Social Criticisms of Marketing

• The social [Link] one of the most difficult tasks to monitor

because changes in values and attitudes, and lifestyles are not easily
measured in reassuringly quantifiable ways.

• The social environment comprises the structure and dynamics of

individuals and groups and the issues with which they are concerned.
Business firms operate in various settings of the social environment,
which have social implications. The executive’s first responsibility is to
make a profit so the organization can survive.

• Business firms cannot continue without profits to provide workers or

goods and services to meet society’s needs. In a free enterprise
society, the stockholders are the driving force who risk their capital to
start businesses.

• Since they risk their money, they always look for profits, which is the
only rightful reward. It is, therefore, the responsibility of businesses to
ensure reasonable profit to the stockholders. In the contemporary
world, profits are considered necessary but are not the only objective
of the businesses.

• Taking care of the employees is another responsibility of executives.

Companies should provide workers with fair wages, safe working
conditions, and the right to union representation. Businesses are
expected to offer equal hiring, pay, and promotions to women and
other minority groups.

• The third area of social responsibility for business executives concerns

the physical environment surrounding company offices and
installations.

• Society no longer tolerates pollution of its air and water resources,

and various laws have been enacted to curb the discharge of harmful
industrial wastes. Firms that fail to clean up their installations are
subject to fines and unfavourable publicity, affecting sales adversely.

• The public has become quite sensitive to pollution problems, and

managers are being asked to install expensive control procedures
 even at the risk of higher prices and lower profits. The public raises
questions about marketers’ activities when the consequences of
those activities are inconsistent with the goals of individuals or
society in general.

• Therefore, marketers study the social environment carefully and

closely and respond accordingly to ensure their long-term survival.

Social Criticisms of Marketing

• Even when marketers do a good job of satisfying society, letters of
praise, or positive evaluation rarely follow. Society expects marketers
to provide a high standard of living and to protect the general quality
of life.
• Contemporary marketing practices are subject to various social
criticisms, as evidenced by the growing concern for such areas
as marketing’s impact on the environment, marketing impact on
non-renewable resources, and marketing’s obligation to the children,
the poor, the elderly, and different unprivileged groups.
• The societal marketing concept was defined in unit one as a
management orientation that holds that the key task of organizing is
to determine the needs and wants of target markets and to adapt
the organization to delivering the desired satisfaction more
effectively and efficiently than its competitors in a way that preserves
or enhances the consumers’ and society’s well-being and making
profit through upholding the social interest.
• The societal marketing concept is not still a widely practiced one.
Nevertheless, this concept, however, is followed by many marketers.
The substantial increase in interest in business’s social impact is an
outgrowth of heightened public concern over and sensitivity to many
aspects of society.
• But, ‘interest in the social performance of the business is not new.
What is new is the greater number of individuals, government
agencies, and non-governmental organizations desiring social
information, the parallel desire for such information by corporate
management, the variety of subjects in which they are interested, and
the increasing ability of all to use social information effectively”.
 • Whether willing or unwillingly, marketers create certain impacts on
society and the environment through their production and market
products and services, as people use or consume products and
services, they also generate certain impacts on society and the
environment.
• Consequently, the business has an enormous influence on society’s
economic well-being and its prevailing quality of life. In short, every
business action, if carefully studied, will be found to have both
economic and social consequences, which marketers should take into
active consideration in formulating their policies.

Environmentalism and Conservation

• Protecting the physical environment and conserving renewable

resources should be considered by marketers for them to take a
societal perspective.
• Land, air, water pollution control, energy conservation, waste
recycling, and waste disposal have become formidable forces in the
marketplace in both developed and developing countries like India,
Pakistan, Nigeria, Bangladesh, Vietnam.
• While consumers demand immediate gratification of their needs and
desires, they also want to retain a quality environment with sufficient
essential materials for the future. Governments in developed
countries have enacted many laws to protect and conserve the
environment.
• The government in India, Pakistan, Nigeria, Bangladesh, Vietnam may
view environmental protection issues from two perspectives.
• First, the government may examine existing environmental protection
programs regarding their adequacy and efficiency in providing a
healthy environment.
• The government may focus primarily on formulating individual
pollution control laws. Other environmental pollution problems that
should attract government attention include groundwater
contamination, river and ocean dumping, importation of hazardous
substances, and effects of different pesticides and chemical fertilizers
used in agricultural land.

• Second, the government may examine environmental protection

programs regarding their implications for other national problems
 such as energy development, economic growth, and social
development.

• Such government activities and special interest groups form an

important part of its environment to achieve its profit-making goals.

• No major institution can expect to find itself fully acceptable to

society if it arbitrarily pursues its major objective without regard for
the consequences of its actions to the environment and the society.
The business may impose its will for a time, but its survival requires
that it accommodate its activities with the society.

• Government policy regarding energy conservation and pollution

control has had a significant effect on the market environment. The
government may direct its effort toward enacting nation-wide
mandatory deposits on different containers.

• The government may enact laws requiring the deposit of containers

and prohibiting non-reusable containers from reducing litter and
gaining better utilization of existing resources. Such changes in the
legal environment definitely will affect businesses.

Consumer Problems of Special Interest Groups

• A significant area of the social criticism directed at marketing focuses

on three relatively unprotected groups. They are the children, the
poor, and the elderly. The term ‘unprotected’ should be used in a
relative sense.

• One of the dominant characteristics of the society in countries like

India, Pakistan, Nigeria, Bangladesh, Vietnam; is that economic and
political power beget ‘protection’ and ‘advantage.’ In these two
respects, the poor, the young children, and the elderly are relatively
disadvantaged.

• The common factor underlying these groups’ consumer needs is that

each requires special treatment from a marketing system not
designed in these countries.

Consumer Problems of Children

 • In India, Pakistan, Nigeria, Bangladesh, Vietnam, and other
developing countries, it is alleged, among others, that children are
deliberately being sold the less nutritious products. They are being
programmed to demand candy and chocolate very often and
demand sugar and sweeteners in almost every food.

• It is also alleged that children are not sufficiently protected from

inherently dangerous products such as medicines, insecticides, and
certain toys. Advertising in television directed at children has come
under harsh criticism from many corners.

• Marketers are charged with the allegation that children very often
have a difficult time distinguishing fact from fantasy. They have been
accused of exploiting such innocence to sell their products and
services and make a substantial profit.

Consumer Problems of the Poor

• Critics also express their concern for the poor. They often charge that
merchants use unethical practices in poverty areas, such as selling
imitated products, using high-pressure selling techniques, selling
rejected products, etc. Others argue that marketers charge poor
people more for products and services than do more affluent
consumers.

Consumer Problems of the Elderly

• Marketers are also criticized for their treatment of older adults. Older
people share many problems of the poor. For many of these
consumers, lack of physical mobility limits their choice of stores and,
in some cases, their total opportunity to shop.

• We know that older people need specific types of food items.

Marketers are criticized when such foods are unavailable or when
food labels do not provide adequate ingredients.

• It has been stated by a consultant of a foundation that “many of the

aged have some chronic disease or infirmity that makes them easy
targets for a wide range of products sold on the promise of relief or
cure from various ailments.
• And this condition is complicated further by low income, relative
immobility, and the often-desperate need for help”. With the increase
of elderly consumers, marketers will be pressured to respond to such
charges to meet older people’s needs adequately.

Societal Marketing Concept

• Societal Marketing is based on the principle of societal welfare. It
emphasizes that an organization must make strategic marketing
decisions keeping in mind the consumer wants, the organizational
needs and most important the long-term interests of the society.

• Societal Marketing is nothing but an outgrowth of the principles of

Corporate Social Responsibility and Sustainable development. It
underlines that an organization should not ignore the society’s long-
term welfare so as to achieve its mission and vision. An organization
should have moral and environmentally friendly strategies and should
ensure that proper acts and laws are implemented.

• In today’s world of increasing environmental destruction, scarcity of

resources, rapidly increasing population, and abandoned social
services. the societal concept of marketing is doubted. It is
questioned that “Are organizations doing an outstanding task of
customer satisfaction in line with meeting long run societal welfare?”.

• Consider example of a fast-food industry. They do provide yummy

food but this food is full of health concerns. The burgers are rich in
fat and so are the fries and pies too. Such products are packed in
handy form and packaging generating lot of waste. Thereby, in the
process of satisfying customer, these fast-food outlets are creating
increasing health concerns as well as environmental issues.

• Societal marketing should take into account the following things:

o The consumer’s needs are of utmost significance.

 o Genuine, modern and continuous developments in the
products should be executed so as to increase the product’s life
and value.

o Emphasize on building long term customer relationship and

not on doing business. Do societal good. In short, an
organization should market the product keeping in mind the
consumer, organizational and long-term societal needs and
welfare.

• The Societal marketing concept is significant because of the following

advantages it has:

o It ensures that all the economic resources are channelized in

the right direction.

o It develops entrepreneurs as well as managers in a specified

society.

o It raises the living standard of the people.

o It increases the speed of economic development of society.

o It makes economic planning more significant and more fruitful

to people’s life.

• The closer the organizations move towards their customers, the more
evidently, they realize the fact that the objective of any organizational
business lies outside the business, i.e., in the society. Thus, this drives
the organizations to make a remarkable contribution for the society’s
welfare and upliftment.

• A very good example of an organization following societal marketing

concept is the Body Shop: Body Shop is a cosmetic company founded
by Anita Roddick in 1976. The company uses only natural, vegetable-
based materials as ingredients for its products. It is totally against
animal testing, advocates community trade, as well as complete
protection of planet. Thus, it totally engrosses the concept of Societal
Marketing.
 • Another example is Ariel. It is a detergent produced by Procter and
Gamble. Ariel runs special fund-raising campaigns for less privilege
classes of the world, mainly the developing countries. It also
contributes a share of its profits from every bag sold for the societal
development.

• To conclude, we can say that societal marketing concept states that a

company’s job is to assess the needs and wants of the target markets
and to provide optimum satisfaction to its customers ensuring both
consumers as well as societal welfare. In short, an equilibrium has to
be maintained by the marketers among organizational profits,
consumers satisfaction as well as social well-being.

Social Responsibilities of Managers

Social responsibility is defined as the obligation and commitment of
managers to take steps for protecting and improving society’s welfare
along with protecting their own interest. The managers must have social
responsibility because of the following reasons:

• Organizational Resources - An organization has a diverse pool of

resources in form of men, money, competencies and functional
expertise. When an organization has these resources in hand, it is in
better position to work for societal goals.

• Precautionary measure - if an organization lingers on dealing with the

social issues now, it would land up putting out social fires so that no
time is left for realizing its goal of producing goods and services.
Practically, it is more cost-efficient to deal with the social issues
before they turn into disaster consuming a large part if managements
time.

• Moral Obligation - The acceptance of managers’ social responsibility

has been identified as a morally appropriate position. It is the moral
responsibility of the organization to assist solving or removing the
social problems
• Efficient and Effective Employees - Recruiting employees becomes
easier for socially responsible organization. Employees are attracted
to contribute for more socially responsible organizations. For instance
- Tobacco companies have difficulty recruiting employees with best
skills and competencies.

• Better Organizational Environment - The organization that is most

responsive to the betterment of social quality of life will consequently
have a better society in which it can perform its business operations.
Employee hiring would be easier and employee would of a superior
quality. There would be low rate of employee turnover and
absenteeism. Because of all the social improvements, there will be
low crime rate consequently less money would be spent in form of
taxes and for protection of land. Thus, an improved society will create
a better business environment.

• But manager’s social responsibility is not free from some criticisms,

such as –

o High Social Overhead Cost - The cost on social responsibility

is a social cost which will not instantly benefit the organization.
The cost of social responsibility can lower the organizational
efficiency and effect to compete in the corporate world.

o Cost to Society - The costs of social responsibility are

transferred on to the society and the society must bear with
them.

o Lack of Social Skills and Competencies - The managers are

best at managing business matters but they may not have
required skills for solving social issues.

o Profit Maximization - The main objective of many

organizations is profit maximization. In such a scenario the
managers decisions are controlled by their desire to maximize
profits for the organizations shareholders while reasonably
following the law and social custom.

• Social responsibility can promote the development of groups and

expand supporting industries.
 ENLIGHTENED MARKETING
• The philosophy of Enlightened Marketing is based on an important
factor that a company’s marketing should consider the best long run
performances of the marketing system.

• Enlightened marketing takes consumer’s perception about the

product as most considerable; evade any depleted approaches, the
social impact matters, pass on the real value for the price and proves
the business to be as socially responsible as much as profitability.

• This represents a viewpoint that a company’s marketing system

should be consumer oriented, innovative, and favourable to society,
provides a long-term value and is based on a sense of commitment
or mission.

FIVE PRINCIPLES OF ENLIGHTENED MARKETING

• CONSUMER ORIENTED

o The enlightened marketing believes that a company should

analyse all its policies and operation according to consumer’s
perspective.

o For instance, a company may design a flashy and complex

ENLIGHTENED MARKETING Website that has an impressive
outlook; unless it draws the consumer’s attention or navigates
them easily it may seem frustrating.

o A specific store layout may be very efficient for restocking

however; the consumer is interested to look out for what’s
quickly available to him/her.

o A consumer-oriented marketing shows company’s operation

from a consumer’s viewpoint.

• INNOVATION

o A company that follows enlightened marketing seeks for a

constant improvement in products and innovation.
 o The company works on improving its strategies, products and
operations on an ongoing basis.

o For instance, a product gets redesigned for the betterment or

to last longer at the same price.

o Enlightened marketing suggest that this innovation will be

highly appreciated by the consumers and as a result will be
rewarded by market in the long run.

• SOCIETAL IMPACT

o Any product or service can be low priced, high quality and may
fulfil the desired needs of the consumer.

o However, if it doesn’t consider the societal impact of a product

on the environment it may lead to a powerful failure.

o One type derives from a petroleum-based plastic and the other

from a vegetable oil-based plastic.

o The company who takes the impact of a product on consumer

as a central part of marketing will enjoy a beneficial position in
a society that is increasingly conscious of the impact of its
preferences.

• VALUE

o This principle of enlightened marketing holds out the viewpoint

that a company should focus on producing such product that
delivers a real value over the long run rather than focusing on
gaining more profits.

o For instance, an automobile manufacturer designs vehicles that

has a good fuel efficiency and high safety ratings rather than
putting an emphasis on building a fastest and a less expensive
car.
 o The firm should concentrate on such investments that are
expected to deliver reliable returns over some time instead of
riskier short-term profits.

• THE CORPORATE MISSION

o The company needs to define a broad mission of its policies

and operation in societal terms.

o The enlightened marketing puts forth an emphasis on the

benefits of employees and society as a whole.

o The enlightened marketing does not contradict the profitability

of a company in comparison to the ethical principles; rather it
considers the ethical principal as an equal contributor for long
term success of the business.

• The above-mentioned principles of enlightened marketing explain

how marketing decision is made according to the consumer’s wants
and long run interests of the society in general.