19.2 Traditional Marketing versus Sustainable Marketing

Sustainable marketing is revolutionizing how companies approach their strategies. It expands the focus beyond profits to include environmental and social impacts. This shift requires businesses to consider a broader range of stakeholders and integrate sustainability into every aspect of their operations.

Companies like Patagonia and Unilever are leading the way in sustainable marketing. They're using recycled materials, promoting ethical consumerism, and setting ambitious goals to reduce their environmental footprint. These practices not only benefit the planet but also build long-term brand loyalty and customer trust.

Traditional Marketing vs. Sustainable Marketing

Traditional vs sustainable marketing stakeholders

Top images from around the web for Traditional vs sustainable marketing stakeholders

• 

  Corporate Law and Corporate Responsibility – Business Ethics View original

  Is this image relevant?

• 

  Corporate Social Responsibility (CSR) – Business Ethics View original

  Is this image relevant?

• 

  Sustainable Purchasing Patterns and Consumer Responsiveness to Sustainability Marketing Messages View original

  Is this image relevant?

• 

  Corporate Law and Corporate Responsibility – Business Ethics View original

  Is this image relevant?

• 

  Corporate Social Responsibility (CSR) – Business Ethics View original

  Is this image relevant?

1 of 3

Top images from around the web for Traditional vs sustainable marketing stakeholders

• 

  Corporate Law and Corporate Responsibility – Business Ethics View original

  Is this image relevant?

• 

  Corporate Social Responsibility (CSR) – Business Ethics View original

  Is this image relevant?

• 

  Sustainable Purchasing Patterns and Consumer Responsiveness to Sustainability Marketing Messages View original

  Is this image relevant?

• 

  Corporate Law and Corporate Responsibility – Business Ethics View original

  Is this image relevant?

• 

  Corporate Social Responsibility (CSR) – Business Ethics View original

  Is this image relevant?

1 of 3

• Traditional marketing focuses on key stakeholders such as
  • Shareholders who invest in the company and expect financial returns
  • Customers who purchase the company's products or services to satisfy their needs and wants
• Traditional marketing objectives prioritize
  • Maximizing profits to provide value to shareholders
  • Increasing market share to gain a competitive advantage
  • Satisfying customer needs and wants to drive sales and loyalty
• Sustainable marketing considers a broader range of stakeholders including
  • Shareholders who seek long-term financial stability and growth
  • Customers who demand eco-friendly and socially responsible products
  • Employees who desire fair treatment, safe working conditions, and opportunities for growth
  • Suppliers who provide raw materials and services in an ethical and sustainable manner
  • Local communities impacted by the company's operations and environmental footprint
  • Environment which provides natural resources and is affected by the company's activities
• Sustainable marketing objectives aim to
  • Balance economic goals (profitability) with social goals (community well-being) and environmental goals (resource conservation)
  • Create long-term value for all stakeholders, not just short-term gains for shareholders
  • Minimize negative impacts on the environment (pollution, waste) and society (exploitation, inequality)
  • Incorporate stakeholder theory to consider the interests of all groups affected by business decisions

Integration of sustainability into strategy

• Sustainable marketing incorporates environmental and social considerations into all aspects of marketing strategy and tactics
  • Product development focuses on using eco-friendly materials (recycled plastics, organic cotton) and packaging (biodegradable, minimal waste)
    • Sources raw materials from suppliers who follow sustainable practices (fair trade, responsible forestry)
  • Pricing reflects the true environmental and social costs of production and disposal
    • Higher prices may be necessary to cover sustainable sourcing and fair labor practices
  • Promotion educates consumers about the company's sustainable practices and encourages responsible consumption behaviors
    • Advertising messages emphasize durability, reusability, and environmental benefits rather than disposable convenience
  • Distribution minimizes the carbon footprint of transportation and storage
    • Partners with suppliers and retailers who share commitment to sustainability to streamline logistics
• Sustainable marketing aligns with corporate social responsibility (CSR) goals and initiatives
  • Marketing campaigns support and communicate CSR efforts (community outreach, employee volunteering)
• Sustainable marketing takes a long-term perspective, balancing short-term sales with long-term brand reputation and customer loyalty
• Sustainable marketing engages stakeholders (customers, employees, communities) in transparent and ethical communication
  • Solicits feedback and input on sustainability initiatives and progress
  • Discloses environmental and social impacts in reports and certifications (Carbon Disclosure Project, B Corp)
• Sustainable marketing promotes ethical consumerism by encouraging customers to make purchasing decisions based on environmental and social considerations

Case studies in sustainable marketing

• Patagonia is an outdoor clothing company known for its commitment to environmental sustainability
  • Uses recycled materials (plastic bottles, fishing nets) to make fleece jackets and other products
  • Encourages customers to repair and reuse clothing instead of buying new items, offering repair guides and services
  • Donates 1% of sales to grassroots environmental causes through its "1% for the Planet" program
• Unilever is a global consumer goods company that has integrated sustainability into its business strategy
  • Developed the Sustainable Living Plan which aims to reduce environmental impact and improve social well-being
    • Goals include sourcing 100% of agricultural raw materials sustainably and helping 1 billion people improve their health and hygiene
  • Brands like Dove promote positive self-esteem and body image, challenging stereotypes in the beauty industry
• Tesla is an electric vehicle and clean energy company founded on the mission of accelerating the world's transition to sustainable energy
  • Produces electric cars (Model S, Model 3) and solar panels to reduce reliance on fossil fuels
  • Invests in charging infrastructure and battery technology to make sustainable transportation more accessible
  • Collaborates with suppliers to source materials (lithium, cobalt) responsibly and develop recycling programs
• Seventh Generation is a household and personal care products company that prioritizes environmental and social sustainability
  • Offers eco-friendly products made with plant-based ingredients and biodegradable or recycled packaging
    • Products include laundry detergent, dish soap, and toilet paper
  • Advocates for environmental and social justice causes, such as climate action and ingredient transparency
  • Certified as a B Corporation, meeting rigorous standards of social and environmental performance, accountability, and transparency

Sustainable Marketing Concepts and Tools

• Triple bottom line: A framework that measures a company's success based on three dimensions: economic (profit), social (people), and environmental (planet)
• Circular economy: An economic model that aims to eliminate waste and maximize resource efficiency by designing products for reuse, recycling, and regeneration
• Lifecycle assessment: A method for evaluating the environmental impacts of a product or service throughout its entire lifecycle, from raw material extraction to disposal
• Companies must be cautious of greenwashing, which involves making misleading or false claims about environmental benefits to appear more sustainable than they actually are