Topic 12 - Sustainable Marketing

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This article is a topic within the subject Marketing Fundamentals.

Contents

Required Reading

Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp. 492-509.

Sustainable Marketing

[1] Sustainable marketing refers to socially & environmentally responsible actions that:

  • Meet the present needs of consumers & businesses
  • Preserve or enhance the ability of future generations to meet their needs

This goes beyond the marketing concept (determining the current needs of targeted customers and fulfilling them more efficiently & effectively than competitors) by adopting the societal marketing concept which considers the future welfare of consumers.

Social Criticisms of Marketing

[2] Consumer advocates, government agencies & other critics criticise marketing because of:

  • Marketing’s Impact on Individual Consumers (Higher Prices)
    • High Prices – capitalist marketing system causes prices to be in greater than that of more sensible systems
    • High Costs of Distribution – greedy channel intermediaries charge beyond their service value
    • High Advertising & Promotion Costs – higher prices are needed to finance heavy advertising & sales promotion
    • Excessive Mark-Ups
  • Deceptive Practices
    • Deceptive Pricing – falsely advertising ‘wholesale’ price or a large reduction from a phoney high retail list price
    • Deceptive Promotion – misrepresenting G/S features or bait & switch
    • Deceptive Packaging – exaggerated package contents, misleading labelling/description (>puffery – innocent exag.)
  • High Pressure Selling
    • Pestering is detrimental, goes against building LT r/ships with customers, only works in 1 time selling situations (ST)
  • Shoddy, Harmful or Unsafe Products – poor G/S that deliver little benefits that can be harmful
    • Caused by company indifference, increased product complexity & poor quality control
  • Planned Obsolescence – plan to make products obsolete before consumers should need a replacement
  • Poor Service to Disadvantaged Consumers – many chain retailers avoid placing stores in disadvantaged neighbourhoods

Marketing’s Impact on Society as a Whole

[3]

  • False Wants & Excessive Materialism – the marketing system creates needs & promotes interest in material possessions
    • People are judged by what they own rather than by who they are
  • Too Few Social Goods – businesses oversell private goods at the expense of public goods
    • Make producers bear the full social costs of their operations & make consumers pay the social costs
  • Cultural Pollution – losing traditional customs/culture
    • Marketers argue ads make TV/Radio free & some are bound to reach uninterested consumers
  • Marketing’s Impact on Other Businesses – a firms marketing practices can harm other companies & reduce competition
    • Acquisition of competitors, marketing practices that build barriers to entry, unfair competitive marketing practices

Consumer Actions to Promote Sustainable Marketing: Overcoming Marketing Problems

[4] The 2 major movements have been:

  • Consumerism–organised movement of citizens/govt agencies to improve the rights & power of buyers in relation to sellers
  • Environmentalismorganised movement of citizens, firms, govt agencies to protect & improve people’s living environment
    • Increase awareness of resource depletion

MARK101212.jpg

Consumer advocate groups are calling for more rights; to be well informed about important aspects of the product, to be protected against questionable products & marketing practices, influence product & marketing practices in ways that will improve quality of life, consume now in a way that will preserve the world for future generations. Consumers have not only the right but also the responsibility to protect themselves instead of leaving this function to others.

Environmental Sustainability is about generating profits while protecting the planet.

  • Pollution Prevention – eliminating or minimising waste before it is created
  • Product Stewardship – minimising pollution throughout the full product life cycle while reducing costs
  • Design for Environment – designing products that are easier to recover, reuse or recycle
  • New Clean Technology
  • Sustainability Vision – guide to the future

Business Actions towards Sustainable Marketing

Sustainable marketing principles suggest that a company’s marketing system should support the best long-run performance of the marketing system. Enlightened Marketing has 5 key principles;

  1. Consumer Orientated Marketing - view & organise marketing activities from the customers point of view
  2. CustomerValue Marketing - invest in customer value-building marketing investments to capture value in return
  3. Innovative Marketing - continuously seek real product & marketing improvement
  4. Sense of Mission Marketing - define its mission in broad social terms rather than narrow product terms

Societal Marketing

[5] Societal Marketing means that a firm makes marketing decisions by considering consumer wants/interests, the firm’s requirements & society’s long run interests. Product Classification by degree of immediate satisfaction & long run benefits;

  • Deficient Products – 0 immediate satisfaction, 0 long run benefits
  • Pleasing Products – high immediate satisfaction, may harm in the long run
  • Salutary Products – low immediate satisfaction, may benefit in the long run
  • Desirable Products – high immediate satisfaction, high long run benefits

Marketing Ethics

[6] Corporate Marketing Ethics Policies are broad guidelines that an organisation must follow & requires total corporate commitment. These guidelines are decided by individual companies & managers & implemented as written codes or within ethics programs. However, this does not ensure ethical behaviour The sustainable company aims to build profitable customer relationships by creating value for customers in order to capture value in return, now, & in the future.

Public Actions to Regulate Marketing And Legal Compliance

[7] Greed sometimes overpowers goodwill & thus this creates a need for laws that affect/regulate marketing. The ACCC covers competition law which prohibits anti competitive conduct. Contract & consumer law governs the sale of G&S. A legal compliance program should include product liability, marketing communication, codes of professional conduct, sales & after sales finance & franchising. Intellectual property law covers copyright, design, trademarks, patents, confidential information.

End

This is the end of this topic. Click Marketing Fundamentals to go back to the main subject page for Marketing Fundamentals

References

Textbook refers to Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall.

  1. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.492-494
  2. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.494-502
  3. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.500-502
  4. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.503-507
  5. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.507
  6. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.509
  7. Armstrong G., Adam S., Denize, S. and Kotler P.(2012) Principles of Marketing, 5th Edition, Sydney, Pearson/Prentice Hall., pp.507
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