What is Sustainable Marketing?

Sustainable marketing is about what you market creating brands and businesses fit for the future and the way in which you market providing clear, relevant information and campaigns to create both profit and positive societal change. It involves product/service innovation, effective communications and influencing consumer behaviour to be more sustainable. Product/Service Innovation Innovating new products and services sustainably may involve: Assessing impacts Using a structured approach to assess product or service impacts, such as life cycle analysis or Unilevers Brand Imprint tool; Reducing product/service impact Developing products/services with reduced impacts, such as lowcarbon construction materials, or responsibly sourced or healthier foods; Creating new products/services Using innovation to develop new solutions, from low-energy appliances to low-cost products/services for consumers in low-income countries; New business models Using sustainability as a driver to move towards new business models, for example based on renting instead of selling products. Effective Communications A number of channels are available for companies to communicate with consumers about sustainability issues, and what they are doing to address them: On-pack information Fair trade, organic and a range of other certification standards are now commonplace, as is information about health impacts and carbon emissions; Company communications In-store signage and interactive websites, possibly including blogs by the CEO or named frontline workers; External media Writing comment pieces for newspapers, or collaborating with TV documentaries, to draw attention to specific issues; Community events Sponsoring music events, supporting activity days and holding farm open days, to help bring the issues to life. The key principle throughout is that companies must be honest and authentic in their communications. Making bold claims without taking action within the business can seriously backfire for brands, as consumers grow increasingly wise to attempts to mislead them with 'greenwash'. Influencing Consumer Behaviour Companies can positively influence consumer behaviour by: 1. Providing/promoting more sustainably made products and services. This may involve the creation of new, sustainable brands, or using marketing to communicate messages to customers about the integration of sustainability into existing brands.

2. Encouraging customers to use products more responsibly. This may involve guidance, campaigns or incentives so that products are used more frequently, more efficiently or just differently, in order to promote health, safety and sustainability. 3. Encouraging more sustainable attitudes and lifestyles. This extends beyond the direct use of a specific product and involves using complementary products and services, as well as marketing, to effect changes in customers wider lifestyles and behaviours.

Why Market Sustainably?

Simply put, there are not enough planets to sustain current levels of consumption, particularly as the worlds population grows and competition for resources increases. Add to this the many social problems associated with excessive consumption, such as long-term ill-health and social inequality, and the issues are too great to ignore any longer. Marketing has traditionally been seen as part of the problem, helping to create the many unsustainable habits we now need to change but it can also be part of the solution, making new alternatives desirable and mainstream. The market for ethical and sustainable products has grown significantly over the past ten years, and continues to increase, but the vast majority of consumers simply want to keep buying the products they know and love, safe in the knowledge that the companies making them will not do harm in their names. Mainstream businesses that develop and market more sustainable products and services can therefore tap into this demand, whilst increasing customer loyalty and trust. Conversely, those that merely use sustainability for greenwash risk seriously damaging their reputations. Product/Service Innovation Using sustainability as a catalyst for the development of new or improved products and services can present hugely exciting opportunities for businesses. While it is clear that most consumers are not prepared to go out of their way to buy sustainable products, people are more likely to stick with the brands they know and love when they can see they are taking action to address their concerns, making sustainability 'built-in'. Often, this goes hand-in-hand with Responsible Supply Chain Management, requiring brands to work closely with suppliers to explore and develop more sustainable solutions. Effective Communications Using marketing to educate and empower consumers can help them gain a better understanding of the issues and make more informed, more sustainable choices. Brands that do this effectively can enhance their reputation whilst increasing customer loyalty and trust. Providing clear messages about what the issues are, and what action the business is taking to address them, demonstrates commitment to 'doing the right thing', and shows customers that you share their values. Influencing Consumer Behaviour

Although sustainability is now firmly in the mainstream, many consumers feel confused and disempowered, and are reluctant to compromise on product quality, price or convenience. Most consumers approximately 70 percent like to feel good about the choices they make, and will change if its made easy for them. This provides businesses with an opportunity to show leadership by providing simple steps that everyone can take to lead more sustainable lives. Influencing consumer behaviour can generate a range of business benefits, including differentiated products and brand personality, increased market share and enhanced license to operate. Consumer Survey Finds Doing Good Is Good for Business Friday, 16 September 2005 Americans are quick to identify polluting companies as "socially irresponsible" and make their purchasing decisions accordingly, says a new survey. The poll also found that American consumers between the ages of 18-29 are more likely to spend more on organic, environmentally preferable or fair trade products than other age groups. The survey, by the research firm Global Market Insite, quizzed more than 15,000 online consumers in the U.S. and 16 other countries about their socially conscious business practices. Americans placed the highest value on corporate community involvement; when asked what factor was the most important in determining if a business is socially responsible, "contributing to the community" (e.g. sponsorship, grants, employee volunteer programs) came in highest with 47%. On the other hand, all of the other countries surveyed (India, Canada, Australia, Germany, China, and Japan) selected environmentally preferable practices (recycling, using biodegradable products) as the top factor. "In the high-tech era where employees are expected to work 24/7, it's significant that Americans rate giving back to the community as their top priority in recognizing socially responsible companies," said Marjorie Thompson, co-author of Brand Spirit: How Cause Related Marketing Builds Brands. "It shows that people want to feel connected to each other and that they are willing to reward businesses who tap into this sense of mutual support and belonging. Companies will need to start thinking of their community programs as core to their businesses and brands, and central to how they market themselves." Not surprising, the U.S., along with other countries such as India and China, which have experienced environmental disasters caused by corporations (e.g. Love Canal, Bhobal, Exxon Valdez) or have had to deal with major polluting issues (e.g. coal plants, manufacturing), believe that damaging the environment is associated with acting socially irresponsible. Other countries, including France (60%), Denmark (52%) and Italy (45%) selected the use of child labor as the main factor in making them think a corporation is socially irresponsible. Juxtaposing Americans' negative opinions on damaging the environment, the GMIPoll found that only

42% of all Americans are willing to spend more for products branded as organic, environmentally friendly, or fair trade, except for the Y Generation. While only 14% of 18-29 year olds label themselves as socially responsible consumers, half of this age group (50%) responded that they will spend more on these types of products (organic, environmentally friendly or fair trade) compared to their older and wealthier counterparts, with only 37% of 45-64 years olds saying they would spend more on green products. Thompson adds: "Based on the findings, Generation Y is obviously more environmentally conscious and socially savvy, which is expected given that many are aware of the issues surrounding globalization and trade and how this can negatively affect the environment, labor pool and the local communities." Surprisingly, a large majority of online consumers in the less developed countries of China and India, 91% and 71% respectively, will pay more for socially responsible products, while almost half (47%) of the U.K. respondents indicated they would spend more for these types of goods.