Marketing Reflects the Needs and Wants of Society

INTRODUCTION

1.1 RELATIONSHIP MARKETING

As recognised by Shajahan (2004), recent decades have witnessed a paradigm shift in marketing from simply using marketing to produce a sale and maximise sale volumes by virtue of individual transactions (transaction-based marketing), to a more customer focused, market driven approach which places greater emphasis on building longer term relationships with customers (relationship marketing) . The primary goal of relationship marketing is to build and maintain a base of committed customers who are profitable for the organisation (Warnaby et al 2010). Therefore, as per Grönroos (2004:101), it follows that relationship marketing is, “the process of identifying and establishing, maintaining, enhancing and when necessary, terminating relationships with customers and other stakeholders, at a profit, so that all the objectives of all parties involved are met, when this is done by mutual giving and fulfilment of promises.”

Given that relationship marketing refers to all marketing activities geared towards identifying, establishing, developing and maintaining successful relational exchanges, certain aspects of its very purpose and effectiveness must be sharply scrutinised – does marketing influence consumer needs and wants or does it merely reflect consumer needs and wants? Figure 1.1 is a diagrammatic representation of the contentious topic upon which this report is based.

Figure 1.1 The Debate Topic

1.2 MARKETING MERELY REFLECTS CONSUMER NEEDS AND WANTS

This report asserts that marketing merely reflects consumer needs and wants. Although marketing is often accused of having all sorts of powers to control and potentially abuse consumers, as presented below, there exist a number of valid arguments to the contrary.

2.0 ARGUMENTS IN FAVOUR

2.1 THE CONSUMER AS A RATIONAL DECISION-MAKER

The assumption that marketing influences the needs and wants of society is reminiscent of the hypodermic needle theory or magic-bullet...