• Value Marketing

• Value Marketing

v;ilue marketing According to the principle of value marketing, the company should put most of its . A 'principle of

resources into value­building marketing investments. Many things marketers do ­ enlightened marketing

one­shot sales promotions, minor packaging changes, advertising puffery ­ may which holds that a

raise sales in the short run. but add less ­value than would actual improvements in company should put

the product's quality, features or convenience. Enlightened marketing calls for most of its resources into

building long­run consumer loyalty, by continually improving the value that value­building

consumers receive from the firm's marketing offer.

marketing investments.

The computer company Dell, which pioneered mail­order selling of personal computers in the late 1980s, is a good example of an innovative marketer. The company recognized that PC buyers were becoming more knowledgeable about computers and the software they wanted, and were confident about making a purchase decision without the need for salespeoples' advice and interference. They wanted fast delivery and reliable after­sales service and maintenance support. They did not require the intermediary. Dell bypassed traditional distri­ bution channels used by­the competition and, in selling direct to customers, created a unique selling point (USP) based on its innovative distribution arrange­

sense ­of­mission ments. The approach was so successful that many competitors followed suit. marketing Today, Dell continues to maintain a direct relationship with consumers that A principle of

enlightened marketing enables the company to listen better, learn faster and become more agile in

which holds that a

responding to their changing and differing needs. 17

company should define )'fii mission in broad

• Sense­of'Mission Marketing

social terms rather than narrow product terms.

Sense­of­mission marketing means that the company should define its mission in broad social terms rather than narrow product terms. When a company defines a

societal marketing social mission, employees feel better about their work and have a clearer sense of A principle of

direction. For example, defined in narrow product terms, the Go­operative Bank's enlightened marketing

mission might be to sell banking services, but the company has taken a firm de­ inhich holds that a

cision to promote a broader mission ­ to be an ethical bank, refraining from doing company should make

business with those companies that engage in so­called unsavoury business prac­ marketing decisions by

considering consumers' tices, from companies that are involved in the fur trade to tobacco product manu­

facturers.

wants, the company's

requirements, consumers' long­run

• Societal Marketing

intercuts and society's long­run interests.

Following the principle of societal marketing, an enlightened company makes marketing decisions by considering consumers' wants and long­run interests, the

Business Actions Ibwards Socially Re&p&nsibte Marketing • 63

company's requirements and society's long­run interests. The company is aware that neglecting consumer and societal long­term interests is a disservice to consumers and society. A crucial problem is this. In many cases customer needs, customer wants and customer long­run interests are the same things, and

customers are the best judges ot' what is good for them. However, customers do not invariably make decisions that are good for them. People want to eat fatty

food, which is bad for their health; some people want to smoke cigarettes knowing that smoking can kill them and damage the environment for others; many enjoy drinking alcohol despite its ill effects. To control some of the potential evils of marketing there has to be access to the media for the counter argument — the counter argument against smoking, against fatty foods, against alcohol. There is

also a need for regulation­self if not statutory—to cheek unsavoury demand.

A second problem is that what consumers want is sometimes at odds with societal welfare. If marketings job Is to fulfil customers' wants, unsavoury desires leave marketers with a dilemma. Consumers want the convenience and prestige of hardwood window frames, doors and furniture, but society would also like to

keep the Amazon rain forest; consumers want the comfort of air­conditioning, yet desirable products we need the oxone layer; consumers worldwide should be using lead­free petrol, Products that give both

yet not all bother. Marketing has to be more alert to the inconsistencies between high immediate consumer wants and society's welfare. Where there is insufficient drive from

satisfaction and high within the consumer movement and consumers' own sense of responsibility,

long­run benefits. marketers would do better to control or regulate their own behaviour in providing goods or services that are undesirable for society at large. If not, legislation is

pleasing products likely to do that for them.

Products that give high

A socictally oriented marketer should design products that are not only pleasing immediate satisfaction, but also beneficial. The difference is shown in Figure 2.2. Products can be classi­

but may hurt consumers fied according to their degree of immediate consumer satisfaction and long­run

in the long run. consumer benefit. Desirable products give both high immediate satisfaction and

high long­run benefits. A desirable product with immediate satisfaction and long­ salutary products run benefit would be a tasty and nutritious breakfast food. Pleasing products give Products tliat have low high immediate satisfaction, but may hurt consumers in the long run. Examples appeal but may benefit

consumers in the long are indulgence goods like confectionery, alcohol and cigarettes. Salutary prod­

run. ucts have low appeal, but benefit consumers in the long run. Seat belts and air

Pears promote their product as being at one with nature ­

a strategy wsetf more often in this age of heightened environmental awareness.

64 • Chapter 2 Marketing and Society

deficient products bags in cars are salutary products. Finally, deficient products, such as bad­tasting Products that have

and ineffective medicines, have neither immediate appeal nor long­run benefits. neither immediate

The challenge posed by pleasing products is that they sell very well, but may appeal nar long­run

end up hurting the consumer. The product opportunity, therefore, is to add long­ benefits.

run benefits without reducing the product's pleasing qualities. For example, the British drug and household product manufacturer Reckitt & Coleman developed a

phosphate­free laundry detergent that was relatively more effective than existing 'green' detergents. The challenge posed by salutary products is to add some pleasing qualities so that they will become more desirable in the consumers' minds. For example, synthetic fats and fat substitutes, such as NutraSweets Simplesse and P & G's Olese, promise to improve the appeal of low­calorie and low­fat foods.