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William L. Wilkie 8 Elizabeth S. Moore Marketing's Contributions to Society At this unique point in time, it is appropriate to step back and deliberate on the scope of the marketing field and the contributions it ofters to society. The authors adopt several perspectives to do this, looking across time, across so- cieties, and into the operations and structure of the aggregate marketing system ¡tselt, which emerges as a huge and complex human institution. A large number of contributions to society are ¡llustrated, ranging from aggregate inputs to the nation's economic health to individual benefits felt by some consumers. However, the system is not perfect; a range of criticisms and system problems also is summarized. The article closes with a took at lessons learned and future challenges in the century ahead. Our Goals for this Paper e are honored to have this opportunity to address VW": topic: “What does marketing contribute to sa- ciety?” We originally chose to study the field of marketing because wc found it to be among the most stimu- lating, complex, and intellectually chalienging of academic arcas in a university setting. In curious contrast to ¡ts gener- al reputation as a “soft” area, we have found that this field welcomes insights from many disciplines, including eco- nomics, psychology, history, mathematics, sociology, law, political science, communications, anthropology, and the creative arts. lts scholarship combines elements of objectiv- ity and subjectivity, demands both quantitative and qualita- tive insights, requires persistence yet rewards creative Jeaps, and allows freedom of imagination and nuance yet grounds its efforts in real actions with measured consequences. Fur- thcrmore, marketing can be studied from several intriguing perspectives. In the spirit of this special “Millennium Issue” of the Journal of Marketing, we view this article as an effort to clarify, ilJustrate, and celebrate, but not without a critical eye, some of the special aspects of the marketing field and its relationship to socicty. We did not wish to be naíve about this and so, in developing this article, have undertaken sev- eral allicd efforts with regard to the history of marketing thought, shifting criticisms of marketing, and current em- William L. Wilkie is the Nathe Professor of Marketing, and Elizabeth S. Moore is Assistant Professor of Marketing, University of Notre Dame. The main portion of this article was completed while the second author was on the faculty of the University of Illinois, and the authors gratefully acknow- edge both Notre Dame and Illinois for their support of this work. In addi- tion, the project has benefited from useful comments, eriticisms, and sug- gestions from many scholars. The authors especially thank their incredibly supportive colleagues in the Marketing Department at Notre Dame, as well as David Aaker, Alan Andreasen, Craig Andrews, Neil Beckwith, Jack Calfee, Joel Cohen, Peter Dickson, John Farley, Richard Hauther, James Hunt, Shelby Hunt, Donna Kamm, Harold Kassarjian, Gene Laczniak, Lynn Lee, Donald Lehmann, Susan Lloyd, John Malone, E. Scott Maynes, Robert Nason, Thomas Reynolds, Robert Schindier, Richard Tedlow, Hans Thorelli, and three anonymous Special Issue reviewers for their in- puts. Finally, the authors salute David Montgomery, George Day, and Robert Lusch for creating this opportunity far developmental articles aimed at addressing important issues for the field; this project never would have been undertaken without such a structure. 198 / Journal of Marketing, Special Issue 1999 phases in this area, details of which are available elsewhere (Moore and Wilkie 2000; Wilkie and Moore 1997, 2000). It is clear that the marketing system today is providing more and different benefits than in times gone by. Formal market- ing thought has advanced much since its inception as the new academic area of “market distribution,” shortly after 1900 (Bartels 1988).1 As the field nears its 100th birthday, its focus is square- Ey on firms, markets, and household consumers. Relatively few persons, even in the mainstream of the field, have re- cently been able to examine marketing's contributions to so- ciety. However, this subject is worthy of consideration by the broad college of thinkers in the field. It is worthy of ex- posure to thoughtful practitioners, to students in MBA and undergraduate programs, and to emerging scholars in doc- toral programs (likely why the Marketing Science Institute named it a key topic for this Special Issue). Thus, our pur- pose here is to provide a different look at marketing, one that engages thoughtful deliberation on the larger system and its contributions. Taken together, the issues in this do- main help us better determine both the nature of marketing and the remarkable potentials of the field. One Hundred Years of Marketing Three early insights we gained in this project were that mar- keting's contributions (1) accumulate over time, (2) diffuse through a society, and (3) occur within the context of every- day life. This can make them hard to discern at any given point in time. We begin, therefore, with an informal look over a very long period. A View Across Time: Marketing's Impact on Daily Life in the United States, or, “It's a Wonderful Life” Here we join Mary Bailey as she reads a diary her mother recently had given her as a family heirloom. It had been written by Mary's great-grandmother Anne at the turn of the century, 100 years ago. As she settles under her lamp on a cold winter*s evening in Mn this project, we were fortunate to be able to find and consid- er a treasure trove of books and articles from marketing thinkers, theorists from other disciplines, and critical observers from within and outside marketing. We acknowledge our deep debt to people who have addressed these issues before us and have allowed us to build on their thoughts here. Journal of Marketing Vol. 63 (Special Issue 1999), 198-218 Copyright O 1999. All rights reserved. Bedford Falls, Mary is imagining her ancestor's times and how very much life has changed. fDaily activities) As she reads, Mary is surprised to discover how Anne spent her days.? Largely depen- dent on walking or horses, families centered on the home and local community. Daily life meant physi- cal labor. Equipped with only a scrub board, the typ- ical housewife spent 7 hours a week doing laundry and carried 9000 gallons of water into the house each year, which she then had to boil before using (only 25% of homes had running water). Cooking, baking, and food preservation required substantial time, some 42 hours per week! Products that now routinely are bought, such as clothing, often were produced in the home. Central heating would not ar- rive until the 1920s; Anne”s family heated only the kitchen for the winter, using fuel hauled in daily by family members. Only 3% of households had elec- trical lighting, so most families relied on coal, kerosene, or oil to light their homes. Ás she reads on under her bright lamp, Mary wonders how bright the lighting had been for the author whose words she was reading. (Health and safety improvements) Mary is reading deeply as Anne described relief that her baby Aaron had survived; infant mortality was common in Bed- ford Falls at the time (about one in every ten births). In checking the family tree, Mary finds that Anne herself had died at a relatively young age (life ex- pectancy in 1900 was only 47 years of age). la con- trast, life expectancy today is nearly 80 years of age, and Mary has not had to worry seriously about infant mortality (now significantly less than 1%) or death from infectious disease. Thinking more about this, Mary realizes that her family's health, safety, and ability to enjoy life have been assisted by the fruits of advances in diagnostic equipment, pharmaceuti- cals to combat disease, pain relievers, bacteria-safe foods, safety-tested products, and so forth. (Impacts of technology and growth of the marketing system) The academic field of “marketing” began about the time Anne was writing her diary. During the ensuing century, we have experienced many changes in daily life in the United States. The aggre- gate marketing system, in conjunction with the oth- er aggregate systems with which it interacts (e-g., technology, finance, production) has delivered most of these changes to society. For example, the avail- ability of home electricity was followed by the cre- ation of many new appliances—clothes washers and dryers, vacuum cleaners, air conditioners, dishwash- ers, music systems, television, and so forth—that bring efficiency and enjoyment to homes today. Home refrigeration and supermarkets mean fewer trips to the store; together with use of appliances, this has allowed the average time spent on food 2Comparative numbers are from a variety of sources, especially Lebergott (1993) and U.S. News and World Report (1995*). preparation to fall from 42 hours to less than 10 hours per week! With economic growth (gross na- tional product is 400 times greater than a century ago), higher incomes, and technological innovations have come new possibilities and opportunities. A vast array of goods and services is now available. Moreover, real prices for many goods (e.g., televi- sion, autos) have fallen to the point that they are ac- cessible to almost every member of U.S. society today. Mary Bailey closes her diary and begins to think about other changes as we!l. She and her family are informed readily about national and global events and easily can drive or fly from Bedford Falls to points of interest anywhere in the worid. Her fami- ly's daily life is far, far removed from that of her an- cestor's. As she ponders this, she realizes that the world for her children will be different from hers to- day, in as yet unknown ways, as the aggregate mar- keting system continues to deliver change to their society in the future... The importance of Perspective Viewing a topic from a single perspective highlights certain characteristics but can hide other aspects that also may be important. For example, a person looks different from the front than from the back and different again if viewed from the side. To understand a topic well, it is helpful to walk around it mentally, adopting different perspectives on it. For example, four perceptual barriers in this topic involve fíme, system limits, culture, and personal experience. The Mary Bailey illustration addresses the issue of slow diffusion of marketing's contributions over tíme by contrasting two ex- tremes. When viewed in this way, contributions the aggre- gate marketing system has delivered to society are apparent; it is clear that Americans today are living very differently. and mostly in betier ways, than did their ancestors a centu- ry ago. With respect to system limits, not only is the mar- Keting system vast (as we shall demonstrate shortly), but its operations converge and coordinate with the operations of other aggregate systems within a society's larger economic system. (In a Venn diagram, we might conceive of aggregate systems in marketing, finance, technology, production, and so forth as partially overlapping large circles that reflect ar- eas in which activities are in common and those in which ac- tivities lie only in that field.) With respect to culture, markcting is a social institution that is highly adaptive to its cultural and political context. Thus, we can move easily around the world to locate soci- elies with very different marketing systems, In some global locations, we would find rudimentary marketing systems of- fering none of the conveniences Mary Bailey is enjoyin, people there may be living as Anne did a century ago. Els where, as in parts of Brazil, we would find people just dis- covering installment credit and using it to obtain the first home conveniences they have ever enjoyed. In parts of Chi- na, we would find incredible levels of investment—one of every five construction cranes in the world is reportedly at work just in Shanghai—to bring modern elevators, air con- ditioners, and other conveniences to the citizenry. Thus, Marketing's Contributions / 199 Copyright O 1999. All rights reserved. quite fresh and lent pleasure to her cup this morning. Thus, we demonstrate how one marketing system has operated to provide a branded cup of coffee to a U.S. family on a typical morning. (A breakfast pastry) Although coffee provides useful insights, itis yet a relatively simple product. We can move to a further level of complexity with another item in Tiffany's meal: a new breakfast pastry pro- duced by a major food marketer to compete in the fast-growing “premium” breakfast segment. Its mar- keting system is shown in Panel B of Figure 1 (for ease of communication, we have shown only por- tions of this system to complement points of the cof- fee channel; neither system is portrayed to ¡its true complexity). Note at the left of Panel B that the pre- production marketing system is much more involved than the linear systern for coflee, as there are 15 in- gredients in each unit of this pastry. Although not shown in the panel, each ingredient has its own sys- tem, similar to coffee*s, for collection and transport to its processors. The pastry brand is similar to the coffee brand in requiring a high level of uniformity in the brand units sold to consumers. Thus, we find exacting product specifications for each ingredient at the left side of Panel B. The next set of activities focuses on product man- agement decisions, Excited by consumer research showing unmet demand for bakery-quality pastry that can be stored at home and concerned by the suc- cess of competitors” new entries, this firm began a major new product development project. Experts in food science and nutritional technologies were chal- lenged to translate this benefit concept into an actu- al food product. A long process ensued, as many at- tributes—size, icing, taste, consistency, flavoring, sbelf-life, preparation, packaging, reasonable costs for pricing, production feasibility, and so forth— needed to be brought to acceptable levels. The process included consumer research on reactions to prototypes, in-home use tests, and BehaviorScan controlled store tests of pricing and promotions (in- cluding studies of purchase substitution patterns). The firm's board of directors had to decide whether to launch the product. Key factors included internal rate of return over a six-year period, capital needs (new plant versus conversion), options for copack- ing or outsourcing production, and effects on the firm's current product line. Because this would be a “bakery-quality” item, the board was concerned about the system at the left of Panel B—that the in- gredients be regularly available, cost-contro!led, and geared to precise recipe quality. The board gave the green light, and the entire marketing mix was final- ized and implemented. The distribution system (right side of Panel B) was similar to that for coffce, as was the consumer's purchase and use system (which, we note, concludes with a disposition ser- vice purchase for trash removal). In terms of the sys- tem's dynamics, each consumer purchase feeds back into stocking and production plans; through feed- back derived from both internal accounting and for- mal market research projects, this firm will monitor and adapt its management of this offering. Over time, therefore, consumers” actual use satisfactions and repurchases will determine its success or failure. (Further considerations) Although the ¡lustration is getting long, we are only a little way toward captur- ing the true scope of the aggregate marketing sys- tem. However, we now dispense with details and simply point to key issues. We have covered only two breakfast items; as shown in Panel C, the four family members have different preferences that the aggregate marketing system is able to accommodate easily. Also, the breakfast depends on more than food, and an entire kitchen support system is avail- able to assist this consumption episode. In terms of our broader topic, it is important to recognize that all aspects of Panel C have been brought to the Jones household through the aggregate marketing system, some many years ago (e.g,, the plumbing and the furniture) and others more recently (e.g.. the new dishwasher bought last week and the coffee, pastry, and fresh fruit bought yesterday). Also, each element listed in Panel C has its own complex marketing sys- tem that brought it to this point. Global sourcing was involved in some systems—the coffeemaker from Germany, artwork from the Far East, microwave from Korea, and so forth. In every case, a complete system was planned, created, and run to deliver these products to houscholds such as Tiffany's and, in most cases, had to compete and win out over others” systems to gain Tiffany's purchase. If we were to an- alyzc each system, many pages would be used; the total number of system interactions needed to create this meal is truly impressivc. When we further rec- ognize that the aggregate marketing system routine- ly provides breakfast for 100 million U.S. house- holds every morning and that breakfast is only a trivial element of its total activity, we are ready to appreciate its immensity and significance. The Scope and Size of the System The foregoing illustration is a useful b; for summarizing system scope, Panel D of Figure 1 provides a partial listing of system activities that enabled this breakfast to occur. Sev- eral points emerge: PThere are a surprisingly large number of entries; the aggre- gate marketing system undertakes a wide range of activities to provide for a simple breakfast meal. PThere are participants other than marketers in the aggregate marketing system. Organizational customers and ultimate consumers are key players (buying is crucial at every stage). and governmenls provide services intended to facilitate sys- tem operations (shown at the right in Panel D, these eross all stages). PAs indicated hy the keyed entries in Panel D, marketing man- agers control (1) only some of the activities of the agregate marketing system. Olher necessary activities are carried out by persons who da not consider themselves marketers. In most of these cases within organizations, marketing managers Marketing's Contributions / 201 Copyright O 1999. All rights reserved. 6661 9Nss] Jezsads “Bunayaepy yo ¡eulop / zoz "panesal siyBla ly “6661 O JUBLIÁdOD FIGURE 1 The System at Work Key: (T) = Transport. FP] ey: (T) por PANEL A: COFFEE A Retailer's m Warehouse —— m Reta store (Bl...) Large cui real MEN a Exporter a 7 Manufacturer's Coffee | y. | Growers Manufacturer's r m : nal o grower dia | —— | ronsting plant | distribuon TA a mill a a a co nn nierchandises (El.,.n) p> ON CONSUMERS my Growers Mass bo varehouse om meccbandiser (F1...n) warehouse m - _—_——> —» L Wheat 1 PANEL B: BREAKFAST PASTRY tormes | TT ¡a Gran» ' Dairy pamer, | — m ! Ta I Consumer Househotds 3 1 — Produet acquisition ——H ! Manufacturers i = Product preparation lant $ > — Produrt consumption I p channels as in — Product mainteranco ¡ Panel A — Product disposition ' Fruit 1 groner | ——> ¡— [ m A) Corn A Family Breakfast Items PANEL C: FAMILY BREAKFAST Kitchen Support System . Cooking Area Housewares Maintenance Service Tiffany Robert Laa Mark - Automatic cofleemaker —— - Ceramícmugs - Refrigerator - Electricity _ Cofte - Cofiee 7 Rca a - Coffee filters - Plates, bowls - Freezer - Piped water - Nonduiry creamer — - Equal - Microwaveable untmeal Frezen wafiles easter oven Fatware easter 7 Water patiner - Sugar : Com fakes - Ski milk Er - Microwave oven - Tablecioth - Dish detergent - Lighting > Berakfast pastry 7 Slim mill Daily vitara echa - Cooking utensils - Napkios - Sponge, disbtowel —— - Telephone > Banana > Serambied exg - Stovetop - Table and chairs — - Trashcompactor —— - Cabletelevision - Pots, pans - Portable television — - Disposal - Cabinets - Clock serve as influences (2) on these actions, whereas in some cas- es (3), necessary system activities may be carried out with lit- tle or no direct influence from marketers (note that this is par- ticularly apparent in the consumer realm). This property of the system calls for a perspective on marketing that reaches beyond a sole focus on a manager's controllable decisions. (Note that numbers assigned to each activity are generalized. Readers may wish to consider whether they would agree.) dThe three classes of participants all engage in activities apart from ihe aggregate marketing system. The system is very broad but not entirely dense. Some parts of virtually every or- ganization work on tasks only indirectly related to the mar- keling activities listed and carry these out independently (shown as “n” in the bottom right of Panel D). We would not define these as marketing system activities, nor would we ín- clude activities of government agencies or consumers that are directed entirely toward other sectors of society and life. Thus, our visual conception of the aggregate marketing sys- tem would resemble a cross-section of fine swiss cheese or steel mesh, similar to Panels A and B, with many linkages be- Iween organizations as we move across to the consumer sec- tor but with holes inside each organization to represent parts where the work arguably is outside the marketing system. PFinalty, Panel D significantly understates system activity. Most listings have many detailed steps (e.g., advertising, promotion, merchandising, transportation, as in the leftmost column). Panel E of Figure ] next depicts an approach to assess- ing the scope of the U.S. aggregate marketing system. Hor- izontally, note that it extends from extraction of raw materi- als/crops at the left through many levels of value creation to end consumption and disposition in far-off locales at the right. (Again, the preceding Venn diagram analogy should clarify our conception that some of these activities are re- garded properly as also belonging to other intersecting ag- gregate systems.) Vertically, we first add all competing cof- fee and pastry systems, then add all other food systems, then add all other goods and services. In concept, this process will include all organizations that cngage in marketing sys- tem activities of the types shown in Panel D, alt levels of government activities that affect this system, and all forms of consumer participation by all societal members. Our next illustration provides estimates of the magnitudes involved, “From Here to Eternity.” The aggregate marketing system is huge and growing rapidly.3 As we move past the year 2000, in the United States alone, there are some 275 million final consumers arrayed in 100 million households, all on the consumption side of the system. They spend $5 trillion each year, or two- thirds of the nation's gross domestic product (GDP). To place this spending in perspective, if we were to try to count it at the rate of $1 per second, it would take more than 150,000 years, or much longer than ¿For a classic effort to assess magnitudes of the U.S. distribution system alone, see Cox, Goodman, and Fichandler (1965). The fig- ures reported in the illustration are from the Statistical Abstract of the United States (1996*), tables 12, 66, 685, 691, 1003, 1252, 1253, 1255, 1272, 1274, 1278, 1279, and 1280. Calculated com- parisons are by the authors. The advertising spending estimate is from Advertising Age (1997%), 204 / Journal of Marketing, Special Issue 1999 the history of civilization. Although the aggregate marketing system in the United States may not stretch quite to “eternity,” it certainly does stretch a very long way. Furthermore, we should recall that yearly data are compiled merely for convenience and easily can un- derstate true impacts. For example, as in Tiffany”s kitchen, households accumulate many consumer durables that continue to provide benefits to them for years. As opposed to annual sales then, consider that some 200 million motor vehictes currently are regis- tered for road use in the United States. All of these have been provided through the marketing system (and many are used to carry out its functions on a daily basis). In terms of the work of marketing, a sig- nificant portion of Americans are employed entirely or in part assisting the system to perform its func- tions. Although exact figures are elusive because of categorization problems, it appears that more than 30 million Americans work directly within the ag- gregate marketing system, with salespersons ac- counting for the largest portion. There are almost 20 million businesses acting as buyers, 3 million of which are retailers that resell to consumers, and an- other one-half million wholesaling firms (because of multiple steps in the wholesale channel, total sales of wholesalers are greater than those of retailers). Ad- vertising spending is huge and growing, now some $200 billion per year. Other areas of recent growth include services (now more than half of all consumer spending) and direct marketing, which has doubled in recent years. Even though these numbers are huge, we still have understated the true scope of the aggregate mar- keting system in U.S. society. Professional prac- tices (attorneys, accountants, architects) were not included in these counts but must engage in ac- cepted forms of marketing to build and maintain their clientele. Many persons in not-for-profit or- ganizations, also not included in our formal num- bers, employ marketing actions both in garnering resources and carrying out their missions. Govern- ment workers at local, state, and federal levels regularly negotiate contracts, buy goods and ser- vices, and monitor marketing performance. Fur- thermore, because marketing is an intrinsic func- tion in those 20 million business firms previously noted, a portion of the responsibilities of many po- sitions, from chief executive officer to quality i spectors to shipping and fulfillment clerks, is in- volved with carrying out the firm's marketing activities. Finally, the U.S. aggregate marketing system in no way stands alone in the world. By not including other nations numbers, we have under- stated by many times the actual impacts of mar- keting around the globe. (As an aside, this analy- sis also helps us appreciate the enormity of the challenges faced by command systems, which can- not hope to replicate the millions of allocation de- Copyright O 1999. All rights reserved. cisions being made within a market system each day.) Characteristics of the Aggregate Marketing System Figure 2 completes our background on the system with a summary of key properties. Propositions 1, 3, and 4 have been discussed at length, but the others deserve brief com- ment. Proposition 2 provides a system perspective that we long have perceived as powerful: the concept of continuous flows in various modalities, including physical, persuasive, informational, and monetary. Flows occur in both directions (e.g., money Rows backward in the system in payment for goods; information and influence flow forward from adver- tising and sales efforts but also backward with marketing re- FIGURE 2 ms on the Aggregate Marketing System Proposi The Aggregate Marketing System: . Incorporates many activities, including the classic dis- tribution functions, marketers' plans and programs, and actions by consumers and government; 2. Is composed of planned and continuous flows among participants, including flows of goods and materials, ser- vice deliveries, doliar payments, and flows of information and influence; 3. Is extensive, in several respects, a. Extending all the way from the collection of raw mate- ríals through multiple intermediate processes to use and disposition at each individual household, b. Combining materials/goods from around the globe into market offerings, <. With muttiple sets of marketers, acting as competitors, performing activities in parallel, and d. In its geometric exchange activity, with multiple pro- ducers selling to multiple purchasers and multiple buy- ers purchasing from multiple sellers; 4.1s sophisticated structurally, relying on a massive physical and communications infrastructure that regular- ly and routinely creates and delivers goods and services across the society; 5.fs a key basis for resource allocation in a market economy, because consumer responses to market ofter- ings determine which goods and services are created in the future; . Is governed by forces for efficiency, most notably self- interest, competition, and characteristics of market de- mand; 7. is constrained by social forces, including laws, govern- ment regulations, cultural norms, and ethical codes of business and consumer conduct; 8. Relies on coordinated processes, with producers and resellers seeking interdependent purchases to fit pre- specified standards with the later expectation of pur- chase by consumers; 9. Operates through human interactions, experience and trust as participants develop and maintain market- place relationships as a basis for conducting their system activities; and 10.1s an open system, geared toward growth and inno- vation, as participants seek to solve problems and pur- sue opportunities, investing with faith in the future opera- tions of the market. P Copyright O 1999 search). Some are simultaneous, but many are not; for ex- ample, the investment flow forward (in plant, labor, produc- tion, and promotion in advance of sales) represents levels of risk-taking and confidence in marketing activity.1 Mean- while, Proposition 5 reflects that, in a market-based system, consumers” response to marketers” offerings drive supply al- locations and prices. Depending on a society”s decisions on public versus private ownership, the aggregate marketing system plays a greater or lesser role in allocating national re- sources. The United States has given substantial freedoms to its aggregate marketing system. Apart from certain re- strictions, a person may choose to produce almost any good or service he or she desires, in any form and name; offer it for sale at places, prices, and terms of his or her choosing; and advertise it or not, using virtually any appeal believed to be effective. Although restrictions exist in each of these ar- eas, they are primarily to protect the rights of competing marketers or consumers, Proposition 6 reflects that the aggregate marketing sys- tem does more than physically deliver goods and services; it also works to bring a dynamism to society that encourages continual growth and progress (Vaile, Grether, and Cox 1952). Marketers know that observed demand is not really fixed and that consumers can be highly responsive to differ- ent marketing programs. Thus, competition is the main dri- ving force, leading marketers to search for areas of compar- ative advantage that will lead to greater financial success.6 New competitors are attracted to areas of opportunity; over time, prices can be adjusted downward through competition and/or production efficiencies. New buyers join in buying the favored offerings, and some markets grow while others wither away. Not all marketing system programs are suc- cessful; the effort to support dynamism can lead to excess- es, failures, and sometimes unforeseen consequences. Proposition 7 reflects this underlying tension by reflect- ing the need for controls. Á market system needs a legal in- frastructure for property rights, performance of contracts, freedom of choice, and so forth. The role of government as society's representative is thus central, though this can be 4We are unsure whence the concept of marketing flows originat- ed but have found it in Vajle, Grether, and Cox's (1952), McInnes's (1964*), and Kotler's (1976*) work. This analysis also highlights marketing's contributions at the fim level by demonstrating mar- keting to be the function that reaches out from a firm to the outside world (marketplace) with flows of products, information, and pro- motion activity and further shows marketing as using its learning about that world (through an inward flow of research) to influence decisions within the firm. Finally, marketing generates an inward flow of dollars to sustain the firm's continued existence, which earns it the title of “lifeblood of the business.” 5As socictal boundaries become more permeable, especially through immigration and trade, the linkages of production, em- ployment of human resources, and end consumption become more complex. $This has been the subject of significant recent theoretical de- velopments within marketing that challenge the tradition of equi- líbrium economic theory (e.g., Dickson 1992, 1996*, 1999*; Hunt and Morgan 1995, 1996%). Marketing's Contributions / 205 .. All rights reserved, ing new benefits to consumption. Internationally, the aggre- gate marketing system is a crucial contributor to the nation's balance of trade and, in seeking new areas of opportunity, is a force for international development. Overall, then, in many significant and positive ways, the aggregate market- ing system has played an integral role in the economic growth and prosperity of the United States, Although obvious in the abstract, marketing's contribu- tions to economic well-being actually have not been recog- nized by many businesspersons or, indeed, by many econo- mists. This is probably because they are not factors in the classic macroeconomic equations (Kinnear 1994), Here, ag- gregate supply depends on the stock of capital, labor, raw materials, and technology; Kinnear asserts that marketing's importance would be more clear if efficiencies and skills in wholesaling, retailing, and logistics were included in this equation. Similarly, aggregate demand is a function of ex- penditures for consumption, investment, government, and net foreign trade. However, marketing does affect aggregate demand; if economists' equations were to identify effects of marketing programs (on autonomous consumption and mar- ginal propensity to consume, on prospects for success of an investment in a new product, and on the volume of exports and imports), the value of marketing efforts in the econom- ic system would be more starkly obvious. Furthermore, this would stimulate interest in calibrating the magnitudes of these contributions. Marketing and Economic Development The societal benefits that flow from the aggregate market- ing system are nowhere more apparent than in the area of economic development. Peter Drucker, the noted business thinker, raised this issue years ago in a stirring speech at a Parlin Award dinner, reprinted by the Journal of Marketing as “Marketing and Economic Development” (Drucker 1958*). His view of marketing as an entrepreneurial “mul- tiplier” and organizer of resources casts a quite different light on our field. Subsequent work has done much to ex- plore and refine this view, The points in Figure 3, Part B, il- lustrate several key insights about marketing's roles and contributions. 10 First, the role for marketing in economic development is real. Nations with higher proportions of their populations in marketing also have higher GDPs. Development of the mar- keting system is necessary for this to occur (e.g., Preston 1967*; Wood and Vitell 1936). However, the specific roles for the marketing system differ by stage of economic devel- opment. In a subsistence economy, production is barely suf- ficient for self needs and is not separated in time or distance from consumption. The immediate priority is incentives to increase production, with price assurance being most signif- icanc. In economies just becoming urbanized, the priorities are to develop distribution infrastructure (i.e., transport, storage, and selling networks). In market-oriented systems, all marketing functions are important, with investment fi- lOMuch of the discussion to follow is based on overviews pro- vided by Batra (1997), Moyer (1965), Nason and White (1981), Thorelli (1996), and Wood and Vitell (1986). Copyright O 1999 nancing and consumer credit as primary tools for market growth (U.S. Department of Agriculture 1972*). Second, as noted in Figure 3, Part B, a host govern- ment's policies help determine opportunities for marketing's contributions to the society (e.g., Thorelli 1996). However, governments typically pursue five possibly contradictory goals—growth, fuller employment, income distribution, price control (inflation), and balance of payments—and may do so with too few tools to handle the task (Slater 1978). Treatment of the aggregate marketing system is thus part of a complex political context, As a social institution, the mar- keting system must be embedded in the society”s culture, and this can be problematic in some societies because as- pects of the culture are not welcoming of some features of the U.S. marketing system (e.g., Ger 1997*). Where a U.S.-style system is desired, moreover, certain consumer behaviors (e.g., handling of finances, planned saving and choice processes, defenses to persuasion) must be learned for the system to work well. With regard to linkages among efficiency, consumer behavior, and culture in developing marketing systems, Slater identifies literacy, achievement desires, cooperativism, fatalism, mass media, and innova- tiveness as key dimensions (cf. Nason and White 1981). Marketing experts working in the “transitional economies” (i.e., those moving from centralized planning to market- based systems) of Eastern Europe, the former Soviet Union, and China note that entrepreneurial risk-taking, marketing management expertise, and the use of strong business plan- ning and control systems are crucial in determining success (e.g., Batra 1997). These experts differ as to ease of transfer of such knowledge, but the large number of international students educated in business schools in recent years does provide cause for optimism. Third, Figure 3, Part B"s “Marketing's Development Functions” reflect marketing's roles in more basic settings (modified from Moyer 1965). Marketing encourages in- creased production by conceiving, organizing, and operating networks for communication and exchange. Speculation across time is needed to bring future production and con- sumption using entrepreneurial risk of capital and effort. Egualization of supply and demand occurs across distance (transport), time (storage), and quantity (price), whereas spacial connectivity joins diverse locales in a larger market- place to offer efficiencies of scale and lower prices to con- sumers. Over time, these can grow into a center for capital accumulation (investment) and serve as a springboard for marketing entrepreneurs' entry as industrialists. For exam- ple, some years after its nationhood, nearly half the leading industrialists of Pakistan were found to have come from the marketing sector (Papenek 1962*). Here they had learned, in Adam Smith's words, “the habits ... of order, economy, and attention” that characterize success in market distribu- tion (Smith 1776*, p. 385). Contributions to Buyers from Specific Marketing Activities We now focus on marketers” actions that benefit buyers. Be- cause there are millions of competing firms in the aggregate marketing system, at any time a huge number of these ben- Marketing's Contributions / 207 .. All rights reserved, 4O14DY2G 19 HG 10f jUBMUo sara «YO0OLAdD,, 3UDSUIÁ V SIPIA0LA “ALX sdysuonojas aspyoind juados 40f HOHIDÍSUOS 120J5H9 SY99S “LIX HOHÁWNSUO) [0101 49840] SOJQUUA “LIX SIUDUDAO A dU/SUOBDAQUU] SABISO A “IN I2YLDUL O] SOLIJUD DU SÉ UEG doddns asoyosmdisod 40f Sapta044 “XI ADUBIDUJO SOJOMOLA/2Y S2ADS “IA (suomisiaboo) saspyo4nd SOJBIOV A CILA $pa3u ynot SÍ pOZJUIOISno/ASOJO "LA DOHI 40f ados apym saafJO CA PUDUIZP JOA ADMI SOJOJMS “AL Bupusva] j0440%1 10/ S3pi001d “LIT SODJALIS PUV SIOMPOLÍ SLI “1 S22JAL3S PUD sia0nposd pausap Jo uoyonposd 34) sajouo4g y ¿53/0438 JUD¡nSoy S,¡MIISÁS FUNDIDA] 24 1 :ASDURANS GQ JUSUTUIAL9JUS SAPIAOIJ - sy10ds pue JUAUTUIe ao. 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All rights reserved. further enables closer fits with users* preferences. In the U.S. system, frequent new offerings and improvements to current offerings also are pursued. Furthermore, we should recognize that much of the care taken by marketers in de- sign, creation, and delivery of offerings remains unseen and, thus, is underappreciated by the general public. This care aids a brand's competitive success by providing an intend- ed, identical service or use experience expected by loyal customers. Finally, the marketing system generally stands behind its offerings, with buyers often protected by guaran- tees or warranties. To verify our impression of this system stress on quali- ty, we checked ratings in some 200 product and service classes, Ratings were given in 1996 and 1997 in Consumer Reports, published by Consumers Union, an independent testing organization that accepts no advertising or other funds from the marketing community. Our tabulation of scores showed that, of 3028 ratings, only 5] items (1.7%) were rated as “poor” in quality. Including “fair” as a passing grade, 98% of marketers” offerings received satisfactory rat- ings; 88% received ratings of “good,” “very good,” or “ex- cellent."12 Clearly the system is delivering quality offerings to its public. Benefits of Branding/Trademarks Unique identification is not only significant to marketers (Aaker 1991), but also benefits buyers in four ways.!3 As shown in Figure 4, Part C, unique source names assist (1) in organizing future behaviors, because if problems are en- countered, the source can be recontacted, but if satisfied, fa- vorable attitudes can direct future decisions; (2) efficiency in locating favored sellers (though it appears innocuous, summed acr products, time, and competing demands, this efficiency actually is quite significant in total); (3) rapid, confident choices in self-service settings (the average time for a single choice in a U.S, supermarket aisle is only a few seconds): and (4) in deriving symbolic benefits from purchase, ownership, or use. Symbolic benefits can be pub- lic (driving a high-status car) or private (enjoying a finely erafted product). Although at times a target for criticism, symbolic benefits? mechanisms are varied and subtle, in- volving sustaining personal identity as well as communicat- ing about the self (c.g., Belk 1988,* 1989*; Cohen 1989*; Levy 1959*), Benefits from Market Distribution As noted in the first entry of this section in Figure 4, Part C, the key benefits in this area are captured in our discussion of marketing's eight classic functions. Because it is performed largely out of the sight of nonparticipants, however, the per- ¡Every quality test rating that used the five-point “excellent-poor” scale given by the organization was considered, Ratings by members were not included, nor were relative scales in which distributions were forced. Branding is being used in a broad sense, because price and val- ue are relevant issues as well. Health insurance firms, for example, are pushing for “debranding” (generic drugs) to obtain lower prices. 210 / Journal of Marketing, Special Issue 1999 formance of distribution easily can be underappreciated, Itis useful to recall that the marketing system performs these functions repetitively and routinely, millions of times daily, each time offering benefits to receivers. Beyond this, whole- sale and retail activities offer additional benefits, as noted in the remaining listings of Figure 4, Part C. The first five of these are well recognized and need no amplification. The fi- nal four entries, however, deserve separate discussion. One powerful aspect of the U.S. marketing system is fa- cilitating the transaction process, which saves consumers time and effort and maximizes purchase opportunities. Con- sider, for example, the benefits of extended store hours, con- venient locations, free parking, stocked shelves, posted prices, displays, fast and smooth checkout, advertising price specials, salespersons” pleasant and efficient completion of transactions, and so forth. (Consumers from some other cul- tures express surprise and delight on this discovery of the U.S. retailing system.) Furthermore, processes for extending consumer credit enable some expensive purchases to occur that otherwise would have been delayed, and bank credit cards have eased transaction processes for buyers and sell- ers alike. That stores pay significant fees, approximately 3%, for bank card charges is a good indicator of how much the system desires to facilitate purchase transactions. When a durable-good purchase is made, moreover, consumers en- ter a use phase that can last for many years, During this time, the marketing systern offers a postpurchase support struc- ture with benefits such as delivery, installation, repair ser- vices, and liberal return policies. Our final entry is quite dif- ferent but has done much to improve the lives of everyone in U.S. society, in that channels of distribution serve as the entry point (gatekeeper) for new products and services. Re- ceptivity by wholesalers and retailers to offerings that pro- vide better value or new benefits has made this dynamic work for societal gaín. Similarly, government actions lo re- duce barriers to entry serve to enable innovations and price competition to work to the benefit of a society”s consumers and competitors. Benefits from Salespersons and Representatives Sales representatives facilitate flows within the aggregate marketing system. Although advertising receives more pub- lic attention, marketers frequently rate personal selling as more important for business success. In one study, execu- tives rated selling five times more important than advertis- ing for industrial goods and almost twice as important for consumer durable goods; for consumer nondurables, the two were rated approximately equally important (Udell 1972%*). An estimated 20 million sales representatives are at work daily in the system, 9 million ia business-to-business selling, and 11 million others dealing directly with con- sumers. Roles vary widely, as does level of performance. in Figure 4, Part C, we list some contributions offered in business-to-business sales, in which the salesperson is a professional representative who deals with generally well- informed buyers and with current users who may need to have problems resolved. To start, salespersons may be called on to consult on large programs (e.g.. plant con- struction, advertising campaigns), often as part of account Copyright O 1999. All rights reserved. teams that include specialists. During this process, a repre- sentative may help crystallize client needs, educate about alternatives, introduce new entries, and customize the of- fering when feasible. He or she then works to facilitate the entire transaction, payment, and product delivery or project completion. During this process, which could extend for years, the sales representative provides access to technical support and offers personal service to ensure customer sat- isfaction and a continuing relationship. Our final entry, feedback from the field, reflects the reports back to the firm about opportunities to enhance its offerings. Benefits from Advertising and Promotion Each year, an incredible amount of money is spent on ad- vertising and sales promotion: Advertising is a major indus- try in its own right, accounting for approximately 3% of U.S. GDP. Due to its high visibility, advertising is likely the most criticized facet of the aggregate marketing system, though it provides important benefits. In their classic study Advertising in America, Bauer and Greyser (1968; also see Pollay and Mittal 1993) asked consumers about this institu- tion. Their findings fit four of the five entries in Figure 4, Part C. Appreciation for the information advertising pro- vides on products and prices was expressed by a majority of consumers.14 Few consumers noted our second benefit; clearly, however, advertising can enhance consumer deci- sions through lower search costs. (Product proliferation, however, raises search costs.) The consumers mentioned en- larging market demand and noted special appreciation for advertising's contribution to lowering prices, Less obvious are three related benefits in this category: reducing distribu- tion costs, aiding entry by new competitors, and fostering acceptance of new innovations by a society. The consumer sample also recognized the final entries in Part C, applaud- ing advertising's role in subsidizing media and expressing pleasure with advertising's creative offerings. Summary: Marketing's Key Benefits to Buyers Because our detailed listings risk “losing sight of the forest for the trees,” in Figure 4, Part D, we abstract what we be- lieve are 14 of the key benefits consumers derive from mar- keting activities. There is marketing's role in driving the production of offerings most desired in the marketplace. In many organizations, marketers act as internal advocates who represent the customer in decisions on what to produce, then other elements of the aggregate marketing sysiem advance the creation of those offerings by carrying out their func- tions (e.g., assembly, transport) at all intermediate stages, leading to final production. The marketing system then man- ages the delivery of products and services to consumers. It also expends funds to provide for market learning using sales representativos, advertising, brochures, specialized brokers, and so forth. The persuasive aspect of these vehi- MSeveral leading marketing thinkers believe that firms would benefit from increased attention to providing consumer informa- tioveducation programs that would assist consumers to make bet- ter decisions, as opposed to simple emphasis on persuasion/enter- tainment in advertising. cles serves to stimulate market demand, which creates sales and can lead to lowered costs and prices. Through competi- tion, the system offers a wide array of choices, which en- ables consumers to judge how best to satisfy their needs to obtain desired quality. In this regard, it is interesting to real- ize that every available good and service is being purchased by some fellow consumers. The system's variety enables some marketers to offer close or even customized fits with a user's needs. The system also is designed to facilitate pur- chases, easing acquisitions of benefits for buyers. Various elements of time-saving are offered in both products and purchasing, which increase societal members” efficiency and leave time for more total activity. Also, the marketing system offers a postpurchase support structure to enable continuing benefits over time. The marketing systern continually brings new entries for customers to consider and actively works on behalf of prod- uct innovations and improvements, some of which will en- hance a society's quality of life over the long run. Further- more, it enables buyers to engage in larger total consumption than they would otherwise be able, through credit, price specials, discount versions of goods, and/or bundled attributes. Most sellers seek long-term repeat pur- chases from patrons, so customer satisfaction is a real goal of the system, Finally, the marketing system often offers pleasant environments within which consumers can act, a distinct benefit in itself (as those experienced with some monopolists or government agencies can attest). Two Broader Views of Benefits Contributions from Improvements in Marketing System Activities In our analyses to (his point, it has become clear that (he sys- tem's current level of performance is based on its emphasis on a continual search for improvement. Thus, our interest is in not only kinds of benefits, but also increased levels of benefits emanating daily from individual firms and people, as indicated in the following: “Back to the Future.” The constant press for im- provements characterizes the world of the aggregate marketing system. Many efforts do not work out, some yield minor advances, and a few lead to norms of the future. In Figure 5, Part A, we display a few il- lustrative cases of recent breakthroughs. For exam- ple, trucking firms now combine onboard computers and satellite tracking systems for real-time monitor- ing of their cargo. One firm uses ¿his system to co- ordinate routes and communicate with all 10,000 trucks in its fleet, thereby adapting instantly to weather or traffic delays. The result is better delivery service with lower costs for the firm. Similarly, con- tainerization has added efficiency in shipping and handling; our coffee beans, for example, shifted eas- ily from ocean to ground transport and were less sus- ceptible to damage, spoilage, and theft. As distribu- tion channels have embraced relationship marketing, order processing systems have saved time and costs. Marketing's Contributions / 211 Copyright O 1999. All rights reserved. Contributions to Quality of Life In this final section on contributions, we shift away from the economic calculus that reports on the system as if it were a relentless machine spewing out streams of utiles. Instead we examine briefly the aggregate marketing system as a human institution composed of people living their lives on a variety of fronts. Our effort here is ilfustrative, intended to raise this topic as worthy of further attention by marketing scholars. We first examine benefits in the work of marketing, in which aggregate effects could be very large. Social/psychological benefits to marketing participants. In the first set ofentries ín Figure 5, Part B, we have listed sev- eral social and psychological benefits we believe are offered to persons who work in marketing. Drawing on the system's stress on competition, achievement is highly rewarded in this fieid. This is one reason for steep increases in incomes in eas- ly years of a marketer's career, in contrast to accounting oren- gineering, in which salaries begin at higher levels but increase much more slowly. Because of the marketing system's open- ness to change, opportunities abound for feelings of personal growth and individual autonomy. Whether pursuing clearer understanding of the consumer marketplace, creating a new advertising campaign, managing a retail store, closing an im- portant sale, or planning a new product launch, marketing of- fers challenges to creativity and ingenuity, as well as opportu- nities to influence others, Marketers in many areas can offer service to others, and those in the arts can foster aesthetic val- ues within society. Many marketing positions require team- work to achieve a common goal, which can provide valued group affiliations. 1t is common for seilers to develop friend- ly relationships with their clients as a consequence of ongoing exchange activities. In our breakfast iblustration, for example, the large transaction between the coffee buyer and major grower was sealed with a handshake. To marketing scholars, many of whom who have come to the fieid from other disci- plines, these attributes are well understood. Furthermore, with globalization of markets, these opportunities are expanding. Social/ipsychological benefits created by consumers. Since the study of consumer behavior entered marketing's mainstream during the 1950s and 1960s, consumers” goals and motivations have been studied extensively. Most re- search has been instrumental (e.g., what can we learn about consumers so that we can sell more effectively to them?), but some reveals interest in deeper human issues, Examples include two older books by well-known marketing consul- tants, Daniel Yankelovich (1981), who revealed concerns about society's direction at the time, and Arnold Mitchell (1983), who designed the VALS (values and lifestyles) sys- tem using Maslow's humanistic need theory. More recently, the interpretivist orientalion (e.g., Sherry 1991) has honed our appreciation of goods” meanings in consumers” lives. A carcfully cultivated lawn and flower garden can give a homeowner a sense of accomplishment, or a parent may derive special satisfaction from selecting food, clothing, or furniture for a safe, healthy home. Gift-giving can involve significant emotional and symbolic dimensions. Movies, sporting events, or theatrical productions can lead to feelings of belonging, prestige, escape, or excitement. Consumer activities enable learning, socializing, and self- enhancement (listening to music, playing tennis); benefits are emotional, subjective, and experiential (Holbrook and Hirschman 1982*). Spending money can bring feelings of achievement, status, control, and even play. Shopping is an enjoyable activity for many. Although intangible and diffi- cult to express, our treatment of the marketing systems con- tributions to consumers would be incomplete without dis- cussion of these sometimes meaningful consequences. Two emerging areas of study on marketing's broader con- tributions. During the 1960s and 1970s, literature on market- ing and society raised questions about (1) how well society it- self was faring and (2) how it might be improved. These questions spawned two different subareas: rescarch on “qual- ity of life” (QOL) and “social marketing.” Marketers inter- ested in QOL faced three special issues: (1) marketing is on- ly one of many forces that combine to yield overall lifestyles, (2) daunting conceptualization and measurement issues on exactly what QOL is, and (3) difficulty in communicating across fields. Economists defined issues 1o fit their terms and research forms, as did psychologists, sociologists, ecologists, and political scientists (Sirgy, Samli, and Meadow 1982). The International Society for Quality of Life Studies now carries on this work. Recent work on the American Consumer Satis- faction Index shows promisc in reflecting market-based per- formance of the system at various levels of aggregation (For- nell et al. 1996), as docs work an the Index of Consumer Sentiment Toward Markcting (Etzel and Gaski 1999). Social marketing differs from traditional marketing by aiming to benefit the target audience dircctly (e.g., AIDS awareness or childhood immunization) or society as a whole (e.g., recycling programs, blood donations) rather than the firm sponsoring the program (Andreasen 1994*). It has, however, faced academic difficulties on two fronts: (1) it has tended to be an “action” field in which primary emphasis is on successful intervention and (2) value judgments are made on desirable behavioral changes, so the area is also “activist” in this sense. There is potential to add to knowledge in this sphere, and an expanding set of researchers has been moving into the area (e.g., Andreasen 1991; Goldberg 1995*). Mean- while, useful field work has been progressing for some time, applying marketing tools in health and safety, education, charitable giving, politics, the arts, and the environment. In light of the topic for this article, these two fields of study are significant in pointing out that the aggregate mar- keting system is composed of more participanis than just business marketers. Private marketing ís the mainstay of the system in the United States, but government, the entire con- sumer sector, and many individuals in the not-for-profit sec- tor are also participants. The system's issues extend to soci- etal concerns and, in turn, are alfected by them as well. Criticisms and Problems of the Aggregate Marketing System Our focus in this article has been on accomplishments, but balance calis on us to acknowledge also that the aggregate marketing system long has been controversial in some re- spects. In Figure 6, we summarize many of the most promi- Marketing's Contributions / 213 Copyright O 1999. All rights reserved. nent criticisms, controversies, and problems that have been raised, Space limitations preclude an extended analysis, but it is available elsewhere (Moore and Wilkie 2000). We be- gin with critiques of system values. These usually are made by persons speaking from vantage points outside the system and raising philosophical points about its nature. These crit- icisms tend to say little directly about the practice of mar- keting but instead focus on broader issues such as the “con- sumer culture” and the economic system that sustains it. Po- litical theory is the root of some of these critiques, but not all. These are not simplistic arguments, and we do not wish to do them an injustice in such a brief summary. Readers FIGURE 6 Criticisms and Problems of the Aggregate Marketing System de Critiques of System Values Promotes materialism - Stresses conformity - Social competitiveness, envy - Exacerbates pain of poverty Negatively affects cultural values - Creates insidious cycle of work and spend - Discourages participation in noneconomic activitias (e.9., arts, community, leisure) - Undermines families, alters socialization ls fundamentally persuasive/ma- nípulative in character - Creates artificial wants and needs - invokes imbalance between marketer and consumer Cultural imperialism - Cultural impacts - Natural resource depletion - global warming Proposes limitless, unsustainable aggregate consumption levels Capitalist system promotes in- equality in benefit distribution (faimess versus allocative effi- ciency) Emphasis on private consump- tion leads to deterioration ín qual- íty of public goods Pervasive commercialism System is inherently self-serving, difected toward no broader social purpose “Classic” Social and Economic Debates + Does distribution cost too much? + Is there too much advertis- ing? Is it wastetul? - Advertising: information or market power? - Advertising: good taste and morality? - Subliminal advertising? - |s price related to quality? - Is deliberate product obsoles- cence good? The Consumer Bill of Rights -The right of safety - The right to be informed - The right to choose - The fight to be heard Consumerisnys Three Major eras: Key lesues 3. Tum of tha century - Food and drug sataty - Regulation of competition 11. 1920s and 19305 - Objective information - Consumer representation 111. 1960s and 19708. - Product safety - Advertising's social impact - Avenues for cedress Economic Imperfections: The Asymmetric Power ot Marketing - Difficull product quality as- sessment = Incomplete or biased informa- tion - Too few sellers in some local markets - Uncaring civil servants - Too little time for considered decisions - Underrepresentation of con- sumer interest - Ineffective regulatory agen- cies - Consumers' deficiencies Some Continuing Controversies - Dangerous products (e.9.., cigarettes) - Vulnerable groups (8.g., chil- dren, elderty) - Emerging problems with mar- ketplace encroachment - Intusiveness of advertising - Concerns regarding inva- sion of privacy - Restrictions on database usage - Selling as marketing re- search - Exploitation by price dis- crimination Limits to Information and Persuasion Advertising content - Limits to persuasion - Themes, executions, and copy - Intrusiveness: environmental clutter - Ad approval processes Sales, pricing. and atter-sales practices - Limits to persuasion - Control of safes abuses - warranties and guarantees - Retailer and distributor pric- ing practices Information disclosure - Limits to disclosure - Effective warning labels - Use of disctaimers The Broader Environment Environmental concems - Natural resource depletion - Threats to ecology - Reusabilty and disposition Product safety - Hazardous products - Regulatory approval process- es - Product failure and liability Anticompetitive practices » Effects of quotasArade barri- ers - Antitrust issues Responsible Corporate Citizenship Consumer dissatistaction - Rumors and negative word of mouth - Complaint handling - Problem resolution systems Corporate actions - Incorporating ethical con- cerns - ole of consumer affairs de- partments - Criteria for evaluating busí- ness performance - Industry self-regulation - Community involvement Marketing Sector - Deceptive advertising - High-pressure sales tech» niques - Misrepresentations of sales intent - Inferior products and services - Baít and switch - Price fairness: high-low pric- ing - Price fixing - Predatory pricing - Franchise abuses - International: Bribery - Gray-market goods - Counterfeit goods - Internet fraud Consumer Sector - Unintormed decisions - Consumer fraud (e.9., shoptifting, credit abuse) - Bankruptey - Product liability: Frivolous tawsuits - Compulsive consumption Government Sector - Errors of omission - Errors of commission 214 / Journal of Marketing, Special Issue 1999 ...— Copyright 0.1999. All rights reserved, ture of a bureaucratic system. For example, New York City's health department discovered that a dis- pute between two taboratory managers had led to de- lays of up to one year in reading cancer test results for women using city clinics. Of 3000 delayed Pap smcar readings, 500 abnormalities called for imme- diate follow-up, 93 more appeared malignant, and 11 were clearly malignant. On discovery, the commis- sioner denounced his department for “betrayal of the public trust” as he demoted four people (evidently, none could be fired). Several points remain. This is a complex area in- volving the law; it may not be clear that an act was deliberate or that a certain party was responsible. Al- so, criticisms usually are aimed at marketers, but all system participants have responsibilities, including public policymakers and consumers, and negative acts vecur in each sector regularly. In addition, some acts deserve to be criticized by all participants. The U.S. system is designed for dealings to be open, hon- est, and well-informed. Deceptive and irresponsible bshaviors injure honest competitors or consumers, Thus, it is disingenuous to simply defend actions of fellow marketers or consumers because system roles are shared. It is not clear why anyone would want disreputable persons" actions to define either the standards or image for the system overall. Conclusions and Implications Our goal has been to stop at this unique point in time, con- sider the larger picture of the marketing field, then fairly portray ¡ts structure, activities, and benefits to society. The system is huge and dynamic. lts imperfections stand as chal- lenges for improvement, and ii is appropriate for partici- pants to work Lo rcctify them. Beyond this, thc aggregate marketing system offers much that is impressive. in Summary This article began by comparing daily life today with that at the turn of the last century. It is evident that the aggregate marketing system has brought many improvements to soci ety. An illustration of a breakfast then showed the conflu- ence of marketing sysicms, which highlighted the physical side of marketing and the wide range of system activities. Together, these explain why the aggregate marketing system is so ubiquitous within U.S. society: It employs approxi- mately one in five adults and includes several million firms, several hundred million consumers, and many others who deal with marketing in their work in government, the pro- fessions, services, and not-for-profit sector. In the next sec- tion of the article, we summarized a (hree-set series of con- tributions the aggrcgate markcting system offers to society. We examined benefits to the overall economy, as well as for economic development, in the first set. The second set com- piled an impressive array of direct benefits to buyers, and the chird noted continual enhancements in system perfor- mance and an array of noneconomic contributions to the quality of life of a society and its members. We followed this 216 / Journal of Marketing, Special Issue 1999 with a summary of criticisms of the system. As previously noted, the aggregate marketing system emerged from this overall analysis as a worthy testament to those who have shaped il over time. Interesting Insights from the Project Some substantive lessons learned. This project has been illuminating, and five “lessons learned” stand out for us (de- pending on background and interests, other readers might have drawn different insights). VThe size, power, and practiced performance of the aggregate marketing system has emerged in this project. Several points accompany this realization: (1) There is a real need to appre- ciate conceptually the magnitudes involved in this system; (2) many “hidden aspects ol marketing” may be being excluded from thinking about the field; and (3) those marketing ele- menis the public experiences directly, such as advertising and retail selling, are likely receiving disproportionate weight in its view of the field. ho: all lessons are entirely positive; future developmenis fike- Ly will place marketers at the center of further controversies. “Society,” as referenced in the article's title, may be losing cohesian, and global marketers can be described as assisting this process (though this might not be intentional). Consider challenges to ethical systems (e.g., bribery), religious beliels and customs (e.g., interest rates), or government protechions for home industries and workers (trade barriers) and growing needs for adaptations in national antitrust policies (Federal Trade Commission [FTC] 1996). Meanwhile, not only does the Internet scamlessly cross socictal boundarics, but the in- credible efficiency of its reach offers huge potentials for mar- keting fraud, In one recent FTC (1997) case, an Internet pyra- mid scam promised investors $60,000 per year for an initial investment of $250: 15,000 consumers had bought in before it was stopped. Overall, concerns are increasing about mar- keter intrusions in privacy of records, security of financial re- sources, and selling to children. DThis articte has concentrated on benefits and system poten- tíals. However, at this special point in time, ít is reasonable for every marketing person to ask whether the current aggre- gare marketing system actually represents “the best of all worlds.” Our emphasis here is not critical but philosophical. The system is very powerful, and marketers arc at work to help it achieve ¡ts ends. That socicty has granted marketers substantial freedoms, and that these serve to allocate much of the nation's resources, is a key statement about a sociotal pur- pose of the aggregate marketing system. To what extent do marketing managers view themselves as having reponsibility for improving the public interest or acting as stewards of a society's resources? What implications do these views have for the field as presently constituted?16 dThe central role for innovation in improving a society's qual- iy of life became more evident to us. The contributions from innovations and improvements are striking. Conceptually, this underscores the value of dynamism in an aggregate mar- keting system, as well as the key role of competition in pro- viding the system's impetus. In turn, the societal importance of a government policies to foster and protect both innova- tion and competition-antitrust, patents, trademarks, and so forth—become clearly apparent. but global diflerences may impede future progress. We also find the system's twin re- líance on competition as a driver and trust as a bonding agent 16We thank an anonymous reviewer for suggesting this issue be raised for the field's considcration. Copyright O 1999. All rights reserved. to be impaciful yet somehow paradoxical. Finally, it is clear thas achievement of success in discovering, developing, and managing new products is a central issue for the field, which
