The relevance of sustainability in marketing decision making
What is marketing?
What exactly is marketing? Is it just convincing people to buy products through various media? Billboards, TV commercials, junk mail and magazines filled with advertisements? From the consumer’s perspective, that is how it seems (Kotler et al. 2010, p. 5). But from a business’s standpoint, marketing is viewed very differently. Marketing is viewed as being based on an exchange relationship between a business and its customers, where a business offers something of value, and customers purchase this product, which provides the business with the means to continue producing this item of value (Moscardo et al. 2010, p. 277).
Where does sustainability fit into
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Products labelled as “organic”, “biodegradable”, “made from recycled material” or other similar green claims are generally priced higher than conventional products (Kotler et al, 2010 pg 405). Low income earners, students, pensioners and the unemployed may not be able to afford a premium on sustainable products and will buy the cheapest alternative conventional product.
Also, not all products on the market may have an available green alternative and therefore the consumer has no choice but to purchase a non-green product (Moscardo et al. 2010, p. 284).
Greenwashing
In the text, the issue of greenwashing was addressed and its impact on consumer purchase decisions and on the sustainability market. Greenswashing can be described as “the practice of overemphasising a company 's environmental credentials, often by misinforming the public or understating potentially harmful activities” (Doyle 2011). The practice of greenwashing has led to consumers being more sceptical of products marketed as ‘green’ or ‘environmentally friendly’. This scepticism may result in consumers avoiding sustainable products for fear that the ‘green’ labelling may indicate an inferior product using promises of sustainable resources and production to increase its prices (Rettie Burchell & Riley 2012, p. 422).
One Study in Norway showed that labelling of products was considered the most indicative way to ensure the sustainability of the
assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
Greenwashing is the practice of promoting environmentally friendly programs and products to draw away attention from an organization’s who is unfriendly environmentally. Large companies often use this art form to sell products to consumers. In most cases the companies try and target customers who are more environmentally cautious when purchasing certain products. The idea first originated in the late 1980’s (Dash and Routray). The purpose of its origination came from the growing interest in environmentally friendly and sustainable products from consumers. Greenwashing is a widely known and used concept by companies to deceive and trick consumers into purchasing their products that they claim are healthy, safe, and ecofriendly. However, as consumers, we strive to buy better options for the environment, but large companies use this to benefit and make more money. This strive can also result in measures humans can take to protect themselves from these dangerous manipulations. Companies are constantly manipulating the minds and beliefs of the human population and falsely advertising their “ecofriendly” products to make them more beneficial for the environment. However, in some cases greenwashing can be used for benefitting certain companies. Greenwashing can be stopped, but to do this people need to understand the dangers associated with it and they need to ban together to make a change. This change can mean that people are demanding that there are higher restrictions on the
The rise of green products and the want of consumers to become more environmentally friendly has been increasing. In 10 Green Marketing Milestones, the reading mentioned how the “rise of the Toyota Prius: It may not have saved the world, but at 1 million cumulative vehicle sales the Prius became the predominant fuel-efficient hybrid vehicle” (Neff 2). This is an example of how companies are actually wanting to go green in order to make more profit and rise above their competitors. Going off the Prius example, it was also mentioned how Hummer cars, which use an excess amount of fuel, sales have plummeted. This was because this model no longer appealed to the consumers and General Motor’s had to discontinue the model and even went bankrupt. This sale tactic works and is so successful because the consumer’s mindset have evolved to seek things that are better for the environment. Many would prefer Toyota over General Motor because of their company’s reputation with being green. Although this might not work for all companies, but for some, they have become more successful than their competitors by going green and so, convincing more and more to
The purpose of this paper is to compare the sustainability practices of two companies in the same industry. The two companies chosen for comparison are The Hershey Company and Coca-Cola Enterprises, both of which are in the consumer staples industry. These two corporations are ranked sixth and eighth, respectively, on the Newsweek Top Green Companies in the U.S 2015. They have taken pride in creating sustainable product designs, having environmentally sustainable processes and supply chain management.
Consumerism often causes people to identify with a product or brand on a personal level. Certain products have come to represent different levels of society, with swankier products like muscle cars indicating high class and such products as generic “store brand” shampoo indicating low class. People feel that they have relationships with their favorite brands and products and define themselves by what they buy and own. The mass production of cheap products uses precious fossil fuels at an alarming rate. This has an obvious negative impact on the environment.
You will also notice that terms like “fair trade,” “gluten free” and “organic” are brazenly displayed across hundreds of different products—far more than there were only a few years ago. That is the effect of a large and growing LOHAS consumer base. Ultimately, businesses are driven by what large consumer bases like LOHAS are doing, and have shifted their products (and marketing schemes) to accommodate this burgeoning desire for sustainable/eco-friendly goods. Many businesses have taken this further, and are revolutionizing their CSR tactics to appeal to the increasingly discerning
An international research survey conducted by the National Geographic in 2014 measured and monitored consumer progress towards environmentally sustainable consumption with its Greendex report, to produce a quantitative study of consumer behavior and material lifestyles (National Geographic 5). The findings were used to rank 18 countries in order from most to least sustainable; The United States was ranked the least sustainable (6). The study also found that they were the “least likely to feel guilty about the impact the had on the environment” (6). This study demonstrates that consumers’ reckless behavior also contributes to their inability to reflect on the damage they are making on the environment. Julia B. Corbett, author of Communicating Nature, a thought provoking scholarly book, suggests that the lack of remorse is due, first and foremost, to the
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
Nowadays, lots of companies spend money to show they are environmental friendly. However, some of their ‘green’ behaviors are spurious.
On your weekly trip to the supermarket it’s easy to find a number of products, from coffee to dishwashing soap, that flaunt their green attributes” (American Psychological Association, 2010). With such rumors of greenwashing, consumers are more confused than ever. However, some consumers know the tricks and are coming to find that there are companies whose marketing practices are legit, not exaggerated or deceiving. APA also found that, “people are willing to spend more of their hard-earned green on green products, according to a 2008 survey of 9,000 adults performed by the global business firm Boston Consulting Group” (American Psychological Association, 2010). Consumers who are willing to pay more for a product or service are assuming that they are purchasing a healthier, safer, and better quality product or service for the environment.
The purpose of this report is the comparison between the retailers The Coffee Club and The Three Monkeys Coffee & Tea House and contrasts the role of Sustainable Consumption. The paper will discuss the retailer 's responsibility with regards to influencing consumer-purchasing habits through the encouragement and facilitation of sustainable consumption practices within certain product lines (Danish Ministry of the Environment, 2015).
Throughout the 90’s there was a growing pandemic of unethical practices and morally wrong operations when it came to the production methods of manufacturers and other parties trying to satisfy the consumer’s needs. These ways of operations left a dissatisfying taste for the new conscientious consumers, who also started to wonder more about the life cycle of the goods they consumed. The market for these consumers started growing more rapidly which developed what is called eco labels. Eco labelling is defined as, “a voluntary method of environmental performance certification and labelling that is practiced around the world. An eco-label is a label which identifies overall proven environmental preference of a product or service within a specific product/service category”. Eco labels started in 1994 but really started to take off when 15 of the most influential organizations got together to assist in developing and working toward their shared goals, principles, and ideas by building standards behind their eco labels.
In the fourth era of the consumer movement, the key marketplace features include concern for the environment, increasingly complex technology, a diverse market, and a global market. Concern for the environment has manifested itself in a number of different ways. One example is the Exxon Valdez oil spill, which caused many consumers to become disappointed in Exxon. Exxon has had to work at improving its environmental image after this accident, and there are still individuals who will not buy gas at Exxon as a result of Exxon’s handling of this situation. There has been a trend in the past ten years or so to protect the environment and to also buy products that are more natural and environmentally sound. In our era, Fresh Fields, a
One major problem as far as companies using green marketing and why it isn’t working is that the relatively vague definition of green marketing leaves a lot of room for loopholes. Green marketing, by simply being defined as “the marketing of products that are assumed to be environmentally safe,” allows companies to take advantage of this idea even if their products are not the best example of green ones (McClendon 1). Most companies also don’t practice what they preach in such
Sustainability development as explained by the World Commission on Environment and Development 1987, means a “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Given the fact that sustainability is result of effective production, consumption and marketing patterns and behaviors, now the next question that stands unanswered is, what is the role of marketers in achieving sustainable development?.