IMPACT OF SOCIAL MARKETING TOOLS ON ...

2 downloads 53774 Views 6MB Size Report
social marketing, used for changing consumer behaviour. .... is to determine needs, wants and interests of target market and to fulfil them in the best way for.
Lina Pileliené' Vytaulas Magnus University (Lithuania) IMPACT OF SOCIAL MARKETING TOOLS ON CONSUMER BEHAVIOUR Abstract. In the article are analyzed socio-cultural aspects of sustainable development. The socio-cultural sustainability reflects society's ability of solving social, economic, and environmental problems. Govemment and socially responsible organizations can encourage and involve people in the soeiety to contribute to the improvement of the quality of our lives. Social projeets encouraging quitting smoking, seatbelt's fastening, charity giving, and shaming drunk driving or littering arc tools of social marketing, used for changing consumer behaviour. Consumer (in this case) is a member of soeiety, whose behaviour can affect others, and who involves in the activity promoted by social project. KEY WORDS: social marketing, consumer behaviour.

Introduction Relevance of the research. Society's ability of solving social, economic, and environmental problems is widely discussed nowadays. Govemment and socially responsible organizations can encourage and involve people in the society to contribute to the improvement of the quality of otir lives. One of the ways to improve common society's welfare is the usage of social marketing. According to Ch. T. Domegan (2008) social marketing is the application of marketing principles and exchange to social issues. Business organizations offer to a market commercial prodticts and services for money, whereas companies using social marketing tend to change society's behaviour. There is growing trend of the usage of social marketing not only in the scope of governmental, nonprofit businesses, but in the profit-based sector, as well. The growing usage of social marketing tools in commercial sector highlights organizations' growing care for their image, reputation, and favourable society's attitude towards them. Social marketing is the way of changing human behaviour towards the one that is compatible to the needs of society as the whole, instead of fulfilling individual needs. Many organizations engage in social marketing in terms of dealing with obesity, tobacco consumption, family planning, safe sex, recycling, waste management, water purity (Domegan, 2008), etc. and promote such activities on ptirpose of informing consumers and showing them the possibility of choice. Many social projects encouraging quitting smoking, seatbelt's fastening, charity giving, and shaming dmnk driving or littering are tools of social marketing, used for changing consumer behaviour. Advertising and marketing campaigns promoting social projects can be named as tools for defining social norms. Nowadays, to be effective in the rapidly changing environment, social marketing programs must be consistent with society's perception, properly designed, implemented, and evaluated. The main problem, facing organizations in implementing social marketing programs - conflict between common (society's) and individtial needs. Many social projects are being prosecuted worldwide. Inveterate social problems are being solved for many years, be promoting changes in human behaviour. However, it is not enough to change one single consumer's behaviour - society as the whole should be targeted and promoted to change. Scientific problem solved in the article is how to implement social projects (as a social marketing's tool-set) to make influence on consumer behaviour. The object of the research is the impact of social marketing tools on Lithuanian consumer behaviour. The purpose of the research is to determine the impact of social marketing tools on consumer behaviour. The tasks set for the research are: 1. to analyze theoretical aspects of social marketing and its forms; 2. to characterise social project as a product; 3. to determine consumer attitudes towards social projects and the ways of their influence. On purpose of analysing social marketing and its forms and characterising social projects as a product, the theoretical analysis and synthesis were provided. Customers' attitudes, evaluations, and needs for social projects were determined providing the questionnaire research.

1. Theoretical aspects of social marketing The evolution of marketing as a distinct scope of knowledge started with the beginning of twentieth century (Sheth, Parvatiyar, 1995). Whereas the lifetime for the discipline is counting more than a hundred years, various scientists (Hollander et ai, 2005; Shaw, Jones, 2005; Sheth, Parvatiyar, 1995; Wilkie, Moore, 2003, et. al.) have Lina Pilelienè - Doctoral of Soeial Sciences, Vytautas Magnus University in Lithuania. Scientific Interests: Sales Promotion, Customer Loyalty Formation. E-mail: [email protected] Tel.: +370 37327856

296

taken peculiarities of its' development as the background for the research and discussion. As the basic streams of marketing thought are discussed manufacturing (prodtiction), product, sales, and consumer (market) orientations (Keith, 1960, Kotier, Keller, 2006); whereas, relationship marketing and social marketing are named as modern developments of the fleld. Moreover, Ph. Kotier and K. L. Keller (2006) suggest the concept of holistic marketing, which encompasses integrated, intemal. relationship, and social marketing branches. According to W. Diamond and M. R. Oppenheim (2004: 288) social concern is an increasingly important development in the field of marketing. The concept can be founded in marketing literature since 196O's. The initiator and the pathfinder of the concept and the field sttidies was Ph. Kotier with his colleges (Kotier, Levy, 1969; Kotier. Zaltman. 1971; Kotier, 1972). Ph. Kotier and G. Zaltman (1971) deflne social marketing as the design, implementation, and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution, and marketing research. The formation and settlement of social marketing orientation was encouraged by the social question: is marketing activity compatible with endeavour of solving ecological, re.source scarcity, and social problems? Sharpening ecological and social problems led to the situation when the commercial organizations with sustainability focus excel in terms of society's attitude. Sustainability focus manifests in minimizing the harm for the environment made by manufacturing or product usage, and/ or maximizing fulfllment of social needs of population. Latter factors encourage organizations to widen the usage of social marketing in their practices. Social marketing orientation stimulates organizations not only to produce products which fulfil customers' needs, but maintain society's welfare, as well. Sustainability focus adopted by organization could gain customers' favour and competitive advantage. Sustainable development is characterized by three dimensions (pillars): economic, social and environmental (Kocmanova. Nemcek, 2009). Organization with social marketing orientation has to concentrate on all these three pillars (see Fig. 1). Common trend of social responsibility force organizations to search for the balance between desirable profit and other factors of sustainable development: people and planet. Social expectations are changing with time; contemporary society interprets the role of business not only in terms of manufacturing and selling goods. Usage of social marketing is expanding through the organizations nowadays. Figure 1. Dimensions of sustainability

ENVIRON MENTAL Planet Source: A. Kocmanova and P. Nemcek (2009). According to Ph. Kotier and K. L. Keller (2006), social marketing orientation is one of the highest forms of marketing, when organization's commercial goals meet population's social aims. The main goal of practicing social marketing is to determine needs, wants and interests of target market and to fulfil them in the best way for individual and for the society as the whole - to maintain principles of sustainable development. According to A. Kocmanova and P. Nemcek (2009), sustainable development should improve the quality of life of each individual without exerting natural re.sources exceeding their capacity. The rout toward sustainable development requires that companies, govemment as well as individuals change their consumption and production behaviour and policies, and practices. Summarizing the analysis of the insights of different authors, the conclusion can be made that every single pillar of sustainable development is important; organizations must pay not only appropriate attention to Iheir maintenance, but even to their inter-compatibility.

2. Forms of social marketing

'

Social marketing encompasses all three pillars of sustainable development (see Figure 1) and makes it possible for organizations to gain competitive advantage in way of getting consumers' favour.

297

Social marketing orientation can be held as a background for organization's marketing strategy. It highlights organization's image for target markets: environment protective policy or charity giving are ways of forming positive public attitude towards the organization. The focus on environmental problems' solution refiects organizations concem about social welfare as one of primary business objectives. Such obvious objectives form consumer respect, maintaining positive reputation and image in the society. On the other hand, social marketing can be interpreted as the implementation of social projects (programmes), which help to improve social welfare - stimulate social changes. Social changes can be achieved be affecting consumer attitudes and behaviours. With help of social projects, organizations can infiuence customers' point of views, adding extra values to their lives. This approach to social marketing is often assumed by non-profit organizations, govemmental institutions, communal organizations, and other socially-concemed publics. However, according to V. Liesionis (2006) social marketing is a common strategy for commercial organizations, as well. Two main possibilities exist, while adopting social marketing orientation: Whereas contemporary consumers are becoming increasingly concemed about natural environment, endeavouring to meet consumers' needs and attitudes, commercial organizations are changing their attitudes and behaviours. Organizations can find innovative ways that will be advantageous while improving the environmental condition of production processes and products (Kocmanova, Nemcek, 2009). Such approach could be called practical, social responsibility-based. The improvement of production processes affect eco-efficiency and liveability. Innovative environment-friendly socio-oriented organization can gain its competitive advantage in terms of image, reputation, favourable consumers' attitude towards its activity. Other possibility of contributing to sustainable development and implementing social marketing strategy is more conceptual. According to this approach, organizations provide social or environmental activities, which do not interrelate or refiect their basic activities. This approach is based on social welfare improvement perspective - its main purpose is to change the society by changing consumers' behaviour. This results in endeavour to minimize consumption rates, engaging consumers in particular activities, etc. Summarising, social marketing is aimed to affect consumer behaviour on a large scale; marketing principles and methods are used to gain revenues through the generalization of social benefits (Liesionis, 2006). However, any organization implementing social marketing campaign has to consider intemal factors that shape consumer behaviour: values, attitudes, habits. Latter factors can be held as a basis for consumer segmentation. External factors, such as culture, social class, reference group are those that shape consumer behaviour on the other hand. According to Consumer Affairs Victoria (2006), in practice, intemal and external barriers must be overcome before people will change their behaviour. Social marketing advocates a more sophisticated approach to behavioural change. Three key aspects of its strategies and tools distinguish it from other policy approaches: It focuses on the consumer and understanding the behaviours that the policy is trying to infiuence. Its tools focus on influencing factors that have been demonstrated to encourage behavioural change. It is a multifaceted approach that often involves multiple organisations and uses several strategies simultaneously. Internal and extemal factors have to be considered while choosing project communication media. The success and effectiveness of social marketing campaign (social project) has to be constantly measured and evaluated. Evaluations of these information campaigns often measure the penetration and accessibility of the infonnation, but not its success in changing behaviour. Sometimes, the target audience is aware of the messages being delivered but does not respond by changing its behaviour (Consumer Affairs Victoria, 2006).

3. 'Product' in social marketing As discussed before, social marketing is the design, implementation, and control of programs calculated to infiuence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution, and marketing research. Social marketing is based on the adaptation of the contemporary commercial marketing theory and practice as a means of guiding and aiding social change campaigns (Dann, 2010). In other words, the same methods and tools as in commercial marketing are used to generate changes in social behaviour. The core marketing principles, the fotir 'Ps', are at the heart of this process because they are used at the initial planning stage (Serrât, 2010). According to T. Kent and R. B. Brown (2006), the four 'Ps' of the marketing mix - product, place, promotion and price - are briefly described as follows (Copley, 2004): Product. The item or service being marketed, through its features, quality, benefits and quantities. According to A. Joseph (2009), the product in social marketing is behaviour - the behavioural change, like slowing down when driving, covering up in the sun, or making a donation. A. D. Madhavi Ganju and R. Prasad (2004) distinguishes three types of social products: (1) the social idea marketed can be a belief, attitude, or value (gender equality); (2) social practice which may be the occurrence of a single act or the establishment of altered pattern behaviour (refraining from smoking); and (3) idea, belief or practice accompanied by a tangible product (e.g. use of condom).

298

Price. This includes the price of the item and product assortments and lines, price changes and payment methods. In social marketing, price is the cost to the citizen of changing (or not changing) the behaviour. This can range from painful death to mild guilt, depending on the issue (Joseph. 2009). Place. The location where the product or service is available to the customer, including distribution channels. While conceming .social marketing, it's about the influence of physical location on behaviour. Promotion. Market communication is achieved by personal selling, advertising, direct marketing, public relations (PR), sales promotion and sponsorship. According to A. D. Madhavi Ganju and R. Pra.sad (2004), in the context of social marketing, three more Ps exist: partnership, policy, and politics. According to Consumer Affairs Victoria (2006), while many consumer agencies use infonnation strategies to influence consumers' or trader behaviour, these strategies oflen fail to generate the behavioural changes desired. Social marketing is a comprehensive approach to policy development that targets behavioural change. While social marketing applies concepts, tools and techniques that are common to commercial marketing strategies, it is considerably more complex and often more ambitious in its objectives. The objective of social marketing is to change individuals' behaviour to achieve a socially desirable goal (Donovan, Henley 2003: ix). The changes in behaviour sought through social marketing are often far more ambitious than those sought through commercial marketing. Social marketers seek fundamental, long term behavioural change. Similarly, the amount of change needed before the project is considered a success is often much greater for social marketing campaigns. Any business can be interpreted as a product. The success of the product influences owners, front offlce, employees in terms of profits, working conditions, staff relationships. According to J. L. Campbell (2007), to some people the idea of corporations acting in socially responsible ways would seem silly. If the main reason for corporations is to maximize proflt and shareholder value as best they can, then it stands to rea.son that corporations will do whatever it takes to achieve this goal - perhaps even if that includes acting in socially irresponsible ways if they believe that they can get away with it. However, to be successful, the product has to be attractive to the society or some target part of it. However, business as a product can influence the society in terms of perceptions, attitudes, common norms, as well. If consumers like the product, they can even identify themselves with it. The practice of social marketing consolidates the relationship between the stakeholders of the product. E.g., there is a need for safety in the society, but there happen lots of car accidents. Socially responsible organizations can engage in projects encouraging seatbelt fastening and shaming drunk or high-speed driving. Every individual consumer has a right to decide, whether endorse or not the idea of the project. Favourable consumer's reaction would lead to societal welfare. The product being 'sold' is difflcult to deflne, is oflen intangible and has beneflts that could be delayed or difflcult to detect (for example, avoiding potential harm) (Donovan, Henley 2003: 33). E.g., there is a need for safety in the society, but there happen lots of car accidents. Socially responsible organizations can engage in projects encouraging seatbelt fastening and shaming drunk or high-speed driving. Every individual consumer has a right to decide, whether endorse or not the idea of the project. Favourable consumer's reaction would lead to societal welfare. Finally, social marketing strategies need to hamess the involvement of many stakeholders. According to Consumer Affairs Victoria (2006). there appears to be scope to increase the use of .social marketing strategies in consumer affairs: Consumers or traders need to make signiflcant and lasting changes to overcome the identified problems. The provision of infonnation alone is often inetfective in achieving change. The factors that inhibit change can be subtle and complex. There are signiflcant barriers to change. Research in social marketing is aimed to helping organizations and their managers to understand consumer behaviour. Only properly comprehending pattems of human behaviour, effective social projects can be created and implemented. Nowadays we are facing the proliferation of .social projects in Lithuania. Most projects are targeting particular audience - young people which haven't started smoking, using drugs, or alcohol yet, people who already have these addictions, and people whose behaviour is consciously inappropriate (drunk driving, abortions, stealing, etc.). The aim of such projects is to show the harm of mischievous behaviour for them and for the society, as well. Two possibilities exist: (1) the hami caused by some particular behaviour or (2) the loss obtained as a result of the behaviour can be highlighted. Other kind of social projects is intended to change human behaviour in the society in a broad sense, instead of preventing some particular activity. The examples could be encouraging becoming donor, charity giving, sex education in families, etc. Despite of some affection of social projects that can be observed in a short-term period, the main goal there is to make the long-term impact on behaviour in all levels of society (.see Table 1 below).

299

Table 1. Types of Social Change by Time and Level of Society ^^^^~^^^__^^ Level Time ——-.-..^ Short-Term Change Long-Term Change

Micro Level (Individual)

Group Level (Organization) Change in Norms Behaviour Change (Administrative Change) Lifestyle Change Organizational Change Source: O. Senat (2010)

Macro Level (Societv) Policy Change Socio-cultural Evolution

Considering the behaviour change in the long-run, social projects are supposed to satisfy the time and patience intensity. To be successful, the communication of social project has to be regular, constantly adapted to society's needs and behavioural changes. According to R. M. Solomon et. al. (2010: 27), consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs or desires. Consumer behaviour is relevant to our understanding of both public policy issues (e.g. ethical marketing practices) and of the dynamics of popular culture. Consumer opinion about social projects (possibilities of their impact on consumer behaviour) is analyzed further in the article. The comparative analysis between the existing and desired is provided.

4. Determination of consumer attitudes towards social projects and the ways of their influence The impact of social marketing tools in form of social projects on Lithuanian consumers is being analyzed in the article. The qtiestionnaire research was provided to determine consumer valuations of social marketing tools used in Lithuania. 110 respondents (81 women and 29 men) participated in the research. The first question aimed to determine the common opinion about the existence of impact of social projects on consumer behaviour. 81 % of respondents gave positive answer to the question "Have social projects any impact on society's welfare?". According to the answers given by the participants of the research, social projects are important and have impact on the welfare of our society. However, 19 % of respondent denied the impact's existence or didn't have the opinion about it (16 % denied and 3 % had no opinion). Social projects' providers should consider such results while creating and implementing projects. The assumption can be made here, that the poor communication to the society of the social projects' and their results leads to misunderstanding and overlook of the beneficial part of social marketing. The other point of interest was the communication of social projects' to the society. Respondent were asked to evaluate six media sources on the frequency they face social projects on and on the expectations to face social projects provided. The evaluations were given in flve point Likert scale. The results of the communication's effectiveness are given in the Figure 2 below. Figure 2. Social projects' communication: faced vs. expected Outdoor advertising 5

Bars/ restaurants