How Social Responsibility in Marketing Works
Read this chapter to reinforce learning about socially responsible marketing. It is noted that socially responsible marketing responds to questionable marketing practices that adversely affect society. Economic criticisms of marketing are summarized in the article, specifically practices that result in higher prices for consumers and environmental concerns. Sustainable marketing principles are briefly summarized, including consumer-oriented marketing, customer-value marketing, innovative marketing, sense-of-mission marketing, and societal marketing. Think of an example of a product or service you purchase because of its socially responsible marketing.
Recyclable packaging, promotions that spread awareness of societal issues and problems, and directing portions of profits toward charitable groups or efforts are examples of social responsibility marketing strategies. For example, a clothing company's marketing team may launch a campaign that encourages consumers to buy a bundle of socks versus just one pair. Using this model, the company can donate a bundle of socks to military personnel overseas or to local homeless shelters for each bundle sold. As a result of these donations, the company brands itself as socially responsible and charitable, which ultimately attracts customers who are motivated by socially responsible commitments and who want to support the welfare of the community.
Corporate responsibility goes hand in hand with socially responsible practices. For example, administrators, executives, shareholders, and stakeholders must practice ethical behaviors and join the community in promoting responsible marketing efforts. Solely putting on appearances or greenwashing, the practice of promoting deceptive environmentally-friendly processes or products, indicates to customers that the company is not committed to social responsibility. Instead, such behaviors can ultimately hurt the brand and the company's success. Consumers often can see through gimmicks, slogans, or efforts that are not genuine or effective. In fact, 65% of the Cone study respondents say they'll research a company's stand on an issue, to see if it's being authentic.
Socially responsible marketing emerged as a response to questionable marketing practices that have adverse effects on society. The major economic criticisms that the conventional private marketing system receives from are as follows:
- Mainstream marketing strategies generally lead to high prices. Due to the size of the chain of intermediaries in marketing, the distribution of commodities to consumers costs a lot. As a result, individuals pay higher premiums for the goods and services that they receive.
- Contemporary marketing relies heavily on aggressive advertising and promotion. In order to offset the costs, companies charge higher prices through excessive markups.
- Product differentiation is one of the most commonly used marketing tools. But this not only creates an artificial psychological value attached to higher-priced brands but also raises environmental concerns about packaging. As such, socially responsible marketing rejects all deceptive marketing practices in pricing, promotion and packaging, even if they may seem technically legal.
Business actions Toward Sustainable Marketing
Sustainable Marketing Principles
- Consumer-Oriented Marketing
- The philosophy of sustainable marketing that holds that the company should view and organize its marketing activities from the consumer's point of view
- Should work hard to sense, serve and satisfy the needs of a defined group of customer
Customer-Value Marketing
A principle of sustainable marketing that holds a company should put most of its resources into customer-value-building marketing investments
Actual improvements in the product's quality, features or convenience add value
By creating value FOR customers, company can capture value FROM customers in return
Innovative Marketing
A principle of sustainable marketing that requires that a company seek real product and marketing improvements
Sense-of-Mission Marketing
Holds that a company should define its mission in broad social terms rather than narrow product terms
Brands linked with broader missions can serve the best long-run interests of both the brandand the consumers
Societal Marketing
Holds that a company should make marketing decision by considering consumers' wants the company's requirements, consumers' long run interests and society's long run interests
Deficient products: Products that have neither immediate appeal nor long-run benefits
Source: Icfai Business School, https://ebooks.ibsindia.org/amm/chapter/how-social-responsibility-in-marketing-works/
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