Can Marketing Promote Sustainable Consumption - Term Paper Example

 Can marketing promote sustainable consumption? Introduction The realisation concerning the finite nature of the planet’s resources and its ever-increasing population has caused sustainability to move from a concept to an understanding that society and people have to change their approach to living, production and products (Dietz and O’Neill, 2013). As sustainability is an integral part of this study, an explanation of what it means is critical to understanding its meaning in the context of sustainable consumption. Boudreau and Ramstad (2005) describe sustainability, in terms of the subject matter of this study, as the endurance of processes and systems to maintain themselves from renewable materials and processes or those that have a minimum environmental impact. This means that the more than products, food, and other areas incorporate ingredients or components that can be replenished using a minimum footprint in terms of energy use and waste in their production, the more they qualify as sustainable items (Boudreau and Ramstad, 2005). Tabara and Pahl-Wostl (2007) further elaborate by adding that sustainability considers ways of reducing and minimising negative human impacts from an environmental, chemical use in production or growing processes through the use of resources management. Sustainability also includes using new approaches and considerations in the design, production and end-use considerations regardless of whether they are edible or used for products (Glavic and Lukman, 2007). It means that it considers transport considerations as a factor in reducing energy aspects (Glavic and Lukman, 2007). All of the areas mentioned above fall under what is termed as ethical consumerism which also goes by a number of names such as ethical consumption, ethical purchasing, ethical sourcing and green consumerism (Wheale, 2007). In explaining this further, Flatters and Willmott (2009) explain that it represents a form of consumer activism that has as its goals products and services that are made of better quality or last longer, are safer, and are developed considering environmentally friendly considerations. The understanding that the planet has finite resources has caused a major shift in developed countries toward increased recognition and promotion of sustainability in all forms of design, manufacturing and disposal of waste aspects (Wheale, 2007). Whilst the term consumption is well known, it is felt that the subject matter of this study means this word should be explained in order to ensure absolute clarity. Fiorito and Kollintzas (2004) state that consumption represents eating of drinking, or use of an item that can be energy based. Lee and Chang (2007) define consumption from an economic sense that represents a closer approximation to the subject matter. They state that in the economic context it refers to goods or services used by consumers and businesses (Lee and Chang, 2007). The mainstream understanding considers the act of consumption as the final activity in a chain of events (Fiorito and Kollintzas, 2004). The above exploration of sustainability and consumption has been engaged in to provide some background and explanation regarding the subject of sustainable consumption use by marketers that will be further developed herein. It will delve into the differing approaches and methods that are or can be utilised to promote sustainable consumption and evaluate their effectiveness or applicability. Sustainable Consumption The concept of sustainable consumption has a number of features that are linked to sustainable development and production as it entails the consumption or end use of products or services as explained in the introduction section. In terms of environmental and resource aspects, sustainable consumption considers the use of resources in the production or offering of a service or product and its environmental impacts represented by renewal materials, waste, and pollution (Vermeir and Verbeke, 2006). In defining sustainable consumption, the most recognised source is the explanation offered by the Oslo Symposium that was held in 1994 (Fuchs and Lorek, 2005). The definition stated that sustainable consumption represents services or products that fulfill consumer and business needs that provide higher quality, whilst minimising natural resource use and toxic items, pollutants and material waste in the manufacturing process and product life cycle (Fuchs and Lorek, 2005). The above also includes design, material selection, and processes that are cognizant of the impact of materials, waste and other factors on future generations in terms of impact (Fuchs and Lorek, 2005). In elaborating further on the understanding and concept of sustainable consumption and underpinnings that help to contribute to marketing approaches, the 2002 Johannesburg Plan of Implementation that was approved at the World Summit on Sustainable Development introduced some important aspects (Von Frantzius, 2004). The Johannesburg Plan put forth that sustainable consumption, which includes production as an integral part, represent one of the three important objectives and essential parts of sustainable development (Von Frantzius, 2004). The other two elements are the eradication of poverty and more efficient management of natural resources to aid in economic and social development (Von Frantzius, 2004). In terms of the purpose of this study, the Johannesburg Plan recognised that countries need to promote sustainable consumption and generate heightened awareness in order to establish it as a purchase decision consideration in the buying process (Von Frantzius, 2004). Sustainability as a Global Initiative The Johannesburg Plan also called for international organisations, governments, private groups and the private sector to assume an active stance and role in changing the public and business understanding of the importance of considering and purchasing products and services developed under sustainable consumption principles (Von Frantzius, 2004). In order to achieve this type of outcome, the Marrakech Process was developed in 2003 as an international action framework for sustainable consumption (Nash, 2009). It also served to highlight aspects that marketers should consider in the design and development of campaigns to promote products and services that incorporate sustainable consumption facets. The Marrakech Process is a platform that consists of varied mechanisms that are illustrated below: Figure 1 - Marrakech Process Illustration (United Nations Environment Programme, 2015, p. 1) The Marrakech Process is a highly important initiative that was devised to provide an actionable framework to cause companies to increase their involvement in sustainable consumption by providing a framework that incorporated governments, private entities and international organisations (Nash, 2009). The core aspect behind the Marrakech Process represented putting into place a workable programme to build cooperation between regions in the North and South that represent developed and undeveloped countries (United Nations Environment Programme, 2014). Sustainable consumption and production (SCP) consist of actively promoting the use of energy and the efficient use of resources in sustainable infrastructures that have been reorganised to foster the process in terms of converting a company’s mode of operation from wasteful measures (United Nations Department of Economic and Social Affairs, 2010). This helped to set the stage for marketing processes as awareness of sustainable consumption increased in public awareness since 2003 (Nash, 2009). This helped to set the stage for a determination of the marketability of sustainable consumption (United Nations Department of Economic and Social Affairs, 2010). In order to understand the significance of the Marrakech Process, the United Nations Department of Economic and Social Affairs (2010) programme summarises the aspects mentioned in the preceding areas of this study where economic and social aspects are integral parts. The United Nations Department of Economic and Social Affairs (2010) also identified the extent of the Marrakech Process in terms of shifting the focus of business and consumer awareness toward developing manufacturing and promoting products and services that are designed and marketed in keeping with sustainable consumption. All of the above aspects as contained in the introduction and this segment have been brought forth to provide a basis for understanding key aspects. These will help to understand how marketers can or are incorporating these into their approaches to promote sustainable consumption. Marketing Sustainable Consumption Direction regarding marketing aspects concerning sustainable consumption was primarily taken from the report issued by the United Nations Department of Economic and Social Affairs (2010). It identified the themes of its task forces which were developed to promote sustainable consumption and further development at regional and national levels as shown by the following: Figure 2 - Themes of the Marrakech Process Task Forces (United Nations Department of Economic and Social Affairs, 2010, p. 5) In terms of marketing sustainable consumption projects, the United Nations Environment Programme, 2005) pointed to work started that is still ongoing in the Region of Tuscany provided recommendations, guidelines, programmes and support for marketing sustainable consumption. Whilst the information thus far covered points regarding sustainable consumption infinitives that date back to 2002, it actually started under Agenda 21 at the 1992 Conference on Environment and Development in Rio (United Nations Department of Economic and Social Affairs, 2010). In terms of guidelines, programmes, and methods, the United Nations Department of Economic and Social Affairs (2010) cautions that marketing sustainable consumption in terms of services and products is complex in terms of measurement as different circumstances, meaning services and products vary. Despite this, the following provides an overview of the process: Figure 3 - Key States in Sustainable Consumption Marketing Plan (United Nations Department of Economic and Social Affairs, 2010, p. 8) Marketing successfully in terms of sustainable consumption for services and products is similar to the normal marketing process (United Nations Department of Economic and Social Affairs, 2010). The following provides a brief summary of the differences between sustainable consumption based marketing versus traditional marketing (United Nations Department of Economic and Social Affairs, 2010). Understanding Sustainable Consumption Marketing Components Targeting, segmentation, and positioning represent one key to success as it provides the necessary information to understand the target audience, how it is segmented, and the positioning needed to reach prospects (DeSarbo et al, 2008). Under sustainability, marketers need to understand that the approach is resource based as opposed to being market lead (Wade and Hulland, 2004). This means that the product is not changed to please the consumer, as sustainability is based on resource considerations (Wade and Hulland, 2004). As a result, the sustainability aspects in conjunction with features and attributes of the approach are crafted to meet consumer expectations (Wade and Hulland, 2004). With regard to targeting in international markets, this is balanced using domestic markets, when applicable (Belz, 2006). The resource-based approach capitalises on the appeal, features, and applicability that have been amended by companies in terms of their products or services to be more sustainable regarding reducing the use of resources, energy, and waste to produce production savings and lower environmental impact (Ekeledo and Sivakumar, 2004). A unique selling proposition is an aspect used in traditional marketing and in the marketing of sustainable consumption (Fan, 2005). However, in sustainable marketing, it entails generating interest and awareness regarding areas consumers seek as opposed to selling sustainability itself (Prothero et al, 2011). Sustainable consumption in terms of the unique selling proposition is a secondary aspect compared to the traditional consumer benefits that represent price, choice, and features (Farrell and Lee, 2015). As a result, it is added to the process after these other marketing areas have been promoted (Farrell and Lee, 2015). Positioning represents another area used in traditional and sustainable consumption marketing in similar yet different ways (Jackson, 2005). In traditional marketing, it can be used as a key attribute, whilst in sustainable consumption, it is more of an information feature that is increasingly being used because consumer awareness and understanding of environmentally oriented services and products has become a contemporary social item (Jackson, 2005). Sustainable positioning still tends to take a back seat to location attractiveness and attributes, or product functionality and design; however, these are increasingly being followed by phrase or information that extols the sustainability or green aspects of a product (Prothero et al, 2011). Another important aspect used by marketers is consumer product knowledge as a basis for designing campaigns (Pickett-Baker and Ozaki, 2008). When the product is well known, the marketer is able to increase emphasis on sustainability in the messages conveyed (Pickett-Baker and Ozaki, 2008). In terms of lesser-known products or services, in order to be successful, the marketer needs to employ a unique selling proposition or list of attributes or features to create interest to draw the consumer in (Farrell and Lee, 2015). In terms of first-time users of a product, people are seeking information to develop their interest (Farrell and Lee, 2015). This calls for applying the unique selling proposition that can feature the attributes of sustainability as a feature or benefit to create a difference from other choices (Farrell and Lee, 2015). This is where traditional marketing methods are amended to use sustainable consumption in the selling process, with it occupying a secondary as opposed to a primary role (Young et al, 2010). Price sensitivity is a traditional approach that needs to be used in order to create interest, where sustainable consumption can be used to indicate a benefit (Paetz et al, 2012). Another category is consumer product knowledge in terms of repeat business (Van Kleef and Roome, 2007). This is an area where consumer awareness of the product provides the opportunity to extol sustainability features or attributes (Van Kleef and Roome, 2007). The preceding is generally used in direct mail, email or follow up marketing (Van Kleef and Roome, 2007). IKEA Sustainable Consumption Marketing An example of a company using sustainable consumption in marketing is provided by IKEA that recently launched a new campaign in the United Kingdom (Elks, 2014). Titled “The Wonderful Everyday”, this campaign was specially developed by IKEA to extol the values of the brand in its approach and use of sustainable consumption (Elks, 2014). The UK launch represents the first sustainable consumerism campaign by the company that starts out with a focuses on its use of LEDs as an energy-saving alternative to incandescent lighting (Elks, 2014). The idea behind the campaign is to establish in the minds of consumers that the IKEA brand is committed to sustainable consumption (Elks, 2014). As indicated in earlier sections of this study, sustainable consumption includes designing, manufacturing and promoting products that decrease energy use and results in products with higher quality (United Nations Department of Economic and Social Affairs, 2010). LED lighting lasts longer than incandescent bulbs, thus the impact on the environment is reduced in terms of the quantity needed for production as well as a reduction in waste resulting in used bulbs being thrown away (Humphreys, 2008). Branding differs from marketing as the latter uses a message to generate results in sales whereas branding is not a push, but rather a pull (Pfoertsch and Chen, 2010). It is something that takes decades to create and cultivate as it represents careful consideration by a company in terms of creating an image and perception in the minds of consumers of its mission and values (Kotler and Pfoertsch, 2010). Branding is wrapped around marketing, meaning it precedes and follows it because branding is long term, whereas marketing represents selling efforts that are short term based on products or services being offered (Kotler and Pfoertsch, 2010). The advertising campaign by IKEA that promotes the sustainable consumption of LED lighting is a marketing tool that reinforces the brand image of the company that represents ‘affordable solutions for better living” (IKEA, 2014, p. 1). In commenting on the new IKEA campaign, Marketing Week (Vizard, 2014) stated that it helps to explain to consumers the values of the company (brand), along with its commitment to sustainability. From a consumer perspective, the new campaign adheres to the precepts outlined by the United Nations Department of Economic and Social Affairs (2010) regarding consumer aspects of targeting, segmentation, and positioning. The campaign is resource based as opposed to market-led as it focuses on the sustainability aspects of LED lighting as an alternative rather than catering to a market-led position of offering or trying to sell what consumers are used to. The campaign also focuses on the unique selling proposition as it states in the television ad that “By 2016 we will only sell energy-efficient LED light bulbs. Sometimes small things can make a big difference” (Elks, 2014, p. 1). IKEA's marketing manager, Peter Wright, explained that the company developed the campaign because it felt that it was the right time to speak out about its commitment to sustainable consumption because the public has become aware of the need to reduce their energy usage (Elks, 2014). This refers to consumer product knowledge that serves two areas, inexperienced and experienced consumers as mentioned by the United Nations Department of Economic and Social Affairs (2010). The campaign will also include more information on social media to provide details on energy savings and explain the benefits of LED lighting (Elks, 2014, p. 1). All of the above factors indicate that IKEA has done its homework on researching the consumer market and adhering to the principles of brand image and consumer considerations represented by targeting, segmentation and positioning and consumer product knowledge detailed by the United Nations Department of Economic and Social Affairs (2010). In evaluating the efforts of IKEA in terms of its first effort at sustainable consumption, it is difficult to find areas where they have missed or glossed over salient aspects. The campaign represents an example of sustainable consumption that was developed specifically to reach consumers on this level as opposed to representing some type of publicity approach that lacked substance. Lafarge Cement UK Sustainable Consumption Marketing This is another example of a company that has produced a sustainable consumption campaign (Aggregate Research, 2010). As a building materials company, Lafarge Cement UK (2015, p.1) has the company tag line of “building better cities”. Based in 62 countries, the company is located in Paris (Lafarge, 2015), and its most recent campaign on sustainable consumption won the UK’s Marketing Society Award’s first place ranking for excellence in 2012 for sustainable consumption marketing (CampaignLive, 2012). The context of this campaign differs from the IKEA example as Lafarge (2015) sells products to construction companies and suppliers, along with do-it-yourself consumers. This means that the campaign was devised as an image and consumer awareness campaign that provides information under the consumer product knowledge area described by the United Nations Department of Economic and Social Affairs (2010). As the global leader in cement manufacturing, Lafarge Cement UK developed the campaign to advise consumers of its commitment to reducing CO2 emissions regarding sourcing materials in an environmentally friendly manner and reducing waste (CampaignLive, 2012). The company used its sustainable consumption campaign as a basis to inform the public of information on how it operates in order to position it as a preferred provider of cement products (CampaignLive, 2012). This aspect of the campaign used emails, direct mail, online display and press releases that represented targeting, segmentation and positioning under sustainable consumption as explained by the United Nations Department of Economic and Social Affairs (2010). This is a resource based approach that the United Nations Department of Economic and Social Affairs (2010) described as a core component of sustainable consumption marketing. The campaign is based on the resource-based approach under sustainable consumption as opposed to the consumer-led market approach of traditional marketing (United Nations Department of Economic and Social Affairs, 2010). The campaign also focuses on increasing consumer knowledge of the company’s commitment to sustainable consumption in its approach to raw material sourcing (CampaignLive, 2012). A weakness that was found in Lafarge’s campaign is that the information did not point to any aspects regarding processes used to reduce or conserve energy or emissions based on new processes, plants or other areas. The campaign represented a less than complete approach to sustainability marketing than IKEA even though it won the 2012 Marketing Society Award for Excellence. The basis for the award cited that the judging was based on the range of marketing communications used such as television, newspapers, social media, email, and direct mail that represented a broad spread of exposure channels, along with the creativity used in marketing a difficult product (CampaignLive, 2012). These channels provided avenues to disseminate product/campaign information to new and inexperienced users of the product that was explained as an important communication objective by the United Nations Department of Economic and Social Affairs (2010). From a branding perspective, the campaign was also cited as the best business to business brand campaign as it accomplished promoting the company name, emphasised its sustainability commitment, and was scored as having the highest recall by businesses (Aggregate Research, 2011). The B2B Marketing Awards represented the second win for the company in terms of sustainable consumption marketing as it highlighted the improved packaging and other resource-saving areas undertaken by Lafarge (Aggregate Research, 2011). The B2B campaign helped to define the business markets understanding of the difference in its Mastercrete product and why it commands a premium price (B2B Marketing, 2011). The improved packaging, that is water resistant, minimises onsite waste due to moisture, and it increases end use of the product purchased due to less loss (B2B Marketing, 2011). This was cited as Lafarge’s commitment to sustainable consumption through end-use waste reduction and heightened end-user product utilisation (B2B Marketing, 2011). The campaign was citing as improving Lafarge’s brand reputation and image as a cement company that works for its customers and waste reduction (Aggregate Research, 2011). Conclusion This exploration into ‘if marketing can promote sustainable consumption’ represented delving into an examination of terms (sustainable and consumption), along with the marketing methods. The realities of finite resources have made sustainable consumption an area that affects all of the people on the planet. The actions of advocacy groups and reality have spurred international organisations and governments to promote sustainability in terms of development and consumption. Heightened public awareness and resource realities have caused sustainable consumption to occupy an increased place of importance in corporate planning as they move into the future. These were aspects uncovered in varied segments of this study. In order to determine how marketing can promote sustainable consumption, a detailed exploration of the terms, sustainability, and consumption was carried out in order to understand what the phrase actually means and represents. The above also included delving into the nuances of what the term (sustainable consumption) means. It entails using renewal materials in processes that result in lower energy consumption and production waste to formulate products as good as or better than products made from other materials. Varied international advocacy, government, and corporate social responsibility processes and movements have made the public and businesses aware that those companies ignoring an active commitment to sustainability practices could receive negative publicity. Whilst this is laudable, the exploration of how marketing is conducted and the reasons people purchase products revealed that there are pragmatic considerations that enter into the process of marketing sustainable consumption. In terms of consumers and businesses, factors under marketing represented by targeting, segmentation, positioning, unique selling proposition, consumer product knowledge, and awareness, price sensitivity, and repeat business found there are similarities, yet differences under the sustainable consumption approach. In terms of the above, it was found that consumers and businesses tend to shop price as much as they do other aspects. If sustainable products are higher, the marketing effort becomes more difficult. The examples provided by IKEA and Lafarge revealed that both of these provided reasons for consumers to buy sustainable consumption products. The LED lighting offered by IKEA offered a longer usage lifetime than incandescent bulbs, which meant cost savings. In the instance of Lafarge Cement UK, the new plastic packaging reduced on-site waste or loss caused by paper bag breakage or moisture impact. These examples proved that when a company develops or promotes the right attributes for a product, sustainable consumption is a marketable concept. In terms of branding aspects, both companies were lauded in the press for their approach to finding ways to offer sustainable consumption products. In the case of Lafarge Cement UK, the company won two awards for its efforts. One represented excellence on sustainable consumption marketing and the other recognised the company for promoting sustainable consumption in a business to business context. 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