19.2 Traditional Marketing versus Sustainable Marketing
4 min read•june 25, 2024
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 , 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
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- 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 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
- Product development focuses on using eco-friendly materials (recycled plastics, organic cotton) and packaging (biodegradable, minimal waste)
- Sustainable marketing aligns with (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 (, )
- Sustainable marketing promotes ethical 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 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
- Developed the which aims to reduce environmental impact and improve social well-being
- 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
- Offers eco-friendly products made with plant-based ingredients and biodegradable or recycled packaging
Sustainable Marketing Concepts and Tools
- : A framework that measures a company's success based on three dimensions: economic (profit), social (people), and environmental (planet)
- : An economic model that aims to eliminate waste and maximize resource efficiency by designing products for reuse, recycling, and regeneration
- : 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 , which involves making misleading or false claims about environmental benefits to appear more sustainable than they actually are
Key Terms to Review (20)
4Ps: The 4Ps refer to the four key elements of the marketing mix: Product, Price, Promotion, and Place. These four factors are the primary considerations for businesses when developing and implementing their marketing strategies to effectively reach and satisfy their target customers.
B Corp: A B Corp, or Benefit Corporation, is a for-profit company that has been certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. B Corps are committed to balancing profit with purpose and considering the impact of their decisions on their workers, customers, suppliers, community, and the environment.
Carbon Disclosure Project: The Carbon Disclosure Project (CDP) is a non-profit organization that runs a global disclosure system for companies, cities, states, and regions to manage their environmental impacts. It focuses on measuring, reporting, and sharing information related to greenhouse gas emissions, climate change risks, and strategies for environmental sustainability.
Cause-Related Marketing: Cause-related marketing is a strategic business and marketing initiative where a company aligns itself with a specific cause or nonprofit organization, typically by donating a portion of its revenue or profits to support that cause. It is a form of corporate social responsibility that aims to benefit both the company and the supported cause through mutually beneficial partnerships.
Circular Economy: A circular economy is an economic system that aims to eliminate waste and the continual use of resources. It is designed to keep products, components, and materials at their highest utility and value at all times, distinguishing it from the traditional linear economy of 'take, make, waste'.
Consumerism: Consumerism is a social and economic order that encourages the acquisition of goods and services in ever-increasing amounts. It is characterized by the prioritization of consumption and the pursuit of material possessions as a means of achieving happiness, social status, and personal fulfillment. Consumerism is a central concept that relates to various marketing topics, including ethical marketing, packaging, sustainable marketing, and purpose-driven marketing.
Corporate Social Responsibility: Corporate Social Responsibility (CSR) is a business approach where companies integrate social and environmental concerns into their operations and interactions with stakeholders. It involves a company's commitment to operate in an economically, socially, and environmentally sustainable manner while considering the impact of its decisions and actions on various stakeholders, including employees, customers, communities, and the environment.
Eco-Labeling: Eco-labeling is a voluntary environmental performance certification and labeling system that identifies products or services proven to be environmentally preferable within a specific product or service category. It aims to guide consumers towards more sustainable purchasing decisions by providing them with credible information about the environmental impact of products and services.
Environmentalism: Environmentalism is a social and political movement that seeks to protect and preserve the natural environment from harm or destruction caused by human activity. It is a broad term that encompasses various beliefs, attitudes, and actions aimed at promoting sustainable practices, conserving natural resources, and mitigating the negative impacts of human development on the environment.
Ethical Consumerism: Ethical consumerism refers to the practice of purchasing products and services based on the social, environmental, and ethical implications of their production and distribution. It involves making conscientious choices as a consumer to support businesses and practices that align with one's personal values and beliefs, while avoiding those that are perceived as unethical or harmful.
Green Marketing: Green marketing refers to the practice of promoting products or services based on their environmental benefits or sustainability. It involves marketing strategies that focus on the eco-friendly aspects of a company's offerings, aiming to appeal to environmentally conscious consumers.
Greenwashing: Greenwashing is the practice of making misleading or deceptive claims about the environmental benefits or sustainability of a product, service, or company in order to appear more eco-friendly than they actually are. It involves the use of marketing and advertising tactics to create a false impression of environmental responsibility, often with the goal of increasing sales or improving a company's public image.
Lifecycle Assessment: Lifecycle assessment (LCA) is a comprehensive evaluation of the environmental impacts associated with a product or service throughout its entire lifespan, from raw material extraction to disposal or recycling. It is a key tool in sustainable marketing, as it allows businesses to identify opportunities for reducing their environmental footprint.
Social Marketing: Social marketing is the systematic application of marketing concepts and techniques to achieve specific behavioral goals for a social good. It involves designing, implementing, and controlling programs to increase the acceptance of a social idea or practice in a target audience.
Stakeholder Theory: Stakeholder theory is a framework that considers the interests and concerns of all parties affected by a business's operations, not just its shareholders. It emphasizes the importance of balancing the needs of various stakeholders, including customers, employees, suppliers, the community, and the environment, in order to achieve long-term success and sustainability.
Sustainable Living Plan: A Sustainable Living Plan is a comprehensive approach to managing one's lifestyle and consumption habits in a way that minimizes negative environmental impact and promotes long-term sustainability. It encompasses various aspects of daily life, including energy use, resource management, transportation, and consumer choices, with the goal of reducing an individual's carbon footprint and fostering a more environmentally-conscious way of living.
Sustainable Marketing: Sustainable marketing is an approach to marketing that prioritizes environmental, social, and economic sustainability throughout the entire marketing process. It involves creating, communicating, and delivering value to customers in a way that meets their needs while also protecting and enhancing the long-term well-being of the planet and society.
SWOT Analysis: SWOT analysis is a strategic planning framework used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization or product. It provides a structured approach to understanding the internal and external factors that can impact an entity's performance and competitive position.
Traditional Marketing: Traditional marketing refers to the conventional methods and practices of promoting products or services to consumers, which have been the dominant approach for decades. It typically involves a one-way communication model, where businesses deliver messages to target audiences through various offline channels.
Triple Bottom Line: The triple bottom line (TBL) is a framework that businesses use to measure their performance not just in the traditional financial bottom line, but also in their social and environmental impact. It expands the traditional reporting framework to take into account ecological and social performance in addition to financial performance.