United States and the Curse of Predatory Lending
Predatory Lending, also colloquially known as loan sharking is a bad business model. This business has always been run by anti-social elements and even mafia syndicates right from the age of the Renaissance. The loans were granted without any formal process. The recoveries were done in the dark alleys, and the entire operation was far […]
The Bhopal Disaster and its Aftermath as a Case Study in Misapplication of CSR
The previous articles in this module have discussed how Corporate Social Responsibility (CSR) as a business imperative is no longer a luxury and instead, it has become a necessity. We have also discussed how companies can no longer afford to pay lip service to CSR and the time has come to take the concept seriously. […]
How Using the HR Scorecard Creates Long Term Value for Organizations
Shorter Term Targets and the HR Function Typically, the Human Resources (HR) function is supposed to operate on short-term targets such as the number of people hired for different positions and within the targets set in the short term. For instance, in most manufacturing companies, it is the norm to ask the HR function to […]
What are Reinsurance Pools? and Different Types of Reinsurance Pools
In the previous articles, we have already studied what a catastrophe is and how it impacts the reinsurance market. Catastrophe modeling as well as other techniques have been used to try to predict catastrophes more accurately. However, they still end up causing a lot of economic loss to the reinsurance market. Over the years, companies […]
How Risks Affect Companies Providing Financial Services
Risk management, as a concept, is studied and implemented across all industries. Over the years, even companies with the most mundane business have started implementing risk management practices. However, there is no denying the fact that risk management as a discipline is more applicable to the financial services industry than to any other industry. The […]
Societal Marketing is based on the principle of societal welfare. It emphasizes that an organization must make strategic marketing decisions keeping in mind the consumer wants, the organizational needs and most important the long term interests of the society.
Societal Marketing is nothing but an outgrowth of the principles of Corporate Social Responsibility and Sustainable development. It underlines that an organization should not ignore the society’s long term welfare so as to achieve it’s mission and vision. An organization should have moral and environmentally friendly strategies and should ensure that proper acts and laws are implemented.
In today’s world of increasing environmental destruction, scarcity of resources, rapidly increasing population, and abandoned social services. the societal concept of marketing is doubted. It is questioned that “Are organizations doing an outstanding task of customer satisfaction in line with meeting long run societal welfare ?”.
Consider example of a fast food industry. They do provide yummy food but this food is full of health concerns. The burgers are rich in fat and so are the fries and pies too. Such products are packed in handy form and packaging generating lot of waste. Thereby, in the process of satisfying customer, these fast food outlets are creating increasing health concerns as well as environmental issues.
Societal marketing should take into account the following things:
The Societal marketing concept is significant because of the following advantages it has:
The closer the organizations move towards their customers, the more evidently they realize the fact that the objective of any organizational business lies outside the business, i.e. in the society. Thus, this drives the organizations to make a remarkable contribution for the society’s welfare and upliftment.
A very good example of an organization following societal marketing concept is the Body Shop: Body Shop is a cosmetic company founded by Anita Roddick in 1976.. The company uses only natural, vegetable based materials as ingredients for it’s products. It is totally against animal testing, advocates community trade, as well as complete protection of planet. Thus it totally engrosses the concept of Societal Marketing.
Another example is Ariel. It is a detergent produced by Procter and Gamble. Ariel runs special fund raising campaigns for less privilege classes of the world, mainly the developing countries. It also contributes a share of its profits from every bag sold for the societal development.
To conclude,we can say that societal marketing concept states that a company’s job is to assess the needs and wants of the target markets and to provide optimum satisfaction to it’s customers ensuring both consumers as well as societal welfare.In short,an equilibrium has to be maintained by the marketers among organizational profits,consumers satisfaction as well as social well being.
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