thank you we face immense problems problems caused by our own behaviour solutions
TRANSCRIPT
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thank you
We face immense problems
Problems caused by our own behaviour
solutions
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thank you
We face immense problems
Problems caused by our own consumption behaviour
Marketing is heavily implicated in these
problemssolutions
The need to rethink commercial marketing
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A study of marketing as if people (and the planet) mattered
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Marketing in a Post‐Consumer Society
ISM Institute for Social Marketing
Gerard Hastings
Social Business Conference
Anadolu University
Eskisihir
11-13th June 2015
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structure
1. A crisis for marketing
2. Marketing re-examined
3. Marketing as if people and the planet mattered
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The reassuring rhetoric of marketing
‘The shift in focus to services is a shift from … the producer perspective to the utilization of the customer perspective.’
(Gummesson, E 1995)
The ‘application of specialized competences (knowledge and skills) through deeds, processes, and performances for
the benefit of another entity’ (Vargo & Lusch 2004)
‘value co-creation’, ‘equality of resource integration’ ‘empowered customers’, ‘integrating value to make our
lives better’ (Ischia 2013)
All very gratifying (especially for us with plenty of money)
But then I remember other realities…
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this is co-creation as nightmare
negative equity
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financial crisis
public health
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The holy trinity of public health: food, alcohol and tobacco
shortened lives
2/3rds of Americans are now overweight or obese – this will take 1 in 5 health $s by 2018
(Lang and Rayner, 2012)
1 in 2 smokers are killed by their smoking -
8 million a year by 2030 (Doll and Peto 1992; WHO)
4th greatest cause of premature death – even tho half the world don’t
drink (WHO)
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The holy trinity of public health: food, alcohol and tobacco
The unholy trinity of corporate marketing
The obvious truth that this marketing has an effect
shortened lives
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These companies are consummate marketers
where is the ‘the customer perspective’?
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Industrial Epidemics
‘The concept of an epidemic associated with the commercialization of a dangerous product ….diseases of consumers, workers and
community residents caused by industrial promotion of consumable products …. In each instance, public health oriented policies run the risk of being opposed by industrial corporations
in a health versus profit trade-off.’(Jahiel and Babor 2007)
How is this for the ‘benefit of another entity’?
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Profits and pandemics: prevention of harmful effects of tobacco, alcohol, and ultra-processed food and
drink industries (Moodie et al 2013 The Lancet)
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financial crisis
public health
children
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Targeting Children
‘Children are important to marketers for three fundamental reasons:
1.They represent a large market in themselves because they have their own money to spend.
2.They influence their parents’ selection of products and brands
3.They will grow up to be consumers of everything; hence marketers need to start building up their brand consciousness and loyalty as early as possible.’
Foxall and Goldsmith (1994) Consumer Psychology for Marketers p203
88% of smokers start as children
Surgeon General (2012)
How can this be called ‘integrating value to
make our lives better’?
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The Scandal of Infant Formula
‘I shouldn’t be standing in front of you, on the 25 year anniversary of the Code, telling you so little
has changed and that companies continue toencourage mothers to spend money they don’t have on manufactured food most of them don’t
need. I shouldn’t be standing in front of you because it shouldn’t still be happening. But it is, because the voluntary code clearly isn’t working,
and children are dying as a result’Jasmine Whitbread, CEO, Save the Children UK (2007)
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play has become just another marketing tool
The game recruits new Krave Facebook fans…and provides current fans with new content. It
engages fans with the brand and brings to life the core ad concept underpinning Krave – the character’s relentless pursuit of chocolate
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How young can branding go?
Are these really ‘empowered customers’?
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financial crisis
public health
children
inequalities
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Segmentation, targeting and viability
to those who have is given more
‘Of the 1,400 new drugs developed between 1975 and 1999, only 13 were designed to treat or prevent tropical diseases and three to treat tuberculosis. In the year 2000, no drugs were being developed to treat tuberculosis, compared to 8 for impotence or erectile dysfunction and 7 for baldness.’ (Bakan 2004)
inequalities
The source of so much hardship in our society…
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£2.26 per kilo
£17 per kilo
£185 per kilo
Up to £450 per kilo
inequalities
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financial crisis
public health
children
inequalities
materialism
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'I got a Dyson but I don’t even know if I want it'
Materialism
“Whatever we treasure for ourselves separates us from others; our possessions are our limitations”
(Rabindranath Tagore)
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financial crisis
public health
children
inequalities
materialism
the big one…
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planet earthevery increasing
growth every increasing
consumption=
this is leading to catastrophe….
good service(gets us shopping;
stops us questioning)
Unlocked by melting ice-caps, the great polar oil rush has begun
Independent 6/9/11
…it is an ecosystem from hell
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It is a problem of consumption – not just too much of the wrong stuff, but too much of all stuff
‘we need to consume less*. A lot less. Less food, less energy, less stuff. Fewer cars, electric cars, cotton T-shirts, laptops, mobile phone upgrades. Far fewer.’ (Stephen Emmett 2013)
‘every decade global consumption continues to increase relentlessly’ (ibid)
…‘we are fucked’ (ibid)
* esp we in the global north
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structure
1. A crisis for marketing
2. Marketing re-examined
3. Marketing as if people and the planet mattered
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structure
1. A crisis for marketing
2. Marketing re-examined: Fiduciary imperative: who is in charge? Consumers or citizens? What is the purpose of marketing
3. Marketing as if people and the planet mattered
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The contradiction at the heart of marketing
In a world governed by the fiduciary imperative, consumer sovereignty is treason
Perpetual dissatisfaction (the satisfied stop shopping)
Even were it real, consumer sovereignty is a dangerous concept: •It assumes we know what we want (‘May all you dreams come true’ is a Chinese curse)•That we are in full possession of the facts and economists are right: we make rational decisions•That we don’t need adversity
Fiduciary imperative
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Consumers or citizens?
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‘unwarranted influence - economic, political, even spiritual’ ‘felt in every city, every Statehouse, every office of the
Federal government’….‘we must not fail to comprehend its grave implications. Our toil, resources, and livelihood are all
involved. So is the very structure of our society.’ Eisenhower (1961)
‘only an alert and knowledgeable citizenry’
‘military industrial complex’
Critical thinking
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Consumers Earn money to buy stuff to meet their own needs
Address life’s challenges by shopping
Guiding principles: consumer satisfaction & ‘caveat emptor’
CitizensThink of the collective as well as their own needs
Solve life’s challenges by self-production, exchange, reusing and abstinence as well as shopping
Guiding principle: responsibility and critical analysis
Consumers or citizens?
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What is the purpose of marketing?
Moving beyond consumption‘the idea of conducting the entire economy on the basis of greed’
‘Needless to say, wealth, education, research and many other things matter for any civilisation, but what is most needed today is a revision of the ends these means are meant to
serve. And this implies above all else, the development of a lifestyle which accords material things their proper, legitimate
place, which is secondary and not primary’ (Schumacher 1993)
Marketing is about much more important matters than the mere acquisition of stuff
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What is the purpose of marketing?
Co-operation“If human beings had not been able to cooperate in this way
they would probably not have survived the rigours of the savannah – or subsequently of regions much colder. At best
our lives would have been, as Thomas Hobbes put it, solitary, poor, nasty, brutish and short. We survived because our genes gave us the ability to cooperate.” Richard Layard (2005)
Marketing is the timeless protocol behindthis vital human cooperation
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What is the purpose of marketing?
It is surely not to produce megalithic companies that now dwarf countries:
World Bank data from 2011 shows that 110 of the 175 largest global economic entities in 2011 were
cor porations, not countries …
…the revenues of Royal Dutch Shell, Exxon Mobil and Wal-Mart each exceed the combined GDP of
the 110 poorest countries (Pingeot 2014)
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structure
1. A crisis for marketing
2. Marketing re-examined
3. Marketing as if people and the planet mattered
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Marketing as if people and the planet mattered
Three suggestions:
•Marketing should be a privilege not a right
•Regulation (learn from health and safety: independent & statutory)
•Helping us cooperate: encouraging collective responsibility not individual satisfaction
How would this work in practice?
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Marketing as if people and the planet mattered: the four Ps
Promotion
Marketing communications should be designed to help us make ethical and sustainable choices
The downsides as well as the upsides
Loi Evin:
Adults only
Stick to the facts
A Loi Evin for all
products?
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Marketing as if people and the planet mattered: the four Ps
Place and price
We marketers know just how susceptible people are to these drivers
As with promotion they should be designed to help us make ethical and sustainable choices
A system that sees a third of the UK veg crop left in the field because it is too ugly, and another third thrown away because BOGOFS have made us buy too much has to change (UK Institute of Engineers 2014)
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Marketing as if people and the planet mattered: the four Ps
Product
Handguns: we restrict production when needed
Externalities – the EU tobacco solution [€100 billion per annum direct health costs 25% fewer smokers and 45,000 saved lives (Tiessen et al 2010)]
As for the smoker’s lungs, so for the planet: we should calculate the externalities, and either make sure the producer pays them - or decide they are simply not affordable
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conclusion
We face immense problems
Marketing as currently conceived is driving these
Social marketing can play a role in reducing this harm
But its mother discipline needs fundamentally rethinking if we are turn the tanker around
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conclusion
Over to you
Do you agree with my analysis?
Do we have a problem?
Are the solutions tenable?
What do you think?