The Societal Marketing Concept

Some have questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society? The marketing concept sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare.

Consider the following criticism:

The fast-food hamburger industry offers tasty but unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.

Situations like this one call for a new term that enlarges the marketing concept. Among those suggested are “humanistic marketing” and “ecological marketing.” We propose calling it the societal marketing concept.

The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.

The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer wan satisfaction, and public interest. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Two pioneers of the societal marketing concept are Ben &Jerry’s and The Body Shop. But, as recent events show, even they encounter difficulties.

These companies are practicing a form of the social marketing concept called cause-related marketing, Pringle and Thompson define this as “activity by which a company with an image, product, or service to market builds a relationship or partnership with a ‘cause,’ or a number of ‘causes,’ for mutual benefit.” They see it as affording an opportunity for companies to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage. They believe that costumers will increasingly look for demonstrations of good corporate citizenship. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. Some critics, however, complain that cause-related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating directly to chosen causes. 

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The Body Shop

In 1976, Anita Roddick opened The Body Shop in Brighton, England, as a tiny storefront selling body lotions. Today The Body Shop boasts 1,500 branches in 47 countries. The company manufactures and sells natural-ingredient-based cosmetics in simple and appealing recyclable packaging. The ingredients are largely plant-based and often come from developing countries. All the products are formulated without animal testing. The company also helps developing countries through its Trade Not Aid mission, contributes to rain-forest preservation efforts, is active in women’s and AIDS issues, and set an example for recycling. Yet, like many businesses striving to be socially responsible and profitable, The Body Shop has faced intense scrutiny and suspicions about its ethics. It has also been the victims of its own success and has been edged out by younger, fresher protégés whom it inspired.

Competitors, such as Bath & Body Works, Aveda, and Origins, are all unhampered by an expensive social mission. Declining store sales, particularly in the United States, have jolted The Body Shop into some new management and marketing moves. Outspoken Anita Roddick has stepped down as CEO, although she is still actively involved in crafting the social agenda and developing new products. One of her initiatives, Hemp, a line of hempseed-oil body care products, promises to put The Body Shop in the spotlight again and rev up sales. Advocates of industrial hemp, a nonnarcotic relative of marijuana, say the fast growing crop provides an environmentally friendly alternative packaged and consistent with The Body Shop’s environmentally conscious philosophy. 

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Ben & Jerry's

Twenty years after Ben & Jerry’s Scoop Shop opened in Burlington, Vermont, sales have climbed to over $190 million. The company has more than 600 employees and 10 franchises. Why the appeal? For one thing, Ben & Jerry are masters creating innovative flavors such as Cherry Gracia and Chocolate Chip Cookie Dough. For another, customers know that 7.5 percent of the company’s pre-tax profits are donated to a variety of social and environmental causes. For a while it seemed the company could do no wrong. Then, in the mid-1990s, facing stiff competition in the super premium ice cream category, the company suffered a series of losses. It began a highly publicized search for a new CEO to lead the company. The choice, a McKinsey consultant, was greeted with high hopes but lasted only two years. Current CEO Perry Odak, who arrived in 1997, has steered the company back on track to an impressive 12 percent growth in 1998.

Odak has refined product lines, changed funky but confusing packaging, and tightened the company’s loose and often chaotic business practices. And for those fearing a sellout from Mr. Odak – whose resume includes a stint at U.S. Repeating Arms rifle makers – they need only consider this: Tightening the company’s business practices is not only improving the bottom line but also seems to be promoting performance when it comes to worthy causes. Elizabeth A. Bankowski, the company’s social mission director, said: “We now meet and identify social mission objectives by function, and it’s taken as seriously as every other business objective.” Since Odak took over the day-to-day management of the company, performance reviews even reflect how well employees identify and meet their social mission objectives. 

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