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| Principles for Public Policy Towards Marketing |
The Principle of Consumer and Producer Freedom
As much as possible, marketing decisions
should be made by consumers and producers with relative freedom. Marketing
freedom is important if a marketing system is to deliver a high standard of
living. People can achieve satisfaction on their own terms rather than in terms
defined by someone else. This leads to greater fulfillment through a closer
matching of products to desires. Freedom for producers and consumers is the
cornerstone of a dynamic marketing system. But more principles are needed to
implement this freedom and prevent abuses.
The Principle of Curbing Potential Harm
As much as possible, transactions freely
entered into by producers and consumers are their private business. The
political system curbs producer or consumer freedom only to prevent
transactions that harm or threaten to harm the producer, consumer, or third
parties, Transactional harm is widely recognized
The Principle of Meeting Basic Needs
The marketing system should serve
disadvantage^ consumers as well as affluent ones. In a free-enterprise system,
producers make goods for markets that are willing and able to buy. Certain
groups who lack purchasing power may go without needed goods and services,
causing harm to their physical or psychological well-being. While preserving
the principle of producer and consumer freedom, marketers should support
economic and political actions to solve this problem. The marketing system
should strive to meet the basic needs of all people, and all people should
share to some extent the standard of living it creates.
The Principle of Economic Efficiency
The marketing system strives to supply
goods and services efficiently. The extent to which a society's needs and wants
can be satisfied depends on how efficiently its saree resources are used. For
marketing to work efficiently, the system needs competition. An open market
allows for competition, free flow of goods, freedom of information, and informed
buyers. These make a market efficient. To make profits, competitors must watch
their costs carefully while developing products, prices, and marketing
programs that serve buyer needs. Buyers get the most satisfaction by finding
out about different competing products, prices, and qualities, and choosing
carefully. The presence of active competition and well-informed buyers keeps
quality high and prices low. But, more importantly, competition brings out the
best in products and services. Producers that strive to offer the best value
can expect to thrive.
The Principle of Innovation
The
marketing system encourages genuine innovation to reduce production and
distribution costs and to develop new products to meet changing consumer needs.
Much innovation is really an imitation of other brands, with a slight difference
to provide a selling point. The consumer may face ten very similar brands in a
product class. But an effective marketing system encourages real product
innovation and sustainable differentiation to meet the wants of different
market segments.
The Principle of Consumer Education and Information
An
effective marketing system invests heavily in consumer education and
information to increase long-run consumer satisfaction and welfare.
The
principle of economic efficiency requires this investment, especially in cases
where products are confusing because of their numbers and conflicting claims.
Ideally, companies will provide enough information about their products. But
consumer groups, regulatory agencies, and government can also give out
information and ratings. They should encourage more access to the media for the
arguments for or against the consumption of goods or services, where neither
businesses nor customers are behaving responsibly.
The Principle of Consumer Protection
Consumer
education and information cannot do the whole job of protecting consumers. The
marketing system must also provide consumer protection. Modern products are so
complex that even trained consumers cannot evaluate them with confidence.
Consumers do not know whether a mobile phone gives off cancer-causing
radiation, whether a new car has safety flaws, or whether a new dmg product has
dangerous side effects. A government agency has to review and judge the safety
levels of various foods, drugs, toys, appliances, fabrics, cars, and housing.
Similarly, it has to assess the integrity or professionalism of service
providers like banks, insurance companies, doctors, and police forces. Consumers
may buy products but fail to understand the environmental consequences, so
consumer protection also covers production and marketing activities that might
harm the environment. Finally, consumer protection prevents deceptive practices
and high-pressure selling techniques where consumers would be defenseless.
These seven principles are based on the assumption that marketing's goal is not
just to maximize company profits or total consumption or consumer choice, but
rather to balance that with the maximization of life quality. Life quality means
meeting basic needs, having available many good products, and enjoying the
natural and cultural environment. Properly managed, the marketing system can
help to create and deliver a higher quality of life to people around the world.
The very implementation of the marketing philosophy can therefore be seen as a
productive activity, not; destructive evil. Responsible marketing works.
Summary
A marketing system should sense, serve and
satisfy consumer needs and improve the quality of consumers' lives. In working
to meet consumer needs, marketers may take some actions that are not to
everyone's liking or benefit. Marketing managers should be aware of the main
criticisms of marketing.
Marketing's impact on individual consumer welfare has been criticized for its high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and poor service to disadvantaged consumers. Marketing's impact on society has been criticized for creating false wants and £00 much materialism, too few social goods, cultural pollution, and too much political power. Critics have also criticized marketing's impact on other businesses for harming competitors and reducing competition through acquisitions, practices that create; barriers to entry, and unfair competitive marketing practices. Concerns about the marketing system have led to citizen and public actions to regulate marketing. Consumerism is an organized social movement intended to strengthen the rights and power of consumers relative to sellers. Alert marketers view it as an opportunity to serve consumers better by providing more consumer information, education, and protection. Environmentalism is an organized social movement seeking to minimize the harm done to the environment and quality of life by marketing practices. It calls for curbing consumer wants when their satisfaction would create too much environmental cost.
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