Marketing and consumption decisions
Introduction
Marketing entails the process through which groups and individuals obtain what they want and need by exchanging and creating products and value with others (Same, 2012). Thus, marketing is the process of delivering customer satisfaction at a profit. The objective of marketing is to satisfy the needs and wants of a customer better than the competitor. There are a variety of activities that are involved in marketing. These activities include identifying the needs of the customers, designing of the product, promotion of the products or services benefits with the aim of motivating purchase, pricing and ensuring they are available to the target group (Dibb, Simkin, Pride & Ferrell, 2006). McDonaldisation is the process of rationalization taken to the extreme levels. According to the McDonaldisation concepts, every task can be rationalized. Rationalization means to substitute the traditionally illogical rules with logically consistent rules (Ritzer, 1983). Ritzer (1983) argues that one of the most important rules of rationalization is the fact that any task is rationalizable. McDonalisation process involves breaking down tasks into smaller tasks until all tasks get broken into the smallest tasks possible. After breaking of the tasks, they are rationalized with the aim of finding the most efficient method of completing each task. Inefficient methods are then discarded. The process of McDonalisation results in the creation of the logical, efficient sequence that can be used in the same way every time with the objective of producing the desired outcome (Ritzer, 1983). According to Ritzer (2011), McDonaldisation comprises of four significant components which include, control, calculability, efficiency and predictability. Under control the processes and employees are standardized, and the organisation replaces them with non-human technology. Calculability refers to quantifiable objectives where quantity is seen as quality. Efficiency is the minimization of the time used in accomplishing a particular task. Predictability is the ability of the consumers to predict the possibility of receiving the same product and services whenever they interact with a MacDonald organisation. This paper aims to provide a critical analysis of McDonaldisation concepts on Non-Governmental Organisation on the basis of marketing concepts, to provide the benefits of McDoldisation to NGOs, application of exchange theory as well as to analyse social consumption phenomena and patterns.
Discussion
According to Dibb et al. (2006), to ensure effective marketing, there are various core marketing concepts to be put into consideration. These core concepts include; first, the consumer wants, needs and demand. It is quite essential to put into consideration the needs and wants of the consumer. When a product or service has been designed to meet specific needs and wants it becomes easy to market. There is the need to consider the consumer demand and to understand what influence such demand. The importance of understanding the consumer demand is to ensure that there is enough market for the product or service. Second, products and services- products are anything that could be offered to meet the needs or wants of the market. Services, on the other hand, are the benefits or the activities offered for sale that essentially does not result in ownership of anything. Marketing concentrates on creating awareness and demand for the products and services on the market (Dibb, et al., 2006). Third, value satisfaction and quality- an organization's products or services ought to create value for the consumer. The value of the product or service can be determined with respect to how products or services well satisfy the needs and wants of the consumer. To ensure a competitive edge in the market, an organization should ensure that its services and products are of superior quality (Dibb, et al., 2006). Fourth, exchange, transactions and relationships- an organization should put into consideration the manner in which consumers obtain services and products. Therefore, it is essential to ensure that products and services are easily be accessed by the target market. It would also be important for the management of the organization to ensure the existence of an effective marketing network which usually includes the company and its stakeholders. Fifth, the market- there is the need to identify the target market. The essence of identifying the target market is to direct marketing efforts to the right group. Failure to identify the target market could result in wastage of the organization resources (Dibb, et al., 2006).
According to Ritzer, (2011) an organisation and society, in general, can derive enormous benefits from the adoption of McDonaldisation concepts. In the context of Not-for-profit organisation the benefits of adopting McDonaldisation concepts relate to the concepts of control, predictability, calculability, and efficiency. The benefits of McDonaldisation to the Non-Governmental Organisations (NGOs) include the following; first, increased efficiency- adoption of McDonaldisation concepts by NGOs could contribute to increased efficiency in the operations of the NGOs. Efficiency is the ability to achieve the desired results using minimum cost possible. Efficiency in an organisation is an essential factor as it is passed as a benefit to a customer. In the NGOs concept efficiency results in a reduction in the operational costs thus increasing the value of the services given to the society. For example, if an NGO could only have provided services to a hundred beneficiaries due to the associated costs, increased efficiency can enable the NGO to increase the number of beneficiaries. Therefore, an NGO would have the ability to increase the number of the beneficiary due to the reduction of the operational costs resulting from increased efficiency. In marketing efficiency is an important factor, and thus, efficiency can also help in marketing an NGO to the society. Second, benchmarking- benchmarking involves comparison with another organisation providing similar services or products for the purpose of improvement. Adoption of McDonaldisition concepts by NGO can assist it in improving the quality of its services through benchmarking with other NGOs. As such it is not only the NGO that would stand to benefit but also the society at large. Benchmarking is an important tool especially in marketing since it helps an organisation close the existing gap with its competitors. Third, increased number of projects and services- McDonaldisation concept of calculability emphasis on quantity rather than quality. Thus, the success of the NGOs is evaluated on the basis of the number of projects and services provided to the community. This pushes the NGOs to engage in more projects. Involvement in various local projects is useful when marketing the NGOs, especially to the financiers. Fourth, increased loyalty- adoption of McDonaldisation concepts enhances organisations predictability. The stakeholders can thus be able to predict what to expect from an organisation. In the NGOs context predictability can assist an NGO in maintaining community loyalty. Therefore, it becomes easier for the NGO to convince the local community to participate in their projects. In marketing, the NGO activities loyalty would play a significant role. Five, economical- an organisational that has adopted McDonaldisation is more economical due to standardisation of the processes. Thus, NGOs adoption of the concepts makes them more economical and productive. An NGO can thus engage in activities and operations that it could have found difficult to previously engage in. However, McDonalisation is not without critiques. Alfino, Caputo & Wynyard (1998) argue that these concepts have been heavily criticized due to their adverse consequence among them being dehumanisation, homogenisation of the organisation cultures as well as the potential threats of rationalisation to the human health and the environment.
Wilkie & Moore (2012) argue that marketing to a greater extent influences the societal behaviour due to its power of persuasion. The objective of marketing is to persuade the society on particular aspects of life while to the consumers marketing provides a means of learning. Consumers to some extent believe the content of marketing, and thus, they could change their way of life due to marketing influences. The society uses the information from marketing groups to determine the products that provide the best value and those which are most reliable. It is often this information that consumers use in forming customer loyalty. It could be argued that marketing affects the societal economy. Successful marketing is likely to result in increased sales which would translate to businesses expansion, increased taxes, and employment creation. Marketing to some extent has resulted in increased social evils. For example, a marketer encouraging the use of condoms to safeguard for sexually transmitted diseases could be interpreted as encouraging cheating in relationships (Lüdicke, 2006).
On the other hand, society does influence marketing. When marketing, the marketers need to understand the needs and wants of the consumers. Marketing is thus shaped depending on the needs and wants of the consumers. Often marketers conduct research on the consumers with the aim of understanding their behaviour and what influences such behaviour. Such research to a greater extent determines the marketing strategy to be used by an organisation in marketing its products. A company should also consider the socio-cultural factors when designing a marketing strategy. The socio-cultural factors do affect the buyers and consumers decisions to purchase a product. The socio-cultural factors include lifestyles, values, and customs that characterize a society (Cook, Cheshire, Rice & Nakagawa, 2013). The need to consider the social-cultural factors when designing a marketing strategy is to ensure that the strategy is appealing to the right target. One of the factors contributing to the failure of the marketing strategy is the failure to identify the needs, wants and values of the target group. For example, a pork company marketing strategy targeting Muslims may significantly fail because Muslims are not pork consumers due to their religious beliefs. In summary, marketing and society have a correlation thus one has an effect on the other.
According to Emerson (1976), the social exchange theory explains that human relationships are created through comparison and cost benefits analysis of various alternatives. Further, the theory explains that social behaviour result from social as well as economic outcomes. The social exchange thus involves a connection with an individual based on trust rather than legal obligation. The exchange theory hinges on the following important concepts; first, cost and rewards- according to the theory the relationship decisions are based on costs and rewards. Costs entail the elements of life that impact negatively on a person. These costs could include effort, money and time. Rewards are defined as the elements that impact positively on an individual. Rewards could thus include companionship, support, and acceptance. The argument of the exchange theory is that people determine the overall worth by considering rewards and the cost. According to Emerson (1976), the exchange theory is based on several assumptions about the human nature and the nature of relationships. These assumptions include; Human beings prefer rewards and avoid punishments, the standards used in evaluating cost and rewards often vary from one individual to another as well as over time, relationships are interdependent, human beings are rational beings and achieving rational life is a process
In marketing, the application of exchange theory is quite significant. It ensures that the marketing strategy to be designed provides more benefits compared to the costs of the products or services. Thus, a marketing strategy ought to be designed in consideration that consumers are likely to prefer a product that gives them more worth. The products that consumers would consider as having less worth are likely to face fierce competition from other products whose worth is high. Cahill (2007) argues that customer loyalty will be greatly influenced by the worth attached to a product or service by the consumers. Thus, a marketing strategy can be able to influence customer loyalty by appealing to the benefits of the products being marketed.
According to Martins, Yusuf, & Swanson (2012) over the years consumption pattern in the UK has undergone significant changes. A variety of factors has influenced the changes in consumption patterns. Some of the following factors affect consumption patterns of individuals; first, the increase in disposable income- changes in fiscal policies has had the effect of increasing individual's disposable income, which has had the effect of increasing the individual's purchasing power. Therefore, in recent days, more people can be able to afford what they could not previously afford. Second, growth in real wages- for most people there has been a growth in real wages over the year’s thus increasing individual’s disposable income. Growth in real wages has also made it possible for the individuals to afford what they could not previously afford as well as contributing to a change in lifestyle. As lifestyle changes, the individual’s consumption also changes. Other factors that could have influenced the consumption patterns include technology development, individualism, the shift from religious beliefs, and adoption of consumerism as a lifestyle among others. Demographic factors have also to some extent affected consumption patterns. For example, people who have attained the retirement age are the largest consumers of leisure- related products. On the other hand, young people are the largest consumers of technology related products. According to a study conducted by Cao-Pinna, Shatalin & European Coordination Centre for Research and Documentation in Social Sciences (1979) there is a significant variance in consumption of various products in different age group. For example, 78% of people in the retirement age group did use leisure- related products while only 12% of the younger generation preferred such products (Martins, Yusuf, & Swanson, 2012). Social phenomenon is described as the behaviours that are influenced or influences organisms to sufficiently respond to one another. An essential aspect of the social phenomenon is the ability of one's person observable behaviour to influence the behaviour of another individual. A good example of a social phenomenon is racism. Racism is an ideology that is created by people and directly affects other people. Social phenomenon if handled carefully could turn out to be an exciting marketing opportunity for a company. Social phenomenon has had the effect of influencing people’s behaviour in different ways (Lüdicke, 2006). Therefore, it would be important for the company to determine the possible effect that a particular social phenomenon would have on the society and how best to cleverly use it as a marketing tool.
Conclusion
Consumers are likely to choose a product that they consider gives them more worth. Thus, an effective marketing strategy needs to consider the changes in social consumption and try to address the issues that affect the demand for the products or services. For example, it should try to attempt to resolve such questions such as why only a smaller percentage of the older generation are using technology. Such a question needs to be addressed in consideration that quite a significant number of the older generation needs to adopt technology as their mobility reduces. An individual and society decision on what to consume is largely influenced by the society as well as marketing concepts (Berg, van den, Coleman & Fararo, 1994).
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