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Session 13 Sustainability and marketing - Coggle Diagram
Session 13 Sustainability and marketing
BLock 3 overview
:Marketing perspective
Sustainability
Ethics
Stakeholder marketing
Aims of block Highten awaress of:
Relationships
Measures
Responsibilities
1. Dimensions of sustainability
sustainable development is
‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (WCED, 1987).
a 3-part concept -
3 dimensions of sustainable development:
environmental goals
economic goals
social goals
Environmental sustainability
2.1. Climate change
biggest challenges: human-made climate change.
energy industry biggest contributor because of emission of greenhouse gases (GHG)
2nd place food and argiculture, forestry
2.2. Biodiversity loss
sixth global mass extinction of species - increasing environmental sustainability threat
several levels of bio -diversity
genes, indivual species, communities, eco-systems like forests and coral reefs
This destruction of biodiversity is human-made. Human population growth and the conversion of wild areas into farmland, housing and industrial sites are two of the main drivers of biodiversity loss (WWF, 2016).
2.3. Consumption, climate change and biodiversity
2.4. Case study: Palm oil
Destorying forests sumatran animals
Child labour to work for production
3. Consumerism and sustainability
‘consumer society’
Consumerism
refers to ‘[t]he theory that an increasing consumption of goods is economically desirable [and/or] a preoccupation with an inclination toward the buying of consumer goods’ (Merriam-Webster, 2021).
Consumerism negatively affects sustainability through the over-consumption of finite resources and the pollution created by the disposal of by-products and wastes (Crane et al., 2019).
culture of consumption will not be easy to change
assumptions and institutions are beneficial to powerful social, economic and political actors, such as big corporations, who have an interest in maintaining current consumerist societies (Schaefer and Crane, 2005)
There are several social and economic trends that have converged to embed consumerism so deeply in modern societies (Assadourian, 2010):
Changing cultural norms.
dietary habits, traditions weddings
Changing business models and habits.
liberalisation of credit encourages consumer spending and deliberately short product lives.
Media trends
reinforce consumer norms, promoting materialism
3.1. Sustainable consumption
United Nations
: 17 sustainable development goals
Goal 12 addresses sustainable consumption and production
Reducing consumption impilcations
for employment, income, investment, and other aspects crucial to economic well-being (Crane et al., 2019).
by
redirecting economic growth
towards more socially beneficial ends such as environmental products, green jobs and cleaner technologies, economic development could still occur. This is also the idea behind various proposals for a
‘New Green Deal’
Whether or not it is really possible to
decouple economic growth
from material resource consumption that negatively impacts on the environment is, however,
unclear
at present (Jackson, 2014).
4. Green marketing
respond to the challenge of sustainable consumption by changing the elements of their marketing mix so that their activities have fewer harmful impacts on the environment and society.
4.1. Green products
defined
as
green
‘when its environmental and societal performance, in production, use and disposal, is significantly improved and improving in comparison to conventional or competitive products offerings’ (Peattie, 1995, p. 181).
according to Mishra and Sharma (2012) following steps to reduce the environmental impact of products:
make sure the product or parts of it are reusable or recyclable
use recycled parts and ingredients in the production process
reduce packaging
make products more:
durable
repairable
compostable
healthy
safe to transport.
‘eco-friendly’ products,
recycled materials
electirc cars etc
4.2. Pricing for green products
Setting prices for green products require offsetting consumers’ sensitivity to price against their willingness to pay more for products with good environmental credentials (Grove et al., 1996).
more expensive & higher production costs to reduce wastage and pollution (Peattie and Crane, 2005).
cust willingness to pay environmental premium.
4.3. Greening distribution
made available to consumers in easily accessible ways
today through mass retail channels (Mishra and Sharma, 2012).
4.4. Greening marketing communications
key elements of green marketing is development of eco-labels that communicate to consumers a product’s environmental features.
certified label as eco
4.5. Sustainable product-service systems
requires substantial changes to the product-service mix aswell as to marketing mix to achieve sustainability
product-service systems include
product recapture systems, service replacements for products, product sharing, and other innovative ways of changing the way in which markets provide goods and services and how consumers use them (Crane et al., 2019).
Product recapture
moving from a linear production system, where materials are used to make products that are consumed and disposed of at the end of the lifetime, towards a
circular use of resources
. reusing waste materials. reduces use of virgin materials (Fuller, 1999)
Service replacement for products
ongoing service e.g washing clothes service instead of washing machine
Product sharing
shared by groups of consumers, thereby getting more use out of the same resources. e.g.
car sharing
5. Supply chains and sustainability
Global supply chains are a major contributor to social and environmental sustainability issues
agricultural produce (e.g. palm oil or meat), timber, fuels, or metals is one of the main drivers of both climate change and biodiversity loss
sweat shops
significant change to unsustainable global supply chains is required.
5.1. Ethical sourcing
‘[t]he inclusion of explicit social, ethical, and or environmental criteria to supply chain management policies, procedures, and programmes’ (Crane et al., 2019, p. 412).
to address stakeholder pressure to improve the sustainability of their supply chains, large business organisations often introduce an ethical sourcing policy.
sourcing guidelines
environmental and social auditing
inhouse of independent
5.2. Fair trade
Fair trade is ‘a system of exchange based on guaranteeing producers in developing countries a living wage, decent working conditions, and opportunities for community development’ (Crane et al., 2019, p. 418)
movement is a special form of sustainable supply chain management.
‘fair trade’ label
developing economies and encourage community development by guaranteeing minimum prices and conditions (Nicholls and Opal, 2005).
Fairtrade International/FLOCHERT sister company they audits and certifies products and brands
5.3. Fair trade and sustainability
Fair trade arrangements relate to all three dimensions of sustainable development.
5.4. The success of fair trade
used to be niche - now mass marketed
5.5. Case Study: sustainability and beer brewing in Uganda
organisations are making efforts to increase the sustainability of their products and operations.
developed economies that spring to mind. Patagonia, Ecover, and Toyota are just three of the examples mentioned in this session
Corporate Social Investment (CSI) strategy, Nile Breweries engage in several social initiatives
Some of the theories learnt in this sesson:
the three dimensions of sustainability (or you could focus on just one)
supply chain management
fair trade
sustainable products
three dimensions of sustainability – environmental, social and economic – and in more depth at two interrelated issues of global environmental sustainability: climate change and biodiversity loss.
You then looked at the links between consumption, marketing and sustainability.
3 dimensions of sustainability fitness studios
Water efficiency: this has major environmental sustainability implications and applies to almost any organisation; fitness studios use water for many purposes – clients take showers, or maybe there is a swimming pool. Finding ways of reducing water use (e.g. through water-efficient showers or recycling waste water from washrooms, perhaps to water plants) could all help to reduce the impact of water use.
Sustainable supply chains and fair trade: a gym does not use agricultural raw materials, but it uses other supplies, such as towels, maybe soaps and shampoo for client use and detergents. There are environmentally friendly and fair trade brands of these kinds of products available, and it may be possible to source some supplies locally to support economic sustainability in the local community.
The sort of community investment initiatives that Nile Breweries have in place would not seem to be appropriate for a small fitness studio in the UK. The needs of the community will be different, and a small fitness studio would not have the same financial resources as a larger business that is part of an international group. However, a local fitness studio might consider other types of activities, for example, an outreach programme whereby the studio’s instructors might do a few hours of voluntary work with young people at risk of health problems from being overweight.