When the marketing-economic system does not perform as well as we would like, we attempt to change it. We hope to make it serve us better by producing and distributing goods and services in a fairer way. Most people believe that the system is working sufficiently well and requires no changes and that relatively minor adjustments can achieve a fair distribution.
Four ways in which we control or influence the direction of the marketing system and try to rid it of imperfections are by (1) helping the competitive market system to operate in a self-correcting manner; (2) educating the consumer; (3) increasing regulation; and (4) encouraging political action. The competitive market system operates to allocate resources and to provide most of the products we purchase to satisfy felt needs. While we may hear many complaints about the system, most of the goods and services we purchase or use flow through it with little difficulty. Competition works if the conditions of many buyers and sellers and other technical requirements of the free-market economic model allow it. We have attempted—sometimes with limited success—to restore competition where monopolies have reduced it.
Combined with the free-market system, consumer education can lead to wise choices. As products become more complex, diverse, and plentiful, the consumer’s ability to make wise decisions must also expand. Educational programs and efforts by parents, schools, businesses, government, and consumer organizations all contribute to a better system. A responsible marketing philosophy should also encourage consumers to voice their opinions. Such comments can result in significant improvements in the seller’s goods and services.
The marketing concept must include social responsibility as a primary function of the marketing organization. Social and profit goals are compatible, but they require the aggressive implementation of an expanded marketing concept. Explicit criteria for responsible decision making must be adopted in all companies. This is truly marketing’s greatest challenge.
December 31, 2009
