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Transcendental Marketing: A Conceptual Framework and Empirical Examples
Fredrik Nordin, Linköping University
Abstract
This article introduces the concept of transcendental marketing, which is an emerging
approach to marketing with the potential of attracting and keeping customers. In an attempt to
develop theory around the concept, it is illustrated with empirical examples and propositions
are developed regarding antecedents, contents, and outcomes of transcendental marketing.
Introduction
A number of different approaches to marketing have emerged over the last decades in practice
as well as in academic texts. Arguably one of the most noteworthy changes in marketing has
been a move away from a transactional approach, where the customer is manipulated and
products pushed onto the customer, to a relational approach, where trust, knowledge sharing
and mutual gains are emphasized (Grönroos, 1994, O'Malley and Prothero, 2004). The
relational approach, it is frequently posited, will result in more loyal customers, decreased
price sensitivity, and the creation of opportunities for up-selling and cross-selling. Thus, it is
sometimes seen as a more efficient and effective marketing approach than alternative
approaches (Boulding, et al., 2005, O'Malley and Prothero, 2004).
However, the relationship approach to marketing has also been criticized; e.g., because it is
not particularly useful in mass-markets (Tynan, 1997) where a low price is seen as most
essential to many customers. Some authors propose that customers increasingly view
relationship marketing as yet another superficial marketing tool used by their suppliers
(O'Malley and Prothero, 2004) in an attempt to lock them in (Rowe and Barnes, 1998).
Contemporary customers, it is argued, are knowledgeable and critical and require that their
suppliers are honest and authentic in their behaviour and communication (Bass and
Steidlmeier, 1999). Many customers are sceptical when their suppliers attempt to “sell
relationships” (O'Malley and Prothero, 2004) and value a low cost higher than most other
aspects of products and services they buy (Agndal, et al., 2007). The purpose of this article is
to start conceptualising an emerging approach to marketing which is here named
transcendental marketing. Transcendental marketing is a logical extension of what has been
termed transcendental leadership (see, e.g., Cardona, 2000, Sanders III, et al., 2003) and
which has several fundamental differences (as well as similarities) in comparison with
transactional and relational marketing approaches. By drawing on this concept and insights
from two empirical cases, a number of propositions concerning transcendental marketing are
introduced, focusing on its antecedents, contents and consequences. The propositions are
intended to serve as a baseline for further investigations into this topic.
Transcendental marketing defined
Transcendental marketing is fundamentally different from existing approaches to marketing in
a number of ways. It builds on the concept of transcendental leadership which according to
Cardona (2000) is concerned with the leader’s followers’ personal development and, more
specifically, their transcendent motivation; to do something for others. Transcendental
leadership is defined as “a contribution-based exchange relationship” where “the leader
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promotes unity by providing fair extrinsic rewards, appealing to the intrinsic motivation of the
collaborators, and developing their transcendent motivation” (Cardona, 2000). Drawing on
Cardona’s work, it can be suggested that one of the most fundamental characteristics of
transcendental marketing, would be that it puts relatively strong emphasis on transforming or
developing customers; i.e. to develop their identity and world-view. Transcendental marketers
(as well as transformational and transcendental leaders more generally) seek to develop their
customers (or more generally: followers), but only under the condition that this development
is aligned with intrinsic motivations of the customers (followers). Transcendental marketing is
also about moral uplifting of customers in line with the companies’ values and vision (cf.
Cardona, 2000). Central for the transcendental marketing approach put forth here is the aim of
inspiring, energizing, and intellectually stimulating customers, while simultaneously making
good business, in line with the ideas of transformational leadership (see, e.g., Bass, 1990).
In contrast to most marketing approaches, thus, transcendental marketing is an approach
which seeks to educate customers, e.g., about the products offered. What is particularly
distinct here is that in this education effort, it also envisions some kind of higher-order values
related to these products, and seeks to develop the customers’ transcendent motivation: the
motivation to do things for others (Cardona, 2000, p. 205). The term transcendental is central
for our understanding of the transcendental marketing approach. Drawing on the work of Kant
(1997), Sanders III et al., define it as ”whatever an individual’s mental and spiritual nature
conceives as above experience or beyond ego” (Sanders III, et al., 2003, p. 22). Spirituality or
anything “beyond ego”, thus, are such higher-order values that transcendental marketers focus
on, in addition to values more intrinsic to the product offered. In contrast to transformational
leadership, transcendental leadership is more concerned with intrinsic motivations of
stakeholders, which the stakeholder may or may not be aware of, and avoids manipulation (cf.
Cardona, 2000).
Transcendental marketers always look after the interest of their customers, based on a genuine
interest and a desire to serve. Hence, if a transcendental marketing approach is used there is a
lower risk that customers are feeling fooled (see O'Malley and Prothero, 2004, Rowe and
Barnes, 1998). The transcendental approach has the potential to create a sense of unity
(Cardona, 2000) between the provider and customers, and this may contribute to the
provider’s competitive advantage. The higher-order values transcendental marketers focus on
- e.g., spiritual values or concern for the environment - may also contribute to a more
sustainable competitive advantage. The reason is that such values are normally quite stable
and can function as shock absorbers against technological changes and trends in the
marketplace. People tend to stay loyal to values they believe in. The strong concern for
higher-order values is a distinctive feature of transcendental marketing.
Transcendental marketing in comparison with other approaches
In comparison with two of the most prominent previous approaches to marketing transactional and relational marketing - there are both similarities and differences. To begin
with, just like relationship marketing (see, e.g., Grönroos, 1994), transcendental marketing
has a long-term focus, albeit in a slightly different way. For transcendental marketers, the
longer perspective is not directly concerning the relationship between buyer and seller but
rather between the buyer and the higher-order values promoted by the transcendental
marketer. In its operational marketing activities, firms that have adopted a transcendental
marketing approach may very well have a short-term orientation, just like those where a
transactional marketing approach is practiced; with each customer interaction being short and
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seldom repeated. However, this interaction is embedded in a longer-term concern for higherorder values; a concern that is shared by the provider and the seller. This shared concern may
lead to a kind of unity, or longer-term indirect relationship between them. Developing more
direct long-term relationships with buyers as a means of competing is, however, not
accentuated here in the same way as it is in relational marketing. Central for the
transcendental approach is the connection to the higher-order values; which may function as a
foundation for a longer term indirect relationship. Moreover, since transcendental marketing
is founded on a belief in certain higher-order values, it is in a sense an “inside-out” approach
to marketing. Firms that are working according to transcendental marketing principles often
build their existence and strategy around certain company-internal values, such as concern for
the environment. Although such values may be shared with their customers, the whole
business and its marketing activities are founded in these internal values. These values can be
described as standardised as they are not adjusted for individual customers.
Transcendental marketing, thus, is ideological and like most ideologists, transcendental
marketers work from the inside and outwards. They first create a product based on their own
desires and needs and then present this product to customers who choose to either accept or
reject it (cf. Becker, 1978). Transcendental marketers seek to spread knowledge about values
related to their offerings and seek to adjust their customers view in relation to these values. In
a sense, transcendental marketing also resembles transactional marketing, which stresses the
individual sale and seeks short-term gains (Brodie, et al., 1997). In contrast, relationship
marketing is more customer driven, or “outside-in”, and seeks to solve customers’ individual
problems and building functional quality, as opposed to technical quality, by using more
interaction with customers (Grönroos, 1991). Through it’s focus on the relationship and
functional quality, an often alleged benefit of a relational approach to marketing is that it
leads to less price sensitive customers (Grönroos, 1991). This benefit is shared with
transcendental marketing, although for transcendental marketing it is essential that customers
seek authentic quality connected to higher-order values.
There are also a number of other approaches to marketing that deserves mentioning since they
are all examples in a general development towards transcendental marketing. For instance,
social marketing (Kotler and Zaltman, 1971) and enviropreneurial marketing (Menon and
Menon, 1997) both take some sort of higher-order values into account, just like transcendental
marketing does. While social marketing is intended to improve the acceptability of a social
idea or practice in a target group, e.g., responsible drinking or safe driving, (Kotler, 1975)
enviropreneurial marketing is solely oriented towards environmental issues (Menon and
Menon, 1997). Transcendental marketing is a broader concept and may include any kind of
higher-order value. In addition, it more explicitly puts emphasis on authenticity and that the
higher-order values are deeply anchored in the provider’s organization and culture; something
which is also emphasized concerning the marketing of aesthetic products and arts (Hirschman,
1983). It seeks to create an internal satisfaction through an adjusted identity among buyers
and an increased consciousness regarding various existential issues, which may include
environmental and social issues. Cause-related marketing (File and Prince, 1998, Varadarajan,
1988) also have analogous ambitions as it is intended to bring in money from its sales in
support of a specific cause.
Transcendental marketing is not as focused on short-term gains. Worth noting is that although
many of the central tenets of transcendental marketing are humanistic in their nature, the
approach does not reject capitalist ideas and the ambition to maximize profitability.
Transcendental marketers may very well seek a profitable business and to sell as many
products as possible, just like most others marketers do. In contrast to many others, though,
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they do this only on condition that it does not violate their core values. Most important for
transcendental marketers is their inner belief in some higher-order values. To work in line
with this belief is more central than earning as much money as possible. Before propositions
regarding transcendental marketing are offered, two illustrative examples are provided.
Transcendental marketing in practice: two illustrative cases
Two examples from different industries are provided here: Norrgavel, a small Swedish
furniture manufacturer, and Yogi Tea, an American company focusing on producing and
selling organic tea. Both have served as an inspiration for the previous sections and will
illustrate some of the ideas of transcendental marketing. They will also serve as input to the
subsequent development of propositions. First, Norrgavel is a Swedish furniture
manufacturer which has become known in its industry for its environmental concern and for
its foundation in values and existentialism. It was founded in 1993 by Nirvan Richter who is
managing the firm as a CEO, designer, and spiritual leader. Norrgavel was the first furniture
manufacturer in Sweden being approved for the ecolabel “The Swan”. They claim they are
not selling furniture but a perspective on interior decoration and, more generally, life. In sum,
this perspective contains three tenets: (1) Humanism – simple, practical, and beautiful
furniture with the customer as a co-creator. (2) Ecology – durable furniture with the highest
environmental standards. (3) Existentialism – functional, timeless, and durable furniture
bought to last, not to create a short-term sensation. Through its furniture, Norrgavel spreads a
message concerning a perspective on life that goes beyond furniture. Furniture sold can be
seen as carriers of this message, but more important than selling furniture (according to
Nirvan Richter) is to persist with these values. A minimalistic approach to life and
consumption is sought and taught, with limited consumption of furniture and other goods in
favour of careful selection of high-quality goods made with love.
Second, Yogi Tea Company was founded by Yogi Bhajan while he was teaching Kundalini
Yoga in America during the 1960’s, sharing the ancient wisdom of Ayurveda and healthy
living that he had learnt in India. The teas he blended and served during his classes were
sought after and shortly also sold at a number of vegetarian restaurants in Europe and the U.S.
They became a success among customers and in response to the positive demand the
restaurants began to package and sell the tea to local natural food stores. Subsequently these
endeavours blossomed into the Yogi Tea Company which now creates more than 50 pure
organic teas made with organic herbal and green tea blends, with flavours named, e.g., “bright
mood” and “bedtime”. They are all grounded in Ayurvedic wisdom and in a simple, natural
way of living. The company is committed to providing the highest quality ingredients while
also protecting the earth’s natural resources. On each tea box can be found a summary of the
ingredients of the specific tea blend but also the story behind the tea, the Ayurvedic
philosophy, and a short meditation exercise.
Discussion and propositions
A feature which both empirical examples provided above have in common is their inside-out
approach and their ambition to change their customers’ perspective on certain existential
issues; or to adjust their identity. In the case of Norrgavel it is about spreading ideas
concerning existential issues to their customers, through channels such as brochures, internet,
interviews in newspapers, and personal meetings in furniture stores. In the case of Yogi Tea,
messages related to the Ayurvedic philosophy is spread primarily through texts on packages
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and secondly through their internet site. A first proposition can be stated: P1: As the
marketing approach develops towards transcendental, the more it will contain active attempts
to influence customers and their identity, instead of just meeting or being influenced by their
outspoken needs. It is not a coincidence that both examples provided here are about marketing
to consumers. Business marketing is distinctive in several ways when compared with
consumer marketing. For instance, the marketing process is normally more complex and
involves multiple employees from both sides of the relationship, from different hierarchical
levels and different functions in the organisations (Jackson and Cooper, 1988). The business
purchasers are trained professionals, sometimes making the purchasing procedure more
formalised (Jackson and Cooper, 1988). Moreover, offerings to business customers often need
to be customised to the relatively complex organisational needs (Jackson, et al., 1995).
Logically, relational marketing is often feasible at business markets since it is a more
customer-driven approach than the transcendental approach; which is driven from inside and
out. Therefore, a second proposition can be formulated: P2: It is more likely to find
transcendental marketing at consumer markets than at business markets. Without any doubt,
however, the transcendental approach is practiced also at business markets, at least to a
certain degree. An example could be Hanken Corporate Services where the Finnish university
seeks to develop the skills of employees within the business community.
Another central feature is illustrated by the cases. While both Norrgavel and Yogi Tea are
focused on making a profit, they appear to be doing this under the overarching condition that
they persist with their values. In the case of Norrgavel, their values and the minimalistic
approach to life comes before sales maximization. As the CEO Nirvan Richter expresses it:
”This is an efficient company and we run it like in order to be profitable. But it is also another
aspect to it; I usually call it an artistic approach which means not doing anything unless you
really want to have an authentic desire to express something. That is the highest goal”. This
quote encapsulates a central aspect of transcendental marketing, which is not as accentuated
in most other approaches to marketing. Thus: P3: As the marketing approach develops
towards transcendental, the more essential is an authentic desire to express something which
stands above the direct qualities of the products offered; so called higher-order values. It is
likely that such an approach to a business is more common at companies that are not noted on
the stock exchange. Elsewhere, it may be more difficult or unacceptable not to focus on sales
maximization. Thus, another proposition can be stated: P4: It is more likely that
transcendental marketing is found at companies that are not noted on the stock exchange.
Another characteristic that the examples have in common is the presence of a spiritual leader
for customers as well as for employees. In the case of Norrgavel, the CEO Nirvan Richter
obviously takes this role while for Yogi Tea it appears to be Yogi Bhajan. The emphasis on
authenticity and higher-order values in transcendental marketing would seem to make the
presence of such a leader more vital than it is for transactional marketing in particular.
Therefore: P5: As the marketing approach develops towards transcendental, the more likely it
is that a spiritual leader will be central to the firm and for its customers. Among the other
characteristics of transcendental marketing is the long-term perspective; where fundamental
higher-order values such as minimalism in the case of Norrgavel and the Ayurvedic
philosophy in the case of Yogi Tea are in focus rather than merely short-term results. Such
values have the potential to attract customers over longer time periods, without the drawback
sometimes mentioned in conjunction with relational marketing; that customers feel locked-in
(Rowe and Barnes, 1998). Thus, a final proposition is stated: P6: Transcendental marketing
has a long-term focus on higher-order values, which indirectly has the potential to create
long-term customer relationships and more stable revenue-streams.
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Concluding discussion
This paper has attempted to expand the transcendental perspective on leadership (Cardona,
2000, Sanders III, et al., 2003) to marketing; incorporating the focus on higher-order values
beyond ego. There is clearly a growing interest in spirituality (Haasnoot, 2000) and other
higher-order values, such as concern for the environment and corporate social responsibility.
The concept of transcendental marketing appears to be aligned with this general development
in society. It would be interesting to develop the concept of transcendental marketing further
and to investigate its use and usefulness.
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