Introduction To Sustainability - Lecture 6

INTRODUCTION TO
SUSTAINABILITY
LECTURE 6
Sustainability Marketing can be simply defined as
creating, producing and delivering sustainable solutions
with higher net sustainable value whilst continuously
satisfying customers and other stakeholders (Charter et
al., 2006)
DEFINING Simply put Sustainable Marketing refers to the means

SUSTAINABILITY that influence consumer behaviour towards more
sustainable consumption
MARKETING
Sustainability marketing has been defined in a multiple

different ways such as green marketing, ecological
marketing, environmental marketing enviropreneurial
marketing
GROWING VOICE OF CONSUMERS
 Public interest in the environmental and societal issues has
been rapidly increasing over the past few years.
 The advancements in technology, unlimited access to

information, and the growth of social media has resulted
in a rise in conscious consumerism globally
 We live in a fully connected world where conversations

are happening all the time and It’s no longer about just
hearing what brands want to tell you as consumers keep on
modifying their behaviour.
CONSCIOUS CONSUMERISM
Conscious consumerism refers to consumers

becoming more conscious when it comes to
purchasing decisions and the organizations they
engage with, enabled by the connected world we
live in.
Consumers are more aware of the issues and

more mindful of their actions, and thus
behaviours are changing. People are reviewing
their values, spending habits, frequency of
purchase, what they eat, and what they wear.
THE ROLE OF BUSINESS IN DRIVING
SUSTAINABLE CONSUMERISM
Business approaches to sustainable consumption can be grouped into

three broad categories:
Innovation – Development of new and improved products, services and

business that maximize societal value and minimize environmental cost
Choice influencing – Use of marketing and awareness-raising
campaigns to enable and encourage consumers to choose and use
products more efficiently and sustainably
Choice editing – The removal of “unsustainable” products and services
from the marketplace in partnership with other actors in society
MARKET DEVELOPMENT
APPROACH IN SUSTAINABILITY
MARKETING
A sustainability consumerism approach means that
firms will aim to meet the needs of consumers with
relevant pro-environmental or responsible offers, often
by highlighting their firm’s sustainability based on
certain criteria
However, sustainability messages that appear overly

moralising are off-putting to consumers. Messages
based on fear, including campaigns highlighting
potential consequences of climate change, have been
shown to be less effective than other types of messages,
since consumers cannot relate to those messages
personally, and they find it difficult to envisage future
scenarios
MARKET DEVELOPMENT APPROACH
IN SUSTAINABILITY MARKETING
Direct sustainability messages which compel consumers to

change their behaviour may backfire, since assertive
messages are counterproductive when they are seen as an
infringement of the consumer’s freedom of choice
PRODUCT DEVELOPMENT
APPROACH IN
SUSTAINABILITY MARKETING
Product Development approach considers how

marketers have a responsibility to design products
that are more sustainable, but that are sold to
consumers based on other decision-making
attributes
This approach moves away from a segmentation
approach and focuses on establishing opportunities
for all consumers to behave in a more sustainable
way, irrespective of their attitudes. Mainstreaming
sustainability is achieved by normalizing the
purchase of more sustainable products
PRODUCT
DEVELOPMENT APPROACH
IN SUSTAINABILITY
MARKETING
The effort here is placed on product design

and it differs from the sustainability
consumerism, or market-led approach
because it plays down sustainability benefits
and emphasizes personal benefits to the
consumer instead.
ACTIONS FOR SUSTAINABILITY
1. Earn consumers’ confidence through transparency

and traceability
– Consumers’ brand loyalty and purchasing decisions are
highly dependent on detailed product information.
Companies can employ the latest technologies to provide
transparency of production methods and traceability of
source materials. Companies must thereofore, demonstrate
their sustainability commitments and environmental
responsibility by offering details about their overall
operations.
ACTIONS FOR
SUSTAINABILITY
2. Factor in consumers’ willingness to

contribute to the cause
– If consumers are willing to pay a premium or
change behavior to reduce environmental
impact, then offer options that provide trade-
offs between supply chain cost, service, and
environmental impact.
ACTIONS FOR
SUSTAINABILITY
3. Leverage sustainability as a driver for

end-to-end operations
– The supply chain is a highly complex
network of entities. Raw material suppliers,
manufacturers, third-party logistics providers,
and retailers all struggle to operate as one due
to conflicting business goals and operating
models. Businesses can therefore examine
capabilities and adjust investments to create
new inter-company partnerships focused on
environmental impact and social responsibility.
ACTIONS FOR
SUSTAINABILITY
4. Align sustainability initiatives to your

company's core competency
– Brands and retailers need to know which
specific traits rank highly so they can factor
that valuable information into product design
and development. Circular economy is a
classic strategy that most brands can adopt in
order to accomplish this strategy.
WORKING WITH NGO'S
Existing research suggest that Non-

Governmental organizations (NGOs), such as World
Wildlife Fund (WWF) and Greenpeace, are amongst some of
the most trusted institutions globally.
Business leaders should therefore see to structure

collaborative relationships with recognized NGO's by
aligning their economic/ strategic objectives to their
sustainability initiatives.
PAYING A PREMIUM FOR
SUSTAINABLE PRODUCTS
 Nielsen asked 30,000 survey respondents in 60 countries

across the globe whether they are willing to pay a premium
for sustainable products and 66% of global respondents say
they are willing to pay more for sustainable goods (up from
55% in 2014 and 50% in 2013).
 It’s no longer just wealthy suburbanites in major markets

willing to open their wallets for sustainable offerings.
Consumers across regions, income levels, and categories
are willing to pay more if doing so ensures they remain
loyal to their values
Green Gap refers to the gap between a consumer’s pro-
environmental attitudes and green purchase behavior (Gupta
& Opten, 2009).
GREEN Poor perceptions of quality, lack of green product

availability and brand loyalty to conventional products
GAP
appear to be important issues leading to green gap (Gleim &
Lawson, 2014).
Consumers need to understand why green products are

priced higher, the benefits they offer and the impact they can
make as an individual (Gleim & Lawson, 2014).
GREENWASHING
Greenwashing is defined as intentionally

misleading or deceiving consumers with false
claims about a firm’s environmental practices
and impact (TerraChoice 2010).
A classic greenwashing tactic involves either a

company advertising a product with
environmental achievements that are already
mandated by existing laws, or a company
doesn’t change their behavior, but just markets
themselves as being green.
SUSTAINABILITY MARKETING
AND SDG'S
Aligning an organization’s Sustainability goals with wider

global sustainable goals not only makes sense from the
point of giving the organization the right direction, but also
provides a practical framework to determine areas of focus
and priority
A research conducted by PwC found that 71 per cent of

businesses planned to develop measures to meet the SDGs,
and that 78 per cent of consumers stated that they would
be more likely to make a purchase of goods or services
from organizations that have formally committed to the
SDG.

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INTRODUCTION TO

DEFINING Simply put Sustainable Marketing refers to the means

Sustainability marketing has been defined in a multiple

 The advancements in technology, unlimited access to

 We live in a fully connected world where conversations

Conscious consumerism refers to consumers

Consumers are more aware of the issues and

Business approaches to sustainable consumption can be grouped into

Innovation – Development of new and improved products, services and

However, sustainability messages that appear overly

Direct sustainability messages which compel consumers to

Product Development approach considers how

The effort here is placed on product design

1. Earn consumers’ confidence through transparency

2. Factor in consumers’ willingness to

3. Leverage sustainability as a driver for

4. Align sustainability initiatives to your

Existing research suggest that Non-

Business leaders should therefore see to structure

 Nielsen asked 30,000 survey respondents in 60 countries

 It’s no longer just wealthy suburbanites in major markets

GREEN Poor perceptions of quality, lack of green product

Consumers need to understand why green products are

Greenwashing is defined as intentionally

A classic greenwashing tactic involves either a

Aligning an organization’s Sustainability goals with wider

A research conducted by PwC found that 71 per cent of

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