Download 5. Social Marketing To Shift Along With Its Foundation

ABSTRACT
This paper examines the relationship between social marketing and commercial marketing. It
draws upon the traditional conceptual framework of commercial marketing management, which is
built around the marketing mix and the Four P model; this framework serves as the theoretical
foundation of social marketing. The paper then points out distinctions of social marketing along
with discrepancies and some problems encountered during the translation of principles from
conventional marketing.
The development of commercial marketing is then scrutinized so as to evaluate its applicability in
the modern consumer environment and understand the theoretical and practical direction of this
science. Through the evaluation, this paper underlines the lack of emphasis on the interaction with
consumers as consequence of the traditional marketing mix approach to marketing. The distance
created by the traditional approach between the marketers and the consumers is not in line with the
core principle of social marketing that calls for deep understanding of consumers through
interaction.
Because of this issue, the paper attempts to explain why the conceptual framework of social
marketing should be redesigned to reflect its strong consumer orientation, and how it can do so by
incorporating theories and practices from the emerging discipline of relationship marketing.
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A Shift In Social Marketing And Its
Foundation
By Alexandru Petrescu
MMC Spring Thesis 2011
Supervisor: Katrine Vanggaard Madsen
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Introduction
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1.1 Significance and goal
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1.2 Problem statement
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1.3 Focus
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1.4 Method
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1.5 Delimitations
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2. Theoretical Framework
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3. Development of Social Marketing
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3.1 Inception and Foundation
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3.2 Distinction and Sophistication
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3.3 Different Approaches
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3.4. Popularity and Growth
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4. Development of Commercial Marketing
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4.1 Marketing Mix Management - Critique
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4.2. Market-Oriented Theories
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4.3 A Shift in Marketing Paradigm - Towards Relationship Marketing
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4.4 Implications of Relationship Management
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4.5 Branding and Experiences
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4.6 Final words on the development of marketing
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5. Social Marketing To Shift Along With Its Foundation
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6. Scientific methodology
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Conclusion
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Bibliography
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1. Introduction
“Why can’t you sell brotherhood like you sell soap?”1- was the famous question posed by G.D.
Wiebe regarding the effective selling of commodities such as soap versus the less successful
promotion of social goals. This question was then quoted by Phillip Kotler and Gerald Zaltman in
1971 in an article that suggested that the same marketing principles that were used to sell products
to consumers could also be used to influence attitudes and behaviors by “selling” ideas and
knowledge that would benefit the consumer and the general society rather than the marketer. This
approach to planned social change was named social marketing.
Since its inception, social marketing had gained acceptance as a separate field in marketing
sciences and has thus been studied, enhanced, broadened, criticized, praised, and widely practiced
in social campaigns intended to benefit the general society. Such campaigns have ranged from and
beyond encouraging blood donation, to discouraging cigarette smoking, to altering ideas about
abortion. The application of commercial marketing techniques to social planning has radically
transformed the way social objectives are pursued.
Today’s marketing scene is changing along with the way people communicate. We are living in a
society that is shaped by quick global communication and networking. In this age, mass marketing
is gradually substituted by an emphasis on individuality and rejection of conformity among
consumers. Since social marketing is greatly reliant on classical marketing theory and practice and
since it often markets social conformity regarding diet, lifestyle, attitudes, and social interaction2,
such changes in society may affect the suitability of social marketing to today’s social challenges.
1.1 Significance and goal
It is important understand the principles of social marketing and evaluate their applicability to our
contemporary society, which is undergoing dramatic changes. The end of a marketing world that is
based on mass communication may undermine the effectiveness of social marketing, a discipline
that was born on theories that are no longer finding their place in the modern consumer
environment where individualism and is accentuated.
Understanding what are the requirements of this new marketing context may provide a platform on
which social marketing can evolve to fulfill its purpose of successfully addressing present-day
social issues and stimulating beneficial societal changes.
1 qtd by Kotler and Zaltman, 1971, p 3
2 Sue & Ken Peattie, 2003, p.380
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The goal of this paper is to analyze theory behind social marketing and the disciplines from which
it derives, to see to what extent it encompasses, how and why it should evolve to incorporate, the
relational tools necessary to achieve its social objectives in the modern consumer environment.
1.2 Problem statement
How can social marketing theory be reconditioned to better reflect its customer oriented nature and
increase its potential to successfully achieve social change?
1.3 Focus
Focus will be placed on the theoretical structure of social marketing along with the theories behind
the sciences that form this structure i.e. commercial marketing. Emphasis will also be placed on the
theoretical and practical development of commercial marketing in the modern consumer
environment, and on the how the evolving importance of consumer relationships and retention are
changing the marketing scene.
1.4 Method
To answer the question revealed in the problem statement this paper will look into the background
of social marketing. We will analyze the theory behind this discipline so as to point out the
strengths, weak spots, discrepancies, different views, and the barriers in its evolution.
We will then look into the development of the conceptual framework on which social marketing is
based - the marketing mix strategy based on the Four Ps. We will evaluate the position of the
marketing mix as the dominating approach to marketing research and see what are the implications
of this approach and what alternatives have been developed over the years.
Lastly, we will use the information, gathered on the range of theories behind the social marketing
and its potential development along with theories regarding the development of conventional
marketing, to discuss the the potential of redesigning the theoretical framework of social marketing
in the formation of stronger bonds with its target audiences.
1.5 Delimitations
Since the objective of social marketing is to achieve behavioral changes it is common sense that
consumer behavior is a prerequisite science in social marketing research. However, this paper does
not take into account the consumer behavior theories that are relevant to the development and the
different approaches to social marketing. The space restrictions to not allow us to delve into this
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important part of social marketing’s theoretical framework; therefore only the core principles of
traditional marketing theory that are scrutinized, namely, the exchange theory and the marketing
mix strategy, which is based on the Four Ps.
Another delimitation of this paper regards the specific guidelines for how relationship marketing
can be incorporated and then implemented in social marketing campaigns. We are only discussing
the reasons for and the potential or implications of doing so.
2. Theoretical Framework
Social Marketing: An Approach to Planned Social Change- an article written by Philip Kotler
and Gerald Zaltman is a pivotal essay in the emergence of social marketing as a discipline. This
article explains how the Four Ps of the marketing mix function and how they can be applied in
social campaigns to achieve effective social change. It also gives insight into definitions of
commercial marketing, marketing management and the exchange principle.
Alan R. Andreasen’s insight into social marketing helps us understand the differences between
social marketing and commercial marketing. His article- Marketing Social Marketing in the Social
Change Marketplace, explains what obstacles have been standing in the way of the evolution of
social marketing as the chosen approach in social change, how the discipline has progressed over
the years, and also suggests ways to encourage the growth of social marketing.
Ready to fly solo? Reducing social marketing’s dependence on commercial marketing theory- an
article by Sue and Ken Peattie, explains some of the difficulties of translating ideas and practices
from conventional marketing to social marketing. They argue that social marketing must try to
develop into a more independent theory as there is an over-emphasis on direct translation of
commercial marketing principles into social text. They also point out valuable distinctions between
the two disciplines.
Glenane-Antoniadis et al. through their article- Extending the vision of social marketing through
social capital theory- help in explaining the different perspectives in literature on social marketing
and provide a general view over the theories covered. They also suggest a perspective that could
unite different theories under a single concept- social capital theory.
From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing- and
Christian Grönroos, is used to great extent in explaining the different aspects that have been
criticized in the marketing mix strategy, based on the Four P model. He sheds light on the different
implication of those downsides and how marketing should develop in order to better interact with
consumers. He also explains the different theories that lead up to relationship marketing as an
alternative approach to reaching out to consumers.
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Other authors that have had a significant influence on this paper are: Evert Gummesson, who
helped explain the concept of the part time marketer, Pine and Gilmore, who’s focus was on
experience economy and David Aaker who developed a comprehensive and helpful guide to
building strong brands. Other authors have been quoted in order to place this paper in a realistic
and accurate theoretical perspective, limited space prevents explaining their contribution in this
section, however, they can be found in the bibliography section of the paper.
3. Development of Social Marketing
To understand how social marketing can be improved one must first look at the foundation of the
discipline, the theories that shape it and the implications of these founding elements in the resulting
product.
In the development of social marketing different approaches and perspectives have emerged, these
view points are often conflicting, but their understanding could lead to an understanding of what
weaknesses can be overcome to achieve effective social change.
3.1 Inception and Foundation
The roots of social marketing within the marketing field are found in article by Phillip Kotler And
Gerald Zaltman, entitled Social Marketing: An Approach to Planned Social Change. At the time
this article was written, social advertising had become such a feature of American society that it
was no longer a question of whether to use it, but a question of how to use it.3 According to Kotler
and Zaltman social advertising had proven successful in some cases and had failed in others; they
attributed the failures to the campaigners’ over-reliance on advertising. The article proposed that
one must go beyond social advertising and social communication to achieve social change, and
must therefore employ principles of marketing management.
While the concept of marketing is founded on exchange processes “marketing management is the
analysis, planning, implementation, and control of programs designed to bring about desired
exchanges with target audiences for the purpose of personal or mutual gain. It relies heavily on the
adaptation and coordination of the product, price, promotion and place for achieving effective
response.”4 In designing a desired product, then merchandising, promoting and distributing it,
marketing management requires research regarding the wants, attitudes, and behaviors of
consumers; for this reason, “in the hands of its best practitioners, marketing management is applied
behavioral science.”3
3 Kotler and Zaltman, 1971, p.5
4 qtd by Kotler and Zaltman, 1971, p.4
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As mentioned above, marketing management relies greatly on product, price, promotion and
place. These elements have become widely known as the 4P’s of the marketing mix. The mix,
referring to a mix of ingredients and tools necessary to achieve market response, was a concept
coined by Neil Borden in 1953. Different authors tried to more conveniently classify the
“ingredients” of the mix, but the 4P model designed by Jerome McCarthy was the model that
became the most widely used in marketing and for a long time it was the “indisputable paradigm in
academic research.”5
This 4P model, in Kotler and Zaltman’s proposal, was the theoretical foundation on which social
marketing was built to become the “design implementation, and control of programs calculated to
influence the acceptability of social ideas and involving considerations of product planning, pricing,
communication, distribution, and marketing research.”3
The product planning would be the process in which social marketers would “package” a social
idea, in a manner that would make it desirable to the target audience and would encourage them to
purchase or adopt it. This was a more sophisticated process in the social area than in the
commercial area, since marketer would have to design social products rather than tangible
products.6
The promotion would comprise of activities such as advertising, personal selling, publicity, sales
promotion. With respect to advertising, marketers would determine, the budget, the most efficient
media and the choice of appeals to reach out to the target audience, while personal selling would
look to the details regarding the salesforce (i.e. tactics, supervision, performance). Publicity would
necessitate appearance of news about the social product in various mass-media. Sales promotion
would then translate into the displays, premiums, programs and events needed to stimulate interest
and action.7
The place could be defined as process of arranging for accessible outlets which permit translation
of motivations into actions. This process would be done by selecting the most appropriate number ,
size, and location for such outlets.8
The price in commercial marketing would refer to the price at which certain products are bought.
In the social arena, price refers to money costs, energy costs or psychic costs. 8 For example a
smoker would experience only a psychological cost when asked to give up smoking. Others may
experience a cost in physical energy when encouraged to go to the nearest polling place and vote in
an election. Financial costs may come with increased behavior of buying more expensive ecological
products in some cases.
5 Grönroos, 1994, p. 5
6 Kotler and Zaltman, 1971, p. 7
7 Kotler and Zaltman, 1971, p. 8
8 Kotler and Zaltman, 1971, p. 9
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3.2 Distinction and Sophistication
Having considered the commercial elements that make up the foundation of social marketing’s
theoretical framework, we will now look at what developments make this discipline unique and
more complicated in practice.
According to Alan Andreasen, a prominent figure in the development of social marketing of the
past two decades, what makes social marketing unique is that it “(1) holds behavior change as its
<<bottom line>>, (2) therefore is fanatically customer-driven, and (3) emphasizes creating
attractive exchanges that encourage behavior (the benefits are so compelling and the costs so
minimal that everyone will comply)”9. Indeed, with regard to costs, a particular feature of social
marketing is the marketers’ efforts to minimize the price/cost of a social product rather than
maximize it, as it is done in the commercial area.
As implications of the characteristics mentioned above, social marketing is primarily meant to
stimulate behavioral change that benefits the consumer and the society, while acknowledging that
behavioral change is governed by personal and interpersonal, as well as environmental factors. This
requires the use of social and behavioral sciences in leading research of audiences, which are
segmented with regard to the most attractive benefits of each segment, to consumers’ willingness to
accept costs, and to suitability of location and place for interaction with campaigns. Such processes
require constant monitoring and revision to asses efficacy of campaigns and adjust accordingly. 10
By looking at the distinctive features mentioned earlier, it becomes clear that social marketing
differs greatly in intentions and level of emphasis on some aspects of consumer behavior, but the
implications of reaching those goals require tactics and practices derived from the core of marketing
management and marketing mix.
According to Andreasen, in a social campaign, “careful attention is paid to the competition faced
by the desired behavior.”9 This sort of competition is different from that of commercial companies
which compete with other companies in market share and in attracting the attention of consumers.
Social marketers do not have to compete with other social marketers (with some exceptions) when
“selling” social and behavioral change, their “competition is most often the current or preferred
behavior of the target market and the perceived benefits associated with that behavior. “
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Andreasen provides a more detailed view of the type of competition met in social marketing:
“ Desire competition - from competing desires among those targeted
Generic competition - different types of solution to a certain social problem
9 Andreasen, 2002, p. 7
10 www.enotes.com/public-health-encyclopedia/social-marketing
11 Kotler, Roberto, Lee, 2002, p.10
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Service form competition- for example, alternative therapies to conventional modern medical
interventions
Enterprise competition- from other organizations offering the same service.” 12
However, overcoming the competition in this case still requires a marketing approach to analyze
the consumer preference of some type of influence over another, and to decipher what appeal would
reach the consumer over the clatter of competitive behavioral appeals and influences.
With these distinctions in mind it is easy to see why social marketing can be more complex than
the discipline from which it derives. Its complexity lies with the social marketers’ intentions not
only to sell a product or behavior that consumers may want or need in order to improve their lives
or to adhere to social norms, but also to convince consumers to change a lifestyle with which they
feel comfortable.To achieve such goals social marketers may require a greater level of innovation
and creativity than their commercial correspondents.
Another point in the sophistication of social marketing is the complexity of measuring results.
When the goal of a campaign is that of behavioral change in society in the long term, it becomes
quite difficult to measure the success of the campaign. Even if change does occur, it is still hard to
link it with the campaign. If there is no change in the behavior the campaign could still be a success
as long as a certain social issue hasn’t worsened. It is therefore hard to measure the extent to which
a specific campaign has had a behavioral effect on the target audience.
Its is also difficult to translate the underlying principles from commercial to social marketing. For
example considering the premise of exchange on which marketing occurs can prove problematic
when transferring this premise to the social arena where economic-style exchange is generally
lacking. Exchange involves the acceptance of two parties to engage in a mutual and dependent
transfer of value.13 Attempting to create an exchange in social marketing is possible, but it is also
problematic. Some attempts to integrate an exchange in a social campaign have been met with
criticism under ethical conditions, a notable example is a contraceptive campaign in India where
radios were offered to men who agreed to undergo vasectomies. A more appropriate translation of
the principle of exchange is suggested by Ken and Sue Peattie, and it refers to the broader concept
of interaction between target audience and social campaigns.13
3.3 Different Approaches
Although social marketers have generally been working towards the same goal of achieving
positive social change, it is argued that the methods by which they have been operating may differ.
12 qtd in Peattie Sue and Ken, 2003, 375
13 qtd in Peattie Sue and Ken, 2003, 379-370
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According to Alicia Glenane-Antoniadis et al. “the literature on social marketing can be grouped
into two categories based on the tools, or the means, that the social marketer advocates:
‘traditionalists’, who focus on the use of conventional marketing principles, such as one or all
components of the marketing mix; and ‘convergents’, who take an interdisciplinary approach to the
study of social marketing.”14
Traditionalists advocate, intentionally or unintentionally, the transfer of traditional marketing
tools, from commercial settings, to the social marketing arena. Although traditionalists, as a group,
have the driving force of neoclassical theory in common, there are some differences in their focus
on the tools used. Therefore this academic branch can be subdivided into ‘soloists’, who generally
focus on only one of the marketing mix components, and ‘strategists’, who generally argue in favor
of a larger number of marketing mix elements and a more strategic perspective.15
Soloists have mostly done theoretical work that has been generally focused on the role of
promotion in social marketing. There were however some exception that concerned those that have
placed greater emphasis on pricing, or on distribution.15 It is argued that, “by restricting their focus
to isolated components, they fail to take into account the all-encompassing philosophy of
marketing”15.
Strategists fall into three categories: those who place importance on all the marketing mix
components; those who tend to disregard it and focus primarily on the strategy of formulation,
implementation, and control; and those who and incorporate both marketing mix and marketing
strategy with equal emphasis in their approach.15
The convergents take a much different approach to social marketing as they tend to focus more on
behavioral aspects beyond the realm of marketing. Two approaches are primarily undertaken by
convergents: an individualistic and a social approach. The individualists employ theories such as:
-Stakeholder theory - based on analysis of all individuals involved in, or affected by, campaign or
social issue
-Quality of life theory - derived from Maslow hierarchy of needs, suggests that different societies,
based on their level of development, seek to satisfy higher or lower order needs. From theory
several normative principles are derived to guide the efforts of social marketers.16
14 Glenane-Antoniadis et al. 2003, 324
15 Glenane-Antoniadis et al. 2003, 327
16 Sirgy, M. Joseph, Michael Morris, and K. Coskun Samli. "The Question of Value in Social Marketing." American Journal of
Economics and Sociology 44.2 (1985): 215-28
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-Diffusion theory - diffusion is defined as “the process by which an innovation is communicated
through certain channels over time among the members of a social system.”17
Those convergents who have taken a more social and relational approach to the study of social
marketing have drawn upon theories dealing with factors such as community, citizenship,
collaboration, coalition, collective sacrifice, socialization, social relationships, social dilemmas,
social ecology, social psychology, social identification, and social influence.18
Alicia Glenane-Antoniadis et al. suggest that social capital theory can be used as an umbrella
theory to bridge together different perspectives and approaches in the social marketing analysis of
the audience and consumer market. Defining social capital as the "goodwill that is engendered by
the fabric of social relations and that can be mobilized to facilitate action" 18 Glenane-Antoniadis et
al. underline the idea of social relationships and associations, through goodwill it is emphasized that
social capital is built around trust and norms of reciprocity. They also suggest that fostering trust
and mutually giving relationships are essential aims for marketers seeking positive social change.18
3.4. Popularity and Growth
Social marketing has seen significant growth since its inception in the 1970s. Social marketing
centers have been created in different parts of the world, particularly Europe and North america,;the
Social Marketing Institute was established in 1999; several textbooks have been been published on
the subject; and annual social marketing conferences are held. 19 These are just some of the
indicators of growth in theoretical studies on this subject, but there are also signals of growth on the
practical side. Major organizations concerned with social change have adopted social marketing
(some U.S. Federal agencies, UNAIDS), consulting agencies have been formed that are specialized
on this matter, some advertising agencies provide service based on social marketing, and there are
also programs that have been established beyond Europe and America, especially in Australia and
New Zealand.19
Despite the visible growth of social marketing, the discipline is still facing some limitations in its
evolution. Andreasen has underlined some major elements that slow down the adoption of social
marketing. 20
17 Rogers, Everett M. Diffusion of Innovations. New York: Free, 1995.
18 Glenane-Antoniadis et al. 2003, 328-333
19 Andreasen, 2002, p.3
20 Andreasen, 2002, p.4.
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One impediment in the growing popularity of social marketing it the fact that many executives at
top levels of management are unaware of the potential of this discipline in major social change. For
this reason those who may be able to apply social marketing on operational level are not receiving
enough support from upper management.20
Another problem is the apparent lack of clarity of social marketing. Its images is not very well
formed since there are different definitions and different viewpoints of the discipline.20 Because of
this, the discipline is not so well differentiated from other approaches to social change. This could
mean that social advertising could seem to be the same thing, while it is only a smart part of the
process.
When discussing the distinctions and complexity of social marketing, the ability to measure the
results of a campaign was mentioned as a one of the difficult aspects of the discipline. The
difficulty in measuring how successful a campaign is, makes it difficult to prove the success of
social marketing. According to Andreasen “there is inadequate documentation and publicity of
successes. Although many successes exist, these are not widely known or appreciated- and there are
not enough of them.”20
The final barrier in the growth of social marketing, according to Andreasen, is its current lack of
academic stature.20 Social marketing is not thought often enough as a full academic course and
there are no formal degrees in offered in this field even though it is slowly developing a solid
foundation for conceptual and theoretical studies.
4. Development of Commercial Marketing
Taking social campaigns beyond the social advertising, by application of marketing mix principles
has revolutionized the way social change is addressed and has lead the way to successful social
movements around the world.
Despite the success attributed to the use of marketing principles, there are scholars who criticize
different aspects of commercial marketing, and because of its dependency on this discipline, social
marketing is greatly affected by developments in this commercial area of marketing.
4.1 Marketing Mix Management - Critique
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“The marketing mix management paradigm has dominated marketing thought, research and
practice[...]. Today, this paradigm is beginning to lose its position.”21 This was said by Christian
Grönroos in 1994. Since his observation the marketing world has moved even further from its
original principles. We will now look at some of the reasons for this shift and then we will also
examine the direction of marketing.
One major criticism brought to the marketing mix management approach is the fact that “the
marketing mix and the four P’s constitute a production-oriented definition of marketing, and not a
market-oriented or consumer-oriented one.”21 According to Kotler and Zaltman, the marketing
concept ”calls for most of the effort to be spent on discovering the wants of a target audience and
then creating goods and services to satisfy them"22. Though this may appear to show a relationship
between consumer and marketer, the consumer is more likely a subject of analysis for marketers.,
with minimal interaction between the two.“Far from being concerned with a customer's interests,
the view implicit in the 4Ps approach implies that the customer is somebody to whom something is
done rather than somebody for whom something is done”23
Another problem with the marketing management mix is the way it affects organizations. Since
marketing involves analysis, planning, and implementation of different tasks (i.e. market analysis,
advertising, sales promotion, pricing, products packaging, distribution etc), marketing departments
are separately formed within companies to take responsibility for the marketing function of those
companies. This means that the marketing area of a firm becomes separated from other areas such
as, design, production, deliveries, technical service, complaints management, and other areas. This
not only removes marketing from a holistic approach to business, but it also alienates the marketing
department from consumers.21
These critiques point out that the marketing mix approach, which was developed in a time where
uni-dimensional mass communication was the main link between marketers and their audience, may
not be very suitable in current times. At this point mass marketing may hinder the potential of a
company to interact with consumers. For companies to become more market oriented, and for
consumer to become active instead of passive in their communication with marketers, marketing
theory may need to focus more on the actual interactions and relationships created by service and
sales.
4.2. Market-Oriented Theories
21 Grönroos, 1994, p.4; 6; 7
22 Kotler and Zaltman, 1971, p5
23 qtd in O'Malley and Patterson, 1998, p.834
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A series of different theories have been considered when developing a more market oriented
approach to marketing. Combined, these theories suggest some of the consumer oriented aspects of
marketing that are at the base of the emergence of relationship based marketing.
One of these theories was developed in Sweden in the 1960s, it was referred to as the interaction
and network approach to industrial marketing. The theory focuses on the interactions that take
place within a network, in which there is a flow of goods and information as well as financial and
social exchanges.24 It also suggests that in dealing with consumers, an organization, as a network,
does not only employ marketing specialists who deal the marketing mix, but it also employs “nonmarketing” specialists who deal with R&D, design, delivery, customer training, invoicing and credit
management; and according to the theory, those who deal with the non marketing functions of the
company also have an impact on the marketing success of the marketing and sales departments
within their organization’s network.24 Gummesson explains that “marketing cannot live an isolated
life” within the company as it is intertwined with all the other functions of the organization; these
functions are dealt with by those he defines as “part-time marketers”.25
Another marketing theory concerns service marketing, which in the 1970’s started to emerge as a
distinct area of marketing with concepts of its own related to the characteristics of services. Service
marketing places great emphasis on the interactions between consumers and the systems, physical
resources and employees of the service provider.24 These interactions generally take place between
the customers and the part-time marketers that we described earlier. Therefore part-time marketers
have a lasting impact on the relationship between a company and the consumer, and on the
purchasing behavior of the consumer.
But why is it so important to establish a lasting relationship with consumers? Some studies have
been performed on the economics of long-lasting customer relationships. Grönroos emphasizes
some of the results of these studies. He points out that “long-term relationships where both parties
over time learn how to best interact with each other lead to decreasing relationship costs for the
customer as well as for the supplier or service provider. The mutually satisfactory relationship
makes it possible for customer to avoid significant transaction costs involved in shifting supplier or
service provider and for supplier to avoid suffering unnecessary quality costs.”24 This perspective of
relationship management clearly underlines the potential for profitability in building and maintaing
a lasting relationship with consumers.
4.3 A Shift in Marketing Paradigm - Towards Relationship Marketing
24 Grönroos, 1994, p. 7-8
25 Gummeson, 1991, p. 65
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Drawing on the interaction and network approach of industrial marketing, and modern service
marketing approaches, Grönroos proposes the following definition for relationship based marketing:
“Marketing is to establish, maintain, and enhance relationships with customers and other partners,
at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual
exchange and fulfilment of promises”26
This definition implies that the concept of promise is an important part of relationship marketing.
A company that provides promises may attract new customers and establish initial relationships, but
if promises are not kept those relationships cannot be maintained and enhanced.26
According to Grönroos, another key element is trust, which is one’s willingness to rely on an
exchange partner in whom one has confidence. This implies that trust is viewed as the behavior of
one who may be uncertain and vulnerable in relying on a specific exchange partner. It also implies
that trustworthiness results from the expertise, reliability, or intentionality of that partner.
Some argue that trust alone is not enough in successful relationship marketing, that trust is
intertwined with commitment. “Commitment and trust are <key> because they encourage marketers
to (1) work at preserving relationship investments by cooperating with exchange partners, (2) resist
attractive short-term alternatives in favor of the expected long-term benefits of staying with existing
partners, and (3) view potentially high-risk actions as being prudent because of the belief that their
partners will not act opportunistically. Therefore,when both commitment and trust - not just one or
the other-are present, they produce outcomes that promote efficiency, productivity, and effectiveness. In short, commitment and trust lead directly to cooperative behaviors that are conducive to
relationship marketing success.”27
Despite being a newborn concept for mainstream marketing, relationship management has
established itself as an underlying paradigm in modern industrial and service marketing, and its
importance is recognized at an increasing rate.26 However, relationship marketing does not lend it
self as the ultimate marketing tool to any company at any stage. It depends greatly on where is the
focus of different companies regarding the type of transaction.
It is important to consider what type of transactions is used by a certain organization before
choosing a marketing approach. Marketing can revolve around creating single transactions or
exchanges at a time, or it can revolve around building long-term relationships.28
For example, producers of consumer packaged goods have mass markets, but they lack an
immediate contact with their eventual customers. This is sort of marketing is more focused on one
time transactions with customers, as there is not much more than the core product or the brand
image that retains customers. It is the customer satisfaction with one transaction that might make
26 qtd in Grönroos, 1994, p.9
27 Morgan and Hunt, 1994, p.21
28 Grönroos, 1994, p.10
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him consider another. In contrast, service firms aspire to create results in the long run by creating
long lasting and profitable relationships with customers.28
“The Four P model will give guidance in most cases; and this model was indeed originally
developed for consumer packaged goods marketing where transaction marketing is most
approapiate.”28 For this reason, organizations that focus more on a transactional approach to
marketing will most likely achieve better results by using the traditional marketing mix strategy,
while organizations that apply a more relationship oriented approach to marketing might find the
classical FourP approach too narrow.
In the title of this section we suggested a paradigm shift from the traditional approach to
marketing. The reason for this is that the critiques discussed earlier on the traditional marketing mix
strategy and the applicability of different theories clearly suggest that the classic FourP approach
does not apply to all markets or all types of marketing situations; therefore its status as a universal
marketing approach is becoming increasingly challenged. “Marketing needs to raise its eyes above
the established discipline and understand the context within which it operates(...). If marketing
theory and practice had embraced this systemic view earlier it could not have missed the
significance of relationships, networks and interaction”29
4.4 Implications of Relationship Management
Grönroos suggests that five implications that must be considered and monitored as part of
relationship management:
- Customer perceived quality - which depends on the perceived quality of the products or solution
acquired and on the perception of the interaction with the organization. The latter of these two
variables, namely the interaction, “grows in importance and often becomes the dominating one”30 in
relationship marketing.
-
Monitoring customer satisfaction - since relationship marketing relies heavily on a constant
interaction with the customer base, management is provided with a continuous stream of
information regarding of satisfaction or dissatisfaction among customers.30
- Intraorganizational collaboration - “for a firm pursuing a relationship marketing strategy the
internal interface between marketing, operations, and other functions is of strategic importance to
success.”30
-
Internal marketing as prerequisite for external marketing - internal marketing is needed to
promote this new marketing approach and to ensure the support of traditional non-marketing
29 Gummesson,2003, p.55
30 Grönroos, 1994, p. 12-13
17
people. This way they will be motivated, committed, ready and knowledgeable to operate as part
time marketers.30
- Service competition30 - organizations moving away from a transaction-type focus towards
relationship building is also moving its offer further away from the core product, therefore it must
differentiate itself and excel through its service and interaction elements.
4.5 Branding and Experiences
We have now stressed the importance and the potential of employing a relationship based
approach to marketing through service. We will now briefly consider other developments in
marketing that are not entirely tied to the service part of relationship marketing but have become a
standard approach for successful companies in creating profound and lasting relationships with their
customers. These approaches are to be considered extensions to marketing, they only add to its
value as independent entities that can become part of the holistic approach to dealing with
consumers.
Experiences are an economic offering that, according to Pine and Gilmore, is “as distinct from
services as services are from goods (…); when a person buys a service he purchases a set of
intangible activities carried out on his behalf. When he buys an experience, he pays to spend time
enjoying a series of memorable events that a company stages--as in a theatrical play--to engage him
in personal way.”31 The experience that is provided for a customer doesn’t necessarily have to
involve some sort of theatrical entertainment, though it is a common practice to create events and
spectacles for product launches or at display points, an experience can actually be created even
during the most uneventful transaction.
“Many companies today wrap experiences around their existing goods and services to
differentiate their offerings. Service providers clearly have an edge in this regard, as they are not
wedded to tangible offerings”31 and can make the best out of the environment in which they interact
with customers to transform a transaction into a pleasurable and memorable event.
Pine and Gideon also explain that “staging experiences is not about entertaining customers; it's
about engaging them”31, while Kotler et al. argue that “in general, the best approach is to provide
consumers with the opportunity to create their own story, as a successful market offering is part of
the larger narrative of customers’ lives. “32
When considering the pleasurable moments that remain in the memory of customers after
interacting with an organization, and the opportunity given to these customers to engage and
31 Pine and Gilmore,1999, p.2, 18, 31
32 Kotler et al, 2009, p.411
18
express themselves it becomes easy to see how creating experiences and empowering customers in
the creation of these experiences can be of tremendous help in establishing long lasting
relationships.
Branding
“A brand is a name, symbol, logo, design or image, or any combination of these, which is designed
to identify the product or service.”33 Branding helps with the differentiation of organizations and
they are often linked to specific attributes of different products or services, but they can go further
as we will see in this section.
Two major elements are to be considered in branding: brand image and brand identity. Brand
image refers to the way an organization is perceived by the consumers.
Brand identity refers to the way in which a company wants to be perceived. According to Aaker,
brand identity “should help establish a relationship between the brand and the customer by
generating a value proposition involving functional, emotional, or self-expressive benefits.”34
Brand identity consists of four dimensions:
1. Brand as product - refers to the product or service-related associations that a company tries to
create in the mind of consumers. It may deal with the quality, attributes, uses, users etc.
2. Brand as organization - branding approach that focuses on the attributes of the organization.
Associations to this dimension can be, customer focus, environmental concern, heritage,
innovation. Such links in consumers’ minds can lead to admiration, respect, or just liking of a
brand.35
3.
Brand as person, or brand personality - “like a person, a brand can be perceived as being
upscale, competent, impressive, trustworthy, fun, active, humorous, casual, formal, youthful, or
intellectual.”35 These associations can lead to self-expressive benefits for customers, so that they
can express their own personality through their choice of brands. For this reason brand
personality can be the foundation for a relationship between the customer and the brand.35
4. Brand as symbol - symbols can make brands much easier to remember and recognize, and they
must be managed in such a way that they become part of the brands identity. “Symbols are more
meaningful if they involve a metaphor, with the symbol or a symbol characteristic representing a
functional, emotional, or self-expressive benefit.”36
Seeing how branding facilitates the creation of positive, emotional, and self-expressive
association in the minds of consumers it evident that it can play a crucial role in the formation of
33 Kotler et al, 2009, p.425
34 Aaker, 2002, p.68
35 Aaker, 2002, p.83
36 Aaker,2002
19
durable relationships with customers. However, brands must be managed with care, as marketers
need to think thoroughly about the types of associations they wish to put forth and whether these are
aligned with the values of the company.
4.6 Final words on the development of marketing
Before we finally gather all the previous findings to see how they affect social marketing we will
add a few quotes to help conclude and point out the literary consensus on where contemporary
marketing stands and what is its direction.
We have established that commercial marketing based on the traditional marketing mix strategy
can be a constraint in many marketing situations, and can even distance the company from its
customers, especially when organizations are not engaged in transaction-type marketing. According
to Grönroos, the simplicity of the FourP model “seduces teachers to toolbox thinking instead of
constantly reminding them that marketing is a social process with far more facets than that.” 37
A shift in paradigm is occurring. “Relationship marketing's time has come. Marketing practitioners
and academics are interested in its possibilities as never before and for good reasons. Virtually all
market offerings have a service component (from manufactured goods to pure services), and
relationship marketing fits the salient characteristics of services. Both company and customer
benefit from effective relationship marketing. Advances in informations technology are making
relationship marketing more affordable, feasible, and powerful.”38
“Deregulation, emerging markets, new forms of regulation, convergence of technologies and
industries and ubiquitous connectivity have changed many facets of the business world. These
factors have changed the nature of consumers. Today they are informed, networked, active and
global. As a result the world of business is moving away from a company to company-and productcentric view of value creation towards an experience-centric view of co-creation of value.”39
Branding and particularly emotional branding, can engage the consumer “ on the level of
senses, emotions; forging a deep, lasting, intimate emotional connection to the brand that transcends
material satisfaction; it involves creating a holistic experience that delivers an emotional fulfilment
so that the customer develops a special bond and unique trust in the brand”40
5. Social Marketing To Shift Along With Its Foundation
37 Grönroos, 1994, p.14
38 Berry, 1995, p.243
39 Kotler et al. 2009, p.409
40 qtd in Kotler et al. 2009, p.427
20
We have established at the beginning of this paper that social marketing relies greatly on the
FourP marketing mix model of commercial marketing. Applying these marketing techniques to
social change has seen some success and has led to the study and adoption of such an approach to
social causes. However, we have also underlined some difficulties in transferring these principles
and some distinctions that make social marketing more sophisticated in implementation. Different
perspectives are taken when studying social marketing, which makes it a bit hard to reach a
consensus in definitions and a general approach. Another issue in the field of social marketing is
the actual status of the field; the above mentioned downsides plus the general lethargy in adopting a
new approach have affected the popularity of social marketing and have slowed down its evolution.
Since the emergence of social marketing, the marketing mix model on which it is based has seen
some criticism and some dramatic changes in the consumer environment. This has led to the
adoption of a new approach to commercial marketing - relationship marketing. If social marketing
is to keep its edge in modern times it may have to follow suit in this change. We will now explore
how such changes can occur within the social change dimension.
We have discussed earlier in this paper that social marketing is in some ways very different from
commercial marketing. This does not have to be so. These distinctions were caused in great part by
the focus on production and mass-communication of traditional commercial marketing, which did
not align with the emphasis on consumers of social marketing.
We saw that Andreasen pointed out that social marketing differs in that it is focused entirely on
behavior change , as its final goal, and that it is “fanatically” consumer driven. Considering how the
traditional marketing mix model tents to distance the consumers from the marketer, it becomes clear
how the marketing mix can negatively affect social marketing. However, relationship marketing
can better serve as the theoretical base behind future social marketing efforts since it is truly
customer driven, and therefore its recipes for building relationships with customers can more easily
be transferred to the social marketing environment.
In discussing transferal of principles we have seen that one of the core principles of marketingexchange- is somewhat difficult to translate in social terms since there isn’t really an exchange, and
that the concept of interaction would be better suited in social change. Therefore we must look
again to relationship management where, based on interaction and network approach theory,
everything revolves around a network of interactions. Though exchange has not been completely
abandoned in this new approach to commercial branding, it does focus significantly more on the
interactions between consumers and organizations during an exchange. With interaction as a focal
point it only makes sense that this approach is much more appropriate in social circumstances.
Interaction involves activity from both parties involved in that interaction. We have seen that the
marketing mix model revolves around active marketers in passive audiences and therefore actually
21
mutual interaction is lacking. Within the FourP model it was “the message, and the expertise of
those behind it, that dominated the agenda, not the nature, needs and likely responses of the target
audience.”41
This paper mentioned another element in the sophistication of social marketing - the difficulty
with which social marketing results are measured. If we are to look now at the implications of
relationship marketing previously mentioned in this paper, we can see that one implication is the
constant monitoring of customer satisfaction. This is done through by continuously updated
information on customer of degree satisfaction based on the large number of employees that have
customer contacts. It may seem difficult to translate the concept of customer satisfaction regarding
adopted behaviors; nevertheless this concept is based on keeping track of developments of audience
members which have interacted with the organization. This can provide a much more suitable
manner of keeping track of social campaign results, and after all, the idea of assessing customer
satisfaction with positive behavior change may not be so far fetched.
This paper also explained different schools of thought that have emerged within social marketing.
We have established that between individualists and convergents, the latter group may be
encompass a more realistic and sustainable approach to social marketing since they did not only
encompass the marketing mix as their principal element in marketing. They also looked to other
disciplines such as consumer behavior and social sciences. This shows that social marketing
theorists have strived to break out of the marketing mix cage and have felt that the discipline
requires a more social and relational approach. Glenane-Antoniadis et al. have recommended social
capital theory to encompass these different perspectives into one, which emphasized the importance
of trust and mutually giving relationships in the consumer networks. When defining relationship
management this paper pointed out that trust is a key element in building relationships with
consumers while maintaining and enhancing these relations through commitment and fulfillment of
promises regarding mutual satisfaction.
Such an approach is indeed required since social behavior does not pursue a transaction-type
strategy when dealing with its consumers. “A one time behavior change is generally insufficient for
success; in many public health cases, we (social marketers) need to maintain behavior throughout a
lifetime.”42 Social marketing is therefore on the other end of the strategical spectrum and thus it
employes a strategy that is almost entirely based on relationships. To sustain such a strategy, social
marketers must look beyond the restrictive “toolbox thinking” of the marketing mix.
This paper examined, according to Andreasen, the different obstacles that stand in the evolution
and acceptance of social marketing. We pointed out that higher management’s lack of awareness
41 Ken and Sue Peattie, 2003, p.366
42 Rothschild, 2001, p.37
22
and even reluctance have hindered the support needed in organizations to drive social change.
However, “social marketing has achieved significant acceptance among practitioners at the
operations level of implementing organizations and within the consulting community to which they
turn for help.”43 This is somewhat different and yet similar, with the situation created in the
commercial setting by the marketing mix which rendered the isolation of the marketing department
within the organization, and undermined the potential of part-time marketers. Relationship
management addresses this issue through intraorganizational collaboration and internal marketing.
To overcome such a barrier in social marketing growth, a solution may come from Andreasen who
suggests that social marketers should “apply their own knowledge to their own problem”44 by
marketing social marketing internally and changing rigid behaviors within organizations seeking
social change.
Another barrier in the growth of social marketing was identified as the lack of clarity in definitions
and conflicting discrepancies thereof. This has been due to the nature of social marketing, which in
principle, has been conflicting with commercial marketing from which it borrows its substance. We
have argued that relationship marketing adheres more closely to the social and relational orientation
of social marketing, thus this obstacle is more likely removed from the growth of social marketing
if the discipline is to follow this change in paradigm.
Andreasen also mentioned that scarcity of proof regarding the success of social marketing is
slowing down the discipline’s expansion. This is greatly attributed to the difficulty with which
results of social campaigns are measured. This obstacle can be overcome and success of social
marketing can be proven by employing a relationship oriented approach that allows constant
monitoring of consumer satisfaction, as we have explained earlier. “Instead of thinking in
anonymous numbers, or market share, (relationship) management thinks in terms of people with
personal reactions and opinions.”45 Relationship marketing can provide better tools of evaluating
the efficacy of social campaigns and can therefore accurately provide proof of successful
applicability of marketing principles to social change.
It now becomes clear that social marketing must adapt to the changes in the conceptual
framework on which it is built and employ a marketing approach that is based on relationship
building. However, to successfully stimulate social change, simply focusing more on interactions
and services will not be not be enough. To create emotional and lasting connections with
consumers, co-creation of value must be encouraged through experiences and branding.
43 Andreasen, 2002, p.4
44 Andreasen, 2002, p.10
45 Grönroos,1994, p.12
23
We have highlighted a distinction of social marketing that refers to competition, which is
different from that of commercial marketing, since it is comprised of the different behavior that
marketers aim to change. In many cases these behaviors - for example smoking, using drugs, or
having unprotected sex - can form a desire (subconscious or not) in the consumers’ minds to
maintain the habit; this desire can be formed by memories of pleasurable experiences based on
these habits. The best way to deal with such competition is to compete at an experiential level, and
provide those targeted for social change with memorable experiences that can be associated with
engaging with those that are trying to promote behavioral change. Such experiences can create
positive association with the social campaign and can help form more profound connections with
the audience.
Social marketers have not been concerned enough with developing brands or relationships and
instead they have been more concerned with telling people how to behave. This has placed them at
a disadvantage in many cases when they were competing against commercial products that are
backed by large budgets and sophisticated strategies46, for example, alcohol and tobacco.
Brand identity as we discovered earlier, can help establish relationships through its set of brand
associations. These associations generate value through functional, emotional and self expressive
benefits. Social marketers are often too focused on functional benefits, and they forget to underline
the emotional and self expressive benefits. An example of such a functional benefit would be the
longer and healthier life from which one can benefit after dropping a health damaging behavior.
Such benefits do not offer immediate satisfaction. Social marketers often have to compete with the
immediate sensorial or self expressive benefits of some behaviors, for example smoking, which can
give adolescents the self expressive satisfaction of rebelling against conformity. This is the level of
benefit on which social marketing should be competing against certain behavior.
This discussion has shown that many issues regarding the applicability, evolution and theories of
social marketing stem from the conceptual framework of the discipline on which it is founded commercial marketing. The traditional marketing mix approach to social marketing has been shown
to distance marketers from the audience with which they seek to interact; therefore relationship
marketing has developed over the years as an alternative approach to marketing that allows
organization, which are more customer driven to better interact with customers.
Since social marketing is customer oriented, integrating a relationship marketing approach as in its
conceptual framework would better reflect and support the goals of social marketers in interacting
and communicating with their audiences. Since the success of social campaigns relies on the
interaction, relationships, and competitiveness over desired behaviors, the potential of these
46
Rothschild, 2001, p.37
24
campaigns can be increased by focusing more the relationships that encourage the formation of
trust, by creating, promoting and sustaining a holistic approach to this sort of marketing within
organizations that seek social change, and by incorporating remarkable experiences during
interaction - experiences that can be associated with strong brands that can be aligned to the target
audiences’ personalities and values.
6. Scientific methodology
This paper seeks to support the answer to the problem statement by means of critical reasoning,
falsificationism and particularly through deduction. “Deduction is used to reveal the consequences
of theories so that they can be tested, and perhaps falsified. But no claims are made to the effect that
the survival of tests shows a theory to be true or probably true. At best the results of such test show
a theory to be an improvement on its predecessor. The falsificationist settles for progress rather than
truth.”47
This paper does not stress that the relationship marketing is the best approach possible for social
marketers. It merely points out the flaws in using the traditional marketing mix as a universal
approach to all marketing situations. These flaws suggest that that the marketing mix has proven to
be unsuitable for marketing situations where the interaction with customers takes full priority. Since
social marketing seeks social change it is therefore a marketing situation that is extremely customer
oriented. At the same time social marketing theory relies heavily on the traditional marketing mix
approach which is less customer driven than relationship marketing. Therefore, it can be deducted
that social marketing is currently based on a conceptual framework that is less effective than that of
relationship marketing in achieving the necessary interaction with the audience. Based on the
conclusion of this deduction we can infer that social marketing would progress if it were to redesign
its conceptual framework to encompass more of the relationship marketing tools and theories that
would enable better communication and interaction with audiences which could improve the
efficacy of social campaigns.
The proposal of this paper only regards the potential for progress in the evolution of social
marketing. The theory that social marketing can be improved by adhering to relationship marketing
theories can be falsified. This means that the falsifiability of this statement can make it valid until
proven untrue.
47
Chalmers, 1999, p,86
25
7. Conclusion
We begun this paper by asking why we can’t sell brotherhood like we sell soap. As we have seen it
is indeed possible to actually sell brotherhood and other social values in much the same way in
which we sell soap- by applying traditional commercial marketing principles to social change.
Kotler and Zaltman have shown us how using the marketing mix strategy based on the Four Ps, one
can stimulate social change the same way one can persuade the masses to buy soap. This is
approach to social change has taken social campaigns from transmitting public service
announcements to designing, implementing and controlling programs meant to influence the
acceptability of social ideas by involving considerations of product planning, pricing, placement,
and communication. This approach has since been called social marketing.
This application of “soap selling” principles has revolutionized the way social campaigns are
created and implemented and has since lead to the widespread acknowledgement of social
marketing as a necessary tool for achieving successful behavioral changes in society. There is no
question that social marketing has seen growth and success since its inception, but nevertheless
there is one problem - they don’t sell soap like they used to.
Commercial marketing has changed over the past two decades; it has changed in order to adapt to
the increasing emphasis on the customer. The development of technology has made products nearly
indistinguishable, and customers more informed and networked than ever, and so organizations
have had to differentiate themselves through the way they interact with their audiences. It appears
the marketing mix approach to commercial marketing distanced marketers from their audience and
created a one-way communication pattern, that did not allow consumers to take part in the
interaction between them and the companies with they they exchanged and created different forms
of value.
As a consequence relationship management has evolved as the new way of “selling soap”. Those
who market soap today seek to establish, maintain and enhance relationships with their customers.
They attempt to build trust and commit to their customers by providing their “soap” in the most
individual, personal, and satisfactory manner for their clients. Buying soap is now an experience, it
is no longer about the type of soap that is bought, but about the experience built around its
acquisition and the way that soap is reflects the personality of those use it. In the clatter of
apparently similar products and advertisements, much like the agglomeration of millions of people
squeezed together in cities, consumers seek to interact only with those with whom they are able to
build relationships on trust, mutual giving, entertainment and liking.
If social marketers are to continue to “sell brotherhood”, they must consider these changes in the
way soap is sold in modern world, and they must draw from these changes the lessons and
26
guidelines needed to build meaningful and lasting relationships with their target audience in order
to promote further growth of social marketing as a discipline and above all, to stimulate positive
social change.
27
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