Capitalism upholds the right to private property and believes that individuals should be free to decide where to invest and what to produce or sell and what prices to charge with only minimal limitations. As marketers we understand that this also means that our customers get to choose how and where to spend their money, giving them the freedom to spend elsewhere whenever they want.
There is a growing movement throughout the world and in my country (the U.S.A.) to try to demonize the capitalistic, free-market system. Detractors point to greed and exploitation of resources--both natural and human resources--as the underlying fault of capitalism.
People who rail against free market capitalism often point to the relatively rare but high profile cases of excessive corporate greed and malfeasance as evidence that the whole economic system is a dismal failure. They propagandize about inefficient utilization of resources to demonstrate that capitalism is evil. They talk of unfair profits and price gouging.
The truth is that these practices of corporate greed and malfeasance simply cannot be maintained in a system of true economic individualism or capitalism.
The capitalistic, free market system is solely responsible for some of the greatest advances that mankind has ever known and has seen my nation grow from birth to lone superpower in the world in little more than 230 years, a mere blip in terms of world history.
The capitalistic, free-market system has proven time and time again that not only does it encourage people and entire societies to reach unparalleled levels of prosperity, but that it can also topple tyranny and protect against widespread corruption. Capitalism allows people to prosper and reach levels of success limited only by their dreams and imaginations.
The free market system drives people to achieve their highest potential and encourages them to be fair and ethical. If they are not, a competitor will seize the opportunity to compete for that share of the market because there will always be a competitor with a better cost structure, cheaper selling price or better business practices that consumers view more favorably.
Put in simple marketing terms, we consumers choose to do business with those brands and companies that we like and trust. We choose to reward brands that deliver value to us and that behave in ways that we see as acceptable. We don't reward companies and brands that don't measure up.
Unlike most other economic systems, there is no room for excessive greed, long-term price gouging and exploitation in capitalism. The system is self-correcting.
To be sure, there is a dark side to the human psyche and some managers succumb to the temptation to cheat, exploit or otherwise take unethical short-cuts in order to gain fame, money and profits.
Instances of managers behaving in such a manner underscore the weaknesses and frailties in people, not the economic system in which they operate.
The free-market system is actually the cure for unethical business behavior as capitalism will not tolerate such behavior in the long-run.
Consider the following:
What does all this have to do with your marketing function?
Everything.
If you as a marketer do not believe that a high sense of moral responsibility and ethical behavior is absolutely critical to your long-term success then you are in trouble.
If you as a marketer do not believe that customers will flee from your company and your brands as soon as there is a better alternative then you are in trouble.
If you as a marketer do not believe that earning the highest profit the market will allow is the fuel that drives innovation, and that profit is the foundation that allows you to constantly deliver increasing value to your customers and that it supports a higher standard of living for all concerned then you are in trouble.
If you as a marketer do not believe that the best way for you and your company to do any lasting good in this world is to first earn enough profit to stay in business then you are in trouble.
You and the head of your marketing department must understand capitalism and fully embrace its tenants and accept the awesome responsibilities that go with it. Once you do, your business will have a mindset that will allow it to soar to unprecedented levels of success.
Build your business brands to prosper in a free market environment and you will be focused on enduring business success based on offering your customers superior, unique value that is continually enriching to both you and your customers.
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This article is an adaptation from the free report, "5 Secret Marketing Tactics That Will Increase Your Revenue." Dave is also author of the e-book, "How to Build and Manage Your Brand (in sickness and in health)."
