Marketing Strategies: Distinguishing Conventional Approaches from Social Marketing Methods
In the realm of marketing, two distinct approaches stand out: commercial marketing and social marketing. While both aim to influence consumer behaviour, their objectives, target audiences, funding sources, ethical considerations, and impact speed differ significantly.
Commercial marketing, primarily, is an effort to promote and sell products or services profitably. It targets consumers who are potential buyers, segmented by demographics, preferences, and purchase behaviour. The funding for commercial marketing comes from companies or brands, usually from sales revenue or advertising budgets. This marketing strategy is focused on competitive advantage, with ethics varying by company but often prioritising sales over consumer well-being. The impact of commercial marketing can be rapid, especially with aggressive advertising and promotions, although building brand loyalty and recognition may take longer.
On the other hand, social marketing focuses on influencing behaviour change for social good, such as improving public health, safety, or environmental outcomes. It targets specific groups whose behaviour the campaign seeks to influence, with messages designed to promote positive social change. The funding for social marketing often comes from government agencies, non-profits, or public health organisations, with budgets coming from grants, public funds, or charitable contributions. Social marketing campaigns emphasise ethical communication and transparency, aiming to genuinely benefit society while avoiding manipulation. The impact of social marketing is often slower but aims for long-term societal benefit.
To determine market profitability, analysts may use tools like Porter's Five Forces, which helps identify high potential returns in a market when the bargaining power of buyers and suppliers is weak, high entry barriers, low threat of substitute products, less intense rivalry among existing companies, and a favourable industry cost structure. Companies also conduct market research, an in-depth examination of customer profile, market size, and market trends, to identify opportunities and threats and develop a suitable strategy.
In commercial marketing, the marketing mix, which includes product, price, promotion, and place, is developed using information from market research. The price component is set according to how much customers are willing and able to pay, representing the perceived value by customers for a product. The product component involves translating consumer needs and wants into a product that does better than competitors' products. Companies may depend on multiple distribution or retail chains to sell products or sell products directly to buyers.
Michael Porter's generic strategies for commercial marketing include differentiation and cost leadership. In a cost leadership strategy, a company operates on a lower cost structure than the industry average, offering products at market average prices or slightly below to attract more sales. In a differentiation strategy, a company offers a unique product to satisfy customers, allowing for high-profit margins per unit.
In brief, commercial marketing drives consumer purchases and profit, funded by businesses and focusing on measurable sales impact, often delivered rapidly. Social marketing, on the other hand, drives social good through behaviour change, funded by public or non-profit means, emphasising ethical communication and typically yielding slower but lasting societal benefits.
Commercial marketing, being the endeavor to sell products or services profitably, is primarily driven by businesses and seeks to influence consumer behavior through promotions and advertisements. The funding for commercial marketing typically comes from sales revenue or advertising budgets, with the focus on measurable sales impact, often delivered quickly.
In contrast, social marketing targets specific groups to influence behavior change for social good, such as public health or the environment. The funding for social marketing often comes from government agencies, non-profits, or public health organizations, with the aim of long-term societal benefit through ethical communication.
