Week 1
Kotler, P. (2011). Reinventing marketing to manage the environmental imperative.
Journal of Marketing, 75(4), 132-135.
In the past, the assumption of
in nite resources and zero
environmental impact dominated
the marketing practices; however,
the realisation of nite resources
and high environment costs require
a change in beliefs and practices.
Chances Regarding the 4 Ps:
1. Product: reconsidering materials and sources (carbon footprint), developing
sustainable packaging
2. Price: environmentally involved consumers may be willing to pay more, but
companies need to consider how their pricing will be a ected by possible new
regulations requiring them to cover more of the externality costs they created
3. Place: considering the location of production and distribution facilities, call for
more decentralised productions, reduction of consumers driving to outlets
through push in online shopping
4. Promotion: shifting from print to online, communication of sustainability, more
speci c product labelling
The Consumer Pressure: Why Change?
- marketing 1.0 (functional), marketing 2.0 (emotional) —> marketing 3.0 (socially
responsible)
- WoM growing force in shaping consumer decisions, and consumer trend towards
sustainability
- Diamond (2004) found evidence that consumers are willing to pay more for
environmentally friendly products
- LOHAS = “lifestyles of health and sustainability”
- B2B companies further removed from consumer pressure
3
fi fi fi ff
, Marketing Practices:
a. demarketing:
- uses same 4 Ps but in a reverse way, e.g. reducing industries and consumers’
water consumption due to the water shortage in California
- there are times and resources that demand conservations and reduction rather
than demand expansion (still main e ort of marketing)
b. social marketing:
- the theory and practice of marketing an idea, cause, or behavior
- spreading positive awareness and behavior, e.g. anti-smoking or alcohol
campaigns
Further Research Imperatives:
4
ff
Kotler, P. (2011). Reinventing marketing to manage the environmental imperative.
Journal of Marketing, 75(4), 132-135.
In the past, the assumption of
in nite resources and zero
environmental impact dominated
the marketing practices; however,
the realisation of nite resources
and high environment costs require
a change in beliefs and practices.
Chances Regarding the 4 Ps:
1. Product: reconsidering materials and sources (carbon footprint), developing
sustainable packaging
2. Price: environmentally involved consumers may be willing to pay more, but
companies need to consider how their pricing will be a ected by possible new
regulations requiring them to cover more of the externality costs they created
3. Place: considering the location of production and distribution facilities, call for
more decentralised productions, reduction of consumers driving to outlets
through push in online shopping
4. Promotion: shifting from print to online, communication of sustainability, more
speci c product labelling
The Consumer Pressure: Why Change?
- marketing 1.0 (functional), marketing 2.0 (emotional) —> marketing 3.0 (socially
responsible)
- WoM growing force in shaping consumer decisions, and consumer trend towards
sustainability
- Diamond (2004) found evidence that consumers are willing to pay more for
environmentally friendly products
- LOHAS = “lifestyles of health and sustainability”
- B2B companies further removed from consumer pressure
3
fi fi fi ff
, Marketing Practices:
a. demarketing:
- uses same 4 Ps but in a reverse way, e.g. reducing industries and consumers’
water consumption due to the water shortage in California
- there are times and resources that demand conservations and reduction rather
than demand expansion (still main e ort of marketing)
b. social marketing:
- the theory and practice of marketing an idea, cause, or behavior
- spreading positive awareness and behavior, e.g. anti-smoking or alcohol
campaigns
Further Research Imperatives:
4
ff
