‘Stakeholder Marketing’ – in a changing world environment
More than three decades after the celebrated marketing guru
Philip Kotler first published Principles
of Marketing in 1980, ‘stakeholder marketing’ today occupies the centre
stage in marketing philosophy in the contemporary world. Kotler did not mention
a name for it at that time but it was almost prophetic foresight that he spoke
about it in his book, which is still considered as the bible of marketing.
Stakeholder Marketing as an approach goes much beyond the typical two player origin in marketing definition i.e. the buyer and the seller -- where marketing has been defined as fulfilling an apparent or non-apparent need of a prospective consumer. Today’s world society is much more intertwined and complex, where each action by a company can affect the world in different ways. Some of these actions might be detrimental to the future of our societies. So to say, even though it might feel that the whole transactional relationship between the customer and the selling company is more of a private affair, it is not at all so!
Let me make it little simpler to understand for our general readers. For instance, when my wife buys an edible oil of a particular brand she gets it in a standard packaging from the manufacturer. Now, if that packaging has elements which could be health hazard, the company actually is putting my wife’s life at risk. Similarly if a music company corroborates with any anti social element in promoting their brand of music it is undermining the society at large as a stakeholder. If a bus manufacturer puts in an un-tested braking system into the vehicle, which is not full proof -- it puts lives of a large number of stakeholders at risk. If a manufacturer adopts such a process in their production facilities which poses danger to the ozone layer it is undermining the environment as a stakeholder. A fashion company through its offerings can likewise violate feminism or women’s rights or even exploit young children having a larger bearing on society!
On the positive side, for instance Carrefour – a French multinational supermarket retailer, when they introduced the concept of re-usable bio-degradable carry bags to customers against polythene bags, which ruin the environment -- it was an immediate hit! Even though the customers initially had to pay a little to purchase these bags.
There could be so many instances, where one can see through the effects on people, society or environment posed by such companies who do not consider Stakeholder Marketing as a guideline in their marketing policy or strategy. Stakeholder marketing as an approach has given birth to concepts like ‘green marketing’. The stakeholders could be the consumer, the employees, the shareholders, the environment or even the society at large. In their zeal to maximize benefits (read profits) if a company compromises on certain counts in their inputs, processes and outputs -- then it virtually violates the basics of stakeholder marketing.
Many socially responsible companies adopt issues like anti-Malaria support, anti-Aids support or anti-illiteracy support in their Corporate Social Responsibility (CSR) activity calendar. In most cases these form a part of the companies’ PR strategy in building up good will for their corporate brands. However in the backyard of such companies if they dilute from acceptable standards – be it their inputs or processes while producing goods or services, eventually such players actually would be violating stakeholder marketing approach.
When we say ‘business ethics’ it only brushes upon the frame of the actual giganticity or complexity of the larger picture. Any company which is into marketing with any offering, is needed to design the Marketing Plan in such a way that at any step, it does not violate the approach of stakeholder marketing. Such ‘master plan’ essentially needs to go much beyond the 4 Ps of marketing (Product, Pricing, Promotion and Placement) with a wholesome approach at each step. In such a plan the protagonist puts all its acts in place in conformity to not only its targeted customers but all other possible groups which might get affected by its strategy. Only then a company could be termed as being socially responsible and in the real sense could be called as a dynamic company.
In the race of profit making from China to USA to Zanzibar most companies undermine these issues and in effect harm people, society and the planet with their negative contributions. Just imagine, if today all marketers followed this totalitarian approach, the world would have been a much better place to live in!
