Consumer Goods Marketing and Business-to-Business (Industrial) Marketing

Consumer goods marketers sell to individuals who consume the finished product. Businessto-business marketers sell to other businesses or institutions that consume the product in
tum as part of operating the business, or use the product in the assembly of the final product they sell to consumers. Business-to-business marketers engage in more personal selling rather than mass advertising and are willing to make extensive adjustments in factors
such as the selling price, product features, terms of delivery, and so forth.For the consumer goods marketer, the various marketing components are relatively
fixed. In addition, consumer goods marketers might employ emotional appeals and are facedwith the constant battle of getting their product into retail outlets.  

Local, Regional, National, International, and Global Marketers

As one would expect, the size and location of a company's market varies greatly. Local
marketers are concerned with customers that tend to be clustered tightly around the marketer. The marketer is able to learn a great deal about the customer and make necessary
changes quickly. Naturally, the total potential market is limited. There is also the possibility that a new competitor or environmental factor will put a local marketer out of business.
Regional marketers cover a larger geographic area that may necessitate multiple production plants and a more complex distribution network. While regional marketers tend to
serve adjoining cities, parts of states, or entire states, dramatic differences in demand may
still exist, requiring extensive adjustments in marketing strategy.National marketers distribute their product throughout a country. This may involvemultiple manufacturing plants, a distribution system including warehouses and privately
owned delivery vehicles, and different versions of the marketing "mix" or overall strategy.This type of marketing offers tremendous profit potential, but also exposes the marketer to
new, aggressive competitors.International marketers operate in more than one country. As will become clear laterin this book, massive adjustments are normally made in the marketing mix in various countries. Legal and cultural differences alone can greatly affect a strategy's outcome. As the
U.S. market becomes more and more saturated with U.S.-made products, the continued expansion into foreign markets appears inevitable.
Global marketing differs from international marketing in some very definite ways.Whereas international marketing means a company sells its goods or services in another
country, it does not necessarily mean that the company has made any further commitments.
Usually the product is still manufactured in the home country, sold by their people, and the
profits are taken back to that country. In the case of Honda Motors, for example, it means
building manufacturing plants in the U.S., hiring local employees, using local distributionsystems and advertising agencies, and reinvesting a large percentage of the profits back into 'the U.S.  

Mass Marketing, Direct Marketing, and Internet Marketing

Mass marketing is distinguished from direct marketing in terms of the distance betweenthe manufacturer and the ultimate user of the product. Mass marketing is characterized as
having wide separation and indirect communication. A mass marketer, such as Nike, has very little direct contact with its customers and must distribute its product through various
retail outlets alongside its competitors. Communication is impersonal, as evidenced by its
national television and print advertising campaigns, couponing, and point-of-purchase displays. The success of mass marketing is contingent on the probability that within the hugeaudience exposed to the marketing strategy.. there exist sufficient potential customers interested in the product to make ~he strategy worthwhile.  

Direct marketing establishes a somewhat personal relationship with the customer byfirst allowing the customer to purchase the product directly from the manufacturer and thencommunicating with the customer on a first-name basis. This type of marketing is experiencing tremendous growth. Apparently, marketers have tired of the waste associated withmass IParketing and customers want more personal attention. Also, modem mechanisms
for coliecting and processing accurate mailing lists have greatly increased the effectiveness
of direct marketing. Catalogue companies (Spiegel, J.e. Penney), telecommunications companies (Sprint), and direct mail companies (Publishers Clearing House) are example of direct
marketers. A modified type of direct marketing is represented by companies that allow
ordeling of product by calling a toll-free number or mailing in an order card as part of an
advertisement. 

 Although (officially), Intemet marketing is a type of direct marketing, it has evolved

so quickly and demanded the attention of so many companies that a separate section hereis 'varranted. Essentially, Intemet technology (which changes by the moment) has created
a new way of doing business. In the Internet age, the way consumers evaluate and follow
through on their purchase decisions has changed significantly. "Call now!" is no longer aneffective pitch. Consumers have control over how, when, and where they shop on the Internet. The Internet has all but eliminated the urgency of satisfying the need when the opportunity is presented. Internet marketing will b e discussed in detail in a later chapter.  

Profit Marketing Versus Nonprofit Marketing

As the terms connote, the difference between for-profit and nonprofit marketing is in their primary objective. For-profit marketers measure success in terms of profitability and their ability to pay dividends or pay back loans. Continued existence is contingent upon level of profits.Nonprofit institutions exist to benefit a society, regardless of whether profits areachieved. Because of the implicit objectives assigned to nonprofits, they are subject to anentirely different additional set of laws, notably tax laws. While they are allowed to generate profits, they must use these monies in specific way~ in order to maintain their nonprufit status. There are several other factors that require adjustments to be made in themarketing strategies for nonprofits.  

Service Marketing Versus Goods Marketing

The distinction between services and goods products is not always clear-cuL In general,service products tend to be intangible, are often consumed as they are produced, are difficult to standardize because they require human labor, and may require the customer to participate in the creation of the service product.
Goods products tend to be just the opposite in terms of these criteria. Consequently,marketers of service products usually employ a marketing strategy quite different from that
of goods marketers. For example, a local family physician creates tangibility by orovidingan environment. waiting room. examination rooms, diplomas on the walls, that convincespatients that they are receiving good health care. Conversely, coffee producers create iiltangibility in order to appear different from competitors.
 

Macromarketing Versus Micromarketing

The division of marketing into macromarketing and micromarketing is a fairly recent one.
Initially, the division was a result of the controversy concerning the responsibility of marketing. Should marketing be limited to the success of the individual firm, or should marketing consider the economic welfare of a whole society? Accepting the later, or "macro,"point of view dramatically changes the way marketing is carried out. In this light, everymarketing decision must be evaluated with regard to how it might positively or negatively
affect each person and institution operating in that society. In 1982, Bunt and Burnett surveyed the academic community in order to define more precisely the distinction between
macro- and mircomarketing. 4 Their findings suggest that the separation depends upon "whatis being studied," "whether it is being viewed from the perspective of society or the firm,"and "who receives the consequences of the activity." Examples of macromarketing activities are studying the marketing systems of different nations, the consequences on society
of certain marketing actions, and the impact of certain technologies on the marketing trans-action. The use of scanners in supermarkets and automatic teller machines in banking illustrates the last example. Micromarketing examples include determining how Nikon Steel
should segment its market, recommending how National Jewish Hospital should price theirproducts, and evaluating the success of the "Just Say No" anti-drug campaign.  

FOUR TYPES OF SOCIAL PRICE

Four categories of resources are suggested as those given up by individuals as payment (beyond
money) in exchange for product offerings: time, effort, lifestyle and psyche. Marketers may
profitably assume that target consumers are aware of these social "price tags" fastened to every form
of exchange (Fine 1981 a).


Time
A good many expressions synonymous with the aphorism "time is money" have achieved cliche
status. What they all mean is that time expended in an activity represents benefits foregone because
that time was not spent in some alternative manner -- the economic notion of opportunity loss or
opportunity cost. The social price tag labeled "time" is perceived by the consumer to inform him or
her of the opportunity loss or benefits to be foregone because of the rime spent in making a purchase
(at least in a market society; in many societies time is nor considered so valuable). It has been said
that important intellectual progress occurs at a time when poetry is popular. But adopters of the idea
of poetry must pay a time price to write. read and listen -- a price that many harried postindustrial
individuals just cannot afford to pay.


Effort
Expending one's effort in exchange for a product offering is merely bartering one's services in
that exchange. This can take the form of physical action, as in the case of maintenance assistance by
a parent at a cooperative nursery school, or in the travail of participating in an alcoholism program.
Continual or repeated payout of effort results in fatigue that is heightened if the effort does not return
satisfactory reward. Homans (1958) points out that a person thereby "incurs aversive stimulation or
what I shall call 'cost' for short … Fatigue is an example of a 'cost'"
Effort is also sacrificed in giving information in an exchange; information is an important human
resource (Dixon 1978) considered as a product , is in some contexts a price. As an
illustration, a wholesaler's salesman is welcomed by retailers who accept his knowledge and news of
the industry in payment for their allegiance. The salesman is glad to pay this social price, even to the
point of making a deliberate effort to amass a store of gossip with which to compensate his clients
for their valued friendship. Another example is the exchange of a lighter prison sentence for the
police informer who pays for that product with information.


Lifestyle
Modification of one's lifestyle is a price paid in many forms of exchange, as in adopting the idea
of marriage, for one example. While some may thrive on diversity and change, most individuals
look upon the prospect of disruption of the status quo with at least some trepidation and this is true
whether the anticipated change is for the better or for the worse. The social price of advancement to
a better job could be the diminution or elimination of comraderie with former colleagues. The
prospect of having to make new friends is an awesome assignment for some people. A touching
example is given by Mead (1955):The iron plough has sometimes been resisted as an assault upon the land. In villages of the United
Provinces of India, it threatens established human relationships. A man inherits a relationship to a
carpenter family whose task it is to make and repair the plough. This family is always invited to the
farmer's feasts and the women are given saris. The relationship, the "pay," the gifts continue whether
ploughs are made or not ... Perhaps the farmer can be taught to repair his own plough, but it would
mean personal reorientation as well as a change in the valued relationship structure 

One reason for the recent increase in single parent homes is that many are unwilling to pay the
price of lifestyle change in exchange for marriage. As Levy and Zaltman (1975) expressed it, "A
common complaint is that married men dislike paying the price of saying 'I love you,' and in
consequence, many marital deals fall through"


Psyche
Part of the price of an exchange often amounts to a forfeit of self-esteem, pride, identity, selfassertion, privacy, control, freedom from fear or risk, or other such losses affecting a person's peace
of mind; they are thus grouped under the heading of psyche. When the American Cancer Society
undertook to distribute Hemocult kits for self-screening of colon-rectum cancer, two major obstacles
were encountered. One was hesitancy to supply a smear of stool as part of the examination. Then
too the program met with a great deal of reluctance to risk the possibility of learning the grim truth of
affliction. These two psychic factors are readily seen as comprising a high social price to be paid for
cancer prevention as an exchange.

Also included in this category is the contribution of one's attention to something -- one "pays"
attention. Bagozzi (1975) points out that "an exchange can occur between a person and a television
program.” The "person gives his attention, support, potential for purchase, etc.” Earlier, Robertson
(1970) had carried this idea still further, adding to attention the social price of loss of self-assertion:

In attending to communication, the individual incurs costs and receives rewards -- an exchange
process exists. Costs incurred in attending to mass-media advertising include time and submission to
"influence," since it is recognized that advertising is persuasive and one-sided. The reward involved
is information, which may be meaningful to the consumer and which may be of value to him in his
consumption behavior ... It can be proposed that, basically, communication will occur up to the point
at which marginal reward from an additional unit of communication equals the marginal cost attached  

BEYOND MONEY: THE CONCEPT OF SOCIAL PRICE

Although ideas and issues are often spoken of as being great or weighty, they have no mass,
cannot be physically delivered and are not ordinarily exchanged for cash. Yet, for a marketing
transaction to take place, something must be paid out by the purchaser. This chapter delves into
price as a marketng factor and calls attention to a reality of pricing sometimes overlooked by
marketing planners. That reality is the concept of the price -- beyond the monetary price -- paid by
an individual in purchasing a good or a service, but especially in adopting an idea or taking a side on
an issue.

Many characteristics associated with a particular product offering are studied by marketers as
product attributes, while the possibility that these very characteristics may be perceived by
consumers as integral parts of the price paid in purchasing that product is overlooked. Thus the
amount of time spent waiting for attention at the doctor's office may in one context be construed as
an attribute of that form of health care service. However, viewed in another light. the time expended
might be seen as a non-monetary price paid in addition to the cash fee. Other non-monetary prices
include the effort expected of the habitual driver who turns to mass transit and the shame endured by
the adopter of the idea of a radically unusual hairstyle.

In any given situation, whether a characteristic is likely to be perceived as a product attribute or
as part of price will not always be obvious. The important concern to marketers is the determination
of which viewpoint suggests more effective strategies for marketing planning. That is, if consumers
do indeed perceive themselves as expending resources beyond money when they make purchases, it
becomes important for purveyors to take into account these "things'' given up in exchange for the
product offerings.

The price vs. product attribute distinction may be restated in terms of what has been called the
approach-avoidance concept. Product attributes comprise an approach vector because they attract
the consumer whereas price factors repel him or her. The latter are components of an avoidance
vector. The model thus has an element of pleasure/pain theory built into it (Seth 1980). These
considerations have their most obvious usefulness in the planning of promotional strategy, but they
may also be important in the design of the product itself 

PRICE

Price is the most quantifiable, tractable and readily analyzed element in the marketing mix. It is
virtually the only marketing factor addressed by economists. Price is generally defined as “the
amount of goods, services, money value of the same, (that is) set as the required payment given by
the buyer for some amount of goods or services offered by the seller (Alpert 1971, p. 4). This
definition applies whether the price is called admission, assessment, charge, collection,
compensation, contribution, dues, fare, fine, fee, honorarium, levy, interest, penalty, premium, rent,
reward, tariff, tax, toll, or tuition.

The Monetary And Social Components Of PriceThe price construct has two components. One is that which is most generally associated with
price, the price paid in cash by the buyer to the seller. The other is a non-monetary or intrinsic
component extending beyond money, which is "paid'' by the buyer in every type of exchange:… the price can also be non-monetary. Thus it can include many things more personal than money,
such as time, effort, love, power, prestige, pride, friendship and the like. Alcoholics Anonymous, for
example, charges a very high price -commitment not to drink and public admission of one's problem.
The Third Nail, a drug rehabilitation center, expects its clients to abstain from drugs and to contribute
time and effort toward the maintenance of the center 

It is suggested that non-financial prices be formally distinguished from money prices and the
appellation social price be assigned to the former. Other terms could be used: ancillary price,
supplemental price, collateral price, intangible price, intrinsic price, symbolic price, psychic price,
etc. But the term social price seems most appropriate particularly since it resonates well within the
domain of social marketing. The notion of social price is exemplified in such everyday remarks as
"We paid dearly for ... ," or "Freedom at any price;" one is said to "spend" time and "pay" respect
and attention. 

IMPORTANCE OF SOCIAL PRICE IN MARKETING

Price, as a controllable strategic marketing factor, is given added importance through the
awareness of its nonfinancial component, p , in expression (1). In the same way that ordinary prices
are "set," so too should social prices be employed by incorporating into the marketing mix, those
considerations perceived by consumers to constitute their total contribution to the exchange
transaction and not just the cash component. This awareness could uncover new promotional
opportunities with such themes as "The time you save may be your own," and so on. The four price
categories outlined above also suggest dimensions for "price positioning" a product offering against
competing products, an exercise that could enhance the product planning process.
The concept has particular significance with respect to those exchanges falling within the domain
of social marketing. For example, advocates of social change are virtually unanimous about the
positive effects of participation in the planning process by those to be affected by rhe program (see
for example, Bradshaw and Mapp 1972). Yet such participation ordinarily means "payment" by
target consumers of all four types of social price described in this chapter. It seems plausible to
conclude that it is precisely because participation is so "expensive" that it is so desirable. People
want to feel that they have some control in the shaping of their destiny. They are willing to invest in
such control and indeed are uncomfortable if participation is not available to them for "purchase.”


Implications For Further InvestigationLike their financial counterparts, social prices can be psychological prices, that is, those perceived
by consumers to be surrogate measures of product quality -- the higher the price paid, the higher the
quality attributed to the product and conversely. This area has been well explored in connection with
monetary price and one may conjecture that conclusions ought to be quite similar with respect to
social price. Are we not more suspect of the quality of the food at a restaurant if on a Sunday
evening. there is no wait for a table?

Economic principles provide contexts within which social price may be further examined. One of
these is the notion of consumers' surplus. the excess of price that the consumer would be willing to
pay rather than go without a given product over that price actually paid. Another is indifference
curve analysis. The consumer is said to be indifferent as to which of many combinations of goods
are to comprise an optimum market basket subject to the constraint of a given monetary income. In a
similar vein, can one speak of an optimal bundle of adoptable concepts, subject to constraints of
available time, effort and so forth? It is hoped that such threads may be woven by interested
consumer researchers into meaningful extensions of concepts 

PRODUCT STRATEGIES

Branding
A few years ago a man named John Adams won the Republican nomination in New Hampshire's
First Congressional District. Mr. Adams was an unemployed taxi driver who did almost no
campaigning. He made no speeches, issued no press releases, spent no money. He figured that with
a name like his he didn't need to. People choose products, including political candidates, based on
the familiarity of the name (Newsweek, September 27, 1976
The motivating objective in branding strategy is the creation of habitual purchase of the product
by consumers. A brand name, once remembered, vastly facilitates repeat purchase because the
product and its name become closely associated with each other. In fact, successful branding
strategy results in a name that becomes virtually synonymous with the product and often carries
more status than the product itself. Thus one is more likely to contribute to campaigns of The United
Way than to just any program of combined charities. People quickly develop confidence in a
branded product and enjoy peace of mind from the perceived assurance that a "good buy" was made.
They also perceive higher degrees of quality and reliability in a brand, all of which increases
familarity and automatic and loyal devotion to the brand. While many Americans abide by the 55
mile per hour speed limit, the state of Connecticut developed a particular reputation for diligence in
policing speed laws. It's campaign assumed the status of a respected brand, the Connecticut Speed
Laws, which stood out among those of neighboring areas. Upon entering Connecticut's highways,
drivers became especially aware of their speedometers.

A brand name should be promoted with the goal of making it well known, respected and even
generic. At the same time the assignment of a brand to a concept serves as an incentive to the
sponsoring organization to create and maintain high standards. For long-term welfare of the firm,
the producer of a branded item tolerates nothing but high-quality output.
The very name of the sponsoring organization or movement serves as an appropriate brand for an
idea. Examples are Boy Scouts, Christian Dior, Goodwill Industries, ERA, Gay Rights, NORMAL
(National Organization for Repeal of Marijuana Laws), I Love New York, WIN (Whip Inflation
Now), Boys Town, Red Cross, New Deal and CIA. The appropriateness of the brand name cannot
be overemphasized. Thus an organization promoting education for Hispanics is called Aspira,
Spanish for "aspire," and a museum in San Francisco calls itself The Exploratorium.
Criticizing institutions for neglecting the socio-linguistics of innovations, Rogers and LeonardBarton (1978) pointed out that "what an innovation is called often is an important factor in its
acceptability" 

They offered as an example government family planning programs in India, where contraceptives
are taboo because they are believed to be associated with prostitution. Marketers applied a theory
from the field of anthropological linguistics to the problem and changed the name of condoms from
"F.L.," or "French Letters," to "Nirodh," a Sanskrit word for "protection.” As a result of the name
change, audience perceptions were altered and acceptance improved appreciably, according to postpromotion research.

Packaging
How are ideas packaged? In the context of the promotion of nutrition information, the question
was put to a public health official of a third world country. He replied, "You can't sell sound
nutrition practice in a vacuum; you must package it together with such ideas as clean water,
sanitation and preventive medical care.” The implication is one that is common in conventional
marketing, for example, the idea of "accessorizing" in the sale of clothing. The salesperson suggests
a handbag and gloves while completing the sale of a pair of shoes.

Yet one rarely sees joint campaigns for such related causes as gun con trol and support the police,
responsible pet ownership and antivivisection, or scouting and forest fire prevention. One might
propose to the "I Love New York" promoters a package of traffic amelioration through carpooling or
mass transit for visiting several points of interest, centers of performing arts, museums and so on -the
possibilities are endless. Energy conservation can be wrapped up in the same "box" as pollution
control, shop by bicycle and physical fitness (Fine 1980b). A good deal of synergy derives from
combining the efforts of organizations espousing innovations that can be linked together in some
manner.

The words of a great poem are no more beautiful when set in fancy type and printed in a
handsomely bound volume than when the poet first scrawled them on scratch paper. Yet, until the
poem was attractively packaged, few could appreciate it. A scholar presents a new theory by
packaging carefully written sentences into an article, which is delivered to a consuming audience.
Indeed, the term "vehicle" is used to mean a journal said to "carry" the article. Abstract products
need the application of correspondingly intangible packaging principles.

Product Positioning
The strategy by which the marketer attempts to carve a unique niche for a product within a
marketplace of competing products is called product positioning. It is employed with the objective
of finding differential advantage for the product. Comparison is made on the basis of those
characteristics or attributes (taste, color, texture, durability) deemed most relevant. The use of
product attributes as a basis is rooted in the mathematical concept of space such as the twodimensional space depicted by an x-y plane. The point (3,2) for example, is positioned by counting
off three units along the x axis (dimension) and two units along the y. If the variables x and y are
specified to represent respectively, power and fuel economy, then an automobile, may similarly be
positioned in that "product space.” Of course, automobiles like all other products, possess more than
just two attributes, but only two may be drawn on a two-dimensional sheet of paper.
One could draw a three-dimensional product space and include another attribute, say, length,
legroom, or some other pertinent attribute. More attributes yield a more thorough positioning
process. Marketing researchers have a procedure called multidimensional scaling for statistically
exploring virtually any number of attributes. This analytic technique makes it possible to
simultaneously compare competing products on the basis of many dimensions.

To translate the idea of product positioning from the realm of tangibles to that of concepts, one
need consider the set of attributes appropriate to ideas and social issues as defined in Chapter 1 --
relative advantage, compatibility, complexity, trialability and observability. In addition to these
universal attributes, specific products may be identified by some unique attributes. Thus the idea of
using motorcycle helmets ranks high on the attribute of trialability, because one is not forced to buy
"all or nothing," as with the adoption of vasectomy. Trialability is a universal attribute; that is,
virtually all concepts can be measured along a trialability dimension. But helmet use advocacy can
also be rated, for example, on a convenience continuum, which is applicable to only some concepts.
A comprehensive program of product positioning takes into account both the universal and the
product specific attributes. But it is not an easy task to operationalize attributes of concepts:In the marketing context, it is very difficult to define the attributes of brands that give rise to
differences in the worth of those brands. Describing the value-generating attributes of social
alternatives is even more difficult....While attributes are objective descriptors inherent the design of the product, they may or may
not constitute the precise criteria on which consumers make the purchase decision. Individuals make
subjective perceptions or interpretations about attributes. These are called choice criteria: It is
essential to distinguish between the attributes per se and consumers' perceptions of these attributes,
because consumers differ in their perceptions. It is the perception that affects behavior, not the
attribute itself
It is tempting for a marketer to specify attributes and to construct a "product space" containing
those attributes as dimensions. But that is a producer-oriented view. More meaningful, although
more difficult to conceive, is a preference map the dimensions of which are not attributes but choice
criteria. Ideally, positioning should be based on consumer perceptions.

  Product Differentiation

Product differentiation is the practice of rendering one product different from another. The
difference might be real, for example, in design, color, package, or it could be a difference perceived
by the consumer, as when high quality is attributed to something because a high price was paid for it,
or because it was purchased from a prestigious merchant. A strategy of product differentiation may
enable the marketer to position a new product (or reposition an existing one) as distinctly different
from other products already on the market. This strategy may have two underlying objectives: 1.
To justify a difference in pricing or method of promotion and 2. to cater to unique needs of some
particular market segment.

Clearly, product differentiation strategy follows logically from that of market segmentation. If
segmentation research reveals the existence of sub-markets having unique needs or tastes and if
those markets are large enough so as to be worthwhile to cultivate, then it makes sense to offer a
product to match the unique needs of each group. Writing about knowledge considered as an
innovation, Zaltman (1979) states: An innovation-related guideline is: If discernibly different user
groups exist, consideration should be given to the need for correspondingly differentiated
knowledge. It may be necessary to design different versions of an item of knowledge to maximally
satisfy different user characteristics.

The strategy of product differentiation or what might in this book be called concept
differentiation is implemented by adding a unique twist to the product offering. .For example
proponents of minimum wage laws might think of codicil ensuring some level of productivity to
employers. The school prayer issue might have been presented with a provision permitting
individual prayers. The "Save Chrysler" campaign planners, aware of differences in various
audiences, beamed different messages to labor, to business interests and to government officialdom.
Sometimes a product is differentiated to so large a degree that it assumes an entirely new form -the
subject of the next section. 

Product Form
A social product is available in various forms just as, for example, an automobile may be had in
the form of a sedan, compact and so forth and health services might be obtained in preventive, or
ambulatory form or by recorded phone call (Tel-Med). Summer school is one form of the class of
products called education. The form in which a product is to be marketed depends upon the nature
of the need to be satisfied by the particular offering. An example is seen in the concept of nutrition.
The form taken by a nutrition program depends on the type of malnutrition it is to relieve. Nutrition
researchers at an eastern medical college have found that certain maladies of the elderly are vitamin
based and have developed a malnourishment preventive package for the aged. Where the problem is
inefficient overconsumption of meat (three to six pounds of grain are needed to yield one pound of
most meats), the idea is to espouse mitigation of such waste. This is the situation in many
postindustrial societies such as the United States. Other types of over-nourishment similarly call for
demarketing. The lifestyle of the sit-down family dinner is giving way in America to rushed
overstuffing:

"And no sooner is the table cleared and dishes washed, then the eating starts again. Someone makes a
sandwich. Older kids go out for a while, come back with friends, fix food and do homework together,
or sit in front of the TV and snack.” A bedtime snack is the rule, not the exception, says Dr. Fine and
even then it doesn't end "People can't sleep, they are restless, they are hungry. They get up and raid
the 'fridge,' the pantry for cereal, eat apples and cheese, raid the leftovers they would not eat at dinner"Griff and Mead suggest replacing the "Good for you and good tasting concept" of marketing
themes with the idea of "pleasure in moderation," an idea already provided by the alcoholic beverage
industry
In most other parts of the world, of course, the problem is undernourishment. There programs
must assume the form of a scheme to assist the household in operating within the limits of its
nutritional resources in order to maximize for all members the benefits to be obtained from these
resources. The actual formulation of each particular malnourishment prescription in a given locale
will depend on which foods are most readily available, which are most compatible with current tastes
and preferences and to some extent, physiological tolerance to certain foods. For example, milk is an
excellent source of calories for all people but has differing tolerance response across racial types:
About 60% of Ashkenazi Jews have low tolerance for milk, while for Anglo-Saxons that figure is
10%. The U.S. recommended daily allowance (RDA) of calcium for a pregnant or lactating mother
is 1.3 grams, but whether this amount is obtained from milk, leafy vegetables, or citrus fruits will
depend on ethnic factors, among other things. One prominent nutritionist, David Call, attests to the
"complete lack of scientific consensus (on the particular prescription) among nutritionists in many
countries" (in Berg, Scrimshaw and Call 1973, p. 204).

The concept of product form suggests a strategy enabling the consumer to distinguish among
several types of product offerings. The aim is to make a unique type available to suit distinct needs
of each market segment.  

The Product Life Cycle (PLC)
As with living organisms, most products follow a cycle from their inception, through periods of
growth and to eventual demise. Marketers are interested in knowing just where along the product
life cycle a given offering resides at a given point in time. Each stage could require a specific
marketing mix with different combinations of promotion, pricing (not necessarily dollar pricing -see
Chapter 5) and distribution components. Social products similarly follow stages analogous to the
pattern hypothetically assumed for ordinary products and in fact insights into the life cycle of social
movements are covered in sociological writings. Calling these "stages in the life cycle of a cause,"
Kotler (1971a) presented a scheme reproduced

In the crusading stage, a primary goal is to enlist followers. A large number of supporters is
crucial because early adopters are known to comprise an important word-of-mouth channel.
Furthermore, idea marketers need a large following if only so that later promotion messages can
boast of having many advocates. For example, the idea of carpooling is being touted by mass transit
organizations and various interstate transportation authorities. That idea is likely to become more
popular, as will the use of solar energy, with continued increases in fuel costs. On the other hand,
nudism seems destined to remain within an early stage for a variety of reasons, including societal
reactions to nudism and nudists' feelings about those reactions. Similarly, adoption of the metric
system must overcome deeply rooted habits. The crusade of the idea of nuclear power by utilities is
also meeting with popular resistance. Such ideas remain in the crusading stage for a long time.  

MARKET SEGMENTATION

Market segmentation is the partitioning of a market of consumers according to some criterion in
order that marketing planning may be custom tailored to suit the unique needs of each segment. By
catering to differing characteristics possessed by several sub-markets, it is hoped that deeper overall
penetration of the target population will be accomplished. A prerequisite for a segmentation study is
the selection of a criterion most likely to account for differential response to the four controllable
marketing factors and on the basis of that criterion, partitioning the market, that is forming submarkets such that each sub-market is different in some way from the others. Ideally the differences
between these groups should be indicative of the unique manner by which each group responds to
differences in product offerings and/or to differences in the promotion strategy planned by the
marketer.

Segmentation research is typically carried out by consumer survey. The survey instrument
contains questions designed to take measurements not only on the segmentation criterion.usually
selected in advance, but also questions to measure other characteristics (variables) about the
consumer. Together, the discriminating criterion as well as the other characteristics make up the
total set of variables in the study. It is the average values on all these measurements that yield a
profile of characteristics for each segment, profiles providing some idea as to how the segments
differ. They offer clues as to how product design and promotional campaigns may be differentiated
for each segment.

How Many Segments?

The chief objective of segmentation is not merely to increase product acceptance, but to do so
efficiently. At the extremes either only one segment exists, that is, the market is presumed
completely homogeneous, or there are as many segments as individuals (completely heterogeneous).
How many should be specified? With fewer segments, the marketing task is simplified; appealing to
too many segments can become expensive and unwieldy. (In a Department of Transportation
campaign no less than 23 target audiences were identified for promoting the 55-mile-per-hour speed
limit;  Yet one wishes not to overlook significant differences between
target subgroups.
Ideally, a segment should be sufficiently large for it to be worthwhile cultivating with a custommade marketing mix. If too few customers make up a submarket, it usually will not pay to modify
the product, price, promotion, or distribution to suit those individuals. The optimum number of
segments, then, is a compromise between the largest number accounting for actual group differences
and the smallest number containing a worthwhile audience. Usually, clusters of segments can be
combined to form a smaller total number of segments. 

Criteria for Segmentation

The crucial aspect of this process is the selection of the criterion upon which the segmentation
scheme is to be based. There is a large body of literature dealing with the choice of segmenting
criteria (see for example, Frank, Massy and Wind 1972). Of all the criteria upon which consumers
differ, which should be selected for a particular segmentation strategy? Virtually every product
suggests one or more criteria and one selects the criterion believed to be most relevant to the focus
product/situation. For example, to promote "Buy union label" one might segment on the basis of
preference for American goods versus imports; the marketer of legalized gambling could use some
attitudinal measure as a relevant criterion; a fair housing study might segment on frequency of job
relocation.

In an empirical study of the social product, mass transit, Lovelock (Lovelock and Weinberg 1978)
segmented a market based upon various travel characteristics. Church nonmembers have been
segmented into three classes called resisters, disinterested and uninformed (Kotler 1980). A study in
India showed that interest in birth-control devices could be determined by examining external
features of the dwelling occupied by the family and Senator George McGovern's 1972 presidential
campaign strategists found that Volvo owners were a fruitful source of campaign contributions
(Dionne 1980). Finally, physical features such as terrain and rivers could play a role in segmenting
for what has been called spatial diffusion of innovation:

First, anything that moves must be carried in some way. Secondly, the rate at which some things
move over geographic space will be influenced by other things that get in the way. Thus we must
consider initially the carriers and the barriers that can influence particular movements . . . of ideas
spreading through a group of people .

Sometimes a total market of consumers is segmented not on one criterion, but by a broad
category defined by several criteria. The aim is to find different groups to address and to then plan
different means of approaching each.
In sumary, an effective segmentation program must ensure that:
1. The segmentation criterion selected is appropriate for the particular product.
2. Individuals belonging to different segments are likely to react differently to one or more
marketing policy instruments.
3. Those within a given segment demonstrate relatively homogenous behavior.
4. The number of segments formed is such that it is economically feasible to reach the most
important target groups.
5. Segments be sufficiently large and reachable so as to warrant individualized cultivation.
6. The program will lead to modification or manipulation of one or more marketing-mix
components. In other words, the newly identified segments should be addressed by modifying
the product  

PRODUCT MANAGEMENT IN SOCIAL MARKETING

PRODUCT MANAGEMENT

Product management is the planning and control of activities related to the things an organization
offers to its constituents. It includes branding and packaging decisions, product positioning, study of
the product life cycle, the product mix, product forms, product differentiation and new product
development. Although they are standard fare in any marketing treatment of ordinary goods and
services, these topics are usually considered irrelevant in the promotion of concepts. The goal in this
chapter is to demonstrate their application to the dissemination of ideas and social issues. This
chapter also introduces the theory of market segmentation which is closely linked to several facets of
product management.

What is a Product?

To define a product it is useful first to review the definition of a market. A market is people,
having certain needs and wants, as well as a supply of some resource, for example, money and the
willingness to expend that resource in order to satisfy their needs and wants. For something to be
considered as a product in the marketing sense, the prerequisite is that it be capable of being
exchanged for some scarce resource (the price), an exchange that satisfies. The product is offered by
a provider or supplier who obviously places more value on the resource than on the product, while
the consumer believes there is more satisfaction or utility in owning the product than in owning the
resource. So an exchange takes place.

A product, then, is anything having the ability to satisfy human needs or wants. The test for
whether the "thing" is, or is not a product lies in its exchangeability -- its capability of being traded
for some other commodity -for a price. Enis pointed out that: exchange is differentiated from other
methods of want satisfaction: origination the creation of form utility (by discovering, harvesting,
mining, manufacturing, etc.); force-taking of utility without offering a payment (for example, by
burglary, war, extortion, or conquest); or gift-conferring utility without the expectation of payment
(1973, p. 58).

Other Names for Products.This broader meaning of product permits inclusion of concepts that have been referred to by
various other appellations. Public goods are involved in those exchange transactions in which the
marketer typically is a governmental agency and all individuals in the community are direct
consumers because they are affected by "consumption" of these goods, which include flood control,
unemployment insurance and energy conservation programs. They are purchased in exchange for the
price of taxation. Society through its institutions, determines that certain public goods (education,
rapid transit, health care) are so meritorious, that such merit goods "are produced at considerable
cost, but offered at zero (or low) price" (Wish and Gamble 1971, p. 80, passim). Respect, love and
status have been called impalpable goods (Phelps 1975, p. 14) and are sometimes paid for with cash,
but more often with such social or intrinsic prices as time, effort, psyche and change in lifestyle (see
Chapter 5). Dewey referred to "ready made intellectual goods" as information provided by mass
media (1939, pp. 45-6) in quite the same spirit as the present work considers ideas. Ideas and issues
are called planks when they are placed on sale as part of a political platform. Finally, Levy and
Zaltman (1975) wrote about:

The providing or getting that goes on between people in their private lives, where the content of the
exchanges that occur are such as parental attention, filial devotion, sexual gratification, reprimanding
and teasing, may be termed intimate marketing. This category is.a matter of analytic perspective.
Analyzed by a religious person, marriage is a sacrament; by a political scientist, it may be viewed as a
power struggle or a unit with a particular sort of voting pattern; and a lawyer may note if the marriage
is legally contracted. A marketing analyst would ask what each member of the marriage offers,
provides, gives -- in traditional parlance, "sells" -- and what each member wants in return, whether
interpreted as a price or as that which he "buys" Whatever its name, then, the product is the "thing" that is to satisfy needs and wants of the
market. Just as it was necessary to define market before discussing product, the concept of market
segmentation is introduced next because it will be relevant to some of the product strategies taken up  

EXCHANGE TRANSACTIONS IN SOCIAL MARKETING

Having put social products within an integrative framework of product offering, the next task in
developing the marketing approach to ideas is to examine methods by which concepts are marketed.
What is the nature of the exchange transaction? It is called an exchange transaction because
ordinarily something of approximately equal value to the product is given in return by the consumer
to the supplier. An exchange of values takes place in the marketing transaction.

Where does social marketing occur? The traditional transaction takes place in the open
marketplace. Goods and services are bought and sold through a bargaining process with each party
trying to obtain what it perceives are the best terms available. By contrast. exchanges of social
products occur in political, organizational, educational, leisure, health care, family and a multitude of
other settings. In its broadest meaning social marketing occurs virtually everywhere and all the time,
but under different labels -public service, organizational development, human interaction (for
example a marriage proposal) and so on.

A transaction takes place, for example, when a person decides to watch a television program; he is
exchanging his time for entertainment. A transaction takes place when a person votes for a particular
candidate; he is exchanging his time and support for expectations of better government. A transaction
takes place when a person gives money to a charity; he is exchanging money for a good conscience 

Marketing as Exchange and Exchange as Marketing 
That the concept of exchange underlies marketing processes has been well developed and
documented, notably by Bagozzi (1974, 1975): "Exchange is a central concept in marketing and may
well serve as the foundation for that elusive "general theory of marketing" (1975, ). If marketing
is exchange, what about the converse? Are not many exchanges also market transactions? It turns
out that many forms of non-mercantile interaction among individuals and groups can be considered
and studied as marketing phenomena. That is the theme of this book and it is also the theme of a
work by the cultural anthropologist Belshaw who indeed maintains that "all enduring social relations
involve transactions which have an exhange aspect" (1965, ). Bagozzi concurs: "Social marketing
is the answer to particular question; Why and how are exchanges created and resolved in social
relationships?" (1975). Carrying the argument yet further, Issacson and Permut (1978) point
out that:

The extension of marketing theory and practice from the private/business arena to a host of other
contexts in which exchange processes take place . . . requires an appreciation for the very diverse
nature of these exchanges, including understanding the different backgrounds, structures, goals and
operating procedures of the institution and individual participants. We believe the insights gained by
considering more diverse settings have not only a value in their own right, but add to our ability to
comprehend and resolve problems in more traditional marketing settings 

The remainder of this section lists several methods of human interaction not usually seen as
marketing, but presented here within a marketing orientation. This list of transactional types is by no
means a serious review of exchange theory. Rather it is intended to serve as a convenient showcase
to demonstrate some of the ways in which social products are marketed. Each of the types -isted
below is susceptible to analysis in terms of the six key "marketing approach" questions raised earlier
in the chapter and they constitute the methods employed by the distribution channels 

Information and education dissemination  
In a broad sense virtually all marketing activity consists of the dissemination of information. No
matter what the product the marketer must communicate information about benefits to the consumer
to be derived from an exchange transaction. That point is emphasized throughout Chapter 8 where
the product is information about government manpower training and strategic planning is
demonstrated from that viewpoint. Knowledge itself has been described by Gerald Zaltman (1979)
in terms of "items" designed and transmitted to satisfy users (see Chapter 4 of the present volume).
The acquisition of information and education is a consumption process and includes, for example,
participation in and attendance at lectures, as well as formal schooling. Swagler (1979) studied what
he called consumers' "information acquisition behavior" in which the price paid for tl:e purchase is
primarily in terms of time. He points out that the consumer's "stock of informational capital
becomes a dominant factor in the consumer's decision whether or not to seek additional
information." How similar this is to the situation of a food store buyer contemplating inventory
replenishment (It is interesting that both food and information might spoil with age!)
Interpersonal relationships offer many examples of educative exchanges in which the product is
information, knowledge, recounted experience, or skills. Many youngsters can attest to parental
efforts to promote some of the concepts shown in cells (3) and (4) . And the price paid
seems so high! Usually these products are packaged (couched) in "for-your-own-good" wrappings
and children become repeat customers to the extent that they find sense and validity in buying these
ideas.

A BROADENED TYPOLOGY OF PRODUCTS

The broadened scope of marketing implies that product offerings could be anything considered to
be of value by the parties to the transaction. What are the actual items that are marketed? What
"things" do individuals exchange? Quite apart from the common characteristic shared by all
commodities, that is, that they must have perceived value to the participants, how do different
offerings compare, one with another? If virtually anything and everything is subject to negotiated
exhange, it is useful to categorize formally the enlarged domain of products in some orderly
arrangement. That is the undertaking of this section.

A typological model is developed and proposed as an integrative framework for the analysis of all
types of offerings. (The author begs license for using the term typology rather loosely. Strictly
defined, a typology must provide exhaustive and mutually exclusive categories. The model proposed
in this chapter somewhat violates that definition and hence might more accurately be called a "quasitypology.'') It will thus serve too as a basis for analysis for those particular commodities highlighted
 It will pinpoint the position that concepts have within the entire gamut of products
(Fine 1979b).
Even with conventional goods, a model that classifies product types is useful in framing,
analyzing and comparing marketing strategy, in suggesting new venture directions and as a
benchmark for assessing one's own product mix against that of the competition. However, for such a
model to be useful, it must be sufficiently broad to encompass the entire set of choices the "evoked
set" facing consumers. That set of alternatives contains not only goods and services but concepts as
well. The typology advanced in this chapter permits marketers to position products against
competing offerings, including those constituting exchange types different from their own. Kotler
(1972) was an early proponent of the notion of classifying nontraditional products:A typology of marketing activity can also be constructed on the basis of the product marketed. Under
the broadened concept of marketing, the product is no longer restricted to commercial goods and
services. . . . A product classification of marketing consists of goods marketing, service marketing,
organization marketing, person marketing, place marketing and idea marketing  

What is probably the first product categorization model partitions products as either convenience,
shopping, or specialty goods (Copeland 1923). Other schemes are based on product characteristics
(Aspinwall 1962; Miracle 1965; Shostack 1977), production and cost factors (Beckman, Davidson
and Talarzyk 1973), "psychophysical" aspects (Ramond and Assael 1974) and the Standard
Industrial Classification (SIC) established by the government. None of these, however, consider
"social products," that is, ideas and issues. One wonders whether product typologies that omit social
innovations as exchange types are still useful. Kotler's "three stages of marketing consciousness"
model (1972) did account for social products and provided a three-category classification device, as
did Enis (1973), classifying on organizational goals and audience types. Hunt (1976) also took
social marketing into consideration. However, he apparently did not intend his model to apply to
products per se, rather specifying it as useful in classifying "approaches to the study of marketing
and all the problems, issues, theories, models and research" . By contrast, the model presented
here deals with the actual product offerings designed to be marketed. 

The Typology  
The model is based on the assumption that all goods, services and concepts (products) may be
classified on two dimensions -- the profit-making nature of the transaction and the degree of
tangibility of the item.

Profit Making Versus Nonprofit MarketingAn obvious point of departure is provided by a dichotomy of all exchange processes as being
either for profit, or not for profit. This concept enjoys wide usage and denotes whether or not the
seller in the marketing process intends to gain a profit over costs in the transaction. (The legal
requirement is, of course, that an institution be incorporated as a nonprofit organization and/or obtain
federal tax exemption status from the Internal Revenue Service.) The notion ignores consideration
of profits accruing to the purchaser. Thus, a transaction in which the idea of private religion is
adopted is profitable to the marketer, for example, "Reverend lke." But here, as in all market
transactions, profit in the form of psychological utility to the purchaser is usually omitted from the
definition, except perhaps by implication. If the case were otherwise, that is if nonpecuniary profits
entered into account, then there would be no such concept as a nonprofit transaction; all exchanges
would be considered profit-making. For an exchange takes place if and only if, all parties benefit or
"profit" as a result of the exchange. A blood donor profits financially if paid in cash for his or her
blood; if a volunteer, the compensation takes the form of personal satisfaction, which is surely
beneficial or profitable to the donor (Titmuss 1972).

In the present chapter accepted usage will be followed and a transaction will be considered profitmaking only if it is characterized by the seller's intent to obtain monetary profit. That actual profit
might not materialize is incidental. The situation calls to mind a notice hanging on an office wall,
stating: "This is a nonprofit organization; it was not intended to be, but became so due to conditions
beyond our control." Although clever, the remark is nevertheless definitionally inconsistent, fora
nonprofit organization is one that does not intend to earn a profit on its transactions (it might profit,
for example, from investments). On the other hand, an organization is considered profit-making if
such intent is evident, whether or not profit accrues, or loss (negative profit) is suffered. This affords
an entirely workable distinction to determine if a transaction is profit making. (But the
profit/nonprofit dichotomy in exchange transactions can have different meanings in different
situations, as Professor Sheth has pointed out (1980), "For example, in many countries, the state
owns and manages large corporations which are run like profit businesses although their mission is
nonprofit. The obvious examples are foreign airlines and shipping companies").


A Tangible-Abstract Product DimensionThe second dimension to be used in the model measures transactions along a tangible-abstract
continuum. If a tangible good is involved, the exchange is concrete; if the "product" is an idea or a
cause, the transaction is abstract. Both bicycles and birth-control information are products to be
marketed; the former is a tangible good, while the latter is an abstract idea. This reasoning is not
altered by the fact that birth-control information is usually associated with actual products, such as
condoms, foams and so on. Even among concrete products, some are more abstract than others. A
home fire alarm system is a tangible product, but it is inextricably tied to the abstract idea of safety.
For the sake of the typology, the continuous tangible-abstract spectrum is categorized into four
classes, standard practice in research methodology; one converts intervally scaled variables into
ordinal or nominal classes to meet particular analytic needs. Here, the need is simply to create a
manageably small number of categories.


The MatrixCombination of the two-category profit dimension with the categorized tangible-abstract
dimension yields the matrix , in which several dozen illustrative exchanges are
listed. the list is by no means exhaustive; nor are its entries proposed as the best examples. The
reader will no doubt call to mind more creative choices; the selections are merely representative and
not all will be discussed in the text.
The top row lists exchanges for which no profit to the seller was intended to accrue; the bottom
row lists exchanges in which profit was the principal motivation. The first column takes in tangible
commodities, the second column considers services rendered, the third column covers ideas and the
fourth column lists causes or social issues.
Examples of items appropriate to cell (1), nonprofit tangibles, include purchases made at a
consumer cooperative or in stores operated by charities such as the Salvation Army. Voluntary
blood contributions are nonprofit tangibles too; however if the donor is paid, the exchange is profit
making and belongs in cell (5). Public goods such as those disposed of by the General Services
Administration could also have been listed in cell (1).
Cell (2) depicts nonprofit services rendered by such institutions as libraries, post offices, YMCAs,
chambers of commerce, museums, the Red Cross and so on. Offerings of nonprofit health care
organizations also fall into this category, as do those of universities and Boys Town.
Innovative ideas affecting personal lifestyles of individuals belong in cell (3), provided they
originate without the profit motive. These include physical fitness, use of seat belts, boy and girl
scouting, military recruiting and the value of education. The furtherance of a political campaign
(party or candidate) is an idea to be adopted and hence belongs in this cell. Fund raisers market the
idea that a cash contribution should be made, the amount of cash being the price for adoption of the
idea.
Cell (4), nonprofit social causes, includes campaigns designed to ameliorate child abuse,
speeding, malnutrition, smoking, littering, forest fires, pollution; the list is long indeed. One may
add the exchange of information on civil rights, product safety, the metric system, religion, voter
registration, energy conservation and so on.
Cell (5) designates profit-making exchanges of tangible products -food, clothing, automobiles and
so on -probably the largest proportion of commercial transactions. A share of stock representing part
ownership in a corporation is included here, as are real estate and commodity investments.
Cell (6) lists profit-making services such as those offered by travel agencies, insurance
companies, purveyors of the performing arts and any items from cell (2) that bear the intent of profit:
private nursing homes, day-care centers and so forth. The service of providing space for which rent
is paid is also listed there.
In cell (7), one example of an idea marketed by a profit-making organization may be seen in a
new fashion design, say, by Christian Dior. While this firm markets a design service to the apparel
industry (cell (6)), at the same time it initiates styles sought by devotees of fashionable dress. These
are matters that surely affect the life styles of these people and being profit inspired, they have a
place in cell (7). When adoption becomes widespread, producers of fashion apparel quickly
capitalize on the popularization of such style trends (cell (8)) for their own profit. Similar cycles are
followed by patents and other creative commodities