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Sustainable approaches to marketing are seen as desirable

by many marketing academics. Is the concept of value tothe marketing practitioner?

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Introduction:

Sustainable marketing is the concept that has been popular among business professionals

due to the immense importance laid down to protecting environment. Sustainability of

resources is close to the green marketing (SustainableMarketing.com) and it stresses on

not only producing the products sustainably but also selling them that way. Producing

sustainably urges producers to consume less while they make (Kourdi, 2011). This is the

new challenge that many companies face as they have to produce by using minimum

number of resources to produce optimum number of output without causing much

wastage. This new challenge is certainly rewarding (Kourdi, et.al) and is welcomed by

entrepreneurs as well as consumers. Therefore this report shall discus that how important

sustainable marketing is and how important it is for marketers.

Literature Review:

Works by Cohen (2011) gave the basic understanding of what sustainable marketing is.

The author has simplified it by linking it with social marketing. Philip Kotler (2010)

extends to another level by explaining that sustainable marketing encompasses needs of

consumers, industry and society. This briefs that how important sustainable approach

should be for marketers. Baker and Saven (2010) link sustainable marketing with theenvironment and thus explain that it is the practice where future generations interest

must be kept in mind. Among the three definitions, Bakers were more suitable for the

context of this report.

A briefing compiled by University of Cambridge program defined the duties of a

marketer and specified that what duties should be performed by a green marketer. It

highlighted that a marketer should have a broad and long term vision to be prepared for

challenges ahead. Works by Stead and Starik (2004) define more challenges faced by

sustainable marketers such as conveying the right message to consumers, understanding

the complexities of term green, incorporating strategies in corporate objectives etc.

Authors have accurately pointed out trivial challenges that marketers can face.

Dalton, Hoyle and Watts (2010) point out solutions that marketers can adopt to curb

challenges such as gaining insight into consumer minds and studying what they want

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form companies. Secondly, these authors have also listed down green marketing

strategies; shaded, defensive, extreme and lean marketing which elaborated separate

strategy for each type of business.

Ottman (2011) has clarified that what values sustainable marketing imparts on

products/services such as consumers being ready to pay price premiums and making

positive perceptions about green products.

Background and Definition:

An academic booklet written by Charter, Peattite, Ottman and Polonsky (2002)

represented the beliefs of Marketing Academics that companies must follow the agenda

of Corporate Social Responsibility (CSR). The idea gained popularity in 1990s and since

then academics have emphasized on the importance of sustainability. They have

substantiated the ideas by the fact that consumers, business customers, stakeholders and

general public favor organizations that market their products causing minimum harm to

environment.

Sustainable marketing is part of the social marketing and this has been first introduced in

20th century by G.D Wiebe who proposed that advertising should encompass good

citizenship (Cohen, 2011). Later Philip Kotler and Gerald Zaltman promoted social

marketing in the school curriculum and advocated that it be taught as a discipline. And

since then, sustainable marketing has evolved. The ideas have laid grounds for marketers

to practice sustainable marketing in the latter stages till to date.

Before studying the benefits sustainable marketing pose, let us define it more precisely so

that better understanding can be achieved.

Philip Kotler (2010) defines sustainable marketing as marketing decisions which consider

consumer wants, companys requirements, consumers and societys long run interests.

Another definition put forward by Baker and Saven (2010) explains rather elaborately

that sustainable marketing is the practice whereby marketers meet the needs of present

generations and at the same time considering needs of future generations. Thus it means

that marketers must be responsible enough to produce and market products in such a way

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that minimum wastage of resources occurs and sufficient is left for future generations to

live on.

Objective:

This report is written to explore the approaches towards sustainable marketing and alsostudy its importance to marketers. The report shall also find out the view point of

marketing academics regarding sustainable marketing.

After reading this report, readers and marketers alike will give more weight to adding

sustainability and might incorporate into marketing actions.

Further it is assumed that this report will explore the value that sustainability gives to a

product/service. Moreover, it will also guide prospective marketing managers as to how

they can apply such practices.

Challenges:

Marketing academics have been emphasizing a lot on marketing sustainably but the

concern is that how far practitioners are willing to incorporate it into their work behavior.

Marketing sustainably includes not only designing products that are eco friendly but also

setting the price, packing and promoting it that way whereby its is friendly to the

environment as well as society.

As discussed in the briefing given by Program for industry by University of Cambridge,

marketers have a range of responsibilities before they decide for sustainable marketing. A

marketing practitioner must have a broad view of social, environmental and economic

outcomes. This implies that marketers have to foresee the changing trends and

implications that can have on certain policies. Long term planning and future insight is

important for making strategic decisions and each and every scenario must be carefully

forecasted by a practitioner. The fact can be best explained by an example that a

marketer, working in lesser developed country where environmental laws are weak,

forms the strategy which is profitable but hazardous to natural environment. A sudden

change in law due to pressure from social groups can impose serious restrictions on those

who produce or market unethically. Thus, it must be taken into notice that marketers

cannot function profitably without putting in notice the external factors which are

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important in affecting a business. Following the broad view, as discussed already,

marketing practitioner must possess the ability to see long term challenges and

opportunities and have an inclusive approach.

Marketing practitioners of today seek great value in sustainable marketing but before that

there are several challenges which a marketer first becomes aware of. Stead and Starik

(2004) clarified numerous challenges that in a marketers way. The first challenge that

emerges is defining the term green. This is so because green activities are subjected to

varying views, pitfalls, perceptions and implied complexities. What may be green

behavior for some might not be for others. Or in some cases, practitioners might get

confused as to what are those real green activities in terms of marketing.

The second challenge posed by authors is changing perceptions about using greener

products in the mind of consumers. This is more challenging in lesser developed

countries where green awareness is still behind as compared to developed countries.

Marketers have to strategically position the product/service in a method that target market

gets convinced of using green products in a greener manner.

Marketers also face the daunting task of convincing consumers that how their products

are related to avoidance of environmental problems. For example, Body Shop is selling

its products which are not tested on animals. This marks the importance of how

hazardous production and consumption of cosmetics can be to animals.

Marketers must not use the easy way out of conveying message to consumers that their

products are environmental friendly. This means that if required, practitioners must

legitimately put across the message of green products with the help of correct

information.

Lastly, Stead and Starik (et al. 2004) discuss that marketers must impart this to

consumers and social groups that environmental responsibility is not ignored while the

business forms its strategies. Businesses like McDonalds pack their items in recyclable

bags and distribute recyclable tissues which express McDonalds responsibility towards

environment.

Thus, marketing sustainably as part of marketing practices seem easy on paper, but it

poses great many errands on practitioners. They face immense challenges and they vary

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with every region. However, once the problems are known, marketers can successfully

overcome them through strategies adopted by reputable sustainable businesses. They

shall be in following part of this report.

Approaches to Sustainable Marketing:

Stead and Starik (2004 et.al) also provide with solutions that marketers can adopt to

overcome these challenges. Practitioners seek value in sustainable marketing because

they see immense potential in gaining competitive advantage and price competitiveness.

However, these are matters left for latter stages as first marketers are entailed to devise

possible strategies which can lead to thriving green marketing.

Marketers can adopt the approach of marketing their products/services sustainably by

interacting well with the consumer (Dalton, Hoyle and Watts, 2010). In their book,

Human Relations, authors have mentioned the example of WedVert, a wedding planning

company where it assists its clients in conducting a conservation oriented wedding. This

idea has let this business flourish only because they have surveyed that what do their

consumers want and have also clearly defined target market. Thus, marketing

practitioners need to analyze their market and needs and then serve the offerings which

are most welcomed by consumers. As companies start marketing sustainably, they have

to clearly define the value sustainable production can deliver to target market.

InHuman Relations, authors have mentioned different strategies that can be adopted by

marketing practitioners and give them the option of choosing suitable approach according

to product offering.

The first strategy proposed by authors is known as Shaded Green strategy. This involves

marketing sustainability with the products which have low demand for ecological

products but have high potential, promising to give competitive edge, such as Hybrid

Cars. What marketers can do in this case is that they promote the merits of the product

rather than emphasizing on mere sustainability.

The next strategy is known asExtreme Green. In this case, there is a high substantiality

towards green market but at the same time great potential for differentiation. At this

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point, marketers have to carefully communicate the objective of the company that why is

it important to use sustainable products.

The other strategy is known asLean Green whereby there is a little demands for green

products but at the same time little competition for green products. Companies like Levis

add sustainability in their corporate objective but do not convey it to consumers or

consider it as a promotion tool.

Last of the green strategies isDefensive Green strategy. In this case, market which

prefers greener products is large but actual competitiveness is low.

These strategies can be of enormous help to practitioners who want to market in a green

manner but they have to clearly co-incide their strategies with the companys objective.

Green marketing gives the companies edge in the industrial market as well as consumer

market. It is the huge responsibility on marketers that they form corporate and social

reputation of the company. Businesses can do so by holding public relations activities

which promote not only the product but the sustainability it is marketed for. This shall

assist in building improved stakeholder relationships. For example Coca Cola decided to

become the zero waste carbon sponsors of Olympic Games in Vancouver (Pride and

Ferrel, 2011). It decided to deliver the beverages in diesel electric vehicles to contribute

towards natural environment. However, a business does not have to be big like Coca Cola

to practice sustainability; but small businesses can also adopt greener marketing strategy

by using minimum amount of paper, causing minimum waste and using organic items in

foods and packaging (Grant, 2009).

Value of Sustainable Marketing for Marketing Practitioners:

Green products are the new entrants in market which give opportunity to marketers to

charge price premiums (Ottman, 2011). Long ago was the time when green products were

untouched by consumers and dust used to settle on them? Now they are preferred by

consumers and social groups and that is why marketers can charge prices synonymous

with the value that product gives. Marketers must understand that green products justify

the extra costs associated with making them by having earned reputation companies long

for and also profits. New greener products and services are thriving and this can be

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explained by popularity of products such as Hybrid cars, cosmetics by Body Shop and

Avon and Organic foods.

Sustainable marketing allows firms to charge competitive prices. Though the costs are

high for producing eco-friendly products, companies can enjoy charging high prices that

cover their costs. This is unlikely for competition to affect because latter do not have

justification for charging high prices. Thus, price competitiveness can also prevail by

producing sustainable products. And consumers will also consider such products

possessing value because of the common perception associated with high price.

Sustainable marketing is significant for practitioners because previously, consumers used

to decide upon price, performance and convenience of products; but now they are moreconcerned about how the products is formed, manufactured, packaged, transported and

disposed off (Ottman, 2011, et.al). New age consumers also show interest in how those

who were involved in production process are treated and managed. Thus, those marketers

who have not yet given consideration to sustainable marketing must do so, because

consumers are more aware and more alarmed towards green marketing practices.

Fast Food giant McDonalds, also has shifted towards sustainable marketing. A product is

promoted till the last stage of packaging as well (Wells, Moriarty and Burnett), thus,

McDonalds after carrying out a detailed environmental audit decided to change the

operations and service of McDonalds in an eco friendly manner (Wasik, 1996). Thus,

McDonalds made huge investments on eco-friendly production; it started packaging in

recyclable material, planted trees through one-site habitat project and changed the

strategy with tier suppliers. It is still unknown that how much McDonalds spends on

environmental protection, but it has certainly positioned itself as an ethical organization.

Positioning this way has definitely proved to be of great value for marketers.

Marketers of todays age certainly value greener marketing because they understand the

needs of stakeholders plus fulfill the corporate social responsibility. Author of the Green

Marketing and Management (Wasik) has mentioned examples of companies which have

introduced such plans to contribute well towards the society.

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General Motors started a program named; Buy a Car Plant a Tree, which was aimed at

planting 45000 trees by year 1994. Similarly, Johnson and Johnson have asked its

suppliers to add eco friendly products into the component. Some of the corporate

alliances also take place to collectively recycle products and sell them through

exhibitions under same theme. Thus, it is evident by now, that sustainable marketing is

not only advocated by academics but also practiced by marketers.

In the new age marketing practices, both the practitioners and academics try to integrate

sustainability to the corporate policies of the companies. Having a sustainable production

is the action worth taken by the companies as it brings highly rewarding results. When

marketing practitioners incorporate eco-friendly performance to their practices, then it

becomes a point of differentiation for them and gives the competitive edge (Charter andPolonsky, 1999). Now marketers can charge high prices or it may automatically adds

value to the product because of its sustainable nature. Greener marketing catalyses the

process of adding value because it gives the winning edge over competitors since

consumers and society are influenced by the companies practices.

However, going eco-friendly raises apprehensions to marketing practitioners regarding

overcome by rivals. This is like a prisoners dilemma (Charter, et.al). Adding

sustainability to marketing and manufacturing processes also adds to the costs which can

then become a dicey affair for firms to earn profits or may be breakeven. Some small

businesses might give up the idea of sustainable marketing just because they apprehend

the practice being costly. However, paperless marketing, viral and word of mouth can

prove fruitful form businesses with low budgets.

Philip Kotler (2010) discussed in his book that sustainable marketing can be carried out if

individual marketing practitioner and managers follow their own conscience and behave

morally. Some argue that firms behavior depends on the legal rules of a country but

others believe that marketing sustainability is the moral duty and it should be practiced by

managers. Since awareness about eco-friendly products is increasing; stakeholders will

also form good repute and eventually positive word of mouth can benefit the company in

long run.

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Recommendations:

Marketing sustainably is no difficult task for practitioners because the value attained is

worth the effort. Marketers must adopt the practice of sustainable marketing through

various approaches such as making sustainable products, advertising in an eco-friendly

manner, and at the end distributing products without causing much fuel wastage.

Marketers should include sustainable marketing in the corporate objectives so that future

strategies are based on objectives that are made by top management. Moreover,

businesses can successfully do social marketing by including the motive in their mission

statement so that stakeholders and consumers are aware of companys social

responsibility.

Conclusion:

It is concluded thus that, many marketing practitioners are adopting sustainable

approaches to design, manufacture, sell, and build relations and adding value to products.

When consumers know that products they will be consuming are environmental friendly

than they will be driven to perform sustainable andprefer their products instead of

competitors.

It was further concluded that academics are not the only one who desire sustainable

approaches to marketing but marketers across the globe are practicing it includingcorporatists of multinationals. Sustainable marketing poses many challenges such as

pricing, costs, packaging but solutions were also explored such as four green strategies.

Marketers find great value in approaches adopted for sustainable marketing and thus they

incorporate into products/services well.

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References:

Kotler, P., (2010), Principles of Marketing, Pearson, 13th ed.

Kourdi, J.J., (2011), The Marketing Century, John Wiley and Sons.

Charter, M. and Polonsky, M.J., (1999), Greener Marketing, Greenleaf Publishing

Baker, M.J. and Saven, M., (2010) Marketing Theory: A student Context, Sage

Publications Cohen, N., (2011) Green Business: An A to Z Guide, SAGE.

Pride, W.M. and Ferrel, O.C., (2011) Marketing, Cengage.

Stead, W.E., Stead, J.G. and Starik, M., (2004) Sustainable Strategic Marketing,M.E. Sharpe

Dalton, M., Hoyle, D.G. and Watts, M.W. (2010)Human Relations, Cengage

Learning

Ottman, J., (2011)New Rules of Green Marketing, Berret-Koehler.

Wasik, J.F. (1996) Green Marketing and Management, Wiley Blackwell

Grant, J., (2009) The Green Marketing Manifesto, John Wiley and Sons.

Sustainable Marketing, available at: Accessed 29september 2011.

http://www.sustainablemarketing.com/http://www.sustainablemarketing.com/

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Bibliography:

Baker, M.J. and Saven, M., (2010) Marketing Theory: A student Context, Sage

Publications

Charter, M. and Polonsky, M.J., (1999), Greener Marketing, Greenleaf Publishing

Cohen, N., (2011) Green Business: An A to Z Guide, SAGE. Dalton, M., Hoyle, D.G. and Watts, M.W. (2010)Human Relations, Cengage

Learning

Grant, J., (2009) The Green Marketing Manifesto, John Wiley and Sons.

Kotler, P., (2010), Principles of Marketing, Pearson, 13th ed.

Kourdi, J.J., (2011), The Marketing Century, John Wiley and Sons.

Ottman, J., (2011)New Rules of Green Marketing, Berret-Koehler.

Pride, W.M. and Ferrel, O.C., (2011) Marketing, Cengage.

Stead, W.E., Stead, J.G. and Starik, M., (2004) Sustainable Strategic Marketing,

M.E. Sharpe

Sustainable Marketing, available at:

Accessed 29september 2011.

Wasik, J.F. (1996) Green Marketing and Management, Wiley Blackwell

http://www.sustainablemarketing.com/http://www.sustainablemarketing.com/