Download Marketing Culture in Bangladesh: Sustainability Perspectives

Marketing Culture in Bangladesh: Sustainability
Perspectives
Tanha Mahjabeen1, Amzad Hossain2 and Dora Marinova3
Marketing strategies based on greed for
profiteering, misleading advertising and product
adulteration are widely practiced in Bangladesh and
are having disastrous effects on the country’s
sustainability.
The
existing
anti-corruption
legislation is ineffective due to the moral bankruptcy
of many civil servants. Informed by the work of
Transparency International Bangladesh (TIB) and
relevant literature, the paper outlines the effects
western capitalism has on the country by causing
moral degradation and breeding widespread
corruption for profiteering. The destructive aspects
of the current marketing culture are highlighted and
to role of TIB is analysed. Poor marketing ethics
and the lack of sustainability values can aggravate
corruption; and education seems to be a sound
pathway to address the current situation. Overall,
the paper advocates for ethical marketing practices
that are appropriate for the socio-economic and
cultural conditions of the country.
Field of Research: Marketing- Contemporary Issues in Marketing
1.
Introduction
Marketing management can be defined as “the process of planning and
executing the conception, pricing, promotion, and distribution of goods,
services, and ideas to create exchanges with target groups that satisfy
customers and organisational objectives” (Peter and Donnelly, 2008:13).
While many argue that marketing should encourage sustainability practices
(e.g. Sargeant, 2005), this is really the case. In fact, standard marketing
practices are rarely concerned with issues outside the area of profit making
through satisfying customer needs (Peter and Donelly, 2008). With the rise of
consumerism in developing economies, including Bangladesh, it appears that
marketing management and practices do not perceive any obligation in
relation to meeting the essential needs of the people today and in the long
run. Consequently many business activities and marketing strategies are
being seen as fuelling consumption and encouraging materialism within
society leading to over-exploitation and over-extraction of natural resources
instead of meeting basic needs (Peter and Donnelly, 2008).
1Curtin
University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845,
Australia. Email: [email protected]
2 Curtin University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845,
Australia. Email: [email protected]
3 Curtin University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845,
Australia. Email: [email protected]
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In its narrow sense, marketing is a way to promote and communicate the
attractiveness of a particular product or service within an industrialised
market-based economy; however advocating the benefits of certain goods,
actions and ways of doing things has been an essential part of any human
culture. The history of Bangladesh projected the country as the Paradise of
Nations and the land of wealth. The Dutch, Portuguese, British and French
went to trade there (Novak, 1993). This ‘golden age’ of marketing was
spiritually guided by the Gurus, Sufis and Bauls culture and survived until the
middle of the 20th century (Hossain, 2001). Present day marketing however is
driven by Western values that are utterly inconsistent with the cultural
environment or lifestyle of the people of Bangladesh. In the last 20 years
marketing across the world has become an organisational function and a set
process for managing customer relationships in ways that largely benefit the
organisation and its stakeholders, not its consumers and ordinary people, the
majority of whom have a negative opinion about it (Parsons and Maclaran,
2009: 5). There is a growing cynicism about marketing messages and
negative sentiments about it being used to create false perceptions and
expectations.
Schlegelmilch (1998: 109-110) also argues that advertising can create false
needs among consumers and this has been the case in Bangladesh instead
of focussing on meeting people’s daily needs. Rampant corruption,
unsustainable consumerism, greed driven profiteering by means of cheating
through misleading advertisement and adulteration have become the norm of
the marketing culture of Bangladesh. While green consumerism and the
marketing of green alternatives have been the focus of much of the research
surrounding sustainable marketing in the West, the situation in Bangladesh
where the majority of people still live in poverty is very different. The country’s
developing economy and emerging purchasing power are seen as a new
opportunity for making profits and generating company benefits within a very
fragile and weak government regulatory system. If this trajectory continues in
the future, the social foundations of the Bangladeshi society as well as its
ecosystems are likely to be impacted to the point of irreversible changes.
The aim of this research is to expose the unsustainability of the current
marketing practices in Bangladesh within an environment of rampant
corruption. It then looks for solution pathways through the work of
Transparency International Bangladesh (TIB, a chapter of the Berlin-based
organisation Transparency International, renowned civil society organisation
fighting corruption across the globe) and the need for proper marketing
education that aims at improving the wellbeing of its people within a socially
and culturally appropriate sustainability framework.
2.
Methodology
This research is based on publically available secondary sources and relevant
literature in the areas of marketing, globalisation and sustainability. It also
draws on personal observations and interviews with key informants from TIB
conducted in 2011 under the Human Research Ethics approval obtained at
Curtin University. It is not our intention to seek a statistical generalisation of
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the findings as the qualitative interpretation of the data already shows that the
same themes of corruption and unsustainability permeate the social life of
Bangladesh. Instead of statistically proving something that has already
become common knowledge and practice in the country, the approach we
have taken is to look for possible solutions.
The remainder of the paper is organised as follows. Sections 3 and 4 describe
respectively the contemporary marketing culture and perceived corruption
practices in Bangladesh while section 5 puts forward the argument for
marketing education grounded within the country’s cultural heritage. The
concluding remarks emphasise the need for socio-economic and spiritual
integrity in any marketing that can assist the country’s sustainability.
3.
Marketing Culture in Bangladesh
The pre-globalisation marketing culture in Bangladesh was sustainable
because the production and supply of goods and services were determined as
per people’s need-based demand. Competition was primarily based on the
quality and price of products. Profit was conceived as a by-product of sale.
On the contrary, the key characteristics of the contemporary marketing era
are represented by supply exceeding demand. This results in intense
competition, extensive product lines, creating demand for new products that
do not relate to need and a wide range of unethical marketing activities – all
aimed at profit maximisation (Ellis et al., 2011: 20). In many cases advertising
is not only untrue but is also grievous in nature (Schlegelmilch (1998: 109110). According to Brenkert (2008: 2), marketing has been criticised for being
frequently wasteful. The marketers spend large amounts of money to promote
products that people actually do not need. They allure people to want things,
including technologies, they cannot even afford.
Since the 1971 independence of the country, these marketing practices have
gradually penetrated Bangladesh with the advertisement-driven culture now
thriving. Adulterated food and fertilisers that are often health threatening are
freely being advertised and marketed. Reports about this appear frequently in
the country’s printed and electronic media: “Uncontrolled use of hazardous
chemicals by traders to preserve, colour or make food items attractive now
poses a deadly threat to public health” (The Daily Star, 12.08.2012); “The
Rapid Action Battalion has unearthed an illegal factory producing adulterated
fertilisers and insecticides in Jhenidah district of Bangladesh” (bdnews.com
07.01.2011); “About half of 300 samples of randomly collected edible oil have
been found adulterated, according to sources in the Public Health Institute
(PHI). Experts also tested cooked foods from restaurants registered with the
Dhaka City Corporation (DCC) and were appalled by the extent of
contamination” (Daily Star, 05.02.2003); “Sales of adulterated, stale,
substandard and harmful foods, vegetables and fruits are going on unabated
in the capital, as elsewhere in the country, due to lack of proper monitoring,
necessary punitive measures and business ethics” (The Financial Express,
29.05.2011).
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The contemporary marketing culture is facilitated by the lack of strict
government regulations and control as well as by thriving corruption. Utterly
this leads to the increasing sustainability crisis in the country.
4.
Corruption and Marketing
Though there is no country totally free from corruption (Iftekharuzzaman,
2011), it takes place pervasively among under-developed and developing
countries (Gray and Kaufmann, 1998). According to Klitgaard (1991), the
presence of both monopoly and inequality with the simultaneous absence of
accountability pre-condition corruption which Iftekharuzzaman (2011) defines
as abuse of power to achieve private gains. Bangladesh is an example of this.
A very few powerful people have monopoly power over the market (Ahmad,
2005); income and the ability of purchase vary with large differences (Deb et
al., 2008) and there is no or very little scope for accountability in the case of
quality control of a product while marketing as the law and order enforcement
bodies themselves are not working properly (Azmat and Coghill, 2005).
Some argue that the germs of corruption have contaminated the business
environment of Bangladesh since the country’s birth in 1971 (Hasan, 2007)
when a political vacuum occurred and those who had power captured the
market regardless of any rule or law. Since then neither government has been
able to take effective actions to address the systemic issues which allow
corruption to flourish in marketing despite many political leaders condemning
its high incidence (Alam, 1996). Corruption takes place in basically two ways.
Firstly, the politicians themselves are involved in market manipulation for the
benefits of their own businesses. Secondly, they receive bribes from other
business people who support their political parties but in return expect
protection despite misdeeds in marketing policy. The high competitiveness of
international markets also provides multinational companies of various sizes
with an incentive to offer bribes to gain an advantage (Khan, 2004). In both
situations, the politicians’ power plays over the law assisted by the
administration. According to Transparency International Bangladesh (TIB,
2012), 71% of the members of the Parliament are involved in different types of
corruption, market manipulation being one of them.
With the existence of such corruption-prone marketing culture, consumers –
the unfortunate tax payers and ordinary citizens, especially the poor, are the
ones who suffer the most, particularly as their rights are not protected. The
Consumer Protection Act was enacted in 2008 (BOI, no date) but is slow to be
properly implemented (Siddiqui, 2009). In spite of various attempts by the
Consumers Association of Bangladesh (a non-profit NGO established in
1978) to promote consumer rights and ensure the availability of quality
products in the market, their efforts remain ineffective (Chowdhury and Mallin,
2012). Corrupt multinational corporations cover their illegal acts and socially
irresponsible business practices through “Corporate social responsibility” –
voluntary donations and other rent-seeking behaviour (Azmat, 2008).
The in-depth interviews with different stakeholders of TIB revealed that the
current trend in marketing policy in Bangladesh is to promote consumerism
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among people which also creates a sense of competition between them.
Everyone wants a better product than what the other has in order to keep their
status within society. Alluring and attractive advertisements in the print and
electronic media encourage this way of thinking. The media themselves are
also boosting this up with their programs and features that show different
luxury items as basic daily necessities. As a result, many people become
interested in spending more money than they actually earn. This also leads
them to get involved in corruption by misusing their power to earn illegal
money. In such a way, the wrong marketing policy along with the media helps
the greed-based corruption to take control over the society.
The contribution of civil society and the media in exposing corrupt acts of
companies, creating public opinion and awareness is widely acknowledged
(OECD, 2003). According to TIB’s Executive Director: “A culture of economic
and business integrity is needed to be introduced with the help of government,
private sector, consumers and all other stakeholders” (Waves, 2009a: 15).
According to TIB, although the primary goal of any business is to make profit,
for its long-term viability the role of transparency, honesty and accountability
cannot be avoided. Hence, promoting anti-corruption mechanisms in a
company’s operations, including its marketing policy, is integral for a better
future (Waves, 2009a). This does not mean that practicing anti-corruption
measures in the marketing policy will harm profit making. The Barometer, a
global public opinion survey of 69 countries also found that half of
respondents were willing to buy products from corruption-free companies
even if the price was higher (Waves, 2009b).
Marketing as part of the supply chain in our interconnected globalised world is
embedded in social and ecological networks. The western materialistic values
combined with corruption in marketing practices have synergistically resulted
in weakening people’s moral strength. In such a situation, only the revival of
high social and environmental consciousness by the general public can lead
the efforts for things to change. Traditional values are therefore likely to play a
much better role than western values in generating national marketing
strategies that promote sustainability in Bangladesh.
5.
Marketing Education
Murphy et al. (2012: 4) argue that sustainable marketing education refers to
teaching responsible practices embedding transparent and trustworthy
marketing that can exhibit integrity as well as fairness to consumers, other
stakeholders including those who are directly engaged in primary production.
It inspires people to practice sustainability activities in their daily personal and
professional lives. These values are essential for developing a more
sustainable world where the marketing profession also takes responsibility for
the effects of its actions on other people today and in the future.
Popular Islam, Hinduism and Buddhism encourage sustainable levels of
consumption: “It is difficult for a man laden with riches to climb the steep path
that leads to bliss”; “Riches are not from an abundance of worldly goods, but
from a contented mind” are popular statements from Islam; “When you have
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the golden gift of contentment, you have everything” expresses the Hindu
spirit; and “By the thirst of riches, the foolish man destroys himself as if he
were his own enemy” believe the Buddhists (Jackson, 2006: 31). These are
the foundations of the Bangladeshi society and they should not be destroyed.
Only marketing practices that (1) encourage self-reliance and (2) reinforce
virtue values can build a sustainability future for the country. Such an
approach to marketing is likely to be more beneficial not only for Bangladesh
but also for the globe. There is need to restore sustainability principles in
marketing that can preserve nature’s resources as well as lift people’s quality
of life. Improved living standards embed self-reliance, simplicity, responsibility,
respect for other human beings and nature, commitment to doing good things,
creativity and resilience (Marinova et al., 2006). Values education is
necessary for citizens to understand the past and envision the sustainable
common futures for the coming generations of their country (Aspin, 2002).
Alom and Haque (2011) explain that the philosophy of Islamic marketing
including marketing education is rooted in the creation of humankind and
purpose. For Islam marketing is not confined with buying and selling goods
and services for profits only, it is the process and strategy (Hikmah) of fulfilling
need. Murphy and Laczniak (2006: 29) observe that Hinduism, Buddhism and
Islam all have ethical precepts at their core and have much in common to
offer in terms of ethical guidance to marketers for marketing. This will also
preserve the Bangladeshi traditional marketing culture driven by needs,
honesty, modesty and sustainability.
6.
Conclusion
Bangladeshi produce and resources were the cheapest in the world prior to
the 1970s (Hossain, 2001). People had little worries about the purity and
quality of the commodities they used to buy at the market. Advertisements
were minimal and factual. Those engaged in marketing were reliable, for
“honesty is the best policy” was the driving force of the marketing culture of
Bangladesh. The situation is opposite today. The use of chemicals such as
formalin to keep perishable goods, e.g. meat, fish, vegetables and fruits fresh,
and carbide for ripening of immature fruits, e.g. mangos, pawpaw and
bananas are rampant (The Daily Star, 14.07.2012). According to media
reports (e.g. The Daily Financial Express Dhaka, 24.08.2012) and personal
experience, there is no guarantee of purity or freshness of any commodity,
including medication. Advertisements and marketers’ advocacies are utterly
unreliable and deceptive (Ahmad, 2005).
The culture of marketing for profit maximisation through corruption in terms of
falls advertising and product adulteration has replaced the traditional socioeconomic and spiritual integrity. A national vision is urgently needed to stand
firm about restoring the country’s historical state of marketing culture built on
local wisdom. The western economic model and marketing culture are
perceived by the spiritual guides (Gurus, Pirs and Bauls) as devastating for
the environment and people of Bangladesh.
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An integrated education for improving the marketing ethic can (re)achieve the
traditional need-based marketing culture that supports a modest and selfreliant lifestyle and is ever sustainable. This will however need to adopt a
strong spiritual stance which can be achieved through the integration of
sustainability education for marketing. Thus, sustainability requires the
development of business to be self-regulating, constrained by principles, and
that the marketing of products and services to be assessed in terms of their
validity in relation to the sustainability needs of present and future generations
in the context of the natural resources endowments of the earth (Huckle and
Sterling, 1996).
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