Marketing & Consumerism : Intro

"Although the scope of marketing is to understand and fulfil consumer’s needs and wants, the influence exercised by various marketing activities is such that may create needs. This distortion may generate economic imbalances, but in particular, it raises important ethical questions. This literature review undertakes a journey in the world of the marketing practice to understand how and why marketing can lead to over-consumption. 

Foreword

In 1979, on the eve of the American presidential election, Jimmy Carter, in his infamous “Crisis of Confidence” speech, warned that “too many of us worship self-indulgence and consumption”.

However, what followed this discourse was the victory of his opponent Ronald Reagan, the rise of Wall Street and ten years later the collapse of the Berlin Wall. 

Today, in 2009, after having experienced the demise of the Communism ideology and enjoying thirty years of incredible global economic growth, the world is urging for all the possible measures to fix a system (the Capitalism) on the brink of collapse has never been seen since the 1929 Depression.

Hence, on the streets, in the media and in the parliaments, the warning words of Jimmy Carter are echoing again. 

The present economic downturn has certainly questioned the validity of a model that despite guaranteeing the perfect functioning of a democratic society; today is blamed for having contributed to the rise of materialistic values and in particular to have cultivated a consumerist society.

Consumerism, as defined in the Oxford English Dictionary (1989), is “the doctrine advocating a continual increase in the consumption of goods as a basis for a sound economy”; though nowadays consumerism is perceived as a culture or a social order characterised by disproportionate consumption and excessive attachment to material possessions (Abela, 2006).

Although, anti-consumerism has always been present in society, the most puzzling aspect of this criticism is that much of condemnation often takes aim at the most successful and lauded companies; Nike, McDonald’s, Microsoft and Starbucks, to cite some, are relentlessly singled out as the cause of the consumerist degeneration of  society.

Indeed, the common denominator amid those big multinationals is that they are the same brands that today dictate trends, command a semi-religious following and interpret the needs of the population more than any politician or religion; but , most of all, they are the same brands that have taken the marketing concept to heart and industriously applied it (Holt, 2002).

Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably” (C.I.M cited in Adcock, Halborg and Ross, 2001 p.3).

It includes access to voluntary exchange processes, (the process of exchange in society is marketing; Kotler cited in Quelch and Jocz, 2008) and it facilitates this process with information and a distribution (of the product/service) that aims to reach as many consumers as possible (inclusion).

Still, despite these remarkable benefits, marketing does not do a good job in marketing itself (Quelch, 2009); in reality, the practice has always been at the centre of a criticism that has put in agreement religious, politicians, anti-global movement and academics as well.

Indeed, the critics argue that firms, through marketing, pursue only a single objective: to encourage consumption, thus generating over-consumption, waste and social disequilibrium.

Therefore, this accusation presumes the ability of marketing to influence consumers’ behaviour to an extent that it convinces consumers that Wiis and iPhones are necessary (Barber B. cited in The New York Times, 2007), thus creating needs.

The recent sophistication of marketing activities has certainly helped the practice to well understand and anticipate consumer requirements. Indeed, the commercial study of consumer behaviour and the web, presents nowadays the possibility to reach infinite consumers and the likelihood of getting to know a great deal about them.

Moreover, the persistent tentative of marketers to build a closer relationship with their customer has somehow raised the brand status (in the eyes of the latter) to a level where they can influence behaviour; definitely, a huge leap forward for marketing activity, though also an interesting ethical issue.

In fact, there is no doubt that nowadays brands command huge following; they have a great influence on the consumer’s preferences, attitudes, and purchasing decisions; the consumer buys not only into the product but also into the proposed lifestyle. A lifestyle that very often values wealth, success and power.

However, it is ‘In Brands We Trust’ and it is consumption, which defines meaning (Smith, 2007). Indeed, numerous are the examples of marketing activities that, making extensive use of the technique of persuasion to influence the consumer’s purchasing behaviour, imply that the consumption of particular goods can earn the acquisition of the social status represented.

Therefore assuming that marketing influences behaviour and that this influence promotes materialistic values, does the marketing practice promote consumerism?

Considering the various perspectives involved, the topic is very controversial; in reality, the search of an absolute truth that is a correlation between marketing and consumerism, so far has not produced relevant results.

Therefore,  before attempting any answer to the question, it is particularly important to test the hypothesis made above, hence a Positivist philosophy.

Thus, the deductive approach to the vast narrative available allows the drawing of a conceptual framework, or rather of a theory that would imply the responsibilities of marketing in the rise of consumerism. 

The structure of the literature review initially aims to analyse the marketing concepts and consumerism in the light of its socio-economic structure and consequently to focus on the perspectives regarding consumerist behaviour and ethics.   

However, in order to avoid generalising this complex topic that regards people and behaviour, an Interpretivism approach is utilised to draw the conclusions. 

Indeed, the research methodology follows an explorative and descriptive approach in order to test the hypothesis; in particular three areas are individuates as key to understand the causes for the inference (marketing and consumerism) to subsist.

Hence, the objectives of this study are:

1. To explore the extent of the influence of marketing practices on consumer behaviour;
2. To discuss the status of ethical standards in marketing; 
3. To investigate the validity of the marketing concept in the current economic environment.

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