ON the other hand the believe in economy growth is one factor. We thought that we could fix poverty etc. with this. Also we believed that the physical problems could be solved through technology.
The report recognized the interdependencies between the natural environment, human social welfare and economic activity and the need to establish a and maintain a dynamic balance between the three.
• Needs – Two different types of needs
o Anthropocentric – Focusing on the maintenance of a healthy and sustainable environment as necessary for human well-being. It places the human over all living species on earth.
o Biocentrism – Focusing on that every species on the earth are worth the same. Human beings should not be pre-eminent
• Equity – A fairer distribution of the cost and benefits of economic development, between countries, regions, races and age groups and between sexes. Under the twentieth century we failed to close the gap between the richest and the poorest nations. 20% of the richest people stand for 86% of the consumption.
• Intergenrationallity – The balance between present needs and the future needs. Think about the original definition.
• Global environmentalism – The environment is seen as a holistic, dynamic and vulnerable physical system with a finite ability to provide our productions and consumption.
Reform – Dessa individer accepterar att det finns stora problem, de är kritiska till hur beslutsfattarna samt företagen idag agerar, men trots detta ser de inte troligt som att miljön eller samhället kommer kollapsa, de ser de inte heller som nödvändigt med överdrivna fundamentala förändringar. Man kan säga att de bryr sig väldigt mycket, och tror att detta inom sinom tid kommer att lösa sig på ett eller annat sätt.
Transformation – Extremer kan man säga, de ser de stora problemen både i samhället och i miljön. De lägger stor vikt i hur relationen mellan människan och miljön ser ut. De argumenterar för att det måste ske en förändring gällande relationen för att undvika en total kollaps.
• The marketing environment – Marketing should be outwardly focused function whit in a business, helping to understand and respond to the environment.
• Marketing research – The marketing should be based on insight
• Marketing segmentation and targeting –
• The marketing mix
• Competitive advantages – With the understanding of the market and the consumer a business can provide something unique
• The marketing planning and management process –
➢ Poverty – almost half of the worlds population lives on less than two dollars/day
➢ Health – although improvements in health technology have raised the life quality, a number of health issues continued to threaten the quality of lives worldwide.
➢ Resource depletion – more aluminium, coppar, oil etc. were consumed in the twentieths century than all previous centuries combined.
➢ Ecosystem damage – Ecosystems provide food and regulate the climate and temperature.
➢ Eroding cultural diversity
➢ Climate change
• The marketing environment – marketing should be an outwardly focused function within a business, helping to understand and respond to the environment within which it exists.
• Marketing research
• Market segmentation and targeting
• The marketing mix
• Competitive advantage
• The market planning and management process
Ecological marketing – Was developed in 1970. Drawing the attention to both the negative and positive impacts of marketing on the natural environment. Deals with marketing activates that cause environmental problems and that provide remedies for environmental problems. Looks at the marketing mix from a ecological pov. For example studying how the use of critical substances is handled. We have companies like body shop, Ben&Jerry etc.
Green marketing – But it can be difficult to generate and sustain competitive advantages. Green products are often vulnerable to the credibility of their environmental claims. It’s hard to market a product as the greenest, it’s much easier to market the faster or most efficient car for example.
Another problem is the gap between what the green consumers ought to do and what they actually do, and the cynicism towards corporate greening offers.
The fist two elements are part of an analysis of the corporation’s external environment. They help to identify the socio-ecological issues in the market place and develop knew opportunities the third and fourth elements are strategic marketing decisions at corporate level. The sixth element is the company’s participation in public political process to change institutions.
The sustainability marketing mix four C’s
1. Customer solutions – Goes beyond just selling products and present a solution to the customers problem
2. Customer costs – does not only involve monetary cost, but also the physiological, social and environmental cost of obtaining, using and disposing a product
3. Convenience – Means that a customer wants to use a product and service that meet their needs and that’s its easy to access and use it
4. Communication – s a process of interactive dialogue, which is essential to build trust and credibility.
Distinction between these three.
CSR – Limited to social issues, employee rights, and human right and community involvement.
Another element is CSR in relation to the stakeholders. A company is not only driven by the interest of their own owners and shareholders. There is a long range of other groups that a company have to take in consideration.
Steps towards a systematic and strategic CSR approach includes identifying, prioritizing and addressees the social and environmental issues that matter the most or which a company can make the biggest impact. 3 different categories.
1. Generic social impacts – Issues that may be important for the society but neither significantly neither affected by the company operations nor do the influence the long-term competiveness.
2. Value chain social impacts – Issues that are significantly affected by corporate activates in the ordinary course of business, whole value chain, supply chain etc. is involved.
3. Social dimensions of competitive context – Issues that significantly affect the underlying drivers of competitor
Salutary products High/Low
Deficient products low/low
Desirable Products High/high
Pleasing products Low/High
Based on the societal product classification, companies can develop four basic strategic norms:
1. Elimination of deficient products
2. Incorporation of pleasing qualities into salutary products
3. Incorporation of salutary qualities into pleasing products
4. Investment in the development and marketing of desirable products, which meet both consumer and societal goals.
• One problem with the concept of societal marketing is who defines what is, and what is not, in the interest of consumers and society.
• Another problem lies in pleasing products, which serve immediate customer wants and are highly profitable, but are not necessary beneficial for consumers and society in the long run.
Ethical issues in marketing:
• Product issues; product safety, quality, design.
• Price issues; price fairness
• Place issues; distribution rights, channel control
• Promotion issues; advertising ethics, product placement
• Decision-making issues; CSR
• Consumer issues; ethical values
• International/cross-cultural marketing ethics
• Marketing research issues; ethical responsibility
• Ethics in marketing education;
• Ethical dimensions of particular types of marketing;
• Marketing, ethics and the law;
• Ethical issues related to the internet;
Marketing has a relative small impact on population but the manufacturers of condoms and contraceptive pills or the operation of dating agencies may se this differently.
The impact on the others are much greater, it promotes a consumer society and materialistic lifestyle, which impose problems on the social and natural environment. On the other hand it helps develop and diffuse sustainability innovations.
Marketing can both be a part of the problem and the solution.
Pollution and water pollution
• Goal and scope definition – Define functional unit to analyze e.g., 1 litre of milk or one can of beer. ‐ Comparison of two alt. packages? ‐ System boundaries e.g., cradle‐to‐grave, cradle‐to‐(factory) gate, or cradle‐to‐cradle
• Inventory analysis – Inventory of material & energy flows related to functional unit of analysis (e.g., xx of kwh, liters of water). ‐ Software like SimaPro & Swiss Eco invent database can be helpful
• Impact assessment – Life cycle impact assessment (LCIA) is carried out: ‐ Selection and def. of impact categories ‐ Assessment of input and output data to above categories ‐ Aggregation of these data.
• Interpretation – Data from the inventory analysis & impact assessment are interpreted & practical conclusions are drawn.
• Sources – Natural sources are divided between renewable sources (Has a way of regenerating itself, such as air, water, timber). If managed properly a renewable resource provides steady yields forever – if used to a greater extend then it can regenerate, it becomes an non renewable resource. Natural resources as oil and gas takes million of years to form. Since fossil fuels do not reform at the rate at which we use up them, they are an non renewable resource.
• Sinks – a layer of gases called the atmosphere surrounds the surface of the earth. The global atmospheric concentrations of carbon dioxide have increased, which leads to global warming.
• Systems – Despite increased scientific attention to environmental problems, many of the threats are far from being completely understood. One of the reasons is that the environmental issues involved are not isolated. They are interrelated, and there are many interactions between the natural and human environment. Economic activities generate greenhouse gases, in which affect he atmosphere, and in turn habitats and species.
• Sustainable Food and Drink – Food and drink consumption behaviours are a mixture of fast-moving consumer goods purchasing from retailers, domestic management behaviours and purchasing for consumption outside the home in restaurants. The sustainability impact linked to food and drinks will depend on the nature of the product consumed, how much packaging is required and how far away it is sourced from.
• Sustainable Mobility – One of the most significant contributions to climate change comes from the energy consumed for the journeys that we make between home and work, and other trips for leisure.
o Emphasizes the economics of sustainable consumption and how consumer weigh up the functional benefits and relative affordability of a product or service
o Concept of perceived benefits and costs
o Perceived benefits – Perceived cost = perceived net benefit
o Basic assumption that consumer will choose the good with highest perceived net benefit.
• Physiological explanations
o A more emotional explanation of our behavior
o Focused on how we think and fell about sustainability
o Under groups
• What do I think is important
• What do I believe about sustainability
• What does it mean for me
• Do I share some responsibility
• Can I make a difference
• How do I see myself
• Sociological explanations
o Focus on the relation between the human and the good
o What does a certain type of wear mean? (Tiger ex) Or a diet? (vegetarian)
o Who are we? And how do we want to be perceived by other?
o Social norms
o Considering the delivery of value to a customer as a system which products provide values to consumer as part of a service offering rather then depending on the consumer buying it
o Exempale car hire, library etc.
• Communal Economies
o Combine consumers to increase their buying power
o Tries to bring down the prices
o Or eliminate individual shopping trips, packaging etc.
• Redistribution markets
o EBay, amazon etc.
o Places to buy old used stuff
2. Information Search – Key source is personal sources.
3. Evaluation of Alternatives- Sustainability -oriented consumers will weight up the merits of particular solutions that are marketed to them, and are likely both to make comparisons amongst relatively sustainable goods, and between them and their more conventional counterparts.
5. Use – For many durable products, particulary energy-using appliances, the use phase will generate more environmental impacts than either the production or disposal phase.
6. Post-Use – Variety of possible consumer behaviours; Disposing of the product, recycle, selling etc.
o Internal forces that drive or guide are actions
o Great variety of them such as:
o The satisfaction yields positive feelings
o Dissatisfaction yields negative feelings
o Are finite and few
o Are needs that are directed to a specific object that may satisfy the need
o Are numerous in variety
• Self-employers low/low
o Don’t want to change the world or get rich
o Do not have distinct ethical or economic motives
o Want to survive on the market and make a decent living
o The business reflect the lifestyle of the owner
• Do-gooders high/low
o Care deeply about socio-economic factors
o Principles before benefits
o Founder of body shop Anita Roddick
• Opportunists low/high
o Mainly believe in making money regardless of the meaning
o Put profits before principals
o As long as whit in the legal right they offer all kind of goods in any kind of market
• Ethical strategists high/high
o Mixed motives
o Try to balance principals and profits
o Try to meet the bottom line of sustainability marketing
o Claus Hipp is an example
itten statements, including corporate visions, missions, philosophes and principles. Such core values create the brand ethos, the WHY behind the WHAT and the HOW of the things companies do.
– Brand Ethos is the character of a brand. It gives a deeper meaning to the brand. Ideally, brand ethos reflects the core values of the company, its product and services
• Ethos is the Greek word for character
• Brand ethos is the WHY, WHAT and HOW of the things companies do
• The core brand values creates the brand ethos
• Describes the guiding beliefs, ideal or fundamental ideas
• Gives deeper meaning to the brand
The triple bottom line
• Economic objectives
o Still relevant for sustainable marketing
o May be to increase revenues and shares of sustainable products and services
o Shift from single transaction to long-term relations, therefore customer satisfaction and customer value become relevant
• Ecological objectives
o Managing the ecological impact of consumption
o This information can be drawn from LCA
o Material use
o Water use
• Social objectives
o Heal tans safety are vital
o Consumer don’t want to use products that will risk theirs or other health and safety
o A broader consideration of the “world behind he product”
o Implementation of HR management programmes
o Implementation of freedom of association educational programmes
o Conduct of survey on satisfaction and empowerment of workers
o Zero excess overtime
• Pre problem stage:
o At the beginning the problem exists in society but has not yet attracted much public attention
• Discovery stage
o Some critical or newsworthy incidents or developments occur.
o They receive widespread coverage in mass media and attracts public attention.
• Solution stage
o Public attention creates pressure on politicians to do something about the issue
• Decline stage
o As the difficulty and the cost of tackling the problem rises the public attention wanes
• Post-problem stage – Issues having slipped down the agenda
• Receives reduced attention or only spasmodic recurrences of interest.
o Addressed through market-based approaches
o Such as setting the price right
o Giving insensitive to consumers and producers to act “right”
o Think of the car industry with hybrid and electric cars etc.
• Direct sustainability marketing transformation processes
o Comes from the public via policy politics to the market
o In some cases pressure from sustainable marketing transformation can go direct from the public to the market
o Have power through moral legitimacy
o Think Greenpeace
o National governments and supranational organizations
o Think EU
o Influences the whole value chain in a market
o They play a crucial role in the diffusion of socio-ecological solutions in the market
– Pre-problem – the problem exists in the society or the environment but has not yet attracted much public attention.
– Discovery – some critical and newsworthy incidents or development occur.
– Solution – Public attention creates pressure on politicians to do something and solve the problem.
– Decline – as the difficulties and costs of tackling the problem become evident, the public attention to the issue wanes.
The length of the issue-attention cycle and the timing of its different stages may vary.
• Indirect Sustainability Marketing Transformation Processes
Scientific issues of interest initially only to experts and enthusiasts evolve into media issues, which turn into public issues and then into political issues. Some socio-ecological problems are solved by setting standards, which are enforced by law. Other are addressed through market-based approaches and by setting the price right, that is by offering economic incentives to producers and consumers to behave in a more socially and ecologically way.
• Direct Sustainability Marketing Transformation Processes
An ecological or social problem usually goes through the issue-attention cycle and the political process before it begins to influence markets and marketers. This indirect transmission of concern from the public via policy and politics to the market may take years to occur, but in some cases pressure for sustainability marketing transformation processes goes directly from the public to the market.
2. Segmenting Sustainability Markets – segmenting a market allows marketers to cope better with the diversity of consumers and their behaviours, to focus efforts on serving those segment with the greatest potential for success, and to vary their different market offerings to suit the needs of different segments.
– Behavioural – based on their use of or response to sustainable products.
3. Introducing Sustainability Innovations – If marketing is to contribute to a transformation to more sustainable society, it will require new sustainable product and service innovation to satisfy customer needs. There are four different types of sustainable innovations;
– The first type focus on the improvement of existing products.
– The second represent alternative technologies to existing problem.
– The third applies existing knowledge to new market areas.
– The fourth is probably the most fundamental contribution to sustainable development. It goes beyond product innovations, and refers to the level of entire systems. Ex sustainable mobility systems and electric cars
4. Positioning Sustainable Products – Finding a new and distinctive position in a market can be challenging for a company, and in many markets there is an opportunity to establish a position as the most sustainable, ethical or greenest product. There are four options to position sustainable products;
– First the company puts focus on the socio-ecological value adds, which captures a dominant position over performance and price. The company focus on the benefits for the natural and social environment instead of the individual benefits.
– Second option is to put equal emphasise on performance, price and socio-ecological aspects.
– Third is to communicate the socio-ecological value added as an integral part of product quality.
– Fourth is to refrain from communicating environmental and social benefits. (Consumer can be sceptical)
5. Partnering with Sustainability Stakeholders
The model seeks to identify those parties in the marketing environment whose behaviour can potentially affect the interest of the company, or towards whom the company owes some form of social obligation.
➢ Socio-Cultural Environment – culture refers primarily to how society expresses itself collectively through shared knowledge, learning communication and the arts. Sustainability issues are increasingly reflected in the cultural landscape in ways that influence public and political opinion and consumer response. The popularity of wildlife documentaries can all increase social awareness and concerns about sustainability.
➢ Technological Environment – The technological environment changes rapidly.
➢ Political Environment – Sustainability marketing decisions are strongly affected by development in the political environment.
➢ Economic environment – Influences the short-term viability of firms and their marketing strategies, and the long-term prospect for the transition to a more sustainability economy.
• Customer satisfaction
• Dual focus
o Focus on both environmental and social aspects
• Life cycle orientation
o From cradle to grave
• Significant improvements
o Worthwhile contribution to socio-ecological issues
• Continues improvements
o Continues improvements along with the changes in customer needs
• Competing offers
o Be better then the competitors
• Organic food
• MSC labeled fish
• FSC labeled products
• Fair trade products
Don’t need to describe what a brand is you should know this.
Because they suffered from marketing myopia, which means an excess focus on the product/service instead on focusing on the costumer solution.
Therefore companies need to complement the traditional marketing mix whit the sustainable marketing mix the four C’s.
• Line extension Existing/Existing
o Introduction to additional items in a giving product category under the same sustainability brand name
• Sustainability brand extension Existing/new
o Involves the use of a successful sustainability brand to launch new or modified products in a new category
• Multi sustainability brands New/existing
o Imply that a company has two ore more sustainability brands in the same product category
• New sustainability brands
o Creation of a new brand and in new product category
• Informing consumers about products and their availability.
• Reminding consumers about a product.
• Persuading consumers to try a new product.
• Reassuring consumer in the face of direct or implied criticism of a product and reassure them that past purchases of the product were sensible choices.
• Motivating consumer to respond
• Rewarding through the provision of direct benefits for past custom and loyalty or for other behaviours.
• Connection with consumer through relationship-building activities
• Making sure that the mail are right targeted
• Change the used paper to recycled or produced in sustainable factories
• Move from oil-based to vegetable printing inks
• Use hybrid mail – distribution true internet
o Targets the consumers self-interest
• Emotional appeals
o Seek to make an emotional connection with the consumer
• Moral appeals
o Aim to engage with consumers right and wrong
• Ecological trust
o Built to reverse the trend of towards a loss of confidence in business and business leadership and the resulting crisis of ecological legitimation
• Ecological access
o Allowing stakeholders access to the organization
• Ecological Disclosure
o Be honest
o Tell the consumers what is happening
• Ecological dialogue
o With stakeholders to gain trust, listen to them and their concerns
The seven sins
• Hidden trade off – Electronics that contain hazardous material or papers that may come from sustainable harvested woods and then transported across continents
• No proof –
• Vagueness – Products claiming to be 100% natural but still contains hazardous substances
• Irrelevance – e.g. Products claiming to be CFC free when CFC was banned 20 years ago
• Fibbing – e.g. Products falsely claiming to be certified
• Lesser of two evils – e.g. Organic cigarettes
• Worshipping false labels – Products that give a false impression of a third-party