13 - Marketing and Society II – Macro-marketing Flashcards
How is Marketing defined?
Mittelstaedt, John D., William E. Kilbourne, and Robert A. Mittelstaedt (2006), “Macromarketing as Agorology: Macromarketing Theory and the Study of the Agora
”Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.”
What is micro-marketing?
The influence of economic and phsyco-social factors (prices, attention, attitudes) on the behaviours of individual buyers and sellers
What is Macro-marketing?
The interaction between society and marketing and its influence on economic growth and stability, environmental issues, health, welfare and culture.
What is Meso-marketing?
The influence of institutions and competitive structures on the strategies and performance of industries and value chains
What is Agora?
A Gathering place
In earlier times the agora or market was the town square wich was the center next to banks, churches, Town hall etc,
The modern agora is more digital so it can be everywhere
- Also globalisation plays a big part
Agora Globalization
- Of competition, markets and media
- Of regulation
- Of conflicts
What is the definition of macromarketing?
Macro-marketing is the study of a marketing systems, the impact and consequences of marketing systems on society, and the impact and consequences of society on marketing systems (Hunt)
Explain macromarketing as a ecosystem perspective
- You need to change because the context is changing
- Mutations
o Can be innovations by companies - Homostasis
o There are some mechanims in the system – trying to create sustainability
o Dawins theory, you need to be able to adapt.
o Staying constant by changing fx: Relationship between family, you need to change yourself
o Companies change because the context will change - fx: Coca Cola – people think they didn’t change anything, but their label and bottle has changed in 1950
Describe macromarketing and economies
- Macro marketing is more precis description of the world than macroeconomics is
- Marketing = Heterogeneous fx: segmentation
- Marketing = Asymmetrical fx: Equal information in marketing
- Marketing = Innovation fx: Get less competition – how did we do that? We can only that with new value proposition for our customer, develop new business models etc. It can change everything in the market
- Marketing = A dynamic system fx: We look at the system as a dynamic systems
In marketing we know that the markets are heterogenous, so we have to target different segments and markets differently.
Explain Marketing Systems?
(first part of macromarketing)
- The behavior of each element in the marketing system has an effect on the behavior of the whole system
- Within the marketing system there are subsystem with a higher internal than external interdependence
- The marketing system interact with and is a subsystem of other (social, cultural, political) eco systems.
Explain the impact and consequences of marketing system on society (second part of macromarketing)
Externalities and social consequences
- Negative/positive
- Calculable/Anticipated
- External/Internal to the parties of the transaction
Explain society’s impact and consequences on marketing systems (third part of macromarketing)
- Public regulation of the marketing system
Explain the Sillicon valley eco-system
Silicon valley ecosystem:
How companies evolve from ideas to succesful enterprises Ideas and innovation and the goal is a IPO or M&A but only few ideas manage that. The ideas that die go back into the innovation pool
Explain Marketing Flows
In marketing systems there are flows. Flows and actors are complementary and the constellation is constantly changing, transvection eg. Due to tech innovation (silicon valley)
- Flows are complementary
- Supplier Manufacture Retailer End user
- Flows change if the market change – regulates happens all the time
Explain TRANSVECTIONS
IN MARKETING SYSTEMS
- Supplier Manufacture Retailer End user
- Transvactions
o Regulation – these will affect the flows between partners
o Culture
o Technology fx: BlockChain - Transactions are the red arrows – tranvections are what happens to the partners within these tranactions.
Name some regulatory instruments
Types:
- Targetting Possesion, use, payment, information?
- Voluntary, mandatory
Implications:
- For different stakeholders
- Efficiency and flexibility
- Competitive dynamics
- International diffusion
Explain regulation (Like Marketing) is an interactive and iterative process
- Interactions and impacts between the regulative and marketing system occur through continued reciprocal sequences of marketing and regulatory initiatives, which transform both the structures, flows and output, defining the marketing system.
Name reasons for de-regulation
- The world economy, technology, behavior changes, regulatory processes become out-of-date and in-efficient - pace of development - flexibility is needed
- Implementation failures
- The philosophies of agency/the right to choose/individual responsibility also boost de-regulation
Explain why distinctions between markets, political-administrative systems are blurring
- The competitive state / the market logic
- New public management
- Commercial lobbyism and power play
- Contract politics
- Corporate Social Responsibility
Explain the case of The Danish Trans Fat Ban
Bech-Larsen T, Aschemann-Witzel J. A macromarketing perspective on food safety regulation the Danish ban on trans-fatty acids
The is a case of public regulations:
o From voluntary to mandatory regulations
o Companies don’t like mandatory regulations – when something get banned they have to fx: change their production
o Mandatory regulations affect marketing
How the Danish TFA ban came into being in an environment generally opposed to compulsory regulation
how food reformulation and marketing have been affected by the TFA regulation whether and
how the Danish ban has influenced TFA regulation in other European and overseas countries
Explain the timeline of the Danish Trans Fat Ban
Bech-Larsen T, Aschemann-Witzel J. A macromarketing perspective on food safety regulation the Danish ban on trans-fatty acids
- The trans-fat was banned in 2003
- 10 years before that an article documented that transfat is very dangerous to people
- Based on that the article got a lot of media awareness
- The powerfull retailers told: “we need to do something about it”
- They would reduce this fat
- The report found that it was harmful - there should be a ban
Explain EFFECTS ON FOOD REFORMULATION AND HEALTH
Bech-Larsen T, Aschemann-Witzel J. A macromarketing perspective on food safety regulation the Danish ban on trans-fatty acids
- In 2008 a serving of McDonald’s French fries and chicken nuggets in New York City contained 10.2 g of TFAs, while the same meal in Denmark contained just 0.33 g of trans-fat
- Cardiovascular diseases and cardiac deaths have dropped significantly (rather because of anti-cholesterol drugs!?)
- Are replacements for TFAs really better for consumers’ health (e.g., if saturated fats replace trans-fats)
Explain EFFECTS ON BUSINESS/COMPETITIVE DYNAMICS
- There are still 6 manufacturers of magarine in Denmark
- Nestle´ has changed its policy to match the Danish standard.
- Kraft Foods has invested 30,000 person hours in 125 plant trials to reformulate its TFA free Oreo cookies
- Walmart (2011) announced that it will stop selling all industrially produced TFAs by 2015
explain INTERNATIONAL DIFFUSION
Bech-Larsen T, Aschemann-Witzel J. A macromarketing perspective on food safety regulation the Danish ban on trans-fatty acids
- Similar (total bans) in SCHW, Austria. But most other European countries have voluntary schemes (UK, GER)
- Singapore: The Government has published a list of reasons not to regulate TFAs
- Australia, Canada: Partial bans
- USA: Regulation of disclosure (the flow of information): TFA free if less than .5 g per serving. But partial bans in N.Y.C and California
What was the major messages for the lecture of Marketing and Society II – Macro-marketing?
marketing Macromarketing
- Macromarketing can be defined as the study of the agora: The interactions between marketing activities and societal institutions.
- The stakeholder perspective is important for managerial as well as for societal reasons.
