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 MARKETING FOURTH EDITION

ELLIOTT | RUNDLE-THIELE | WALLER | SMITH | EADES | BENTROTT

9.7 Additional forms of promotion
Ambush marketing 343
Guerilla marketing 344
Product placement 345
Viral marketing 347
Permission marketing 347
Sponsorship 348
Summary 350
Key terms 351
Case study 352
Advanced activity 354
Marketing plan activity 354
Websites 355
Endnotes 355
Acknowledgements 357
CHAPTER 10
Distribution (place) 358
Introduction 359
10.1 Distribution channels 360
Consumer product distribution
channels 362
Business‐to‐business product distribution
channels 364
Supply‐chain management 364
10.2 Distribution of goods 367
Order processing 368
Inventory management 369
Warehousing 369
Transportation 370
Technology in physical distribution 372
10.3 Distribution of services 374
Physical inputs 374
Delivery infrastructure 374
Scheduling 374
10.4 Retailing 376
Retailing strategy 376
Benefits of retailers 377
Types of retailers 378
10.5 Agents and brokers 386
Agents 386
Brokers 386
10.6 Wholesaling 388
Major wholesaling functions 388
Types of wholesalers 388
Summary 391
Key terms 392
Case study 393
Advanced activity 395
Marketing plan activity 395
vi CONTENTS
343 Websites 396
Endnotes 396
Acknowledgements 397
CHAPTER 11
Services marketing 398
Introduction 400
11.1 Service‐dominant economies 400
‘Services’ and ‘service’ 402
Service product classification 402
11.2 The services marketing mix 405
Unique characteristics of services 406
The extended services marketing mix 415
11.3 Services marketing challenges 421
Managing differentiation 421
Developing profitable customer relationships 422
Delivering consistent customer
service quality 422
Summary 428
Key terms 428
Case study 429
Advanced activity 431
Marketing plan activity 431
Websites 431
Endnotes 431
Acknowledgements 432
CHAPTER 12
Digital marketing 434
Introduction 435
12.1 Digital marketing 436
12.2 Characteristics of digital marketing 438
Profiling 438
Interaction and community 439
Control 440
Accessibility and comparability 440
Digitalisation 441
12.3 Digital marketing methods 443
Paid, owned and earned media 443
Brochure sites 444
Social media 444
Viral marketing 446
Portals 446
Search engine optimisation 446
Search engine marketing 447
Email, SMS and MMS marketing 448
Apps 448
VR — the new technological frontier
for marketers 448
E‐commerce 449
12.4 Ethical and legal issues 451 CHAPTER 14
Privacy 451
Misleading or deceptive conduct 452 Social marketing and not‐for‐
Spam 453 profit marketing 505
Intellectual property 454
Introduction 506
Consumer protection 454
14.1 What is social marketing? 507
Technology burnout 455
Scope of social marketing 509
Legal enforcement 455
12.5 Digital marketing and marketing strategy 457 14.2 Benchmark criteria for social marketing 512
Target markets 457 Behaviour change 514
Customer relationship management 457 Audience research 514
The marketing mix 458 Segmentation 515
Evaluating digital marketing effectiveness 459 Exchange 515
Electronic business 461 Marketing mix 516
Summary 463 Competition 517
Key terms 464 14.3 Three social marketing streams 519
Case study 464 Downstream social marketing 519
Advanced activity 467 Midstream social marketing 519
Marketing plan activity 467 Upstream social marketing 519
Websites 467 14.4 What is (and is not) social marketing? 522
Endnotes 467 14.5 Not‐for‐profit marketing 524
Acknowledgements 469 Summary 527
Key terms 528
CHAPTER 13 Case study 528
Advanced activity 530
International marketing 470 Marketing plan activity 530
Introduction 471 Websites 530
13.1 International marketing fundamentals 472 Endnotes 531
A global village? 473 Acknowledgements 532
Standardisation versus customisation 474 CHAPTER 15
Global trade 475
13.2 The international marketing environment 478 Marketing planning,
Political forces 480 implementation and
Economic forces 483
Sociocultural forces 484
evaluation 533
Technological forces 485 Introduction 535
Environmental forces 486 15.1 The marketing cycle 535
Legal forces 487 Understanding, planning, implementation
13.3 Why and how organisations go and evaluation 536
international 489 15.2 Marketing planning 538
Selecting overseas markets 489 Marketing objectives 541
Methods of market entry 491 15.3 Marketing implementation 545
Born global 493 Potential internal barriers 545
13.4 The international marketing mix 494 Environmental factors 547
Summary 499 Maximising success 547
Key terms 499 15.4 Evaluating marketing performance 550
Case study 500 Measuring performance 551
Advanced activity 502 Summary 555
Marketing plan activity 502 Key terms 555
Websites 502 Case study 556
Endnotes 503 Advanced activity 558
Acknowledgements 504 Marketing plan activity 558

CONTENTS vii
 Websites 558 Marketing analytics 575
Endnotes 559 Machine learning 578
Acknowledgements 560 16.4 Issues in analytics 581
Legal and ethical issues in data
CHAPTER 16
analytics 582
Data and analytics 561 Analytics skills for decision makers 583
Introduction 562 Future of data analytics in marketing 583
16.1 Data‐driven marketing 563 Summary 585
Key terms 585
Definition of data and analytics 564
Case study 586
Data‐driven decision making 564
Advanced activity 587
Data‐driven results 566 Marketing plan activity 587
16.2 Big data 567 Websites 587
Internet of Things 568 Endnotes 587
Social media data 569 Acknowledgements 588
Understanding and obtaining data 569
Computing resources 572 APPENDIX
Data governance 573 Marketing plan 589
16.3 Data analytics in marketing 574
Obtaining customer data for analytics 575

viii CONTENTS
ABOUT THE AUTHORS
Professor Greg Elliott
Greg Elliott was formerly Professor of Business (Marketing) in the Faculty of Business and Economics
at Macquarie University, a position he held since 2005. Prior to this, he was a Professor of Management
in the Macquarie Graduate School of Management.
Greg has extensive experience in teaching marketing in Australia and overseas, and in course program
management in South-East Asia. He is currently an academic advisor to a number of higher education
providers. Before joining Macquarie University, he held academic appointments at the University of
Technology, Sydney, the University of Western Australia and the University of Melbourne; and visiting
appointments at Trinity College and University College, both in Dublin, Ireland.
Greg has published extensively in the academic marketing literature and his current research interests
are in the fields of services marketing, financial services and international marketing. Prior to his aca-
demic career, Greg spent over a decade in the marketing research and marketing planning area of the
banking industry. More recently, his consulting activities have been concentrated in the banking, finan-
cial services and professional services sectors.
Professor Sharyn Rundle-Thiele
Professor Sharyn Rundle-Thiele is Director, Social Marketing @ Griffith and Editor-in-Chief,
Journal of Social Marketing. Drawing on her commercial marketing background, Sharyn’s research
focuses on applying marketing tools and techniques to change behaviour for the better. She is cur-
rently working on projects delivering changes to the environment, people’s health and for the greater
social good. Selected current projects include changing adolescent attitudes towards drinking alcohol
(see www.blurredminds.com.au/students), increasing healthy eating and physical activity to combat
obesity, reducing food waste and delivering change in wide variety of settings. Research partners include
Defence Science and Technology Organisation, Australian Defence Force, Queensland Catholic Educa-
tion Commission, Redland City Council, VicHealth and more. Sharyn’s research is published in more
than 100 books, book chapters and journal papers.
Dr David Waller
David Waller is a Senior Lecturer in the School of Marketing, University of Technology Sydney. David
received a Bachelor of Arts from the University of Sydney, a Master of Commerce from the University
of New South Wales and a PhD from the University of Newcastle, Australia. He has over 20 years of
experience teaching marketing subjects at several universities, including the University of Newcastle,
the University of New South Wales and Charles Sturt University. He has taught offshore programs in
Malaysia and China. Prior to his academic career, David worked in the film and banking industries.
David’s research has included projects on marketing communications, advertising agency–client
relationships, controversial advertising, international advertising, marketing ethics and marketing edu-
cation. He has published over 70 refereed journal articles in publications including the Journal of
Advertising, Journal of Advertising Research, European Journal of Marketing, Journal of Consumer
Marketing, International Journal of Advertising and the Journal of Marketing Communications. David
has also authored or co-authored several books and workbooks that have been used in countries in the
Asia–Pacific region, and is a regular presenter at local and international conferences.
Dr Sandra Smith
Sandra Smith is a lecturer in the Department of Marketing at the University of Auckland Business
School. Her research interests are framed by a general interest in the way actors in marketing systems
construct meaning within and about their consumption experiences, particularly with respect to the

ABOUT THE AUTHORS ix

brands with which they engage, including the ways employees narrate their experiences of the corporate
brand. Sandra has also conducted work in relation to negative consumer brand engagement, movie
goers’ interpretations of brand placements and consumer identity work. She has published her work in a
number of top marketing journals including Marketing Theory, the European Journal of Marketing and
the Journal of Retailing and Consumer Services.
Liz Eades
Liz Eades is a lecturer of Marketing at both RMIT and Swinburne universities, a position she has held
for over ten years. She has over 20 years of experience in the fields of marketing and management,
having worked for various multinational clients and organisations. She has managed and directed her
own business since 2004, where she actively consults numerous clients on marketing, communications
and management issues. Liz holds a Master of Marketing, a Master of Business Administration, and
membership to various industry organisations.
Dr Ingo Bentrott
Ingo Bentrott is a lecturer in the Marketing Discipline Group at the University of Technology Sydney,
a position he has held since 2005. Prior to this, Ingo worked for over six years in the analytics and data
mining industry. He also worked in production and quality assurance statistics in electronics manu-
facturing for five years. Ingo’s research is the use of data mining to boost the accuracy of traditional
marketing modelling techniques. Specifically, he looks at ways to improve models that contain unob-
served heterogeneity, missing data, unknown data interactions, and large amounts of unstructured text
data.

x ABOUT THE AUTHORS

APPLICATIONS AT A GLANCE
Chapter
1 Introduction to marketing
2 The marketing environment
and market analysis
3 Market research
4 Consumer behaviour
5 Business buying behaviour
6 Markets: segmentation,
targeting and positioning
7 Product
xii APPLICATIONS AT A GLANCE
Opening case Spotlight features
Do you see what I see? 1.1 Boost Juice bars in a global, digital marketplace
1.2 Why ‘free’ will eventually cost you
1.3 Coke’s attempt at health-washing a fizzer
1.4 Phantom brands haunting our supermarket
shelves as home brand in disguise
1.5 Thankyou
Selling convenience: 2.1 Palm oil: looking for a sustainable solution
the rise of the meal kit 2.2 Please hold
2.3 Can a corpulent Woolies discard its history and
fight off Aldi?
2.4 Cyber Monday gives a big boost to mobile
commerce
2.5 How ‘gamification’ can make transport systems
and choices work better for us
Big Brother is watching 3.1 Identifying the ideal moment to dive in
every dollar you spend 3.2 Zeroing in on waste reduction
3.3 Know the target audience
3.4 What you say, versus what you actually do
Online retailers yet to 4.1 US election: what impact do celebrity
harness big social data endorsements really have?
4.2 Fast food companies use social networking
sites to target children
4.3 Why we all need to feel good about ourselves
4.4 What’s made Pokémon GO such a viral
success?
Not always explosive 5.1 Too close for comfort
growth 5.2 Still big and blue
5.3 Tough times for milk producers
5.4 B2B in the pharmaceutical industry
Target marketing and 6.1 Harnessing the power of the sun
marketing Target 6.2 When segmentation fails
6.3 Geodemographic segmentation
6.4 Welcome to blandsville? Myer and David Jones
embrace grocery-style streamlining
6.5 Opel Leben Autos
McDonald’s ‘Create 7.1 Swarovski Crystal — exclusive product
Your Taste’ 7.2 Fitbit — watch out for Blaze
7.3 RSPCA pet insurance
7.4 You know the brands, but can you pronounce
them?
7.5 Coke’s label makeover
7.6 Movie merchandise: cashing in on a fad
 Closing case

Topic Type of organisation Type of market Type of product

When ‘hand crafted’ is really just crafty SME/MNC Consumer Idea

marketing

Checking the pulse: are we satisfying our Not-for-profit SME/MNC Service

employees?

Human trafficking in Nigeria Government Social Idea

Anyone for bubble tea? SME/MNC Consumer Goods

B2B(2C) in residential construction SME Consumer and Goods and

business services

Generation Z defined: global, visual, SME/MNC Consumer Goods and

digital services

Is the PC a product in decline? SME/MNC Consumer and Goods

business

APPLICATIONS AT A GLANCE xiii

PRELIM HEAD
Chapter
8 Price
9 Promotion
10 Distribution (place)
11 Services marketing
12 Digital marketing
13 International marketing
14 Social marketing and
not-for-profit marketing
15 Marketing planning,
implementation and
evaluation
16 Data and analytics
xiv APPLICATIONS AT A GLANCE
Opening case Spotlight features
Uber pricing 8.1 There’s still a lot of dough in bread (even at
$1 a loaf)!
8.2 Airbnb and the price of sharing
8.3 It’s not just about low prices
8.4 The (pizza) war is over!
8.5 A $2.3 billion train set
8.6 Cheap AND cheerful
Qantas — ‘Feels like 9.1 iSentia: monitoring media feedback
Home’ 9.2 Menulog: ‘What do you feel like?’
9.3 Red Bull
9.4 #coalisamazing: An amazing mistake
9.5 Superdockets — capitalising on coupons
9.6 What does a sales ‘rep’ do?
9.7 Sports scandals and sponsorship deals
Fresh milk to China 10.1 Boost Juice bars
10.2 Toll Logistics and sustainability
10.3 Commonwealth Bank: mobile banking
10.4 Aldi: growing in popularity
10.5 Profile: raising its profile as a talent agency
10.6 Costco: a different type of wholesaler
A train service to 11.1 Rough going at Medibank
dream about 11.2 The Net Promoter Score
11.3 Customer service in an omni-channel
environment
Build your LEGO 12.1 Online shopping study
Christmas 12.2 Game of illegal downloads
12.3 Forgot your wallet? No problems
12.4 Regulating ads online
12.5 Smarter shopping with smartphones
Keeping coffee 13.1 Brisbane to Malibu: Lorna Jane takes on the
sustainable world
13.2 Netflix: a cultural icon
13.3 AJ Hackett
13.4 Taking Australian tucker to the world
Let’s GO!: designed to 14.1 Delivering healthier food choices
increase active school 14.2 Encouraging recycling in a poor community in
travel South Africa
14.3 It’s time to change littering rates
14.4 Offering a solution to solve a problem
14.5 What prompts texting and driving in young
Australians?
Understanding the 15.1 #MyBeautyMySay
effectiveness of 15.2 Canon Australia: ‘No one sees it like you’
industry self-regulation 15.3 ‘A coffee with Thanasi’!
efforts 15.4 Loaded
Analytics to predict 16.1 Google Analytics
gender 16.2 Not-so Simply Orange
16.3 Kaggle
16.4 Garbage in, garbage out
PRELIM HEAD
Topic
Closing case

Type of organisation Type of market Type of product

What price electric cars? MNC Consumer Goods

What is happening to television? SME/MNC Consumer Services

Linfox growing businesses across Asia SME/MNC Business Service

The best  .  .  .  and worst airlines in the MNC Consumer Service

world

Headspace Not-for-profit Consumer Service

China’s organic online demand MNC Consumer Goods

Give me 5: a pilot walking program Government Consumer Idea

Byron Bay Bluesfest SME Consumer Services

Companies transformed by analytics MNC Business Service

APPLICATIONS AT A GLANCE xv
CHAPTER 1

Introduction to marketing
LEA RNIN G OBJE CTIVE S

After studying this chapter, you should be able to:

1.1 provide an overview of marketing and the marketing process
1.2 recognise that marketing involves a mutually beneficial exchange of value
1.3 discuss the importance of ethics and corporate social responsibility in marketing
1.4 explain the elements of the marketing mix
1.5 discuss how marketing improves business performance, benefits society and contributes to
quality of life.
 CASE STUDY

Do you see what I see?

For many, marketing has a bad reputation. It is
important for any aspiring marketing professional to
understand the views of marketing that are widely
held in the broader community. Marketing is viewed
by many people as an evil force; for some, it is viewed
as a business function that causes people to buy
things they don’t really need with money they don’t
have. For others, the marketing function is blamed
for flawed products that are sold in the marketplace.
Finally, others are concerned about the messages that
are communicated by marketers. Many marketing
messages include false or overstated claims, and
others fail to include complete information — leaving consumers largely in the dark about the short‐
and long‐term effects of a product. These are but a few of the concerns expressed by members of the
broader community about the marketing profession.
Let’s take a brief look at alcohol. Notwithstanding efforts to discourage heavy and binge drinking
and promote safe drinking habits, alcohol contributes to over 200 diseases and injury‐related health
conditions, most notably alcohol dependence, liver cirrhosis, cancers, and injuries.1 In 2012, 3.3 million
deaths globally, or 5.9 per cent, were attributable to alcohol consumption,2 and 5.1 per cent of the
burden of disease and injury worldwide (139 million disability‐adjusted life years) was attributable to
alcohol consumption.3
Alcohol misuse is the fifth‐highest risk factor for premature death and disability; among people between
the ages of 15 and 49, it is the first. Approximately 25 per cent of deaths among people aged 20–39 years
are attributable to alcohol.4
Drinking among underage and young adults is a problem in a number of countries. In the United
States in 2014 about 13.8 per cent of people aged 12–20 were binge drinkers.5 In Australia, although
there was an increased rate of abstinence among 12–17 year olds, around one in six (16 per cent)
people aged 12 or older reported consuming 11 or more standard drinks on a single drinking occasion
in the previous 12 months. Similarly, more than one in five (21 per cent) drinkers had put themselves or
others at risk of harm while under the influence of alcohol in the previous 12 months.6
Exposure to alcohol advertising, particularly among young people, is increasing due to the expansion
of alcohol advertising into digital media and through globalised platforms, and this is likely to have a
cumulative effect. Exposure is both direct (television and print media, official brand websites and alcohol
sponsorship of sports and cultural events) and indirect (product placement in films, music videos and
television programs, social media and in‐store promotions).7
UK statistics reported in 2011 demonstrate that industry‐funded efforts to promote safer drinking
(US$104 million) are greatly outgunned by alcohol advertising (US$4.9 billion).8 As a result, young
people are 239 times more likely to see an alcohol advertisement than an advertisement promoting safe
drinking (moderate drinking or abstinence).
Society as a whole is demanding that marketers work for the benefit of society and minimise
any adverse effects of marketing activities. At this point in time, it is more important than ever for
marketers to fully understand the products they are marketing, and the possible social and econ­
omic consequences of the misuse of these products. For the marketing industry’s reputation to
improve, the number of socially responsible messages will need to increase (remember, only 1 in
every 239 messages about alcohol promotes safe drinking). To achieve a long and fulfilling career in
marketing, it is best to align with socially responsible organisations that have the broader community’s
interests at heart. There are many examples of marketing contributing positively to society. It is surely
best to market a product or service that is needed, improves health and makes a positive contribution
to society.

QUESTION
Find one marketing message that concerns you. Why is this message concerning?

2 Marketing
Introduction
Through accident or intent, the most successful businesses throughout history have been those built
around and focused on making their customers happy — and doing it better than their competitors can.
Every person, thing and process within a market‐oriented organisation strives to create value for the
organisation’s customers. It is the creation of a mutually beneficial exchange of value between one party
and another that is the purpose of all marketing efforts.
Recognising the importance of a market orientation to success, this chapter introduces the concept of
marketing as a philosophy of how to do business. It explores the formal definition: ‘the activity, set of
institutions, and processes for creating, communicating, delivering and exchanging offerings that have
value for customers, clients, partners and society at large’9 and explains how this definition reflects the
reality of marketing today.
A lot of people have the misconception that marketing is purely about selling. Marketing is most definitely
not well described as ‘the art of selling products to customers’. Not‐for‐profit organisations, community
groups, governments and even individuals use marketing practices. For example, the Council of Australian
Governments (COAG) Healthy Communities Initiative is an Australian government initiative that aims to
reduce the prevalence of overweight and obesity within target populations. The target populations consist of
individuals at high risk of developing chronic disease and who are not predominantly in the paid workforce.
For more information about the campaign, go to www.healthyactive.gov.au.
Marketing, done well, is an approach to business that influences and informs every activity of the
business or organisation. As you read through this chapter, think about how the ideas discussed can be
applied to the things you encounter in your everyday life. You will realise that there are some common
elements to each instance of marketing, such as product, price, promotion, place (distribution), people,
processes and physical evidence. How these factors come together to provide a complete marketing
experience is what differentiates one marketing effort from another; successful organisations from failed
ones; and having loyal, satisfied customers from having no customers at all.

1.1 What is marketing?

LEARNING OBJECTIVE 1.1 Provide an overview of marketing and the marketing process.
Marketing is everywhere and much of what you do every day is in some way affected by it. Marketing is
an evolving discipline and each marketer will have their own take on exactly what it is. Some people —
mistakenly — think that marketing is selling; some that marketing is advertising; and some that it is
making sure your business is listed at the top of every Google search that in some way relates to your
product. No doubt, you already have your own ideas about what marketing is.
The most recent formal definition of marketing is:
the activity, set of institutions, and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and society at large.10
Figure 1.1 expands on this definition and begins to explain what each part of it means.
The definition refers to ‘activity, set of institutions and processes’, recognising the broad scope of
marketing — that it is not just a function that exists as a ‘marketing department’ within an organisation,
and that marketing is about much more than advertising.
‘Creating, communicating, delivering and exchanging offerings that have value’ recognises that
marketing must involve an exchange that benefits both the customer who buys the product (a good, ser-
vice or idea) and the organisation that sells the product (a good, service or idea).
‘Customers, clients, partners and society at large’ recognises that organisations need to conduct their
marketing in such a way as to provide mutual benefit, not just for the users of their products, but also for
partners in the supply chain, and that marketers must consider their impact on society. Marketing brings
many benefits to societies, including employment and the creation of wealth. With careful planning, some
marketing activities can be good for customers, people in the supply chain and the environment. Consider

CHAPTER 1 Introduction to marketing 3

McDonald’s — one of many major coffee purchasers that changed their coffee buying practices in 2008.
Today, McDonald’s serves only Rainforest Alliance coffee. Rainforest Alliance coffee guarantees farms that
meet specific and holistic standards balancing all aspects of production — including protecting the environ-
ment, the rights and welfare of workers, and the interests of coffee growing communities.11 Marketers must
be aware of the impact that products and services sold have on society — and they must work towards min-
imising the negative impacts and maximising the positive impacts. This is referred to as corporate social
responsibility or sustainability. Corporate social responsibility is a commitment to behave in an ethical and
responsible manner, to ‘minimise the negative impacts and maximise the positive impacts’.12

FIGURE 1.1 Marketing defined

Marketing
is

the activity, set of the adoption of a way of doing business that

institutions and processes puts the market at the heart of decisions

for

developing a good, service or idea that is

creating, communicating,
promoted and distributed to customers in
delivering
the right place at the right time

and

exchanging offerings
a mutually beneficial exchange
that have value

for

individuals and organisations that benefit

customers from the products of:
– businesses and/or
clients – not-for-profit organisations
individuals and organisations that are part of
partners the marketer’s supply chain
the creation of employment, wealth and
society at large social welfare

Marketing is a relatively new discipline, which came into its own in the 1960s. Many of the ideas
that underpin marketing theories draw on other disciplines, including psychology, sociology, economics
and management. Many definitions of marketing have been proposed over the years and marketing, like
any new discipline, continues to evolve today. Figure 1.2 describes how our understanding of marketing
has changed in recent history, including the increasing importance of service‐dominant logic in the
progression of marketing thinking.

FIGURE 1.2 The evolution of marketing

Trade
Throughout history people have exchanged what they have for what they have wanted. While some core
marketing ideas (such as mutually beneficial exchange) were at play, formal definitions of marketing did
not exist.

4 Marketing
Late 1800s/early 1900s
As technology and infrastructure were developed and built, businesses were able to produce greater
volumes of an ever‐increasing range of products. Demand for these goods was strong. Marketing at
this time could best be described by the concept of a ‘production orientation’. Marketers’ offerings were
largely determined by what could be made, and what people bought was largely determined by what
was available. This is summed up in the famous quotation of Henry Ford, ‘Any customer can have a car
painted any colour that he wants so long as it is black.’ (Black paint dried faster than any other colour,
so it was the most efficient colour to produce.)

1930s
As competition increased, companies could no longer rely on consumers to want and buy everything
they could make. This led to the ‘sales orientation’, which focused on increasing profits through adver­
tising and one‐to‐one selling. Consider the American Marketing Association marketing definition in
1935: ‘Marketing is the performance of business activities that direct the flow of goods and services
from producers to consumers.’13

Mid to late 1900s

In the second half of the 20th century, customers had so many products to choose from that they could
not buy them all. When they did want to buy a particular product, they could choose from many similar
items. In a new era of increased competition, businesses realised that customers would not automati­
cally buy any product that a business happened to devise. The approach to marketing changed to a
‘market orientation’ in which businesses worked to determine what potential customers wanted and
then made products to suit. Marketing became mainstream business practice. Successful businesses in
the late 1900s were those that adopted a market orientation throughout their operations and responded
to the market’s needs and wants.

The 2000s
Today businesses are increasingly faced with not only satisfying customer wants but ensuring they
are socially responsible corporate citizens. Businesses face well‐informed customers with an enor­
mous number of competing products vying for their attention. Marketers have broadened the concept
of market orientation to view the market as not just their customers, but also broader society. This
view is reflected in marketers’ consideration of issues such as the sustainability of their products
and the benefits their products might bring to society generally. This is known as a ‘societal market
orientation’. Examples of a societal market orientation in action include supermarkets offering to
pack groceries in reusable bags, potato chip marketers developing chips cooked in lower‐cholesterol
oils and health clinics offering free vaccinations. Companies with a societal market orientation have
practices and policies that seek to minimise their negative impact on society and maximise their
positive impact.

Where now/where next?

The most recent advancement in marketing is the idea of service‐dominant logic. Service‐dominant logic
represents a move away from a goods‐dominant mentality. Marketing inherited a model of exchange
from economics, and traditional definitions of marketing refer to the exchange of ‘goods’, or manufac­
tured output. Examples include cars, orange juice, tennis rackets — the list goes on. The traditional or
goods dominant logic focused on tangible resources (things that you can see and touch), embedded
value and transactions. Over the past several decades, as technology has improved and goods can be
rapidly copied by competitors, new perspectives have emerged. In 2004, Steve Vargo and Robert Lusch
published a paper in the Journal of Marketing introducing the idea of service‐dominant logic.
Since their seminal work in 2004, Lush and Vargo have further elaborated on the foundational con­
cepts of service‐dominant logic by emphasising the systemic base of value co‐creation and the role
of social institutions and institutional arrangements. Thus, value co‐creation emerges through service
exchanges modulated by institutional forces at multiple systemic levels.14,15
Companies following service‐dominant logic seek a deep understanding of their customers and aptly
utilise communication, particularly social media, to engage with their customers at all stages of the
marketing process.

CHAPTER 1 Introduction to marketing 5

 As you study this text you will develop a deeper understanding of just what is meant by each com-
ponent of the definition that we have described and, more importantly, your own understanding of what
marketing is. Most importantly, though, you will understand that for successful organisations marketing
is a philosophy or a way of doing business.

The marketing approach to business

Marketing is an approach to business that puts the customer, client, partner and society at the heart of
all business decisions. Marketing requires customers to be at the core of business thinking. Rather than
asking which product should we offer, marketers who adopt best-practice marketing thinking ask which
product would our customers value or like us to offer.
We are using the word ‘business’ in a broad sense. Remember that marketing is used by:
•• small businesses and large multinational corporations
•• businesses selling goods and businesses selling services
•• for‐profit and not‐for‐profit organisations
•• private and public organisations, including governments.
As mentioned previously, it is important to recognise that marketing is not just about selling products
to customers. In fact, for many organisations, that is not what marketing is about at all. Think about the
following examples. They all involve marketing.
Cancer is a leading cause of death in Australia. An estimated 130  470 new cases of cancer will be
diagnosed in Australia in 2016, with that number set to rise to 150  000 by 2020. One in two Australian
men and one in three Australian women will be diagnosed with cancer by the age of 85. Cancer Council
Australia, a leading not‐for‐profit organisation with member organisations in all states and territories,
undertakes a broad range of activities, including funding cancer research in Australia. In 2016, the Cancer
Council directly funded $43.4 million in cancer research, and the organisation provides evidence‐based
up‐to‐date information to patients and healthcare professionals. Other activities include marketing a
range of skin care products and raising funds to support cancer patients.16

6 Marketing
 Breast cancer is a major health issue, being the most common cancer to affect women and the second-
most common cause of cancer‐related death in Australian women. In 2011, a total of 1130 women
aged 50–69 died from breast cancer, equivalent to 44 deaths per 100  000 women. In 2010, 7449 new
cases of invasive breast cancer were diagnosed in Australian women aged 50–69, which is equivalent to
300 new cases per 100  000 women.
In June 1990, the ministers responsible for health in all states and territories joined the federal govern-
ment in funding a national mammography screening program. The national program, now known as
BreastScreen Australia, was established in 1991, and is recognised as one of the most comprehensive
population‐based screening programs in the world. BreastScreen Australia was initially targeted specifi-
cally at well women without symptoms, aged 50–69, although women aged 40–49 and 69 years and older
were also able to seek screening. Since 2013, an additional investment of $55.7 million over four years
has been made to expand the target age range for free breast screening by five years, to include women
aged 50–74. As of 2014, BreastScreen Australia operates in over 600 locations nationwide via fixed,
relocatable and mobile screening units. Screening has increased significantly since commencement of
BreastScreen Australia, and the program’s aim is to achieve a participation rate of 70 per cent among
women in the target age group. In 2011–2012, more than 1.4 million women aged 50–69 had a screening
mammogram through BreastScreen Australia, a participation rate of 55 per cent for the target age group.
Although the participation rate remained unchanged from those in 2009–2010 and 2010–2011, the abso-
lute number of women in the target age group has increased substantially.17
In 2011, a research report uncovered that consumers love their large, sleek, flat‐screen televisions, but
are becoming increasingly frustrated with their dusty and dirty screens. The 2012 Australian Marketing
Institute (AMI) Brand Revitalisation Award Winner Kimberly‐Clark launched Viva TV & Computer
Wipes in response.18 The wipes are cleaning products that have been specially designed to safely remove
dust, dirt, fingerprints and marks from a range of multimedia screens — from TVs and computers to
phones and tablets. It was the first TV screen cleaning product made available in Australian supermarket
cleaning aisles. At the time of winning the AMI award, the brand was forecast to deliver $4 million
to the cleaning category in its first 12 months.19 Follow‐up data in 2013 shows that sales of TV wipes
fell slightly below forecasts, achieving $2.6 million in retail sales20 and negative press exposure. For
example, CHOICE exposed Kimberly‐Clark for the environmental impact of its wipes, which have been
blamed for blocking drainage systems and waterways.21
Marketing is a science, a learning process and an art. Marketers need to learn what customers, clients,
partners and society want. This is an ongoing process as customer preferences are continually evolving.
Customers’ needs and wants change with each product purchased, magazine read, conversation had or
television program watched. Marketers must use information to maintain their understanding. Marketers
must be creative and able to develop new ideas. Markets are cluttered and there are many options
available to consumers. The best marketers are able to offer something that is unique or special to
consumers.
In January 2013, Maria Sharapova — at the time ranked second worldwide in women’s tennis —
launched a line of premium sweet and sour lollies called ‘Sugarpova’. With 12 flavours and lollies shaped
as high heels, purses and tennis balls, Sugarpova is a premium lolly brand with a story about reward for
success. The brand story is that Sharapova was awarded a lollipop after a good practice. It seems this is
a product range that has been created specifically with girls in mind, with more than 1 million bags pre-
dicted to sell worldwide in 2013. Sharapova has a long history of working with brands — she’s been the
face of brands like TAG Heuer, Samsung, Evian and Head — and she has worked closely with Nike and
Cole Haan to design product lines for their brands. Her choice to align with a lolly was immediately crit-
icised as irresponsible and inappropriate, with a whopping 21 grams of sugar per serving (five pieces).
Following the launch, there were many questions about whether lollies were the kind of thing sport stars
should be promoting. In late 2013, Sharapova announced that she planned to officially change her name
to ‘Sugarpova’ for the two‐week duration of the US Open, so that commentators would be required to
refer to her by the brand name.22

CHAPTER 1 Introduction to marketing 7

Another random document with
no related content on Scribd:
Influence of the
Just as the moral enthusiasm awakened by the
monastic ideal gave a special character and trend to
ideal of chivalry
upon the historymuch of the history of the age of its ascendancy,—
of the epoch
inspiring or helping to inspire the missionary
propaganda among the barbarian tribes of Europe, giving birth to a
special literature (the Lives of the Saints), and fostering the spirit of
benevolence and self-renunciation,—so did the unmeasured
enthusiasm created by the chivalric ideal give a distinctive character
to much of the history of the age of its predominance—lending a
romantic cast to the Crusades, creating a new form of literature, and
giving a more assured place in the growing European ideal of
character to several attractive traits and virtues. Respecting each of
these matters we shall offer some observations in the immediately
following pages, and then shall proceed to speak briefly of some
reform movements which belong to the general moral history of the
epoch under review.

Chivalry and the The Crusades of the eleventh and twelfth centuries
Crusades
against the Moslems of the East, in so far as those
enterprises were inspired by moral feeling,—and religious-ethical
feeling was the chief motive force behind them,—were largely the
translation into action of the ideal of chivalry now commended and
consecrated by the Church. The oath of the Knights of Malta, who
were a perfect incarnation of the spirit of chivalry, was “to make
eternal war upon the Turks; to recognize no cessation of hostilities
with the infidel, on any pretext whatsoever.”
It is an amazing change that, in the course of a few generations,
has come over the ethical spirit and temper of the peoples of
Christendom. In the earlier medieval time the best conscience of the
age was embodied in the monk-saints Augustine, Columba, Winfrid,
and a great company of other unarmed missionary apostles to the
pagan Celts and Germans; in this later time the best conscience of
the age is incarnated in the armor-clad warriors Godfrey of Bouillon,
Raymond, Bohemond, Tancred, and a multitude of other knightly
leaders of the hosts of Crusaders who go forth to redeem with blood
and slaughter the tomb of their martyred Lord.
 No element of civilization responds more quickly to
Romance the changing ethical ideal of a people than its
literature as an literature. The change that passed over the popular
expression of
the ethical spirit
literature of Christendom in the transition of Europe
of the age from the age of asceticism to the age of chivalry is
finely summarized by Lecky in these words: “When
the popular imagination [in the earlier age] embodied in legends its
conception of humanity in its noblest and most attractive form, it
instinctively painted some hermit-saint of many penances and many
miracles.... In the romances of Charlemagne and Arthur we may
trace the dawning of a new type of greatness. The hero of the
683
imagination of Europe is no longer the hermit but a knight.”
An interesting monument of this new species of literature, in what
684
we may view as a transition stage, is the Gesta Romanorum, a
collection of moral stories invented by the monks in their idle hours.
These tales are a curious mixture of things Roman, monastic, and
knightly.
But for a true expression of this romance literature we must turn
to the legends of the Holy Grail, in which a lofty imagination blends,
in so far as they can be blended, all the varied elements of the
knightly ideal in a consistent whole. No age save the age of Christian
knighthood could have produced this wonderful cycle of tales.

Contribution of But it is neither in the crusading enterprises nor in

chivalry to the
moral heritage
the literary products of the age of chivalry that we are
to look for the real historical significance of the ideal of
of the Christian
world chivalry. Its chief import for the moral evolution of the
European nations lies in the fact that it helped to give fuller and
richer content to the Christian ideal by contributing to it, or by giving
a surer place in it, certain nontheological virtues, some of which the
Church had laid little emphasis upon or had entirely neglected.
Thus the enthusiasm for the ideal of chivalry, like the Church’s
685
veneration of the Holy Virgin, tended to elevate and refine the
ideal of woman, and thus to counteract certain tendencies of the
ascetic ideal. It helped to give a high valuation to the moral qualities
of loyalty, truthfulness, magnanimity, self-reliance, and courtesy. We
designate these attractive traits of character as chivalrous virtues for
the reason that we recognize that knighthood made precious
contributions to these elements of the moral inheritance which the
modern received from the medieval world.

Restrictions on Very closely connected ethically and historically

the right of
private war: the
with chivalry is the movement during the later
Truce of God medieval time for the abolition of the right of private
686
war. In the tenth century, as feudalism developed
and the military spirit of knighthood came more and more to
dominate society, the right of waging war, with which privilege every
feudal lord of high rank was invested, resulted in a state of
intolerable anarchy in all those lands where the feudal system had
become established. Respecting this right, claimed and exercised by
the feudal prince, of waging war against any and every other
chieftain, even though this one were a member of the same state as
that to which he himself belonged, there was in these medieval
centuries precisely the same moral feeling, or rather lack of moral
feeling, that exists to-day in regard to the right claimed and exercised
by the different independent nations of waging war against one
another.
As a result of this practice of private war, Europe reverted to a
condition of primitive barbarism. Every land was filled with fightings
and violence. “Every hill,” as one pictures it, “was a stronghold, every
plain a battlefield. The trader was robbed on the highway, the
peasant was killed at his plow, the priest was slain at the altar.
Neighbor fought against neighbor, baron against baron, city against
city.”
In the midst of this universal anarchy the Church lifted a
protesting voice. Toward the end of the tenth century there was
started in France a movement which aimed at the complete abolition
of private war. The Church aspired to do what had been done by
pagan Rome. It proclaimed what was called the Peace of God. It
commanded all men everywhere to refrain from fighting and robbery
and violence of every kind as contrary to the spirit and teachings of
Christianity.
But it was found utterly impossible to make the great feudal
barons refrain from fighting one another even though they were
threatened with the eternal torments of hell. They were just as
unwilling to surrender this highly prized privilege and right of waging
private war as the nations of to-day are to surrender their prized
privilege and right to wage public war.
Then the leaders of the clergy of France, seeing that they could
not suppress the evil entirely, resolved to attempt to regulate it. This
led to the proclamation of what was called the Truce of God. The first
687
certain trace of this movement dates from the year 1041. In that
year the abbot of the monastery of Cluny and the other French
abbots and bishops issued an edict commanding all men to maintain
a holy and unbroken peace during four days of every week, from
688
Wednesday evening till Monday morning. Every man was
required to take an oath to observe this Truce of God. The oath was
renewed every three years, and was administered to boys on their
reaching their twelfth year.
This movement to redeem at least a part of the days from fighting
and violence came gradually to embrace all the countries of Western
Europe. The details of the various edicts issued by Church councils
and popes vary greatly, but all embody the principle of the edict of
1041. Holydays, and especially consecrated periods, as Easter time
and Christmas week, came to be covered by the Truce. The Council
of Clermont, which inaugurated the First Crusade, extended greatly
the terms of the Truce, forbidding absolutely private wars while the
Crusade lasted, and placing under the ægis of the Church the
person and property of every crusader.
The Truce of God was never well observed, yet it did something
during the eleventh and twelfth centuries to mitigate the evils of
private war and to render life more secure and tolerable. After the
twelfth century the kings of Europe, who were now strengthening
their authority and consolidating their dominions, took the place of
the Church in maintaining peace among their feudal vassals. They
came to regard themselves as responsible for the “peace of the
land,” which phrase now superseded those of the “Peace of God”
and the “Truce of God.” Thus the movement to which moral forces
had given the first impulse was carried to its consummation by
political motives. To the Church, however, history will ever accord the
honor of having begun this great reform which enforced peace upon
the members of the same state, and which has made private wars in
civilized lands a thing of the past.
The abolition of private warfare was the first decisive step marking
the advance of Europe toward universal peace. Public war, that is,
war between nations, is still an established and approved institution
of international law; but in the moral evolution of humanity a time
approaches when public war shall also, like private war, be placed
under the ban of civilization, and will have passed upon it by the
truer conscience of that better age the same judgment that the
conscience of to-day pronounces on that private warfare upon which
the Truce of God laid the first arresting hand.

Progress in the Although the Church has done little in a direct way
ethics of war:
to abolish public war, or even directly to create in
sale into slavery
of Christian society at large a new conscience in regard to the
captives wickedness of war in itself as an established method
condemned
of settling international differences, its influence has
been felt from early Christian times in the alleviation of its barbarities
and cruelties. One of the first ameliorations in the rules of war
effected through Christian influence concerned the treatment of war
captives.
Among the ancient Greeks, as we have seen, under the influence
of the sentiment of Panhellenism, there was developed a vague
feeling that Greeks should not enslave Greeks. But aside from this
Panhellenic sentiment, which had very little influence upon actual
practice, there was in the pre-Christian period seemingly little or no
moral feeling on the subject, and the custom of reducing prisoners of
war to slavery was practically universal.
 But the custom, in so far as it concerned Christian prisoners, was
condemned by the Christian conscience as incompatible with the
spirit of Christianity, and the rule was established that such captives
689
should not be enslaved. We observe the first clear workings of
this new war conscience in Britain after the conversion of the Saxon
invaders. The Celts of Britain were Christians, and the Saxons, after
they themselves had been won over to Christianity, ceased to sell
into slavery their Celtic captives. Gradually this new rule was
adopted by all Christian nations. No other advance of equal
importance marks the moral history of public war during the medieval
period.
This humane rule, however, did not, as we have intimated,
embrace non-Christians. Our word “slave” bears witness to this fact.
This term came to designate a person in servitude from the
circumstance that up to the eleventh century, which saw the
evangelization of Russia, the slave class in Europe was made up
largely of Slavs, who, as pagans, were without scruple reduced to
slavery by their Christian captors.
But the earlier rights which the immemorial laws of war conferred
upon the captor were not wholly annulled in the case of Christian
captives. The practice of holding for ransom took the place of sale
into slavery. This custom prevailed throughout the feudal period, but
gradually during the seventeenth and eighteenth centuries this
practice finally yielded to the more humanitarian custom of exchange
690
of prisoners. Thus in this department of ethics there is to be
traced a gradual humanization of the code, which, beginning in
savagery with gross cannibalism and torture, advances through
killing in cold blood, sale into slavery, and holding for ransom, to
equal exchange.

Morality in the During the age of chivalry the ideal of the knight
monasteries:
moral
overshadowed the ideal of the monk. Nevertheless
significance of throughout the whole period the monastic ideal
the rise of the inspired a great deal of moral enthusiasm. The
Mendicant
Orders founding and endowment of monasteries divided with
the equipping of knightly expeditions for the Crusades the zeal and
efforts and sacrifices of the European peoples.
In the old orders of monks, however, zeal for the ascetic ideal
would often grow cold, and the high moral standard of the earlier
time would be lowered. Then some select soul, set aflame by a fresh
vision of the ideal, would draw together a group of devoted followers,
and thus would come into existence a new order of monks, among
whom the flame of a holy enthusiasm would burn brightly for a
691
time.
Among the numerous new orders called into existence by these
reform movements there were two which, in the ideal of duty which
they followed, stand quite apart from the ordinary monastic orders.
692
This new ideal had its incarnation in St. Francis and St. Dominic,
the founders respectively of the Franciscan and the Dominican order
of friars.
In this new conception of what constitutes the worthiest and most
meritorious life, the quietistic virtues of the earlier ascetic ideal,
which had developed during the period of terror and suffering which
followed the subversion of classical civilization by the northern
barbarians, gave place to the active, benevolent virtues. In the
earlier monastic movement there was a self-regarding element. The
monk fled from the world in order to make sure of his own salvation.
The world was left to care for itself. In the new orders, the brother, in
imitation of the Master who went about among men teaching and
healing, left the cloister and went out into the world to rescue and
save others. In its lofty call to absolute self-forgetfulness and
complete consecration to the service of humanity, the early ideal of
the Mendicants was one of the noblest and most attractive that had
grown up under Christian influence. The loftiness of the ideal
attracted the select spirits of the age—for noble souls love self-
sacrifice. “Whenever in the thirteenth century,” says the historian
Lea, “we find a man towering above his fellows, we are almost sure
693
to trace him to one of the Mendicant Orders.”
 It is in the exaltation of this virtue of self-renunciation that we find
one of the chief services rendered by the Mendicant Orders,
especially by the Franciscan, to European morality. Just as the early
monks, through the emphasis laid on the virtue of chastity, made a
needed protest against the sensuality of a senile and decadent
civilization, so did the friars, through the stress laid on the virtue of
self-denial for others, make a needed protest against the selfishness
and hardness of an age that seemed to have forgotten the claims of
694
the poor and the lowly. It can hardly be made a matter of
reasonable doubt that the slowly growing fund of altruistic feeling in
Christendom was greatly enriched by the self-devoted lives and
labors of the followers of Saints Francis and Dominic.
But the value of the ideal of the friars as an ethical force in the
evolution of European civilization was seriously impaired by certain
theological elements it contained. It was an ideal in which, as in the
ordinary monastic ideal, the duty of correct opinion came to be
exalted above all others. The ethics of belief took precedence of the
ethics of service. Thus the friars, particularly the Dominicans,
through their zeal for orthodoxy, fostered the grave moral fault of
intolerance. The growth of this conception of Christian duty,
concurring with other causes of which we shall speak in the next
chapter, ushered in the age of the Inquisition.

The ethics of The ethical history of the friars or the preaching

Scholasticism
orders mingles with the ethical history of
Scholasticism. The ethics of the Schoolmen was a syncretism of two
moral systems, the pagan-classical or Aristotelian and the Christian.
With the four classical virtues of wisdom, prudence, temperance, and
justice were combined the three Christian virtues of faith, hope, and
love. But these two moral types, the classical and the theological,
each being taken in its entirety, were mutually inconsistent ideals of
virtue. The pagan code was a morality based on the autonomy of the
individual reason; the Church code was based on an external
authority. The one was inner and natural, the other outer and
supernatural. The scholastic system was thus an incongruous
combination of naturalism and supernaturalism in ethics, of native
virtues and “virtues of grace.” This dualism is the essential fact in the
history of the ethics of Scholasticism.
As it was the great effort of the Schoolmen in the domain of
dogma to justify the doctrines of the Church, to show their
reasonableness and consistency, so was it their great effort in the
domain of ethics to justify the Church’s composite moral ideal, to
show all its duties and virtues to form a reasonable and consistent
system. The best representative of this effort of reconciliation was
the great Schoolman Thomas Aquinas. But a perfect fusion of the
diverse elements was impossible. There were ever striving in the
system two spirits—the spirit of Greek naturalism and the spirit of
Hebrew-Christian supernaturalism.
But there was another line of cleavage in the system which was
still more fateful in its historical consequences than the cleavage
between the Aristotelian and the Church morality. This cleavage was
created by the twofold ethics of the Church, for the ecclesiastical
morality, considered apart from the Aristotelian element, was itself
made up of two mutually inconsistent ethics, namely, Gospel ethics
695
and Augustinian ethics. The saving virtue of the first was loving,
self-abnegating service; the saving virtue of the second was faith,
which was practically defined as “the acceptance as true of the
dogma of the Trinity and the main articles of the creed.” Such was
the emphasis laid by certain of the Schoolmen upon the
metaphysical side of this dual system that there was in their ethics
more of the mind of Augustine than of the mind of Christ. This
making of an external authority the basis of morality, this
emphasizing of the theological virtues, especially the virtue of right
belief, had two results of incalculable consequences for the moral
evolution in Christendom. First, it led naturally and inevitably to that
696
system of casuistry which was one of the most striking
phenomena of the moral history of the later medieval and earlier
modern centuries; and second, it laid the basis of the tribunal of the
Inquisition. Thus does the theological ethics of Scholasticism stand
in intimate and significant relation to these two important matters in
the moral history of Europe.
 CHAPTER XVI
RENAISSANCE ETHICS: REVIVAL OF
NATURALISM IN MORALS

I. Determining Influences

The Toward the close of the medieval ages came that

Renaissance: important movement in European society known as
the new
intellectual lifethe Renaissance, a main feature of which was the
restoration of classical culture. Since the incoming of
the northern barbarians with their racial traits and martial moral code
there had been no such modifying force brought to bear upon the
moral evolution of the European peoples, nor was there to appear a
greater till the rise of modern evolutionary science.
The Renaissance exerted its transforming influence on the moral
life of the West chiefly through the new intellectual life it awakened
by bringing the European mind in vital contact with the culture of the
ancient world; for intellectual progress means normally moral
progress. Hence as the Renaissance meant a new birth of the
European intellect, so did it mean also a new birth of the European
conscience. Just as the conscience of the medieval age had its
genesis in the new religion which superseded the paganism of the
ancient world, so did the common conscience of to-day have its
genesis in the new science, the new culture, which in the
Renaissance superseded medieval ideas and theological modes of
thought. A chief part of our remaining task will be to make plain how
the new intellectual life born in the revival of the fifteenth century,
and expressing itself since in every department of human life,
thought, and activity, has reacted upon the moral feelings and
judgments of men and taught them to seek the ultimate sanctions of
a true morality in the deep universal intuitions of the human heart
and conscience.

The decay of Running parallel throughout the later medieval time

feudalism and
the rise of
with the classical revival, whose significance was so
monarchy: court great for European morality, there was going on a
life political and social revolution which exerted an
influence on the ethical evolution only less potent and far-reaching
than that of the intellectual movement. During this period the petty
feudal states in the different countries of Europe were being
gathered up into larger political units. The principle of monarchy was
everywhere triumphing over that of feudalism. The multitude of
feudal castles, in which had been cradled the knightly ideal of
manhood, were replaced by the palaces and courts of rich princes
and powerful kings. This meant a great change in the social and
political environment of the higher classes.
In the first place, in these later courts there was a brilliancy of life,
a culture and a refinement rarely found in the earlier feudal castles.
In the next place, the relation which every member of the court
sustained to the prince or sovereign was fundamentally different
from that which the vassal had sustained to his lord under the feudal
régime. This relation, it is true, was still a personal one; but
independence was gone, and with this were gone the pride and self-
sufficiency which it engendered. In these princely courts the knight
became a courtier.
The effect of these changes in surroundings and relationships
upon the standard of conduct was profound, as we shall see when, a
little farther on, we come to inquire what were the ethical feelings
and judgments awakened in this new environment.

The growth of Three institutions—the monastery, the castle, and

the towns: the
workshop and
the town—dominated successively the life of the
the market as Middle Ages. Each developed a distinct ethical ideal.
molders of The monastery cradled the conscience of the monk;
morals
the castle, the conscience of the knight; and the town,
the conscience of the burgher.
What particular virtues were approved by the moral sense of the
town dweller we shall note a little farther on. We here merely
observe that in the atmosphere of the town, in the relationships of
the workshop and the market, were nourished the lowly lay virtues of
the artisan and the trader, virtues which, though disesteemed by
classical antiquity, regarded as of subordinate worth by the monk,
and held in positive contempt by the knight, were yet to constitute
the heart and core of the ethical ideal of the modern world.

II. Some Essential Facts in the Moral

History of the Age

Revival of the When Christianity entered the Greco-Roman world

classical with its new moral ideal, the old classical ideal of
conception of
life: the new character, as we have seen, was practically
birth of the superseded. There were, it is true, certain elements of
European
conscience
this pagan morality which were consciously or
unconsciously absorbed by Christianity; but the
classical ideal as a whole was rejected, just as the greater part of the
cultural elements of Greco-Roman civilization were cast aside. For a
thousand years Hebrew-Christian conceptions of the world and of life
shaped the thought and conduct of men. Then came the
697
Renaissance.
In the study of this movement the attention of the historian has
ordinarily been centered on the literary, artistic, and intellectual
phases of the revival, while the ethical phase has been given but
slight attention or has been dismissed with the facile observation that
the movement induced a revival of pagan immorality. This is true.
But the really significant thing was not the revival of pagan
immorality but the revival of pagan morality. For just as this classical
revival meant a new enthusiasm for the artistic, literary, and cultural
elements of the earlier Greco-Roman civilization, so did it also mean
a new enthusiasm for the Greco-Roman ideal of character. To many
it was no longer the Church ideal but the classical that seemed the
embodiment of what is ethically most noble and worthy. Such
persons gave up the practice of the distinctively Christian theological
virtues, or, if they still outwardly observed the Church code, this was
merely insincere conformity suggested by prudence or policy; the
code of morals which their minds and hearts approved and which
they observed, if they observed any at all, was the code of pagan
antiquity. It is in this secularization of the ethical ideal, in this divorce
of morality from theology, in this announcement of the freedom and
autonomy of the individual spirit, that is to be sought the real
significance of the classical revival of the fourteenth and fifteenth
centuries for the moral history of the Western world.
In two ways chiefly did the Renaissance exert its transforming
influence upon European morals: first, by awakening a new
intellectual life, for, as we have had repeatedly shown us, a new
mental life means a new moral life; and second, by the direct
introduction of various elements of Greco-Roman morals into the
Christian ideal of character. Thus at the same time that the cultural
life of Europe was being enlarged and enriched by the incorporation
of those literary and art elements of classical civilization which had
been rejected or underestimated by the Middle Ages, the moral life
of Christendom was being profoundly modified by the incorporation
of those ethical elements which constituted the precious product of
the moral aspirations and achievements of the best generations of
the ancient world. The conscience of those persons in the modern
world who are imbued with the true scientific spirit, that is to say, with
the humanistic spirit of the Renaissance, is quite as largely Greek as
Hebraic. A recent writer reviewing the life of a distinguished
personage (Julia Ward Howe) recognized this mingling in modern
culture of these diverse elements in these words: “She has blended
and lived, as no other eminent American woman, the humanistic and
the Christian ideals of life. She has preached love and self-sacrifice,
and she has loved beauty and self-realization.”
 In the domain of theological morality the history of
Theological the Renaissance affords one of the most painful
morality: the chapters in European history. This chapter has to do
ethics of
persecution
with the establishment of the Inquisition to maintain
uniformity of religious belief.
It is not an accident that this chapter should form an integral part
of the history of the Renaissance. The spread of heresy, which
threatened the unity of the medieval Church, was largely the
outgrowth of the new intellectual life awakened by the revival of
698
learning. Hence it was inevitable that the age of the Renaissance
should be also the age of persecution. It is not a recital of the history
of the Holy Office during the period under review which is our
concern in this place, but only a consideration of the motives of
Christian persecution. That intolerance should ever have been
regarded by the followers of the tolerant Nazarene as a virtue and
persecution of misbelievers as a pious duty, challenges the attention
of the historian of morals and incites earnest inquiry into the causes
of such an aberration of the moral sentiment.
It cannot be made a matter of reasonable doubt that one of the
chief causes of Christian intolerance is the theological doctrine that
salvation is dependent upon right belief in religious matters, and that
error in belief, even though honest, is a crime that merits and
699
receives eternal punishment. This dogma leads logically and
700
inevitably to intolerance and persecution; for if wrong belief is a
crime of so heinous a nature as justly to subject the misbeliever to
everlasting and horrible torments, and if the misbeliever is likely to
bring others into the same fatal way of thinking, then it follows that
heresy should be extirpated, just as the germs of a dreaded
contagion are stamped out, by any and every means however
seemingly harsh and cruel. Thus St. Thomas Aquinas and other
theologians logically “argued that if the death penalty could be rightly
inflicted on thieves and forgers, who rob us only of worldly goods,
how much more righteously on those who cheat us out of
supernatural goods—out of faith, the sacraments, the life of the
701
soul.”
 It was this theological teaching that heresy is a fault of
unmeasured sinfulness, an “insidious preventable contagion,” which
was the main root that fostered Christian intolerance and
702
persecution. The activities of the Holy Office were maintained not
by bad men but by good men. “With such men it was not hope of
gain, or lust of blood, or pride of opinion, or wanton exercise of
power [that moved them], but sense of duty, and they but
represented what was universal public opinion from the thirteenth to
703
the seventeenth century.”
Reflecting on these facts, we readily give assent to the charitable
judgment of the historian Von Holst in commenting on the acts of the
Terrorists in the French Revolution, that “wrongdoing to others lies
not so much in the will as in the understanding.” The greatest crime
704
of history was committed by men who knew not what they did. It
was a theological doctrine which is to-day rejected by the reason and
conscience of a large section of the Church itself, that caused the
loss for centuries of the virtue of toleration, which in the ethical
systems of the classical world had been assigned a prominent place
among the virtues, and which, could it have found a place in the
standard of goodness of the Church, would have saved Christendom
the horrors of the Albigensian crusades, the pious cruelties of the
Inquisition, and the mutual persecutions of Catholics and Protestants
throughout the age of the Reformation.

Political The matter of dominant importance in the sphere of

morality:
Machiavellian
political morality during the Renaissance was the
ethics creation of a code of morals for princes. This was a
system formulated by the Italian philosopher
Machiavelli, who wrote under the secularizing influences of the
classical revival and of the paganized courts of the Italian princes of
705
his time. It was a code which the ruling class, for whom it was
designed, eagerly adopted, for the reason that it harmonized with
their desires, ambitions, and practices, and sanctioned as not only
morally permissible, but even as obligatory and meritorious, policies
and acts which, without such sanction, might have awakened in
some at least inconvenient and hampering scruples of conscience.
This princely ideal, notwithstanding that the conduct of the prince
who acted in accordance with it was generally condoned, was not
one which, like the ascetic or the knightly ideal, awakened moral
enthusiasm. It was a standard of conduct never approved by the
best conscience of Christendom. On the contrary, the work in which
Machiavelli embodied this ideal for princes was, on its first
appearance, fiercely assailed as grossly immoral, and ever since has
called forth the severest condemnation of moralists.
The fundamental principle of Machiavelli’s system is that the
moral code binding on the subject is not binding on the ruler; or
706
rather that ethics has nothing to do with politics. With the prince
the end justifies the means. He is at liberty to lie, defraud, steal, and
kill, in fine, to employ all and every form of deception, injustice,
cruelty, and unrighteousness in dealing with his enemies and with
other princes or states.
This moral standard set for princes by Machiavelli was the
dominant force in international affairs from the middle of the
sixteenth to the middle of the seventeenth century. During this period
it debased the public morals not only of Italy but of every other land
in Christendom. Its vicious principles were acted upon by every court
707
of Europe. Even to-day Machiavellism, though condemned in
theory, is still too often followed in practice. It would not be an
exaggeration to say that The Prince has exercised a more baneful
influence over the political morals of Europe than any other book
ever written.
It is instructive to contrast the influence of Machiavellism with that
of Stoicism. Among the good effects of Roman Stoicism was its
ennobling influence upon the imperial government. It gave the
Roman Empire such a succession of high-minded and conscientious
rulers as scarce is shown by the history of any other state ancient or
modern. In contrast to the influence of this noble philosophy which
apotheosized duty and exalted in rulers the virtues of clemency,
truthfulness, magnanimity, and justice, Machiavellism filled, or
contributed to fill, the thrones of Christendom with rulers whose
moral sense was so blunted by its sinister doctrines that for
generations truth speaking, sincerity, regard for the obligations of
treaties, and respect for the rights of sister states were almost
unknown in the diplomacy and mutual dealings of the governments
of Europe. It is only after the lapse of more than three centuries that
Christendom is freeing itself from the evil influence of Machiavelli’s
teachings, and that there has been generated a new public
conscience which recognizes that states like individuals are subjects
of the moral law, and that the code which is binding on individuals is
binding likewise on governments and communities.

The ethical We have already mentioned the ideal of the courtier

value of the
ideal of the
as one of the ethical or semi-ethical products of the
courtier age of the Renaissance. This was a conception of
perfect manhood which was nurtured in the socially
brilliant and refined courts of the Italian princes of this period. It was
a fusion and modification of selected virtues and qualities of the
knight and of the scholar. The Christian theological virtues had no
necessary place in it.
It was the distinctive virtues of the knight, elevated and refined,
which formed the heart and core of the ideal. Like the ideal of
knighthood, the courtly ideal was an aristocratic one; the courtier, like
708
the knight, must be “nobly born and of gentle race.” Martial
exploits were accounted to him as virtues; “his principal and true
709
profession ought to be that of arms.” As loyalty to his superior
was a supreme virtue in the knight, so was absolute loyalty to his
prince the pre-eminent virtue of the courtier. Not less prominent was
the place accorded in the ideal to the knightly virtues of courage and
710
courtesy.
But to these qualities and virtues of the knight the courtier must
needs add those of the scholar. The ordinary knight despised
learning and held the virtues of the scholar in contempt. But the ideal
of courtliness grew up in a land where humanistic studies had
become a ruling passion, and in an age when the highest ambition of
many an Italian prince was to be known as a patron of learning. It
was natural that, developing in the atmosphere of these courts, the
new standard of perfect manhood should give a prominent place to
the qualifications and virtues of the scholar.
This ideal of the courtier was never such a moral force in history
as that of the monk or of the knight, but there were in it ethical
elements of positive value to the moral life of the world. It was the
inspiration of many of the finest spirits of the sixteenth and
711
seventeenth centuries. Of the noble-minded Sir Philip Sidney a
biographer says, “He conscientiously molded his life on the model of
the perfect courtier of Cortelliani.” Nor has the ideal ever ceased to
appeal to the imagination, or lost its power to soften and refine
manners and ennoble conduct. It inspires gentle consideration for
others of whatsoever estate, incites to unselfish service, and induces
absolute good faith and self-forgetting loyalty to friends and to the
cause espoused, all of which are moral qualities of high value, and
all of which have entered or are entering as permanent elements into
the growing world ideal of perfect manhood.

The ethics of In the medieval town was developed a moral ideal

industry: the
medieval towns
as distinct and individual as that of the monastery or of
the castle. Central in this type of goodness were the
the cradle of the
modern homely virtues of industry, carefulness in
business
conscience workmanship, punctuality, honesty, faithful observance
of engagements, and general fair dealing. To these lay
virtues were added all those which made up the Church ideal for the
ordinary life, for there had not yet been effected that divorce of
business from theology which had been effected in the case of
politics.
The development of this ideal of goodness was a matter of
immense importance for the moral life of the West, because, acted
upon by the practical ethical spirit of Protestantism and other
agencies, it was destined to supersede the ascetic and chivalric
ideals of life, which for more than a thousand years had been the
ruling moral forces in the life of Christendom, for neither of these
ideals of goodness could be more than a partial and passing form of
the moral life. The ascetic ideal, having for its distinctive qualities
such virtues as celibacy, poverty, solitary contemplation, vigils,
fastings, and mortifications of the body, could not possibly become
the standard for all men. It was confessedly a standard of perfection
for the few only.
As to the knightly ideal, this was too exclusively a martial one to
become the supreme rule of life and conduct for the multitude.
Furthermore, it was an aristocratic ideal, an ideal for the noble born
alone. This precluded the possibility of its becoming, as a distinct
type, a permanent force in civilization.
But the ethical type of the towns, embracing those native human
virtues which spring up everywhere out of the usual and universal
relationships of everyday life and occupations, was sure of a
permanent place among the ethical types of the classes and
professions of modern society. In the same sense that the medieval
towns (as the birthplace of the third estate) were the cradle of
modern democracy, were they the cradle of modern business
morality. Just as through the medieval monastery passes the direct
line of descent of the present-day social conscience of
712
Christendom, just so through the medieval town passes the direct
line of descent of the present-day business conscience of the
Western world.

Disuse of trial The influence of the spirit generated in the

by wager of
battle
medieval towns is seen in that important reform, the
abolition of the judicial duel, which was one of the
713
most noteworthy matters in the moral history of the Middle Ages.
It was the military spirit of the German barbarians which, as we
have seen, was a chief agency in the introduction of the wager of
battle or trial by combat in the jurisprudence of the European
714
peoples. Besides the influence of the towns, a number of other
causes concurred in gradually effecting the abrogation of this
method of settling disputes, among which the most efficient were the
opposition of the Church, the revival of the Roman law in the
eleventh century, and the advance in general intelligence. Into every
one of these agencies there entered an ethical element, so that we
may regard this great reform, in its causes as well as in its effects, as
distinctively a moral reform. Thus the influence of the towns was
essentially ethical, for the rise of these communities, as we have just
seen, meant the superseding of the ethics of aristocracy and war by
the ethics of democracy and industry. Consequently the influence
exerted by the towns was largely that of a new ideal of character.
The opposition of the Church was motived chiefly by moral
feeling, the pontiffs and the bishops who opposed the practice doing
so on the ground that the ordeal by battle was “brutal, unchristian,
and unrighteous.”
The advocates of the civil law opposed the practice not only
because it interfered with the royal and imperial administration of
justice, but because it was a practice based on ignorance and
superstition and “incompatible with every notion of equity and
justice,” since brutal force was allowed to usurp the place of
testimony and reason. Thus the Roman law, as the embodiment of
right reason, was here as everywhere else a moral force making for
what is reasonable and just.
The influence of the general progress in enlightenment was also
profoundly ethical, since this movement resulted, as intellectual
advance always normally does, in a growing refinement of the moral
feelings, in progress in moral ideas, and in truer ethical judgments.
By the opening of the modern age trial by combat, acted on by
these various influences, had become obsolete or obsolescent in
715
most of the countries of Europe. Strangely enough, the
international duel or public war, resting on substantially the same
basis as the private judicial duel, has held its place as the instituted
and legalized method of settling controversies between nations down
to the present time, without, till just yesterday, being seriously
challenged by the awakening conscience of the world as equally
repugnant to the moral law and incompatible with every principle of
reason, humanity, and justice.