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Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketing scholars
JBR-08454; No of Pages 4 Journal of Business Research xxx (2015) xxx–xxx
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Journal of Business Research
Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketing scholars John D. Mittelstaedt a,⁎, William E. Kilbourne b, Clifford J. Shultz II a b c
c
College of Business, University of Wyoming, 1000 E. University Avenue, Laramie, WY 82071, United States Department of Marketing, College of Business and Behavioral Science, Clemson University, 245 Sirrine Hall, Clemson, SC 29634-1325, United States Quinlan School of Business, Loyola University Chicago, 1 East Pearson Street, Chicago, IL 60611, United States
a r t i c l e
i n f o
Article history: Received 1 October 2012 Received in revised form 1 April 2014 Accepted 1 April 2014 Available online xxxx
a b s t r a c t This study explores the intersections between macro- and positive-marketing approaches to how we improve human welfare, and to consider whether the development of thought in macromarketing can offer insight into questions important to the study of positive marketing. Two perspectives in macromarketing—the developmental school and the critical school—are offered as orientations toward positive marketing research. © 2015 Elsevier Inc. All rights reserved.
Keywords: Human welfare Macromarketing Positive marketing Marketing Systems
Positive marketing is marketing “in which parties—individual consumers, marketers and society as a whole—exchange value such that individually and collectively they are better off than they were prior to exchange” (Center For Positive Marketing, 2012). Positive marketing begins with the axiom that the benefits of marketing to consumers, firms and society at large should be holistically reciprocal—not firms at the expense of consumers, consumers at the expense of firms, or both at the expense of society or the environment. Positive Marketing is grounded in the optimism that marketing plays a vital and productive role in human development, while recognizing that there is room to improve the actions of marketplace participants. Macromarketing is the study of marketing systems, the effects of marketing and marketing systems on society, and the effects of society on marketing and marketing systems (Hunt, 1981). Macromarketing describes the role of markets as provisioning systems for society, intended to improve the general welfare of humanity through networks of exchange that maximize the value derived from a division of labor. Macromarketing recognizes that markets can function in relationships of imbalance, that marketing systems can fail, and that the goals of distribution systems and distributive justice are often at odds. Macromarketing scholarship seeks to understand how the structures of marketing systems affect the daily lives of people. Macromarketing and positive marketing share Alderson's (1957) worldview that marketing's purpose is to improve the assortment of ⁎ Corresponding author. E-mail addresses: [email protected] (J.D. Mittelstaedt), [email protected] (W.E. Kilbourne), [email protected] (C.J. Shultz).
goods and services that solve human problems. Both recognize the empowering potential of markets, though at different levels of analysis. Alderson might argue that positive marketing is focused on how transactions can improve consumers, firms and society, while macromarketing is focused on how marketing systems raise (or lower) our general welfare. The study here explores the intersections between these two approaches to how marketing improves human welfare, and to consider whether the development of thought in macromarketing can offer insight into questions important to the study of positive marketing. This paper begins with a brief discussion of macromarketing, then discusses issues of common interest to macromarketing and positive marketing, followed by two philosophical perspectives in macromarketing, and research agendas for positive marketing from each perspective. Work in this special issue (e.g., Aksoy et al., in this issue; Gopaldis, in this issue; Krush et al., in this issue; Stoekl and Luedicke, in this issue) demonstrates an emerging developmental perspective in positive marketing. 1. What is macromarketing? The study of macromarketing is the study of marketing systems, their actors, and the consequences of the aggregation of their decisions. Fisk (1967) refers to these systems as the provisioning mechanism of society; that is, marketing systems are how we provide for the basic needs of people. The quality of these systems determines our material quality of life. While other provisioning systems exist (e.g., tribal structure, feudalism, central planning), Fisk argues that marketing systems are the most efficient way to improving social and human welfare. This perspective is not to say that marketing systems are a panacea for
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Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
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J.D. Mittelstaedt et al. / Journal of Business Research xxx (2015) xxx–xxx
all social ills; they are not. They exist in a natural state of heterogeneous demand, and operate efficiently only when they offer appropriate assortments to meet this heterogeneity. Unlike neo-classical economics, macromarketing theory does not impose an assumption of equilibrium, and so macromarketing does not treat market failures as anomalies to theory, nor does macromarketing believe that rational behavior is ceteris paribus ethical. Rather, macromarketing recognizes that unfettered behavior can optimize the outcomes for some at the expense of others, or of the system at large (Mittelstaedt, Kilbourne, & Mittelstaedt, 2006). Understanding why and how these outcomes occur should be important to market actors, governments and society at large and is the contextual domain of macromarketing. Macromarketing is distinguishable from other approaches to marketing in two ways. First, in macromarketing the unit of analysis is the aggregate marketing system, not the individual firm or consumer. Macromarketing recognizes that these systems are complex, as are the determinants of systems and their effects. This perspective means that macromarketing incorporates the influences of, and impacts on, stakeholders external to dyadic exchanges into its analysis (Layton & Grossbart, 2006). For example, macromarketing asks what influence does culture play on what constitutes “fair” exchange (Laczniak & Murphy, 2006); what roles do marketing systems play in creating peace and stability in war-torn areas (Shultz, Burkink, Grbac, & Renko, 2005); or how does the collapse of subprime mortgage markets affect the wellbeing of communities (Redmond, in press)? The aggregated unit of analysis allows consideration of these questions, where a focused analysis of dyadic exchanges cannot. Frequently, the most dramatic implications of exchange are felt by parties well beyond the exchange itself (Mittelstaedt et al., 2006). Second, macromarketing focuses on the broad intersections between marketing and society; in particular, how society shapes marketing and, in turn, how marketing affects society. For example, macromarketing scholarship addresses questions of how religious norms shape when, how, and what can be exchanged, and how exchange behaviors feed back onto people's conception of the acceptable boundaries of religion in society (Mittelstaedt, 2002). Similarly, macromarketing informs how beliefs about consumption as a solution to problems shape our views on the environment (Kilbourne & Mittelstaedt, 2012), or how patterns of exchange affect our sense of right and wrong (Laczniak & Murphy, 2006). In each case, macromarketing focuses less on the decisions made by individual consumers or firms than in the systemic effects of decisions of many firms and consumers, each trying to improve their own welfare through exchange (Bartels & Jenkins, 1977). Because markets embed in webs of social, political and economic relationships, positive or negative outcomes can affect both parties and nonparties to transactions, generating negative and positive externalities (Cadeaux, 2000). These include problems such as air pollution and carbon emissions (negative), or the prevention of flu epidemics through the widespread use of vaccines (positive). Because the costs and benefits of externalities are not included in market prices, market systems tend to supply too much of goods and services that yield negative externalities, and too little of those that produce positive externalities. Macromarketing contributes to the discussion of marketing and society of interest to positive marketing. These include, for example, sustainability (Antil, 1984; Kilbourne, McDonagh, & Prothero, 1997; Leigh, Murphy, & Enis, 1988; Varey, 2010), ethics and social justice (Hunt & Vitell, 2006; Laczniak & Murphy, 2006), and quality of life (Lee & Sirgy, 2004; Peterson & Malhotra, 1997). Each can contribute to positive marketing's understanding of one of its principal stakeholders— consumers, firms and society, respectively. These aspects of macromarketing emphasize the positive value of marketing for society, firms and consumers. Each, however, sees negative implications of marketing systems as well. Marketing systems can damage the environment and society, they can encourage or condone unethical business practice, increase or decrease inequality, and they can lower our quality of life. Why the difference, and what can be
done? What is the nature of the relationship between marketing and society? 2. Two schools of thought in macromarketing To address this basic question, two contrasting schools of thought on the role of markets and marketing in society have emerged. The former sees marketing as part of the solution to the human condition, and is called the developmental school (Mittelstaedt, Shultz, Kilbourne, & Peterson, 2014). The latter sees marketing as part of the source of human suffering, and is referred to as the critical school (Mittelstaedt and Kilbourne, 2008). The perspective that one adopts profoundly shapes one's research approach to macromarketing. We propose that the same will be true for positive marketing research, and this is where macromarketing can make the most valuable contribution to positive marketing study. 2.1. The developmental school The developmental school argues that marketing systems play a positive role in economic development and social well-being. This approach focuses attention on issues such as quality of life (cf., Lee & Sirgy, 2004; Peterson & Malhotra, 1997), economic development (Klein & Nason, 2001; Nason, Dholakia, & McCleavey, 1987), and markets as a force for peace over conflict (Dröge, Calantone, Argawal, & Mackoy, 1993; Shultz et al., 2005). The underlying assumption is that marketing systems, when properly aligned, can improve people's lives (Shultz, 2007). Several themes emerge on the marketing systems perspective that stem from the developmental school. First, markets are a force for improving quality of life (Lee & Sirgy, 2004; Peterson & Malhotra, 1997). This is as much an assumption as a finding. Second, institutions play a critical role in developing environments for marketing systems to flourish (Cadeaux, 2000). This means that formal institutions such as rule of law, as well as informal institutions like ethical norms, guide the success or failure of marketing systems. Third, marketing is a social catalyst, rather than a consequence, of economic development. This school of thought focuses on how one works within the system of marketing to improve people's lives. 2.2. The critical school The critical school, on the other hand, postulates that markets as provisioning systems can be inherently unstable from an economic perspective and unsustainable from an ecological perspective, and that gains in human welfare resulting from marketing as practiced are fleeting. Marketing systems in the West reflect an underlying dominant social paradigm, whose assumptions and goals do not lend themselves to sustainable development (Kilbourne, 2004; Kilbourne, Beckman, and Thelen, 2002; Kilbourne et al., 1997). In contrast to the developmental school, the critical school adopts Speth's (2008) perspective that successes are not attainable by working within the system, but only by implementing system transformations. From this perspective, the challenges of using markets as a mechanism for social good lie at the level of assumptions behind the production–distribution–consumption–disposal process. From the critical perspective, the driving force of the system is relentless competitive materialism (Ger & Belk, 1996; Kassiola, 1990), and the expansion of this value worldwide through globalization will only make the problem more complex and intractable. The dominant social paradigm presents five basic challenges to marketing as a force for positive development: technological, political, economic, organizational and competitive. The technological challenge is the pervasive view in Western society that the solutions to most human problems are technological in nature (Rifkin, 1980). The consequence of this proposition is that new solutions must necessarily replace old ones, and that marketing solutions are nested in the rate at which technology
Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
J.D. Mittelstaedt et al. / Journal of Business Research xxx (2015) xxx–xxx
diffuses through the marketplace with both intended and unintended consequences (Rogers, 2003). The political challenge of the dominant social paradigm, which finds its origins in the political liberalism of John Locke, suggests that acceptable solutions to social problems must respect the rights of individuals, particularly property rights. The challenge is that almost all barriers to development are property barriers. The economic challenge begins with the consequences of Adam Smith's vision of atomized individualism, namely free markets and self-interest that value preference and choice above all else (Stiglitz, 2002). But individual selfinterest, in the face of collectively held problems, often leads to a tragedy of the commons (Shultz & Holbrook, 1999). The organizational challenge is our relationship to nature. At its best, our relationship is one of stewardship; at its worst, one of dominion. Either way, a clear and relevant dividing line occurs between humankind and the rest of nature (Eckersley, 1992), diminishing nature as a valued stakeholder in individual decision making. Finally, the dominant social paradigm posits a competitive view that argues human progress comes from the struggle over the distribution of scare resources, and that the most efficient solutions come from competition rather than cooperation. But by its very nature, competition must have winners and losers, so the progress of some must come at the expense of others (Stiglitz, 2002). These five challenges define the realm of socially acceptable solutions to questions of production and consumption, and by extension the limits of marketing as a force of progress for human welfare. Successful marketing solutions must advance technology; work within existing property rights; stem from voluntary choice; be anthropocentric; and result from competition. Knowingly or unknowingly, every marketing plan addresses each of these challenges, either directly or indirectly. So long as the dominant social paradigm remains intact, solutions that violate any of its tenets are likely to fail. The critical school urges us to ask what marketing would look like if technology were not the solution to our problems, if property rights did not supersede all other rights, if markets were motivated by something other than selfinterest, if nature were a stakeholder in decision making, or if markets rewarded collaboration rather than competition. In the language of marketing, this means that change must originate at the level of the environment, rather than the strategy or the segment. While the development school sees human improvement as a question of incremental change to marketing systems, the critical school looks for systemic transformation to the context in which marketing systems operate. 3. A research agenda of positive marketing Just as there are two answers to the question, “what is the purpose of the firm?” (maximize shareholder value or improve the lives of all stakeholders), so too there are two answers to the question, “What is the relationship between marketing and society?” In macromarketing, the developmental school sees the relationship as productive; the critical school sees it as potentially unproductive. What can scholars of positive marketing take away from this conversation in macromarketing to shape a research agenda that creates mutual and simultaneous value for consumers, firms and society? 3.1. Developmental positive marketing If marketing is part of the solution to the human condition, then what is the developmental role of positive marketing? If positive marketing scholarship accepts the underlying premise of the developmental school—that markets are a mechanism by which we can improve human welfare—then positive marketing should focus on how marketing exchanges can be improved. How do we build more effective exchange processes? Can we identify desirable externalities, and shape marketing systems to deliver these as desired outcomes? Positive marketing can contribute to this conversation in at least three ways. First, positive marketing research and practice should leverage the resources of marketing knowledge to maximize the mutual benefit of
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consumers, organizations and societies. To facilitate this, the role of positive marketing scholarship should be to develop, validate and promote the use of measures of positive benefit as an alternative to a single bottom line. This is the function of the “Consumer Value Index” (Center For Positive Marketing, 2012), which measures the benefits to brands, consumers and society. The challenge is that the ability to measure the simultaneous benefits across multiple stakeholders requires a common unit of analysis that allows us to compare benefits to firms (profits), consumers (satisfaction, or quality of life), and society (well-being). The ability to measure benefit by a common standard allows us to know when and how to make trade-offs among stakeholders and to understand the role that positive marketing can play in minimizing trade-offs while maximizing overall value. Using the Consumer Value Index provides the ability to think about when trade-offs should be made, and by whom. And it allows us to understand the role marketing can play in aligning the incentives of firms and consumers with broader social objectives. Second, scholars should recognize that the benefits of positive marketing will be achieved only through purposeful action (i.e., strategy). If positive marketing is to reap mutual benefits of exchange, then it must carry some of the responsibility when marketing activities do not live up to expectations. What are the responsibilities of marketing when markets fail to deliver positive value, or worse, deliver negative value to consumers or society? This perspective shifts the emphasis of the study of strategic failure from the bottom line of the firm (actions led to a loss of profits—why?) to the bottom line for consumers and society (actions led to profits, but the collapse of the community—what could a firm have done differently?) Positive marketing can play an important role in marketing strategy formulation and in advising the objectives of organizations wishing to make positive change in society. Finally, what are the benefits that positive marketing hopes to promote, and how can we use the marketing technologies (i.e., marketing tactics) to facilitate their adoption? If we value ethical exchange, then what is the role of transparency in transactions, and how are the benefits of transparency achieved? If environmental, social and economic sustainability are valued, then what are the social, temporal, environmental and economic boundaries of marketing action, as well as the boundaries of responsibility for marketers? If the goal of positive marketing is to improve quality of life, then what role do consumers play in this, and how do we help them to consume smarter, and perhaps less—or at least more sustainably? We have the technologies to address these questions if we have the will to consider them. The emerging perspective on positive marketing offered in this special issue takes a decidedly developmental approach. Gopaldas (in this issue) explores how positive marketing creates value for customers, firms and society, and how this value creation process differs from cause marketing, green marketing or social marketing. Aksoy et al. (in this issue) consider loyalty as a positive human trait, which manifests itself in consumption decisions, rather than as a construct tying consumers to brands. As such, they see concrete forms of loyalty as a path to happiness, from which managers can learn much. Krush et al. (in this issue) develop a new prototype for sharing, occurring in freecycling behavior, which offers a route to consumption that does not rely on traditional forms of exchange. Finally, Stoeckl and Luedicke (in this issue) identify four criticisms of marketing practice, and offer positive marketing responses. In each case, we see positive marketing scholars pursuing a developmental approach to theory development.
3.2. Critical positive marketing If, on the other hand, markets and marketing are part of the problem, then the critical role of positive marketing must be to challenge the underlying assumptions that prevent us from creating exchanges that provide mutual benefit for consumers, firms and society. Can positive marketing address the underlying assumptions that drive the ideology of consumption—the belief about the necessity of consumption in our
Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
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lives and culture (Kilbourne & Mittelstaedt, 2012)? This path is difficult to undertake but one that can serve society in big ways. A critical approach to positive marketing can help us to address the questions, what are the true benefits of consumption to consumers? The first step to understanding the process by which consumers achieve some level of satisfaction in the marketplace is by understanding the benefits of consumption. For example, does consumption really make us happier? If so, then why and how? If not, why not? Can the benefits of consumption be derived through other means? Can acts of borrowing, renting, giving-and-receiving or sharing deliver the same utility to firms and consumers at a lower cost to society? A critical approach to positive marketing can address these questions by understanding the generation and distribution of benefit through exchange relationships. Similarly, a critical perspective might lead us to ask, is consumption a right? The historical answer is “no,” but the contemporary answer may be “perhaps.” The concept of a right is a deeply held one in Western society, and it is difficult to un-root. But understanding the process and context by which consumption as a right became embedded in our collective, if not individual, psyche can offer some insight into how a right can be recast as a responsibility or a privilege. If the notion of consumption as a right is entwined with the concept of economic growth as a virtue, then a critical approach to positive marketing can offer some insight into how we separate the benefits of consumption from the benefits of growth. Is it possible to demarket consumption without affecting growth, or vice versa? The ability to separate the benefits of consumption from the consequences of growth would be a significant contribution from positive marketing research and practice. Such a separation would allow us to move from a dominion-orientation toward nature to a stewardship orientation, and to organize exchange around principles of cooperation rather than competition. The opportunities for positive marketing practice would be limitless. 4. Conclusion Thought development in the allied sub-discipline of macromarketing suggests two basic approaches to positive marketing scholarship, a developmental approach and a critical approach. A developmental approach sees marketing as part of the solution to the problems of society. As a consequence the developmental approach's contribution to positive marketing can extend to many areas. Among these are promoting market relations that may provide more sustainable patterns of exchange, promote ethics and social justice in market exchanges, and enhance quality of life of consumers. Because marketing systems in the West are based on philosophical antecedents that can lead to inefficiencies, inequality and market failures, these must be understood as problems. The critical approach identifies some of these elements of marketing as part of the problem and opens them up to discussion. But the discussion is necessarily broader than marketing strategy and extends to the kind of world we want to live in (environmental) and the kind of people we want to be (justice and equality). This can provide guidance to positive marketing in determining how best to develop strategies that will promote the macromarketing vision of society. The good news is that, while the developmental and critical perspectives are different, their pursuit is not mutually exclusive. The knowledge base developing in each contributes to the development of the other. The value to positive marketing can be found from either perspective, and both should be pursued as they are synergistic in producing comprehensive assessments of markets and how they work. Within this framework, positive marketing will be better able to carry out its agenda to make people individually and collectively better off through the marketing process. References Aksoy, L., Keiningham, T.L., Buoye, A., Lariviere, B., Williams, L., & Wilson, I. (2014e). Does loyalty span domains? Examining the relationship between consumer loyalty, other loyalties and happiness. Journal of Business Research (in this issue).
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Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
Contents lists available at ScienceDirect
Journal of Business Research
Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketing scholars John D. Mittelstaedt a,⁎, William E. Kilbourne b, Clifford J. Shultz II a b c
c
College of Business, University of Wyoming, 1000 E. University Avenue, Laramie, WY 82071, United States Department of Marketing, College of Business and Behavioral Science, Clemson University, 245 Sirrine Hall, Clemson, SC 29634-1325, United States Quinlan School of Business, Loyola University Chicago, 1 East Pearson Street, Chicago, IL 60611, United States
a r t i c l e
i n f o
Article history: Received 1 October 2012 Received in revised form 1 April 2014 Accepted 1 April 2014 Available online xxxx
a b s t r a c t This study explores the intersections between macro- and positive-marketing approaches to how we improve human welfare, and to consider whether the development of thought in macromarketing can offer insight into questions important to the study of positive marketing. Two perspectives in macromarketing—the developmental school and the critical school—are offered as orientations toward positive marketing research. © 2015 Elsevier Inc. All rights reserved.
Keywords: Human welfare Macromarketing Positive marketing Marketing Systems
Positive marketing is marketing “in which parties—individual consumers, marketers and society as a whole—exchange value such that individually and collectively they are better off than they were prior to exchange” (Center For Positive Marketing, 2012). Positive marketing begins with the axiom that the benefits of marketing to consumers, firms and society at large should be holistically reciprocal—not firms at the expense of consumers, consumers at the expense of firms, or both at the expense of society or the environment. Positive Marketing is grounded in the optimism that marketing plays a vital and productive role in human development, while recognizing that there is room to improve the actions of marketplace participants. Macromarketing is the study of marketing systems, the effects of marketing and marketing systems on society, and the effects of society on marketing and marketing systems (Hunt, 1981). Macromarketing describes the role of markets as provisioning systems for society, intended to improve the general welfare of humanity through networks of exchange that maximize the value derived from a division of labor. Macromarketing recognizes that markets can function in relationships of imbalance, that marketing systems can fail, and that the goals of distribution systems and distributive justice are often at odds. Macromarketing scholarship seeks to understand how the structures of marketing systems affect the daily lives of people. Macromarketing and positive marketing share Alderson's (1957) worldview that marketing's purpose is to improve the assortment of ⁎ Corresponding author. E-mail addresses: [email protected] (J.D. Mittelstaedt), [email protected] (W.E. Kilbourne), [email protected] (C.J. Shultz).
goods and services that solve human problems. Both recognize the empowering potential of markets, though at different levels of analysis. Alderson might argue that positive marketing is focused on how transactions can improve consumers, firms and society, while macromarketing is focused on how marketing systems raise (or lower) our general welfare. The study here explores the intersections between these two approaches to how marketing improves human welfare, and to consider whether the development of thought in macromarketing can offer insight into questions important to the study of positive marketing. This paper begins with a brief discussion of macromarketing, then discusses issues of common interest to macromarketing and positive marketing, followed by two philosophical perspectives in macromarketing, and research agendas for positive marketing from each perspective. Work in this special issue (e.g., Aksoy et al., in this issue; Gopaldis, in this issue; Krush et al., in this issue; Stoekl and Luedicke, in this issue) demonstrates an emerging developmental perspective in positive marketing. 1. What is macromarketing? The study of macromarketing is the study of marketing systems, their actors, and the consequences of the aggregation of their decisions. Fisk (1967) refers to these systems as the provisioning mechanism of society; that is, marketing systems are how we provide for the basic needs of people. The quality of these systems determines our material quality of life. While other provisioning systems exist (e.g., tribal structure, feudalism, central planning), Fisk argues that marketing systems are the most efficient way to improving social and human welfare. This perspective is not to say that marketing systems are a panacea for
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Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
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all social ills; they are not. They exist in a natural state of heterogeneous demand, and operate efficiently only when they offer appropriate assortments to meet this heterogeneity. Unlike neo-classical economics, macromarketing theory does not impose an assumption of equilibrium, and so macromarketing does not treat market failures as anomalies to theory, nor does macromarketing believe that rational behavior is ceteris paribus ethical. Rather, macromarketing recognizes that unfettered behavior can optimize the outcomes for some at the expense of others, or of the system at large (Mittelstaedt, Kilbourne, & Mittelstaedt, 2006). Understanding why and how these outcomes occur should be important to market actors, governments and society at large and is the contextual domain of macromarketing. Macromarketing is distinguishable from other approaches to marketing in two ways. First, in macromarketing the unit of analysis is the aggregate marketing system, not the individual firm or consumer. Macromarketing recognizes that these systems are complex, as are the determinants of systems and their effects. This perspective means that macromarketing incorporates the influences of, and impacts on, stakeholders external to dyadic exchanges into its analysis (Layton & Grossbart, 2006). For example, macromarketing asks what influence does culture play on what constitutes “fair” exchange (Laczniak & Murphy, 2006); what roles do marketing systems play in creating peace and stability in war-torn areas (Shultz, Burkink, Grbac, & Renko, 2005); or how does the collapse of subprime mortgage markets affect the wellbeing of communities (Redmond, in press)? The aggregated unit of analysis allows consideration of these questions, where a focused analysis of dyadic exchanges cannot. Frequently, the most dramatic implications of exchange are felt by parties well beyond the exchange itself (Mittelstaedt et al., 2006). Second, macromarketing focuses on the broad intersections between marketing and society; in particular, how society shapes marketing and, in turn, how marketing affects society. For example, macromarketing scholarship addresses questions of how religious norms shape when, how, and what can be exchanged, and how exchange behaviors feed back onto people's conception of the acceptable boundaries of religion in society (Mittelstaedt, 2002). Similarly, macromarketing informs how beliefs about consumption as a solution to problems shape our views on the environment (Kilbourne & Mittelstaedt, 2012), or how patterns of exchange affect our sense of right and wrong (Laczniak & Murphy, 2006). In each case, macromarketing focuses less on the decisions made by individual consumers or firms than in the systemic effects of decisions of many firms and consumers, each trying to improve their own welfare through exchange (Bartels & Jenkins, 1977). Because markets embed in webs of social, political and economic relationships, positive or negative outcomes can affect both parties and nonparties to transactions, generating negative and positive externalities (Cadeaux, 2000). These include problems such as air pollution and carbon emissions (negative), or the prevention of flu epidemics through the widespread use of vaccines (positive). Because the costs and benefits of externalities are not included in market prices, market systems tend to supply too much of goods and services that yield negative externalities, and too little of those that produce positive externalities. Macromarketing contributes to the discussion of marketing and society of interest to positive marketing. These include, for example, sustainability (Antil, 1984; Kilbourne, McDonagh, & Prothero, 1997; Leigh, Murphy, & Enis, 1988; Varey, 2010), ethics and social justice (Hunt & Vitell, 2006; Laczniak & Murphy, 2006), and quality of life (Lee & Sirgy, 2004; Peterson & Malhotra, 1997). Each can contribute to positive marketing's understanding of one of its principal stakeholders— consumers, firms and society, respectively. These aspects of macromarketing emphasize the positive value of marketing for society, firms and consumers. Each, however, sees negative implications of marketing systems as well. Marketing systems can damage the environment and society, they can encourage or condone unethical business practice, increase or decrease inequality, and they can lower our quality of life. Why the difference, and what can be
done? What is the nature of the relationship between marketing and society? 2. Two schools of thought in macromarketing To address this basic question, two contrasting schools of thought on the role of markets and marketing in society have emerged. The former sees marketing as part of the solution to the human condition, and is called the developmental school (Mittelstaedt, Shultz, Kilbourne, & Peterson, 2014). The latter sees marketing as part of the source of human suffering, and is referred to as the critical school (Mittelstaedt and Kilbourne, 2008). The perspective that one adopts profoundly shapes one's research approach to macromarketing. We propose that the same will be true for positive marketing research, and this is where macromarketing can make the most valuable contribution to positive marketing study. 2.1. The developmental school The developmental school argues that marketing systems play a positive role in economic development and social well-being. This approach focuses attention on issues such as quality of life (cf., Lee & Sirgy, 2004; Peterson & Malhotra, 1997), economic development (Klein & Nason, 2001; Nason, Dholakia, & McCleavey, 1987), and markets as a force for peace over conflict (Dröge, Calantone, Argawal, & Mackoy, 1993; Shultz et al., 2005). The underlying assumption is that marketing systems, when properly aligned, can improve people's lives (Shultz, 2007). Several themes emerge on the marketing systems perspective that stem from the developmental school. First, markets are a force for improving quality of life (Lee & Sirgy, 2004; Peterson & Malhotra, 1997). This is as much an assumption as a finding. Second, institutions play a critical role in developing environments for marketing systems to flourish (Cadeaux, 2000). This means that formal institutions such as rule of law, as well as informal institutions like ethical norms, guide the success or failure of marketing systems. Third, marketing is a social catalyst, rather than a consequence, of economic development. This school of thought focuses on how one works within the system of marketing to improve people's lives. 2.2. The critical school The critical school, on the other hand, postulates that markets as provisioning systems can be inherently unstable from an economic perspective and unsustainable from an ecological perspective, and that gains in human welfare resulting from marketing as practiced are fleeting. Marketing systems in the West reflect an underlying dominant social paradigm, whose assumptions and goals do not lend themselves to sustainable development (Kilbourne, 2004; Kilbourne, Beckman, and Thelen, 2002; Kilbourne et al., 1997). In contrast to the developmental school, the critical school adopts Speth's (2008) perspective that successes are not attainable by working within the system, but only by implementing system transformations. From this perspective, the challenges of using markets as a mechanism for social good lie at the level of assumptions behind the production–distribution–consumption–disposal process. From the critical perspective, the driving force of the system is relentless competitive materialism (Ger & Belk, 1996; Kassiola, 1990), and the expansion of this value worldwide through globalization will only make the problem more complex and intractable. The dominant social paradigm presents five basic challenges to marketing as a force for positive development: technological, political, economic, organizational and competitive. The technological challenge is the pervasive view in Western society that the solutions to most human problems are technological in nature (Rifkin, 1980). The consequence of this proposition is that new solutions must necessarily replace old ones, and that marketing solutions are nested in the rate at which technology
Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
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diffuses through the marketplace with both intended and unintended consequences (Rogers, 2003). The political challenge of the dominant social paradigm, which finds its origins in the political liberalism of John Locke, suggests that acceptable solutions to social problems must respect the rights of individuals, particularly property rights. The challenge is that almost all barriers to development are property barriers. The economic challenge begins with the consequences of Adam Smith's vision of atomized individualism, namely free markets and self-interest that value preference and choice above all else (Stiglitz, 2002). But individual selfinterest, in the face of collectively held problems, often leads to a tragedy of the commons (Shultz & Holbrook, 1999). The organizational challenge is our relationship to nature. At its best, our relationship is one of stewardship; at its worst, one of dominion. Either way, a clear and relevant dividing line occurs between humankind and the rest of nature (Eckersley, 1992), diminishing nature as a valued stakeholder in individual decision making. Finally, the dominant social paradigm posits a competitive view that argues human progress comes from the struggle over the distribution of scare resources, and that the most efficient solutions come from competition rather than cooperation. But by its very nature, competition must have winners and losers, so the progress of some must come at the expense of others (Stiglitz, 2002). These five challenges define the realm of socially acceptable solutions to questions of production and consumption, and by extension the limits of marketing as a force of progress for human welfare. Successful marketing solutions must advance technology; work within existing property rights; stem from voluntary choice; be anthropocentric; and result from competition. Knowingly or unknowingly, every marketing plan addresses each of these challenges, either directly or indirectly. So long as the dominant social paradigm remains intact, solutions that violate any of its tenets are likely to fail. The critical school urges us to ask what marketing would look like if technology were not the solution to our problems, if property rights did not supersede all other rights, if markets were motivated by something other than selfinterest, if nature were a stakeholder in decision making, or if markets rewarded collaboration rather than competition. In the language of marketing, this means that change must originate at the level of the environment, rather than the strategy or the segment. While the development school sees human improvement as a question of incremental change to marketing systems, the critical school looks for systemic transformation to the context in which marketing systems operate. 3. A research agenda of positive marketing Just as there are two answers to the question, “what is the purpose of the firm?” (maximize shareholder value or improve the lives of all stakeholders), so too there are two answers to the question, “What is the relationship between marketing and society?” In macromarketing, the developmental school sees the relationship as productive; the critical school sees it as potentially unproductive. What can scholars of positive marketing take away from this conversation in macromarketing to shape a research agenda that creates mutual and simultaneous value for consumers, firms and society? 3.1. Developmental positive marketing If marketing is part of the solution to the human condition, then what is the developmental role of positive marketing? If positive marketing scholarship accepts the underlying premise of the developmental school—that markets are a mechanism by which we can improve human welfare—then positive marketing should focus on how marketing exchanges can be improved. How do we build more effective exchange processes? Can we identify desirable externalities, and shape marketing systems to deliver these as desired outcomes? Positive marketing can contribute to this conversation in at least three ways. First, positive marketing research and practice should leverage the resources of marketing knowledge to maximize the mutual benefit of
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consumers, organizations and societies. To facilitate this, the role of positive marketing scholarship should be to develop, validate and promote the use of measures of positive benefit as an alternative to a single bottom line. This is the function of the “Consumer Value Index” (Center For Positive Marketing, 2012), which measures the benefits to brands, consumers and society. The challenge is that the ability to measure the simultaneous benefits across multiple stakeholders requires a common unit of analysis that allows us to compare benefits to firms (profits), consumers (satisfaction, or quality of life), and society (well-being). The ability to measure benefit by a common standard allows us to know when and how to make trade-offs among stakeholders and to understand the role that positive marketing can play in minimizing trade-offs while maximizing overall value. Using the Consumer Value Index provides the ability to think about when trade-offs should be made, and by whom. And it allows us to understand the role marketing can play in aligning the incentives of firms and consumers with broader social objectives. Second, scholars should recognize that the benefits of positive marketing will be achieved only through purposeful action (i.e., strategy). If positive marketing is to reap mutual benefits of exchange, then it must carry some of the responsibility when marketing activities do not live up to expectations. What are the responsibilities of marketing when markets fail to deliver positive value, or worse, deliver negative value to consumers or society? This perspective shifts the emphasis of the study of strategic failure from the bottom line of the firm (actions led to a loss of profits—why?) to the bottom line for consumers and society (actions led to profits, but the collapse of the community—what could a firm have done differently?) Positive marketing can play an important role in marketing strategy formulation and in advising the objectives of organizations wishing to make positive change in society. Finally, what are the benefits that positive marketing hopes to promote, and how can we use the marketing technologies (i.e., marketing tactics) to facilitate their adoption? If we value ethical exchange, then what is the role of transparency in transactions, and how are the benefits of transparency achieved? If environmental, social and economic sustainability are valued, then what are the social, temporal, environmental and economic boundaries of marketing action, as well as the boundaries of responsibility for marketers? If the goal of positive marketing is to improve quality of life, then what role do consumers play in this, and how do we help them to consume smarter, and perhaps less—or at least more sustainably? We have the technologies to address these questions if we have the will to consider them. The emerging perspective on positive marketing offered in this special issue takes a decidedly developmental approach. Gopaldas (in this issue) explores how positive marketing creates value for customers, firms and society, and how this value creation process differs from cause marketing, green marketing or social marketing. Aksoy et al. (in this issue) consider loyalty as a positive human trait, which manifests itself in consumption decisions, rather than as a construct tying consumers to brands. As such, they see concrete forms of loyalty as a path to happiness, from which managers can learn much. Krush et al. (in this issue) develop a new prototype for sharing, occurring in freecycling behavior, which offers a route to consumption that does not rely on traditional forms of exchange. Finally, Stoeckl and Luedicke (in this issue) identify four criticisms of marketing practice, and offer positive marketing responses. In each case, we see positive marketing scholars pursuing a developmental approach to theory development.
3.2. Critical positive marketing If, on the other hand, markets and marketing are part of the problem, then the critical role of positive marketing must be to challenge the underlying assumptions that prevent us from creating exchanges that provide mutual benefit for consumers, firms and society. Can positive marketing address the underlying assumptions that drive the ideology of consumption—the belief about the necessity of consumption in our
Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038
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lives and culture (Kilbourne & Mittelstaedt, 2012)? This path is difficult to undertake but one that can serve society in big ways. A critical approach to positive marketing can help us to address the questions, what are the true benefits of consumption to consumers? The first step to understanding the process by which consumers achieve some level of satisfaction in the marketplace is by understanding the benefits of consumption. For example, does consumption really make us happier? If so, then why and how? If not, why not? Can the benefits of consumption be derived through other means? Can acts of borrowing, renting, giving-and-receiving or sharing deliver the same utility to firms and consumers at a lower cost to society? A critical approach to positive marketing can address these questions by understanding the generation and distribution of benefit through exchange relationships. Similarly, a critical perspective might lead us to ask, is consumption a right? The historical answer is “no,” but the contemporary answer may be “perhaps.” The concept of a right is a deeply held one in Western society, and it is difficult to un-root. But understanding the process and context by which consumption as a right became embedded in our collective, if not individual, psyche can offer some insight into how a right can be recast as a responsibility or a privilege. If the notion of consumption as a right is entwined with the concept of economic growth as a virtue, then a critical approach to positive marketing can offer some insight into how we separate the benefits of consumption from the benefits of growth. Is it possible to demarket consumption without affecting growth, or vice versa? The ability to separate the benefits of consumption from the consequences of growth would be a significant contribution from positive marketing research and practice. Such a separation would allow us to move from a dominion-orientation toward nature to a stewardship orientation, and to organize exchange around principles of cooperation rather than competition. The opportunities for positive marketing practice would be limitless. 4. Conclusion Thought development in the allied sub-discipline of macromarketing suggests two basic approaches to positive marketing scholarship, a developmental approach and a critical approach. A developmental approach sees marketing as part of the solution to the problems of society. As a consequence the developmental approach's contribution to positive marketing can extend to many areas. Among these are promoting market relations that may provide more sustainable patterns of exchange, promote ethics and social justice in market exchanges, and enhance quality of life of consumers. Because marketing systems in the West are based on philosophical antecedents that can lead to inefficiencies, inequality and market failures, these must be understood as problems. The critical approach identifies some of these elements of marketing as part of the problem and opens them up to discussion. But the discussion is necessarily broader than marketing strategy and extends to the kind of world we want to live in (environmental) and the kind of people we want to be (justice and equality). This can provide guidance to positive marketing in determining how best to develop strategies that will promote the macromarketing vision of society. The good news is that, while the developmental and critical perspectives are different, their pursuit is not mutually exclusive. The knowledge base developing in each contributes to the development of the other. The value to positive marketing can be found from either perspective, and both should be pursued as they are synergistic in producing comprehensive assessments of markets and how they work. Within this framework, positive marketing will be better able to carry out its agenda to make people individually and collectively better off through the marketing process. References Aksoy, L., Keiningham, T.L., Buoye, A., Lariviere, B., Williams, L., & Wilson, I. (2014e). Does loyalty span domains? Examining the relationship between consumer loyalty, other loyalties and happiness. Journal of Business Research (in this issue).
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Please cite this article as: Mittelstaedt, J.D., et al., Macromarketing approaches to thought development in positive marketing: Two perspectives on a research agenda for positive marketi..., Journal of Business Research (2015), http://dx.doi.org/10.1016/j.jbusres.2015.06.038