Enlightened Marketing

The philosophy of enlightened marketing holds that a compan^s marketing should support the best long-run performance of the marketing system. Enlightened marketing consists of five principles: consumer-oriented marketing, innovative marketing, value marketing, sense-of-mission marketing and societal marketing. Enlightened marketers also ensure that their marketing approach reflects corporate ethics.

• Consumer- Oriented Marketing

Con sinner-oriented marketing means that the company views and organizes its marketing activities from the consumer's point of view. It should work hard to sense, serve and satisfy the needs of a defined group of customers. Consider the following example.

Richardson Sheffield, a British cutlery maker, fought off tough competition in a stagnant cutlery market in the UK in the 1980s, largely by making the customer happy. Its chairman, Mr Bryon Upton, claims that the most important ingredient in Richardson's recipe for success is the great stress the company puts on customer satisfaction and relationships. This is seen in its speed in responding to customer enquiries and requests (letters are answered the same day, telexes the same hour, and samples are provided within two days) through to its customer-led product development programmes. When a request for 'a kitchen knife that does not need to be sharpened' came from America's biggest retailer, Sears Roebuck, instead of saying, as did many competitors approached by Sears, 'We don't make it; nobody makes it; therefore it can't be made', Richardson pondered about the problem. It finally created both the knife and the machinery needed to automate grinding of the special serrated edge. iSimilar attention to customers' wishes has resulted in a broad product line, from a range of 30 top-of-the-line chefs blades to knives given away as petrol-station promotions.IS

enlightened marketing A marketing philosophy holding tlvtt a company's marketing should support the best long-run performance of the marketing .system,- its five principles are co ns umer-oriented marketing, innovative marketing, value marketing, sense-of-missiim marketing and societal marketing.

u on sum er-1 in ented marketing A principle of enlightened marketing which holds tliat a company should view and organise its marketing activities from the consumers' point of view.

• Innovative Marketing

The principle of innovative marketing requires that the company continuously seek real product and marketing improvements. The company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way.

Ola Ivarsson is the environmental director at Scandic Hotels and his drive to transform the chain into an eeo-friendly business has started to revolutionize Europe's leisure industry.

Under Ivarsson's direction, Scandic Hotels has made design improvements that have drastically reduced the company's environmental impact. Annual consumption of plastic has been reduced by 90 tonnes, metal usage has been cut by 25 tonnes, the discharge of harmful chemicals has fallen by 25 tonnes and the quantity of unsorted waste produced by the chain has been reduced by 50 per cent. At the same time, Ivarsson's programme has boosted the chain's popularity, which has helped lift Scandic out of the difficulties it experienced in the early 1990s.

The centrepiece of this design revolution is the 'recyclable room' that Ivarsson created with the help of his team of in-house architects. They managed to make the room a remarkable 97 per cent recyclable, and since then Scandic has built 2,700 more worldwide.

Ivarsson explains, We identified our customers' most repetitive activities and found ways of making these less damaging to the environment.' Ivarsson found innovative marketing A principle of enlightened marketing which requires thai a company seek real product and marketing i mprovements.

that many of the best solutions were the least complicated. "The most creative ideas were deceptively simple', he says. 'For example, we used to provide soap in miniature bars and shampoo in 50 ml bottles. But most customers only use a tiny fraction of these quantities during their stay, so we decided to offer soap and shampoo using dispensers instead. It saves us more than 25 tonnes of soap and shampoo each year.'

Scandic's dispenser system and other innovations, such as the chain's use of natural, renewable materials (wood, wool and cotton), are beginning to catch on among European hoteliers, and the benefits of these materials have been both environmental and economic.

'But customers don't have to be less comfortable', Ivarsson says. 'Our recyclable rooms are at least as comfortable as the others, and they are always booked up first. It's not difficult to see why they're popular. If you look at all that wood, you get a lovely homey, hearty, welcoming feeling - it is beautiful.'1"

v;ilue marketing . A 'principle of enlightened marketing which holds that a company should put most of its resources into value-building marketing investments.

sense -of-mission marketing A principle of enlightened marketing which holds that a company should define )fii mission in broad social terms rather than narrow product terms.

societal marketing A principle of enlightened marketing inhich holds that a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run intercuts and society's long-run interests.

• Value Marketing

According to the principle of value marketing, the company should put most of its resources into value-building marketing investments. Many things marketers do -one-shot sales promotions, minor packaging changes, advertising puffery - may raise sales in the short run. but add less -value than would actual improvements in the product's quality, features or convenience. Enlightened marketing calls for building long-run consumer loyalty, by continually improving the value that consumers receive from the firm's marketing offer.

The computer company Dell, which pioneered mail-order selling of personal computers in the late 1980s, is a good example of an innovative marketer. The company recognized that PC buyers were becoming more knowledgeable about computers and the software they wanted, and were confident about making a purchase decision without the need for salespeoples' advice and interference. They wanted fast delivery and reliable after-sales service and maintenance support. They did not require the intermediary. Dell bypassed traditional distribution channels used by-the competition and, in selling direct to customers, created a unique selling point (USP) based on its innovative distribution arrangements. The approach was so successful that many competitors followed suit. Today, Dell continues to maintain a direct relationship with consumers that enables the company to listen better, learn faster and become more agile in responding to their changing and differing needs.17

• Sense-ofMission Marketing

Sense-of-mission marketing means that the company should define its mission in broad social terms rather than narrow product terms. When a company defines a social mission, employees feel better about their work and have a clearer sense of direction. For example, defined in narrow product terms, the Go-operative Bank's mission might be to sell banking services, but the company has taken a firm decision to promote a broader mission - to be an ethical bank, refraining from doing business with those companies that engage in so-called unsavoury business practices, from companies that are involved in the fur trade to tobacco product manufacturers.

• Societal Marketing

Following the principle of societal marketing, an enlightened company makes marketing decisions by considering consumers' wants and long-run interests, the company's requirements and society's long-run interests. The company is aware that neglecting consumer and societal long-term interests is a disservice to consumers and society. A crucial problem is this. In many cases customer needs, customer wants and customer long-run interests are the same things, and customers are the best judges ot' what is good for them. However, customers do not invariably make decisions that are good for them. People want to eat fatty food, which is bad for their health; some people want to smoke cigarettes knowing that smoking can kill them and damage the environment for others; many enjoy drinking alcohol despite its ill effects. To control some of the potential evils of marketing there has to be access to the media for the counter argument — the counter argument against smoking, against fatty foods, against alcohol. There is also a need for regulation-self if not statutory—to cheek unsavoury demand.

A second problem is that what consumers want is sometimes at odds with societal welfare. If marketings job Is to fulfil customers' wants, unsavoury desires leave marketers with a dilemma. Consumers want the convenience and prestige of hardwood window frames, doors and furniture, but society would also like to keep the Amazon rain forest; consumers want the comfort of air-conditioning, yet we need the oxone layer; consumers worldwide should be using lead-free petrol, yet not all bother. Marketing has to be more alert to the inconsistencies between consumer wants and society's welfare. Where there is insufficient drive from within the consumer movement and consumers' own sense of responsibility, marketers would do better to control or regulate their own behaviour in providing goods or services that are undesirable for society at large. If not, legislation is likely to do that for them.

A socictally oriented marketer should design products that are not only pleasing but also beneficial. The difference is shown in Figure 2.2. Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefit. Desirable products give both high immediate satisfaction and high long-run benefits. A desirable product with immediate satisfaction and longrun benefit would be a tasty and nutritious breakfast food. Pleasing products give high immediate satisfaction, but may hurt consumers in the long run. Examples are indulgence goods like confectionery, alcohol and cigarettes. Salutary products have low appeal, but benefit consumers in the long run. Seat belts and air desirable products

Products that give both high immediate satisfaction and high long-run benefits.

pleasing products

Products that give high immediate satisfaction, but may hurt consumers in the long run.

salutary products

Products tliat have low appeal but may benefit consumers in the long run.

Pears promote their product as being at one with nature -a strategy wsetf more often in this age of heightened environmental awareness.

deficient products Products that have neither immediate appeal nar long-run benefits.

bags in cars are salutary products. Finally, deficient products, such as bad-tasting and ineffective medicines, have neither immediate appeal nor long-run benefits.

The challenge posed by pleasing products is that they sell very well, but may end up hurting the consumer. The product opportunity, therefore, is to add longrun benefits without reducing the product's pleasing qualities. For example, the British drug and household product manufacturer Reckitt & Coleman developed a phosphate-free laundry detergent that was relatively more effective than existing 'green' detergents. The challenge posed by salutary products is to add some pleasing qualities so that they will become more desirable in the consumers' minds. For example, synthetic fats and fat substitutes, such as NutraSweets Simplesse and P & G's Olese, promise to improve the appeal of low-calorie and low-fat foods.

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Responses

  • roger verrett
    What is enlightened marketing?
    8 years ago
  • sam bridges
    What are the five principles of enlightened marketing?
    8 years ago
  • anne
    What is sense of mission marketing?
    8 years ago
  • roderick
    When an enlightened company makes marketing decisions by considering consumers'?
    6 years ago
  • Terry Keasler
    What is enlightened marketing examples?
    6 years ago

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