Marketing of unleaded fuel in New Zealand : an application of marketing methods to public policy implementation

Abstract

Public policy objectives concerning environmental health often require changes in peoples' behaviour as resource consumers. There are a range of mechanisms for achieving these changes, the most frequently used being legislation and economic intervention. Legislation is currently unpopular given recent trends towards market driven processes, however the market is often limited in its ability to address public policy problems.

This study examines the potential of marketing techniques for use as an acceptable policy instrument. Marketing of unleaded fuel in New Zealand has been analysed as an application of the policy instrument. The techniques have made a contribution to current consumer behaviour, and therefore to the policy outcomes. It was found, however, that they had not been employed to the full potential of the instrument. Certain predetermined aspects of the market mix had shaped the marketing effort, but the political policy environment was revealed to be of crucial importance. The policy maker and implementing agent had held different, conflicting definitions of the policy 'product' to be marketed.

The study finds that for marketing to be a useful policy instrument, a supportive political and commercial environment must be constructed via the use of supplementary economic incentives, and/or regulating instruments. Alternatively it should be ensured that the marketing agent has commercial or political interest in the policy implementation. If the operational environment is thus considered, many public policy areas stand to benefit from a marketing approach.