Special Topic Marketing Management

Prelims
CHAPTER 1: OVERVIEW OF SUSTAINABLE BUSINESS protection of the health of people from pollution and
What is sustainability and why is it important? other harmful activities of business and other
organisations.
Sustainability is meeting “the needs of the present
without compromising the ability of future generations In North America, Europe and the rest of the developed
to meet their own needs.” Sustainability is the study of world, there are strong checks and programmes of
how natural systems function, remain diverse and legislation in place to ensure that people's health and
produce everything it needs for the ecology to remain in wellness is strongly protected.
balance.
It is also about maintaining access to basic resources
Sustainability and sustainable development focuses on without compromising the quality of life.
balancing that fine line between competing needs - our
need to move forward technologically and The biggest hot topic for many people right now is
economically, and theneeds to protect the sustainable housing and how we can better build the
environments in which we and others live. Sustainability homes we live in from sustainable material.
is not just about the environment. it's also about our
The final element is education - encouraging people to
health as a society in ensuring that no people or areas
participate in environmental sustainability and teaching
of life suffer as a result of environmental legislation, and
them about the effects of environmental protection as
it's also about examining the longer term effects of the
well as warning of the dangers if we cannot achieve our
actions humanity takes and asking questions about how goals.
it may be improved.
3. Environmental Protection
Three pillars of sustainability
1. Economic Development We all know what we need to do to protect the
environment, whether that is recycling, reducing our
This is the issue that proves the most problematic as
power consumption by switching electronic devices off
most people disagree on political ideology what is and is
rather than using standby, by walking short journeys
not economically sound, and how it will affect
instead of taking the bus.
businesses and by extension, jobs and employability.
Businesses are regulated to prevent pollution and to
It is also about providing incentives for businesses and
keep their own carbon emissions low.
other organisations to adhere to sustainability
guidelines beyond their normal legislative There are incentives to installing renewable power
requirements. To encourage and foster incentives for sources in our homes and businesses. Environmental
the average person to do their bit where and when they protection is the third pillar and to many, the primary
can; one person can rarely achieve much, but taken as a concern of the future of humanity. It defines how we
group, effects in some areas are cumulative. should study and protect ecosystems, air quality,
integrity and sustainability of our resources and
The supply and demand market is consumerist in nature
focusing on the elements that place stress on the
and modern life requires a lot of resources every single
environment.
day.
PRIMARY GOALS OF SUSTAINABILITY:
2. Social Development
1. Environmental Conservation:
There are many facets to this pillar. Most importantly is  Preserving Biodiversity: Protecting and preserving
awareness of and legislation diverse ecosystems and species to maintain biodiversity
and ecological balance.
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Prelims
 Reducing Environmental Pollution: Minimizing 5. Community Well-Being:
pollution of air, water, and soil through sustainable
• Ensuring Health and Safety: Prioritizing public health
practices to prevent harm to ecosystems and human
and safety by providing access to clean air, water, and
health.
food, and minimizing exposure to harmful substances.
 Resource Efficiency: Using natural resources
efficiently and promoting the use of renewable • Community Engagement: Encouraging community
resources to reduce environmental degradation. involvement in decision- making processes and
fostering a sense of responsibility and ownership for
sustainable development initiatives.
2. Social Equity and Justice:
 Promoting Social Inclusion: Ensuring fair and 6. Ethical and Responsible Governance:
equitable access to resources, opportunities, and
benefits for all individuals and communities, • Corporate Social Responsibility (CSR): Encouraging
irrespective of socio-economic factors. businesses to operate ethically, transparently, and
 Respecting Human Rights: Upholding human rights, responsibly, considering their social and environmental
promoting social justice, and addressing social impacts.
inequalities within and across societies.
• Government Policies and Regulations: Implementing
 Cultural Preservation: Safeguarding cultural heritage
policies and regulations that promote sustainable
and diversity to maintain the identity and well-being of
practices and hold individuals and organizations
communities
accountable for their environmental and social
3. Economic Prosperity: responsibilities.

• Promoting Sustainable Economic Growth: Fostering 7. Education and Awareness:

economic development that meets the needs of the
• Promoting Sustainable Education: Encouraging
present without compromising the ability of future
educational programs that raise awareness about
generations to meet their own needs.
environmental issues, social justice, and sustainable
• Creating Green Jobs: Encouraging the development of living practices.
environmentally friendly industries and job
• Fostering a Culture of Sustainability: Cultivating a
opportunities that contribute to sustainable economic
mindset that values sustainability and encourages
growth.
responsible choices in daily life.
• Investing in Sustainable Technologies: Supporting
8. Long-Term Resilience:
innovation and the adoption of technologies that
minimize environmental impact and resource depletion. • Ensuring Inter-Generational Equity: Making decisions
today that do not compromise the ability of future
4. Climate Action:
generations to meet their own needs.
• Mitigating Climate Change: Implementing measures
• Building Resilient Systems: Developing systems and
to reduce greenhouse gas emissions, increase energy
infrastructure that can withstand environmental, social,
efficiency, and transition to renewable energy sources.
and economic challenges and disruptions.
• Adapting to Climate Change: Developing strategies to
The goals of sustainability aim to create a harmonious
cope with the impacts of climate change and building
and balanced coexistence between humanity and the
resilience in communities and ecosystems.
planet, recognizing the interconnectedness of
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Prelims
environmental, social, and economic systems. Achieving consideration company sustainability practices when
sustainability requires collaborative efforts across they make their decisions how to invest.
sectors, governments, businesses, and individuals to
address global challenges and create a more sustainable Companies that act with concern for social and
and resilient future. environmental matters operate at lower risk and their
future growth rates can be positively affected. Both of
What Does It Mean to Be Green and Is That the Same these are positive factors for investors.
as Sustainable?
Green is a term widely used to describe buildings, • Increase attraction and retention of employees who
products (of all types, including cars, food, computers, care about the environment and sustainability.
etc.), and services designed, manufactured, or
Internal factors
constructed with minimal negative impact on the
environment and with an emphasis on conservation of • Maximization of profits
resources, energy efficiency, and product safety. Being
“green” can help to preserve and sustain society’s • Beliefs and personal values of management and
resources. employees- owners, managers, and employees believe
that sustainable business practices are the moral and
Benefits from pursuing sustainability: ethically right thing to do.

• Reduction of energy and materials use and waste and External Factors
the costs associated with these.
• Governmental laws and regulations
Example: McDonald’s reducing the packaging with
hamburgers and French fries is an example of this. • Consumer and investor interests and expectations.

• Lowering of legal risks and insurance costs- For These external factors are strongly influenced by
example, BP, with some investment in safety features to societal trends and values, demographics, new
protect against environmental disaster, could have knowledge and the media.
avoided huge liability costs that will be associated with
The Role of Government Policies in Sustainable
Gulf of Mexico oil spill. Business
Government policies, such as a carbon tax (a tax on
Differentiation of product or services and brand.
pollution), can address externalities by having
• Drive toward innovation to create new products and companies and consumers internalize the costs
serve new markets. associated with what were externalities. This can help
move private companies focused on profits to activities
Example: Seventh Generation developed new products that better reflect their net social contributions.
to address environmental concerns of households and
positioned themselves as the leader in that market, How Do Businesses View Sustainability? How
sustainable consumer household products. Important Is It to Businesses?
There is significant variance in how deeply and sincerely
• Improvement of company image and reputation with companies a recommitted to their mission and in how
consumers- particularly the increasing numbers of much the value statements influence actual company
consumers who are concerned about the environment practice. However, just that the statements are made
and their own impact on the environment. and made public for all to read suggests that
sustainability is an important issue for an increasing
• Enhancement of investor interest. Increasing numbers
number of businesses.
of investors take into
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Prelims
Hewlett Packard (HP) represents the initial difficulty of learning something
Environmental sustainability is one of the five focus and how there is a lot to learn after the initial learning.
areas of HP’s global citizenship strategy, reflecting our In the case of learning about sustainable business
goal to be the world’s most environmentally responsible practice, managers often quickly learn enough to be
IT company. This commitment is more than a virtuous interested in it, but then the learning curve is high
aspiration—it is integral to the ongoing success of our (steep), and there is a lot to learn to ensure that the
business. sustainable practice serves the interests of the business
entity.
Our drive to improve HP’s overall environmental
performance helps us capitalize on emerging market
opportunities, respond to stakeholder expectations and
even shape the future of the emerging low-carbon,
resource-efficient global economy.

It also pushes us to reduce the footprint of our

operations, improve the performance of our products
and services across their entire life cycle, and innovative
new solutions that create efficiencies, reduce costs and
differentiate our brand.“HP Environmental Goals,” -
Hewlett-Packard

Walmart Three of the major barriers that impede decisive

The fact is sustainability at Walmart isn’t a stand-alone corporate action
issue that’s separate from or unrelated to our business. • Lack of understanding of what sustainability is and
It’s not an abstract or philanthropic program. We don’t what it means to an enterprise
even see it as corporate social responsibility.
• Difficulty modelling the business case for
Sustainability is built into our business. It’s completely
sustainability.
aligned with our model, our mission and our culture.
Simply put, sustainability is built into our business • Flaws in execution (even after a plan has been
because it’s so good for our business.“ developed).

Sustainability 360 is the framework we are using to What Is Greenwashing?

achieve our goals and bring sustainable solutions to our The term used to describe insincere engagement in
more than 2 million associates, more than 100,000 sustainable business is greenwashing.
suppliers and the more than 200 million customers and
It was first used by New York environmentalist Jay
members we serve each week.
Westerveld who criticized the hotel practice of placing
Sustainability 360 lives within every aspect of our green “save the environment” cards in each room
business, in every country where we operate, within promoting the reuse of guest towels.
every salaried associate’s job description, and extends
The hotel example is especially noteworthy given that
beyond our walls to our suppliers, products and
most hotels have poor waste management programs,
customers.--Walmart 2009 Global Sustainability Report
specifically with little or no recycling.
The learning curve
The learning curve refers to a graphical representation The term greenwashing is often used when significantly
of learning. The curve more money or time has
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Prelims
been spent advertising being green rather than • Sustainable businesses require a systems perspective.
spending resources on environmentally sound practices
or when the advertising misleadingly indicates a
product is more green than it really is. • The systems perspective enables businesses to
understand their position and relationship in the larger
For example, a company may make a hazardous product environmental and social system,
but put it in packaging that has images of nature on it to including their dependence on inputs and how their
make it appear more environmentally friendly than it output and use of resources affects the overall system
really is. and the elements of the system.

System Approach-a a set of things that affect one

another within an environment and form a larger • Without a systems perspective, businesses would not
pattern that is different from any of the parts. When be able to understand their impact on society and the
viewed from a systems perspective, organizations environment.
engage in the continual stages of input, throughput
(processing), and output in an open or closed context. CHAPTER 2: THE SCIENCE OF SUSTAINABILITY
The science of sustainability
• Sustainability involves having an understanding of the
A closed system does not interact with its environment. relationship between business, humanity, and nature.
It does not take in information and therefore is likely to Clean air, drinkable water, food, clean
atrophy—that is, to vanish. environment, and shelter are fundamental to human
survival and to business
existence.
An open system receives information, which it uses to • Natural resources are often taken as a given and not
interact dynamically with its environment. Openness appreciated for how
increases the likelihood of survival and prosperity. essential they are to human well-being and survival and
to business operations.
• Think for a moment, what life would be like if we did
Sustainable business practices require an open systems
not have clean air to breathe, clean drinking water, or
perspective and consideration of how business actions
food to eat. And what would businesses do without all
impact not only internal operations and outcomes (such
these resources and without healthy and productive
as costs, sales, and profitability) but also external
people and workers. These are all resources originating
outcomes—that is, the environment and the
from natural systems.
sustainability of the natural and social systems that
businesses are part of. Two contrasting perspectives of human economic
interaction with the environment.
• The ecological limits to growth

• Human invention and ingenuity seeks to remove limits

to growth.

Sustainability economics
1. Limits to growth concept- The limits to growth
concept assume that unlimited economic growth is not
possible—that at some point the world’s growing
population will consume
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Prelims
too great a quantity of natural resources (such as clean priorities. Consistent with a cornucopian viewpoint,
water and fossil fuels) for human society to exist. neoliberalism views business entrepreneurship
(unfettered from government regulations and trade
2. No limits to growth concept- argues that market restrictions) as being able to make society better off by
signals and technological innovation can overcome letting the marketplace determine the use of resources.
limits to growth in natural systems.
Consumerism
• “No limits to growth” is not an articulated theory per is the belief that our economic systems should favour
se, but it is, to a significant degree, implicit in modern consumption and that the consumption should be for
economic thinking. goods and services that are in excess of basic material
needs for survival. Consumerism not only attempts to
• “No limits” thinking highlights the efficacy of the
meet material needs and wants but allows for
private market. Underpinning “no limits” is the idea that
continuous economic growth.
resource scarcity—a major factor in “limits to growth”
thinking— can be effectively addressed by economic Consumerism is a factor in driving economic growth in
laws of supply and demand. modern economies and, as a result, resource depletion.
• Laws of supply and demand do work; as resources Reconciling Limits and No Limits to Growth
become scarce, the market will reduce use by increasing • The two views of limits to growth are both important
the price of those resources. for the business context of sustainability.

Cornucopia theory • Both views, at a fundamental level, influence

here are no physical limitations on economic growth or sustainability discussions at a personal, business, and
human population. societal level.
“The supply of natural resources is infinite. Almost all • The earth does have limited resources and human
trends in environmental quality are positive...There is activity can negatively impact the environment.
only one scarcity: Human brain power ‘the Ultimate
Resource.’” (Simon,1983) • Market forces are often effective in providing signals
to society of resource scarcity and the need to change,
Simon argued that human ingenuity combined with the innovate, and adapt.
correct market signals (pricing) would allow for humans
to continually grow economically and the overall human • But even with the overall efficacy of markets, there
condition would continue to improve, not worsen. He are limits to the efficacy of the market perspective.
believed that increased consumption would heighten Markets often fail to properly price natural resources
scarcity, which would translate into higher prices, in the that are treated as free goods, and this makes limits to
short term. This would in turn stimulate growth a reality.
entrepreneurship to seek new ways to satisfy shortages.
Tragedy of the commons
Society eventually ends up better off than if the original
Describes a situation where different parties share a
shortage had not occurred.
common good (such as open public land), and acting
Neoliberalism independently in their own self-interest, they will
is a view of the global economic system that holds to ultimately overexploit and deplete or destroy the
the overall tenets of no limits to growth and shared resource. The tragedy is that the individuals
cornucopian theory. In this view, the private sector, not acting in a way that they believe is in their own best
government, should determine economic and policy interest end up acting in a way that is detrimental
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Prelims
to their collective and individual long-term best • Degradation and loss of some of the world’s richest
interests. ecosystems, including forests, wetlands, and coral reefs.
These ecosystems are host to some of the greatest
Tragedy of the commons occurs often in shared biodiversity on Earth and the loss of these ecosystems is
environmental resources, and understanding the the greatest threat to biodiversity.
system dynamics is essential to sustainability of shared
natural resources. The loss of biodiversity reduces the productivity of
ecosystems. It weakens ecosystems and reduces their
Examples: polluting the atmosphere, overharvesting fish
ability to be resilient to extreme natural events, such as
stocks, and polluting waterways floods, droughts, and human activity stresses. While the
Biodiversity loss of species has always occurred as a natural
Biodiversity is the result of 3.5 billion years of evolution. phenomenon, the pace of extinction has accelerated
Biodiversity is an indicator of the health of an dramatically as a result of human activity. This loss of
ecosystem. Higher degrees of biodiversity imply greater life not only reduces the ecosystems goods and services
ecosystem health. available to the current generation of humans but also
harms future generations as well.
Biodiversity not only strengthens the overall health of
the planet but also provides vital benefits to humans. Why Is Biodiversity Important?
Biodiversity is important in agriculture as it provides “At least 40 percent of the world’s economy and 80
different varieties of plants and animals for human percent of the needs of the poor are derived from
consumption. biological resources. In addition, the richer the diversity
of life, the greater the opportunity for medical
Biodiversity helps protect other natural resources, discoveries, economic development, and adaptive
including water and soil. responses to such new challenges as climate change.”

A significant portion of medicine is derived directly or Goods and Services Provided by Ecosystems with High
indirectly from organic sources. Industry relies on Biodiversity
biological inputs, such as timber, paper, and fiber. • Food, fuel, and fiber
Biodiversity also provides leisure, cultural, and aesthetic • Shelter and building materials
value. • Purification of air and water
• Detoxification and decomposition of wastes
Biodiversity (CONT’D) • Stabilization and moderation of the earth’s climate
• Moderation of floods, droughts, temperature
• Plant and animal species have been disappearing at a
extremes, and the forces of wind
rate at least fifty times greater than the natural rate,
• Generation and renewal of soil fertility, including
and this rate is predicted to rise as human activities
nutrient cycling
continue to put demands on ecosystems.
• Pollination of plants, including many crops
• Based on current trends, an estimated 34,000 plant • Control of pests and diseases
and 5,200 animal species face extinction. • Maintenance of genetic resources as key inputs to
crop varieties and livestock
• Agriculture biodiversity is under extreme pressure due breeds, medicines, and other products
to modern commercial agriculture, which has focused • Cultural and aesthetic benefits
on a few specific species of plant and many farm animal
breeds are at risk of extinction.“Sustaining Life on Water
Earth,” Water covers more than 70 percent of the earth’s
surface and is vital to all forms of life. Water is a vital
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Prelims
resource to humans as it is required as drinking water; it contested topic. As highlighted in the previous section,
is an essential input for agriculture; and it provides for the earth’s climate does fluctuate
sanitation, transportation, energy generation, food over time due to a variety of factors. However, there is
processing, and power generation (through a significant body of scientific research that indicates
hydroelectric plants or dams). Increases in population that global temperatures are rising and that rising global
and current water use practices are expected to temperatures are directly linked to human activities
increase water consumption in food production by up to involving the emissions of greenhouse gases (GHG).
90 percent.

Pollution-Pollution is the contamination, harm, or

disruption of the natural environment through
the emissions of harmful substances. Pollution is most
typically associated with anthropogenic sources but can
also occur from natural activity, such as volcanic
eruptions. Pollution can impact air, water, and land.
Pollutants include domestic, industrial, and
agricultural waste. It comes in many different forms and
can be chemical substances or noise, heat, or light.

Currently, one in six people in the world lack safe Habitat Destruction- Habitat destruction brought on by
drinking water, and water-related illness is the leading the activity of humans threatens resident species and
cause of human sickness and death. In 1989, there were ecosystems.
9,000 cubic meters of freshwater per capita available
for human use. By 2000, this had dropped to 7,800
cubic meters, and it is expected to continue to decrease Two examples of habitat destruction:
as human population increases. • Deforestation occurs when a forest or stand of trees
is removed, converting the land to a nonforest use.
Global per capita figures on water availability are • Desertification is the degradation of land quality and
somewhat misleading as the world’s available features low biodiversity, dry conditions, and poor soil
freshwater supply is not distributed evenly quality.
geographically, seasonally, or annually. Water
distribution is dependent on Earth’s hydrological cycle. Overexploitation- Overexploitation is a major threat to
ecosystems and therefore sustainability. It is the
Soil consumption of a natural resource at a rate greater
Soil consists of layers of minerals that vary in than that natural resource can maintain itself.
characteristics across different geographic regions and Example: Overhunting of species, land degradations are
ecosystems. Soil consists of both organic and inorganic human-induced changes that impair the capacity of the
components. Soil is a primary nutrient base for plants land to sustain life.
and therefore is important to humans for agriculture.
Without soil, the earth would not support a rich base of Invasive Species-Invasive species are brought on by
plant and animal life,and it is an essential resource to transporting species either intentionally or accidentally
consider in human interactions with the environment. from other areas of the world. This can be devastating
to existing species as invasive species are
Ecosystem threats introduced on a timescale much more quickly than
Climate Change- Climate change is one of the greatest typically would happen with evolution over longer time
threats to sustainability. It is a controversial and periods. This can include
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Prelims
outcompeting native species in the ecosystem, leading • Unnecessary packaging contributes to environmental
to the decline or extinction of local species, and degradation.
overpopulation as these invasive species may not have
any predators in this new ecosystem. • Long supply chains increase carbon dioxide footprint
of products.
Biotechnology and Green chemistry
Biotechnology, also known as “biotech,” involves Green Marketing
engineering biological systems to develop commercial refers to the process of promoting products or services
by emphasizing their environmental benefits or
products. This includes medicines,
agricultural products, biofuels, and packaging (such as sustainability aspects. The primary goal of green
biodegradable cups). marketing is to encourage environmentally responsible
consumer behavior and to address ecological concerns.

Green chemistry is the design of chemical products or In Simple terms, it refers to the process of selling
products and/or services based on their environmental
processes that reduce or eliminate the generation of
hazardous substances. Many products include toxic benefits
substances that are damaging to human health. Environmental marketing or Green Marketing can be
Computers and other electronic devices contain lead, defined in three different ways:
polychlorinated biphenyls (PCBs), cadmium, and Retailing - It is the marketing of products that are
mercury—all of which can cause injury to humans upon presumed to be environmentally safe.
exposure.
Social Marketing - is the development and marketing of
CHAPTER 3: INTRODUCTION TO GREEN MARKETING products designed to minimize negative effects on the
Marketing is the overall process of getting a product or physical environment or to improve its quality.
service to the customer and maintaining the
relationship between the organization and customer. It Environmental Marketing-is the efforts by
incorporates every aspect of business, including pricing, organizations to produce, promote, package, and
promotional efforts, placement, and actual reclaim products in a manner that it is sensitive or
development of the product or service. responsive to ecological concerns.

Green is a term used to describe something as In recent years the term green or eco marketing have
environmentally friendly. For example, green energy come to prominence and reflect a growing concern at
refers to renewable resources such as solar energy. all levels of the impact of the increase consumption on
Green is a good thing, just as green plants are healthy physical environment.
plants.
The implications of the destruction of the forest, the
When you put these two terms together, you get green appearance of holes in the ozone layer etc.. were widely
marketing, or marketing a product or service based on published and created a wave concern about the
its environmental benefits. Another way to think of it is destruction of our natural environment.
marketing the good stuff about a business.
Therefore, many consumers are in favour of eco-
Marketing Impact on the environment friendly products. This has created some impact on
• Stimulating-consumption- contributes to marketing.
environmental degradation.
Objectives of Environmental marketing
• Marketing replaces environmental goods to increase
• Improved environmental quality
profit margins.
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• Customer satisfaction Examples of Leaders in Green Marketing
• Ben and Jerry’s was one of the first brands to make
Reasons for companies to develop Green Marketing green values part of its mission statement. The ice
Green marketing is part of a successful marketing
cream promotes natural ingredients and business
strategy that allows organisations, the opportunity for: practices that promote the health of the earth. Its
Differentiation -creating a solid point of difference parent company.
between themselves and the competition -in much the • Unilever, which manages more than 400 brands, has
same way you can for price, quality, cost or
halved its greenhouse emissions in the last 15 years,
convenience. while producing products that are eco-friendly and
Reaching niches -Appealing to new audiences and using packaging that is either easily recyclable or
markets based on real insights. biodegradable.

Innovation -it becomes a source for exploring new • Whole Foods is an organic food supermarket that not
opportunities, developing programmes, products, only sells green foods, but also advocates for green
propositions and communications that can be very practices by promoting wind energy, biodegradable
successful in their own right. food packaging, and water conservation.

Risk minimization -even at the most basic level, green • Starbucks has long been a promoter of sustainable
marketing is an approach for being aware of the issues coffee-growing practices, paying a premium price to
and concerns in the marketplace and keeping up with encourage farmers to adopt more environmentally-
good practices to be a good corporate citizen, reducing friendly practices. Its
risks around negative sentiments from any Shared Planet initiative promotes environmental
stakeholders. responsibility among its stores, employees, and
Challenges in Environmental Marketing customers
1. Green Marketing Myopia- A short-sighted and
• Johnson and Johnson is the second-largest corporate
inward looking approach to marketing that focuses on
user of solar power in the United States, and has been
the needs of the company instead of defining the
working consistently over the past 20 years to reduce
company and its products in terms of the customers'
production wastes.
needs and wants. It results in the failure to see and
adjust to the rapid changes in their markets. • Timberland rates each of the shoes it sells based upon
its environmental impact. Additionally, it redesigned its
Misjudging either or overemphasizing the former at the
stores to use 30 percent less energy than before
expense of the latter can be termed “green marketing
myopia”. Many green products have failed because of Green Brands
marketers‟ myopic focus on their products‟ are those brands that consumers associate with
“greenness” over the broader expectation of consumers enronmental conservation and sustainable business
or other market players. practices.
Such brands appeal to consumers who are becoming
2. Greenwashing- refers to all industries that adopt more aware of the need to protect the environment. A
outwardly green acts with an underlying purpose to green brand can add a unique selling point to a product
increase profits. The primary objective of green washing and can boost corporate image.
is to provide consumers with the feeling that the
organization is taking the necessary steps to responsibly
manage its ecological footprint.
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However, if a company is found or perceived to • Mobile technologies allow consumers to shop
overstate its green practices, its green brand may be according to their values at point-of-purchase.
criticised as green wash.

Sustainable marketing concept

The process of creating, communicating and delivering
value to customers and companies in such a way that
both natural and human capital are preserved or
enhanced throughout. Sustainable marketing concept
expands marketing concept by making the need for
sustainability more explicit.

Environmental sustainability- on going preservation of

essential ecosystems and their functions.

Social sustainability- Ongoing ability of communities to

provide for the welfare of their members.

Economic sustainability- On going ability of an

economic system to provide for all human needs.

Sustainable marketing is still based on creating a

competitive advantage through superior performance in
the meeting of consumers needs.

Sustainability as competitive advantage

• Allows a company to realize cost savings

• Reduces a company’s exposure to regulatory and

resource based risk.

• Spurs innovation to stay ahead of competition

• Can reduced conflicts with retailers and business

partners.

• Can improved a company’s reputation and positioning

• Improves a company’s chances to recruit talented

employees.

Why “Doing good” becomes more important?

Changing value systems
• Young people are global, socially conscious consumers
• Look for value instead of price

Consumer empowerment
• Social web makes/allows consumers to expose
unethical practices.