Relationship Marketing and Ethics
America is or, rather, was full of what Lily Allen might call weapons of massive consumption. This brings to stark relief an ongoing and interesting ethical debate for marketers: How to develop effective marketing without pernicious manipulation.
In recent years, some 70% of the American economic activity was generated by consumer spending. With the trauma of the recession, however, the rate of consumer spending has declined markedly. Recent positive spending indicators are still modest and are dwarfed by the worst unemployment rate for twenty five years. Many households saddled with debt have seen the wisdom of saving. With a savings rate near 0% in early 2008, that has risen to 6.9%, its highest rate in fifteen years.
The exuberant flood of consumer spending, swelled by irresponsible debt has left many ordinary Americans in dire straits. It has also left many businesses stranded as the economic tide has receded. There is a clear tension between, on the one hand, businesses and an economy needing consumer stimulation and, on the other, the laudable social benefit of a fiscally prudent and less materialistic society.
Over the years, the marketing community has debated the morality of marketing practices. The American Marketing Association has a robust Statement of Ethics, but that has not stopped discussions about the insidiousness of marketing nor, indeed, assertions that marketing is inherently evil.
An ancient philosophical indictment was offered by Epicurus, whose thoughts on happiness through simple pleasures were of an almost ascetic stance. These thoughts were advertised by the Epicurean philosopher, Diogenes, nearly 2,000 years ago on a massive stone colonnade in the market place at Oinoanda in modern-day Turkey. Estimated at 60-80 meters long, it encouraged shoppers to resist enticements to buy luxurious items that, nonetheless, produced no real happiness. More recent commentators, such as Seth Godin, offer the opinion that it is not marketing but individual marketers and consumers who determine ethical judgments about marketing (see his blog post here).
I would suggest that the ethical challenge may be met by a deeper and broader embrace of relationship marketing. While not a new approach, its categorization as a “defensive” marketing methodology fails to suggest the nuance now inherent in a trend towards authenticity, engagement and individuality. This is perhaps best manifested in the brave new world of social media, where relationships between brands and their customers are being fostered and extended.
Marketers can responsibly support business efforts to gain hard to find revenue by building genuine relationships with consumers. Transparent and genuine two-way attraction enables both brand and consumer to establish need, desire and mutually valued outcomes. Even Epicurus may have been mollified. What are your thoughts on ethics in marketing?
Written by Stuart
David Day | Associates
About the Author: Stuart isn't often heard divulging his shady history. This, unfortunately, is not one of those times.