Marketing Management and Communications in the Public Sector

Martial Pasquier, Jean-Patrick Villeneuve

• Publisher: Routledge
• Year: 2017
• ISBN:
  9781317222606
• Edition: 2
• Topic: Business
• Subtopic: Business generale
• Index: Business

This updated edition of Marketing Management and Communications in the Public Sector provides a thorough overview of the major concepts in public sector marketing and communications, two fields that have continued to grow in importance for modern public administrations.

With extended coverage of topics such as social marketing and institutional communication, the authors skilfully build on the solid foundations laid downin the previous edition. Replete with real-world case studies and examples, including new material from the USA, Australia, and Asia, this book gives students a truly international outlook. Additional features include exercises and discussion questions in each chapter and an illustrative extended case study.

This refreshed text is essential reading for postgraduate students on public management degrees, and aspiring or current public managers.

The Open Access version of this book, available at http://www.taylorfrancis.com/books/e/9781315622309, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.

Part I

Chapter 1
Public management and marketing

LEARNING OBJECTIVES

By the end of this chapter you should:

■ Be able to identify the distinctive features of the public sector.

■ Understand the various management models used in the public sector.

■ Have considered the organizational and marketing implications of a public-sector setting.

KEY POINTS OF THIS CHAPTER

■ Marketing in the public sector is directly affected by the characteristics of the overall managerial framework present in a public-sector setting.

■ Elements specific to public-sector organizations include: legal status, objectives, tasks, and environment.

■ Three general management models can be identified in the public sector. The Weberian system (traditional and bureaucratic, which came into use in the 1920s); New Public Management (private sector inspired, which emerged in the 1990s); and Democratic Governance (participatory approach, which appeared in the 2000s).

KEY TERMS

Public service organization – a public body implementing public policies, generally through the production of goods and services, by coordinating resources available to it. The classic type of public-sector structure is considered to be a ‘central public service organization’. It is directly dependent upon political authority and generally has very little autonomy regarding the way its work is systematized and carried out.

Weberian, or Classical model – a paradigm structured by sociologist Max Weber. Defining characteristics of this model include a stable, neutral civil service – hierarchically organized and specialized by function – as well as a clear separation between a function and the individual holding the position.

New Public Management – this model is inspired by private-sector practices and premised on the notion that competition in the public sector is the best guarantor of greater efficiency.

Democratic Governance – a model arising in the 1990s and 2000s – was mainly developed in reaction to criticisms levelled at New Public Management, based on notions of accountability, transparency and citizen participation.

THE DEVELOPMENT AND CHARACTERISTICS OF PUBLIC ORGANIZATIONS

Discussion of marketing in public organizations requires a two-fold understanding. First there is the role of public organizations in democratic political systems and, secondly, the way management is envisioned and defined within these organizations.

Broadly speaking, central public service organizations, defined independently of political institutions, came into being with the development of the liberal state. This is a conception of the state in which principles of liberty and individual responsibility take precedence over power of the sovereign.

The members of a state (citizens) therefore enjoy fundamental rights no power may violate. By the end of the nineteenth century and the start of the twentieth century, in many countries it had become necessary to define the boundaries of state power. This imposed the principle of the subordination of governments and central administrations not to the monarch or dictator but to the letter of the law.

As a result, relationships between the state and its citizens are generally governed by administrative law. The management of public organizations is thus greatly influenced by the application of corresponding rules of procedure. In the United States, particularly under the influence of future President Woodrow Wilson, the structure of public administration developed in a more professional and pragmatic manner (Chevallier, 2002: 16).

One further aspect to consider is the growth of the public sector. With the development of the state’s economic activities – electricity, telecommunications, postal service, etc. – and the advent of the welfare state after World War II, government functions grew considerably. These occurrences resulted in a number of far-reaching consequences. Administrative structures diversified and the delivery of public services was entrusted to organizations with specific statuses such as publicly funded bodies, public corporations, etc. Depending on hierarchy, such administrations possessed varying degrees of managerial independence.

Subsequently, relationships between public organizations and beneficiaries of public action broadened and could no longer be based solely on administrative law. The emergence of more informal relationships meant managerial bodies were no longer linked entirely to a political process. As a result, they were more directly related to the services offered and this made it possible to take into consideration such marketing elements as analysis of user needs, differentiation of certain services, performance of communications activities, etc.

These developments intensified in the wake of frequent criticism of the classic functioning of administrations – bureaucracy, inefficiency, and so on. Solutions proposed since the 1980s have focused upon the growing autonomy of public organizations. This puts them in competition with one another, so they must adopt a ‘consumer-driven’ model for the provision of services. These changes, generically grouped under the term ‘New Public Management’, have led to the introduction of management concepts and more widespread use of marketing and its tools – satisfaction analysis, fee systems, promotional activities, development of brands, etc.

In recent decades, public organizations have undergone many changes resulting from the introduction of management methods and techniques akin to those of private enterprises. However, state structures still have several distinctive features which affect the possibilities for adopting marketing concepts and using marketing tools:

■ the status of public organizations

■ their objectives

■ their tasks

■ their environment.

Status of public organizations: Their public nature means the behaviour of public organizations is primarily the result of the political process, subject to control or close monitoring by legislators and policymakers. It also assures public law applies in case of conflict between the organization and beneficiaries of its actions – primacy of principles over processes.

In this framework, the public organization and its employees may be called upon to use measures of constraint against individuals, organizations and institutions – arrest, fines or specific prohibitions. As a result, these organizations’ managerial autonomy may be severely limited by compliance with rules and procedures taking precedence over managerial choices.

Objectives: Unlike private companies, which can rank objectives in the service of maximum profitability, public organizations must generally manage a complex system of sometimes contradictory objectives. They must always provide high-quality services, deliver identical services to all citizens, and manage budgets with numerous constraints, etc.

Tasks: A public organization’s tasks must have a legal basis such as lawfulness of action; otherwise it cannot act. In addition, unlike private organizations, it is not restricted to producing goods and services and making them available in an output-oriented logic. It must also design and implement public policies to satisfy collective needs – outcome-oriented logic. Consequently, measurement of its performance cannot be reduced to the relationship between a service and its beneficiaries. It must also include the capacity to increase collective welfare.

Environment: Generally speaking, private companies are involved in a competitive situation and choose their partners; suppliers and customers. In contrast, public organizations do not normally operate in a market situation. They cannot make services available selectively, and face a large number of stakeholders. Moreover, public organizations are increasingly compelled to be accountable not only to political authority (vertical accountability) but also to all their partners, the media and the general public (horizontal accountability).

Consequently, although marketing concepts and tools may be used by public organizations, the framework in which they are employed is highly restrictive and not at all homogeneous. Several conditions may be placed upon their use: organizations may be forbidden to develop services, differentiate services on the basis of their beneficiaries, selecting beneficiaries, etc. To quote Allison (1979): ‘[P]ublic and private management: are they fundamentally alike in all unimportant respects?’

MANAGEMENT MODELS IN PUBLIC ORGANIZATION

Three distinct management models can be identified in public organizations: the Weberian model, the New Public Management model and the Democratic Governance model (see Figure 1.1). The reference standard for management of public organizations was inspired by the work of sociologist Max Weber (1921). Based upon his studies of the structures of major military, religious and administrative institutions, he arrived at a model offering means to administer laws effectively and coordinate complex activities.

■ Figure 1.1 Management models in the public sector

The Weberian...