low short-term satisfaction, Nut Benefit society in the long run.

Desirable products bring both long-run benefits and immediate satisfaction.

Based on societal marketing, Kotler suggested deficient products must be eliminated from the market.

 

The pleasing and salutary products need modification to bring both long-run benefits to society and immediate satisfaction to the consumer.

 

Meaning that these products should be launched on the market without turning them into desirable products. This way, rather than focusing on selling products, the focus is on consumer and societal well-being.

 

 

Importance of Societal Marketing Concept

Societal Marketing is very important to society, the environment, and businesses. This concept was developed to tackle the consumerism and profit only the motive of business.

The societal marketing concept helps to maximize profits for the organization and creates a long-term relationship with customers.

It encourages developing products that benefit society in the long run and satisfies consumers.

 

Societal marketing policies make companies actively trying to change social policy, taking part in social activities, investing time and money in corporate social responsibility.

Societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and long-run consumer welfare.

The societal marketing concept holds “marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.”