Principles of Marketing

Chapter 19: Sustainable Marketing: The New Paradigm

Chapter Outline

• 19.1 Sustainable Marketing

• 19.2 Traditional Marketing versus Sustainable Marketing
• 19.3 The Benefits of Sustainable Marketing
• 19.4 Sustainable Marketing Principles
• 19.5 Purpose-Driven Marketing
19.1 Sustainable Marketing
Learning Outcomes

• LO1 Define sustainable marketing.

• LO2 Explain the three pillars of sustainable marketing.
Sustainable Marketing Definition

• Sustainable marketing infuses purpose into socially conscious brands, products,

and services. Sustainable brands:

• define a purpose
• orient to stakeholders’ value
• align purpose with strategy
• reflect sustainability in marketing
ESG Pillars: Environmental, Social, and Governance

Figure 19.2 Three Pillars of Sustainable Marketing

(attribution: Copyright Rice University, OpenStax,
under CC BY 4.0 license)
ESG Pillars (continued)
• The environmental pillar focuses on reducing a company’s impact on the
environment by:
• recycling
• reusing
• minimizing waste
• increasing energy efficiency
ESG Pillars (continued)
• The social pillar considers a company’s stakeholders and:
• creates a more inclusive environment for its community
• offers responsive programs for employees that increase well-being
ESG Pillars (continued)
• The economic pillar (governance pillar) of sustainability concerns profitability
and business ethics through:
• proper governance structures
• risk management
• compliance
Discussion Question
The three pillars of sustainability are environmental sustainability, social good, and
economic return.

• Why are these three pillars intertwined?

• What would happen if you had one without the other two?
19.2 Traditional Marketing versus Sustainable Marketing
Learning Outcomes
 LO1 Explain how the parties in traditional and sustainable marketing are different.
 LO2 Define the different objectives in traditional and sustainable marketing.
Differences between Traditional and Sustainable Marketing

•Traditional marketing focuses on product, price, place, and promotion for a target
audience, taking a customer approach.

•Sustainable marketing considers customers, shareholders, employees, vendors,

interest groups, media, and the general public.
Differences between Traditional and Sustainable Business Strategy
• Traditional business strategy designates that shareholder return is the primary
obligation of companies.
• Sustainable business strategy advocates that companies have a corporate social
responsibility (CSR) to use their platforms to improve the world and not cause
harm.
• An environmental, social, and governance (ESG) strategy holds companies accountable to
their stakeholders for their sustainability work.
• An ESG strategy uses an organization's influence to make positive change.
• An ESG strategy develops metrics to show how this purpose is measured.
Discussion Question
In sustainable marketing, companies innovate now and do which of the
following for the future?

a. Earn money
b. Ensure viability
c. Save money
d. Increase profits
19.3 The Benefits of Sustainable Marketing
Learning Outcomes

 LO1 Describe the various benefits of sustainable marketing.

 LO2 Explain why sustainable marketing is a business imperative.
Purpose-Driven Strategy
• Companies work to make a difference in their community through their decisions
and support of environmental programs.

• Benefits of a purpose-driven business strategy include:

• enhanced brand recognition
• reduced costs
• improved effectiveness
• easier regulatory compliance
• waste minimization
• enhanced return on investment (ROI)
Benefits of Sustainable Marketing

Figure 19.3 Benefits of Sustainable Marketing

(attribution: Copyright Rice University,
OpenStax, under CC BY 4.0 license)
Benefits of Sustainable Marketing (continued)
• Brands that incorporate purpose earn enhanced brand recognition for that work,
which can become a competitive advantage and result in higher profitability.
• Sustainability practices often carry an up-front investment; however, over time,
these costs typically return a cost reduction.
• Sustainability practices can improve an organization’s effectiveness. For example,
investing in human capital is an area of importance because potential new
employees consider purpose, well-being, culture, diversity, equity, and inclusion
when deciding where to work.
Benefits of Sustainable Marketing (continued)
• In addition to returning value to shareholders, companies are also responsible for
following international, national, and local laws. A sustainability agenda goes
beyond companies’ legal obligations and extends to serving the world better. This
strategy eases compliance by going above and beyond what is expected by
government agencies.
• Environmental measures can reduce waste, creating a healthier planet. Many
organizations are focused on waste minimization to demonstrate a commitment
to the Earth.
Benefits of Sustainable Marketing (continued)
• As with any business strategy, goals and metrics are also important with a
sustainability strategy. Organizations expect a return on investment when
resources are committed, even with sustainability work. Organizations can look at
several factors to determine the financial return on sustainability efforts. They
will evaluate the increased interest from investors, changes in brand value, and
revenue. Additionally, organizations can consider the well-being of their
employees, their impact on the planet, and their efforts to improve the world as
other key measures of success.
Key Measures of a Successful Sustainable Marketing Strategy

Figure 19.4 Factors to Consider in

Evaluating ROI with Sustainability Strategies
(attribution: Copyright Rice University,
OpenStax, under CC BY 4.0 license)
Discussion Question
Using the key measures of a successful sustainable marketing strategy on the
previous slide, discuss each of the factors listed.

• How can each factor provide a return on investment (ROI)?

• Is one more important than another?
• Make a list of what makes up each of these factors.
19.4 Sustainable Marketing Principles
Learning Outcomes

 LO1 List the principles of sustainable marketing.

 LO2 Explain how these principles are put into practice.
Sustainable Marketing Principles

• Customer-value marketing seeks to provide the customer with maximum utility

compared to competitors.
• Innovative marketing uses media as a method for capturing shoppers’ attention
and converting them into customers.
• Mission-driven marketing aligns purpose and brand. With mission-driven
marketing, a company uses its core mission and purpose as the focus of its
marketing strategies.
• Societal marketing is most akin to the sustainability strategies discussed in this
chapter. A societal marketing strategy fulfills social responsibility obligations while
satisfying customer needs.
Discussion Question
After reviewing the following Link to Learning video about Charity Water, discuss
how the nonprofit gamified its mission.

https://www.charitywater.org/about/scott-harrison-story
19.5 Purpose-Driven Marketing
Learning Outcomes

 LO1 Understand issues related to purpose-driven marketing.

 LO2 Articulate best practices in purpose-driven marketing.
Purpose-Driven Marketing
• Brand purpose
• Brands satisfy many people, including employees, investors, customers,
suppliers, and the communities they serve. These stakeholders ask for:
• more than a good product at a fair price
• the brand to stand for something more than the product or service being offered

• Brands that put purpose at the center create ways for people to experience
purpose. They also speak up, even when it’s difficult or costly to do so.
Purpose-Driven Marketing Examples
• Brand purpose examples
• Bombas has donated more than 5 million items with the help of 3,500 impact
partners in every state.
• Allbirds has vowed to be carbon-neutral always.

• Brands that put purpose first examples

• Campaign for Real Beauty – Dove
• Proctor & Gamble, a prime example of a brand that is intentional about
inclusion
 Discussion Question
In reviewing the Edelman Trust Barometer, what does this research tell you about
the importance of brand trust?
• 58% of consumers will buy or advocate for brands based on their beliefs and
values.
• 60% will choose a place to work based on their beliefs and values.
• 80% will invest based on their beliefs and values.

• Discuss the brands you trust and describe the actions they take to invoke that
trust.
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