marketing

A call for a revolution in marketing

A revolution in marketing

As a lifelong passionate marketer I am proud of the role marketing has played in the world economy. Despite the ravages of two world wars and totalitarianism prevailing for decades, more than half the world's population in the 20th century saw the greatest rise in prosperity in history.

This was largely due to a combination of liberal democracy with free market (if not unbridled) capitalism. The engine of this was marketing, as it is about the search for innovative solutions to identified needs, the recruitment and retention of customers, the creation and building of value, the profitable development of the business proposition, the unifying theme of an enterprise, the response to competition and so much more.

In 1989, when the Berlin Wall fell, it seemed as if all the issues had been resolved. Francis Fukuyama called it the end of history. Interestingly, on 29 December that year, the Nikkei index peaked at 38,957.44 yen and has never seen such heights since. It is today 10,798.32 yen.

As we come to the end of the first decade of the 21st century (and if you think it's already over then you can't count to ten) such triumphalism seems premature. The practice of mass production which led to mass consumption now looks short-sighted as we consume irreplaceable resources at an unsustainable rate.

Wherever you stand on the climate change debate (and I am firmly on the side of the 98 per cent of scientists who believe that not only is the climate changing at an unusual pace but these changes are caused by mankind) it must be clear that ancient fossil fuels are being consumed in a few hundred years.

Many other critical materials are also scarce, including some that are required to develop replacement energy sources, for example, the lithium that is used in lithium ion batteries that will permit electric vehicles to replace internal combustion cars. As we have learnt how to develop bigger and better business models our need for constant growth has blinded us to the long-term problems that this will cause.

Wherever one looks one sees the paradox of outstanding business success with unsustainable business practice. Supermarket chains gobbling up land banks and killing the high street and local farmers. Fast-food companies targeting 'share of stomach' – and cutting down forests to grow their beefburgers. Financial institutions selling debt to those who can't afford to repay it. Beverage companies using many litres of scarce fresh water to produce one litre of their processed product. Clothes manufacturers closing local factories to export production to sweatshops in developing countries exploiting child labour. Food manufacturers encouraging obesity with the use of the wrong nutritional mix.

We need to use our marketing skills to develop new sustainable businesses. There will be new forms of renewable energy and also practices to reduce our usage. Marketers will need to persuade people to live and work in new ways. Greater density will be required in the design of cities. New forms of ownership will be adopted so that our use of materials is more efficient. There will be huge industries in the recycling and reuse of valuable materials. We will address the needs of conservers rather than consumers.

What I am calling for is a revolution of business practice and consumer behaviour. I have lived through several revolutions and am confident that there will be at least one more.

I have seen the revolution of consumerism. I lived through the revolution of civil rights – in the US in the 1960s I met a Black Panther who told me that unless the black power movement got what it wanted 'this country will burn, baby'.

There has been the revolution of women's rights; attitudes to minorities; the overthrow of the Soviet Union; IT and the internet, which has transformed business and consumer behaviour. To paraphrase Karl Marx, the marketers have nothing to lose but their chains of consumerism. Businessmen of the world, unite.

ABOUT THE AUTHOR

David Pearson is chairman of innovITS.

[email protected]


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