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Role of Relationship Management and Value Co-Creation in Social Marketing
Role of Relationship Management and Value Co-Creation in Social Marketing
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What is This?
BY DARSHAN DESAI
ABSTRACT
Introduction
In the business management literature, scholars have shifted their emphasis away
from isolated transactions to focus on longer term relationships. This paradigm
shift (Gronroos, 1994) in business management literature has largely been
ignored by the social marketers, which is a surprising oversight (Hastings,
2003; Wood, 2008). Recently, in the context of social marketing, the scholars
have highlighted the importance of relational paradigms (Hastings; Lee, 2007).
The relational paradigms seem to have a lot to offer to social marketing; however,
the path of applying concepts of the relational paradigm in the social marketing
contexts has not been smooth. Social marketers have faced a few obstacles in
applying relationship marketing and customer relationship management concepts
and could not accept these concepts wholeheartedly.
In response to changing culture, lifestyle, and technology, there has been a
change in the concepts of marketing and customer relationship management.
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marketing context, reciprocity may be more complex and interdependence may not
be evident.
Customers’ perceptions of benefits that they will receive through a behavioral
change (perceived value-in-use) are the key motivations for changing behaviors.
In absence of interactive contacts, if a social marketer assumes the perceived
value-in-use, then consumers may be too passive, and the reciprocity and interde-
pendence may not be evident. Today, social marketers’ customers are no longer a
target audience, they directly communicate about their perceptions of the benefits
and co-create better offerings (Lefebvre, 2007). Due to empowerment of the cus-
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tomers, they gain abilities to be active relationship partners and participate in co-
creations. However, these customers will not participate, if a social marketer does
not reciprocate. Instead of hammering the offerings on consumers, social market-
ers also take active interests in knowing customers’ perceived benefits and get
engaged with customers to co-create the expected benefits.
New media facilitate social marketers and customers to co-create value; how-
ever, it is not essential. Without the use of new media, many social marketers are
reciprocating partners and empower, encourage, and support people to make
them reciprocating partners. For being an active relationship partner, the most
important task for a social marketer is to nourish reciprocity in the relationships.
in the behavioral change and are also important for developing social capital
(Nahapiet & Ghoshal, 1998): collective value of all social networks and the incli-
nation that arises from these networks to do things for each other. The social
capital facilitates mutually supportive relations and, therefore, is a valuable means
of achieving consumers’ active participation in socially desirable behaviors and
relationships. For example, a person’s decision to quit smoking is strongly affected
by whether other people in their social network quit–even people they do not
know. And, surprisingly, entire networks of smokers appear to quit virtually sim-
ultaneously (Christakis & Fowler, 2008). Therefore, many social marketers have
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‘‘places,’’ created their own games with interactive game generator and co-created
the ‘‘products.’’ Tweens interacted with the campaign website, recorded their
physical activities in ‘‘MyVERB recorder,’’ earned rewards, and co-created the
‘‘price.’’ VERB Yellowball incorporated digital technology with a separate website
that encouraged tweens to play with 1 of the 500,000 Yellowballs distributed
throughout the United States; tweens passed the ball to another tween and then
bloged about how they had played with the ball and co-created promotion.
Dialogues during the consumption also allow social marketers to engage in
consumers’ value-generating processes. For example, a number of nongovernmen-
tal organizations (NGOs) in India get involved in customers’ value-generating
processes while promoting self-help groups. Self-help groups are village-based
financial intermediaries usually composed of 10–15 local women. Members of
such groups voluntarily come together to save regular small sums of money; they
mutually agree to contribute to a common fund to meet their emergency needs on
the basis of mutual help. The group members use collective wisdom and peer
pressure to ensure proper use of credit and timely repayment. NGOs do not just
assist changing behaviors in terms of formation of the self-help groups, but
through dialogues and conversations, they engage with these groups of women
to co-create their personalized value-in-use. NGOs support the groups by trans-
mitting a sense of purpose, helping them functioning smoothly, developing the
required capabilities, and facilitating them to obtain microcredit.
Access includes information and tools that enables behavioral change. Scho-
lars and social marketers have already recognized the importance of access in
social marketing and behavioral change (Kotler & Lee, 2008). With the focus
on access, social marketers distributed insecticide-treated mosquito nets and suc-
cessfully reduced childhood deaths from malaria in endemic countries (Nathan
et al., 2004). Due to poverty, many consumers in developing countries do not
have access to numbers of health products. To enhance the access and equity,
many social marketers in developing countries sell socially marketed health
products at reasonably low costs or almost free. Many times such ownership
transfer of socially desirable products is important; however, Prahalad and
Ramaswami (2004) challenge the notion that ownership of the products is the
only way for consumers to access and experience value. By focusing on access
to value, as opposed to simply promoting ownership of products, social marketers
can broaden consumers’ view of opportunities and alternatives. With focus on
access, social marketers may enhance the consumers’ abilities to access and partici-
pate in co-creations and can also think of empowering the consumers in develop-
ing countries by helping them engage in business, become barefoot entrepreneurs,
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and earn a profit so that they can spend some of that profit on the health care and
health products (Lefebvre, 2008).
For better co-creation of value-in-use, consumers need and demand more
information about potential risks; but they may also bear more responsibility
for dealing with those risks (Prahalad & Ramaswami, 2004). Whenever social
marketers’ offerings have some probability of harm, an active dialogue on risks
and benefits involved in using the ‘‘socially desirable’’ market offerings can create
a new level of trust between consumers and social marketers. For example, recent
studies are divided on the benefits and risks of breast cancer screening through
mammography. A study of more than 90,000 Canadian women suggested that
women in their forties reap no real benefits from mammography, but they greatly
suffer from unnecessary treatments (Prahalad & Ramaswami). Such issues put a
premium on discussing the evidence concerning risks and benefits to consumers
to help them make informed risk-benefit trade-offs. Risk in the context of social
marketing not only refers to probability of harm due to social marketers’ offerings,
but it also refers to the probability of harm due to undesirable behavior.
To co-create better value-in-use, social marketers can provide tools, support
structure, and appropriate methodologies that help customers in understanding
the personal and societal risk associated with a range of behaviors and practices.
For example, Sustainable Table, a program of the nonprofit organization,
GRACE, provides tools and support structure to consumers for understanding
personal and societal risks associated with factory farming, sparks discussion in
communities about related issues, and offers potential solutions.
Social marketers’ role as a promotor of desirable behavior among the targer
audience arises from the information asymmetry between the consumer and the
social marketer. Here, social marketers assume that the target audiences have
undesirable behaviors and lack information and awareness about more socially
desirable behaviors. Hence, they try to change the voluntory behaviors of the tar-
get audiences. That asymmetry is rapidly disappearing. Hence, ‘‘if you will not tell
the truth, someone else will.’’ As information becomes more accessible, creating
new levels of transparency becomes increasingly desirable. Transparency refers
to accessibility of the processes involved in decision-making, in addition to the
outcome and to information itself. Social marketers need to choose an appropirate
level of transparency to be honest and trustworthy peers and can not cheat.
For example, Taiwan Biobank project aimed to analyze the connection of the
genotype of Taiwanese people and certain diseases and sought to collect 200,000
blood samples from Taiwanese people in three counties. The project lacked an
appropriate level of transparency in the pilot phase; without informed consent,
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3,000 blood samples were taken during free health checks. In absence of required
transparency, people distrusted the project. In later phases, with transparent risks
communication, along with information disclosure and decision-making trans-
parency, it could be possible to rebuild the trust on mutual benefits, which was
important for co-creations (Niu, 2007).
For understanding value co-creation in the context of social marketing, along
with social marketer-consumer interactions, it is also important to focus on con-
sumer-consumer interactions, which have enormous potentials for value co-
creation. For example, a social marketer Douwe Egberts (DE) Foundation aims
at providing a tool to (small scale) farmers in the developing world that allows
them to gain insight in to their management of crops and produce. They also
can learn from comparing their performance with that of colleague farmers. This
kind of interaction among the farmers (customers for DE foundation) can help
them become entrepreneurs and to gain=keep market access.
marketers. It provides important insights into how social marketers can leverage
new media technologies, find creative ways to deal with the obstacles in the path
of adopting relational paradigms, become active relationship partners, and co-cre-
ate value.
Despite the recognition of the importance of active borrowing from different
social science disciplines, social marketing has been highly influenced by market-
ing tools and techniques. Andreason (2003) notes that ‘‘the assumption that com-
mercial sector concepts and tools ought to migrate seamlessly to social marketing
is . . . just an assumption’’ (p. 299). Instead of relying solely on commercial
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Conclusion
In the market-like contexts, the concepts of relationship marketing and customer
relationship management have been based on the assumption of low relational
and practices of the customer relationship management 2.0, social marketers and
their customers need to be active relationship partners; social marketers need to
nourish reciprocity, trust, and commitment in their relationships with different
kinds of customers. When social marketers and consumers are active relationship
partners, their interactions become a locus of value co-creations.
These value co-creations are implemented through four key building blocks:
dialogue, access, risk-benefit assessment, and transparency. Along with con-
sumer-social marketers interactions, consumer-consumer interactions are also
important for value co-creations and social change. This understanding about
consumers’ and social marketers’ active roles in relationships and value co-
creations builds a foundation for applying customer relationship management
2.0 and social media tools and technologies in the social marketing contexts.
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