Transformational Marketing

Michael J Baker

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At worst ‘marketing’ is seen as deceptive, misleadingand designed to encourage people to spend money they can ill afford on products and services withlittle or no benefit to them. Materialism and aglobal sustainability crisis are the direct result of ourmisguided efforts

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At best, ‘marketing’ is a harmless and fairly trivialpractice based on advertising and promotion thatkeeps us informed of the huge variety of goods andservices available for sale.

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As with most things, the truth lies somewhere betweenthese two extremes.

Professional marketers know marketing is a force forgood and concerned with “the creation and maintenanceof mutually beneficial and satisfying exchangerelationships”. (Baker, 1976)

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Marketing is concerned with:

• Researching customer needs and wants• Communicating the findings to producers• Involvement in the creation and design of goods and services• That add value and deliver the desired benefits• Segmentation, Targeting and Positioning• Informing customers of the variety and choice on offer• Making the offer available for purchase• Monitoring performance in use, ensuring satisfaction and continuing after-sales service

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So, why the misperception?

Because attention is focused on the tip of the icebergrather than the 90 per cent that is hidden from view.

That is, on mass produced, mass consumed, fast movingconsumer goods (fmcg) that are central to the MarketingManagement school of thought that dominates mostmarketing education and thinking.

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According to the American Marketing Association (AMA)products may be sub-divided into two main categories:

Industrial goods (four sub-categories) Consumer goods (three sub-categories)

The three sub-categories of consumer goods are:

Convenience goods (fmcg) Shopping goods Specialty good

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The basis of this classification is the way in which goods and services are bought in terms of the thoughtand effort involved – in other words buyer behaviour.

It follows that the key to successful marketing is a full understanding of how buyers make choice decisions.

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Some theoretical explanations:

Reasoned action and planned behaviour

Behavioural economics

Baker’s composite model

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A simple composite model of the buyingprocess may be expressed notationally as:

P = fS [SP (FN, EC, IS, CBA, BR, PPE])

Source: Baker (2002)

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P = a PurchaseF = a function (unspecified)S = a Stimulus or StimuliSP = Selective PerceptionFN = Felt Need (Awareness)EC = Enabling ConditionsIS = Information Search (Interest)CBA = Cost Benefit Analysis (Desire)BR = Behavioural Response (Action) PPE = Post Purchase Evaluation

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Social marketing is "the systematic application of marketing,alongside other concepts and techniques, to achieve specificbehavioural goals for a social and environmental good“

(Veronica Sharp, Chapter 12 Social Marketing in, The Marketing century,Ed. Jeremy Kourdi, 2011, Chichester: John Wiley & Sons Ltd)

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Sharp suggests six important questions:

1 What are the barriers to change?

2 What is the motivation to change?

3 What are the things that the person needs to move away from

4 What are the things that they need to movetowards?

5 What does the person think, feel and believe?

6 Who does the person listen to and whom do they trust? (249)

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Sharp identifies a great deal of common ground betweencommercial and social marketing:

• We both seek success (Commercial = profit; Social = benefit );• we both focus on the customer;• we both focus on the competition (which may be each other!);• we both focus on behaviour (but SM is often trying to change

‘bad’ behaviour and habits, while CM is encouraging them);• we both work with stakeholders (SM often involved with

more complex relationships).

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Sharp argues that commercial marketers may benefitin several valuable ways by understanding the principles of social marketing. These include:

• developing a complete, insightful view of the customer

• focusing on behaviour• adopting a patient, long-term perspective• working closely with stakeholders to co-design• clearly understanding the costs and benefits to the

customer

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This is what is meant by ‘Transformational Marketing’.

It is using marketing knowledge,

insights, tools, and techniques to communicatehow choice and behavioural change can increaseindividual satisfaction, in both the short and long

term, without having a negative effect on other people,or the environment which we all share and depend

on for our wellbeing and survival.