Sustainable Marketing: Social Responsibility and Ethics

Sustainable Marketing

  • Definition: Socially and environmentally responsible marketing that meets present needs without compromising future generations.

Consumerism

  • Definition: Organized movement by citizens and agencies to enhance buyers' rights and power relative to sellers.

  • Traditional Buyers’ Rights:

    • Right not to buy a product. (Example: Boycotting a brand due to ethical concerns)

    • Right to expect product safety. (Example: Car recalls for safety defects)

    • Right to expect the product to perform as claimed. (Example: Legal action against false advertising)

  • Advocates call for:

    • Right to be well-informed about product aspects. (Example: Nutritional labels on food products)

    • Right to protection against questionable practices. (Example: Regulations against deceptive pricing)

    • Right to influence products and marketing to improve quality of life. (Example: Consumer advocacy for healthier food options)

    • Right to consume in a way that preserves the world for future consumers. (Example: Supporting brands with sustainable practices)

Environmentalism

  • Definition: Organized movement to protect and improve the living environment, involving citizens, businesses, and government agencies.

  • Environmental Sustainability: Earning profits while saving the planet.

  • Key aspects of Environmental Sustainability:

    • Pollution Prevention: Eliminating or minimizing waste before creation, not just cleaning up. (Example: Nike's Flyknit technology reduces material waste)

    • Product Stewardship: Minimizing pollution from production and throughout the product life cycle. (Example: Patagonia's repair and recycling programs)

    • New Clean Technologies: Planning for new technologies to gain a competitive advantage. (Example: Tesla's electric vehicles)

    • Sustainability Vision: Guiding the company’s evolution in products, processes, and policies for the future. (Example: Unilever's Sustainable Living Plan)

Principles of Sustainable Marketing

  • Consumer-Oriented Marketing

    • View activities from the consumer's perspective.

    • Deliver superior value. (Example: IKEA's affordable and functional furniture)

  • Customer-Value Marketing

    • Invest in building customer value.

    • Create value FOR customers. (Example: Apple's ecosystem of products and services)

  • Innovative Marketing

    • Seek real product and marketing improvements. (Example: Dyson's bagless vacuum cleaners)

  • Sense-of-Mission Marketing

    • Define the mission in broad social terms.

    • Example: PUMA focusing on customer satisfaction and contributing to a sustainable future.

  • Societal Marketing

    • Consider consumers’ wants, company requirements, consumers’ long-run interests, and society’s long-run interests.

    • Neglecting long-run interests is a disservice.

    • Societal problems viewed as opportunities.

Societal Marketing: Product Types

  • Deficient Products: No immediate appeal or long-run benefits (e.g., bad-tasting, ineffective medicine).

  • Pleasing Products: High immediate satisfaction, potential long-run harm (e.g., cigarettes, junk food).

  • Salutary Products: Low immediate appeal, long-run benefits (e.g., bicycle helmets, insurance products).

  • Desirable Products: High immediate satisfaction and long-run benefits (e.g., tasty and nutritious breakfast food).

Marketing Ethics

  • Corporate Marketing Ethics Policies: Guidelines for distributor relations, advertising standards, customer service, pricing, product development, and ethical standards.

  • Guidance Sources:

    • The free market and legal system

    • Individual companies and managers

The Sustainable Company

  • Fulfilling customer needs and wants is essential for thriving.

  • Companies that harm customers