Green marketing and Corporate societal marketing. How to promote green and social products and succeed in sales

Transcription

1 Swiss Finance Week Green marketing and Corporate societal marketing How to promote green and social products and succeed in sales BA School of Business and Finance

2 Green marketing history The term Green Marketing grew in popularity in the late eighties and early nineties, as environmental issues became a growing concern and topic of conversation for many Americans and Europeans. Companies started to thought of environmental issues as being an opportunity to increase the value of their products or services.

3 Green marketing history However, as the issues became a regular feature of news coverage, consumers began looking for companies that took steps to reduce their impact on the planet. Increasingly, over the past twenty years, everyone from GE to McDonald have tried to include green in their marketing plan.

4 Green marketing historical problem The problem however, is that there has been a lot of confusion over what it means to be green and too much focus on jumping on the green bandwagon instead of focusing on implementing real environmentally friendly measures. This has resulted in many companies touting themselves as green but not making clear what that means.

5 Green marketing historical problem If you do a search for green marketing on amazon.com you ll find over 4,000 books to guide the way, but many business still fail to find the balance between real and merely superficial green efforts.

6 What is a green marketing? We can define Green Marketing as communicating with your community about the measures you have taken to reduce the negative impact of your services (or the alternative) on Earth s ecosystem.

7 Green marketing pie The Green Marketing Manifesto, John Grant

8 Green marketing pie The realms of influence represent a hierarchy of where marketing activities are applied. These include: A) Public: Companies, Markets, Political and Cultural Values B) Social: Identity, Group Affiliation, Meaning, and Branding C) Personal: Products and Practical Benefits

9 Green marketing pie Going from the outer to inner circles, we have progressive degrees of green contribution with an associated marketing objective: A) Green: Set New Standards - Communicate B) Greener: Share Responsibility - Collaborate C) Greenest: Support Innovation - Culture Reshaped

10 Green marketing pie The idea is that as we go from light to dark green, we re moving from having only commercial objectives to an increasing amount of environmental and social objectives. It s going from basic compliance to proactive action to systemic innovation & transformation.

11 Consumers Buy Green, Despite Economy

12 8 green marketing ideas for business Have a look at how small to med-size businesses can make a commitment to environment and create a competitive advantage in their market place and to differentiate them from those of competitors.

13 8 green marketing ideas for business 1. Work from home allow staff to work from home more often. This will help provide added perks and could improve productivity. 2. Teamwork boost Company moral by setting a company wide goal of everyone working together to lower the businesses carbon footprint. 3. C02 friendly servers yes, today, you can reverse the impact of your websites by switching to C02 friendly servers.

14 8 green marketing ideas for business 4. Sustainable Packaging replacing your existing packaging with green packaging materials such as biodegradable. Or simply get creative by re-using old magazine pages. 5. Transportation if your business relies on transportation, look at transitioning to environmental friendly vehicles. This bold move will most likely get the attention of your local or national newspapers.

15 8 green marketing ideas for business 6. Green Seal assess the Greenness of your products and apply for a green seal. 7. Get Your Brand out there help your local community and customers reduce dependency on grocery store plastics. Invest in environmental friendly grocery bags with your brand, and give them away to customers for free it s free advertising!

16 8 green marketing ideas for business 8. Give Local Love. Receive Local Love if you re in the food business, look at ways to source local products even if they re at slightly higher cost. In return, promote your goal of supporting local farmers and reducing your carbon footprint. You can start the transition slowly by having select products that feature seasonal and locally sourced produce.

17 Examples. MTV Challenge Switch is MTV Networks International s Global Climate Change Campaign. They area always looking for ways to get people involved in the global warming issue and drive them to the MTV Swich website without necessarily using expensive media.

18 Examples. MTV Action To make people aware of the rising sea level because of global warming. We confronted them in an amusing way with a serious massage using a floating board in the Amsterdam canals.

19 Examples. MTV Reaction Because of the massive positive feedback MTV is not only looking to extend the promotion to other Dutch cities, but also to air it on TV.

20 Examples. MTV

21 Examples. Volkswagen Volkswagen seems to be a step ahead of the competition by spreading the message about the company s sustainable initiatives and not just best-in-class mpg.

22 Examples. Volkswagen What if our roofs collected water? With a factory roof the size of Monaco it would be silly not to. We get through 1.4 million cubic metres of collected rainwater a year. And just for extra brownie (greenie?) points, we recycle it up to seven times

23 Examples. Volkswagen Can a car ever be ecofriendly? Well, our latest BlueMotion Polo is green enough to be tax exempt - in fact, it actually gives off less CO2 than any other car in its class. That's good, but we think we can still do better.

24 What is a corporate social responsibility? Corporate Social Responsibility is about how organizations manage their business activities, taking into account the impact of their activities on overall society: customers, suppliers, employees, shareholders, communities and the environment in all aspects of their operations.

25 What is a corporate social responsibility? The European Commission defines CSR as: when companies decide to voluntarily contribute to a better society and a cleaner environment, by integrating social and environmental concerns in their business operations and interactions with stakeholders.

26 Corporate social responsibility Socially responsible behaviour Ethical behaviour Legal behaviour

27 Corporate social responsibility concept Social responsibility is fundamentally a philosophy or a vision about the relationship of business and society. CSR concept shows that CSR is not a short term action plan of the company and should be deeply integrated into both strategic planning and everyday operations.

28 Benefits from CSR programs 1. Companies reputation improving. A company success depends on the community, authorities, mass-media or partners trust. A good reputation, obtained from the demonstrated responsibility for the community, involve immediate consequences. The public has heightened expectations of companies in the area of corporate responsibility, but that there is a growing cynicism gap in how companies are actually perceived to be performing.

29 Benefits from CSR programs 2. Sells and share market growth. These aspects are relevant especially in case of the Cause related Marketing Campaigns, but also in case of the long term pledge. For example, in 2000, the CSR activities had a 25% contribution to the positive impact on the British Telecom customers satisfaction.

30 Benefits from CSR programs 3. Competitors differentiating. In our days, the consumers became more informed, more able to express their opinions and more preoccupied regarding the environment, health and social problems and the markets became more and more crowded.

31 Benefits from CSR programs 4. Brand loyalty getting. These pushed brands to find new methods in order to built emotional links with the public. Responding to the emotional needs, the CSR programmes are good opportunities to communicate to the public the brand s values.

32 Benefits from CSR programs 5. The valuable employees attractiveness and keeping. The brand attachment can be obtained not only by wages, but by the brands values. The employees feel the need to be proud of them company. For example, for 81% from the Americans, a company s responsibility is an important decision factor in job choosing

33 What is Corporate societal marketing? Corporate societal marketing is defined to encompass marketing initiatives that have at least one non-economic objective related to social welfare and use the resources of the company and/ or one of its partners

34 Corporate societal marketing concept It holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being.

35 Corporate societal marketing concept The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance the often conflicting criteria of company profits, consumer want satisfaction, and public interest.

36 Corporate societal marketing experiences One of the examples is The Body Shop, started by Anita Roddick in This organization has experienced phenomenal sales growth by actively promoting its products as all-natural, environmentally friendly, and nonanimal-tested, and its business practices as socially concerned

37 What is cause-related marketing? Cause related marketing (CRM) is defined as the process of formulating and implementing marketing activities that are characterized by contributing a specific amount to a designated nonprofit effort that, in turn, causes customers to engage in revenueproviding exchanges

38 Cause marketing can Build brand awareness Enhance brand image Establish brand credibility Evoke brand feelings Create a sense of brand community Elicit brand engagement

39 What is social marketing? Social marketing is the systematic application of marketing alongside other concepts and techniques to achieve specific goals for a social good, often by non-profit or government organizations.

40 Examples. The Body Shop In large part, The Body Shop's success has been due to its Founder, Anita Roddick. Her focus on ethical consumption and social issues was enormous and that resulted in clearly differentiated toiletries and cosmetics. Such vision and commitment to corporate values have formed the essential core of The Body Shop brand.

41 Examples. The Body Shop The Community Trade program is aimed at small producer communities around the world who supply it with accessories and natural ingredients. Fair prices help producers to take control over their own lives and allow money to go back into the community to supply basic needs such as water, health and education.

42 Key features of corporate societal marketing Customer orientation Behavioural goals Intervention Mix/marketing Mix Audience segmentation Exchange Competition

43 Key features of corporate societal marketing Intervention Mix/marketing Mix Socially responsible business module implementation starts with the business strategy improvement and a right product/ service mix development!

44 Expanded Marketing Mix for Services

45 Services Require An Expanded Marketing Mix The 8Ps of services marketing are needed to create viable strategies for meeting customer needs profitably in a competitive marketplace

46 The 8Ps of Services Marketing Product Elements Place and Time Price and Other User Outlays Promotion and Education Process Physical Environment People Productivity and Quality Working in Unison: The 8Ps of Services Marketing

47 The 8Ps of Services Marketing: (1) Product Elements Embrace all aspects of service performance that create value Core product responds to customer s primary need Array of supplementary service elements Help customer use core product effectively Add value through useful enhancements Planning marketing mix begins with creating a service concept that: Will offer value to target customers Satisfy their needs better than competing alternatives

48 The 8Ps of Services Marketing: (2) Place and Time Delivery decisions: Where, When, How Geographic locations served Service schedules Physical channels Electronic channels Customer control and convenience Channel partners/intermediaries

49 The 8Ps of Services Marketing: (3) Price and Other User Outlays Marketers must recognize that customer outlays involve more than price paid to seller Traditional pricing tasks: Selling price, discounts, premiums Margins for intermediaries (if any) Credit terms Identify and minimize other costs incurred by users: Additional monetary costs associated with service usage (e.g., travel to service location, parking, phone, babysitting, etc.) Time expenditures, especially waiting Unwanted mental and physical effort Negative sensory experiences

50 The 8Ps of Services Marketing: (4) Promotion and Education Informing, educating, persuading, reminding customers Marketing communication tools Media elements (print, broadcast, outdoor, retail, the Internet, etc.) Personal selling, customer service Sales promotion Publicity/PR Imagery and recognition Branding Corporate design Content Information, advice Persuasive messages Customer education/training

51 The 8Ps of Services Marketing: (5) Process How firm does things may be as important as what it does Customers often actively involved in processes, especially when acting as co-producers of service Process involves choices of method and sequence in service creation and delivery Design of activity flows Number and sequence of actions for customers Nature of customer involvement Role of contact personnel Role of technology, degree of automation Badly designed processes waste time, create poor experiences, and disappoint customers

52 Slide The 8Ps of Services Marketing: (6) Physical Environment Design servicescape and provide tangible evidence of service performances Create and maintain physical appearances Buildings/landscaping Interior design/furnishings Vehicles/equipment Staff grooming/clothing Sounds and smells Other tangibles Manage physical cues carefully can have profound impact on customer impressions Kotler, Keller, Brady, Goodman and Hansen, 1 st Edition Pearson Education Limited 2009

53 The 8Ps of Services Marketing: (7) People Interactions between customers and contact personnel strongly influence customer perceptions of service quality The right customer-contact employees performing tasks well Job design Recruiting Training Motivation The right customers for firm s mission Contribute positively to experience of other customers Possess or can be trained to have needed skills (coproduction) Can shape customer roles and manage customer behavior

54 The 8Ps of Services Marketing: (8) Productivity and Quality Productivity and quality must work hand in hand Improving productivity key to reducing costs Improving and maintaining quality essential for building customer satisfaction and loyalty Ideally, strategies should be sought to improve both productivity and quality simultaneously technology often the key Technology-based innovations have potential to create high payoffs But, must be user friendly and deliver valued customer benefits

55 What are marketing communications? Marketing communications are the means by which firms attempt to inform, persuade and remind consumers, directly or indirectly, about the products and brands they sell.

56 Modes of marketing communications Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling

57 Common advertising communication platforms Print and broadcast ads Packaging outer and inserts Motion pictures Brochures and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point-of-purchase displays Audiovisual material Symbols and logos Videotapes

58 Sales promotion communication platforms Contests, games, sweepstakes and lotteries Premiums and gifts Sampling Fairs and trade shows Exhibits Demonstrations Coupons Rebates Low-interest financing Entertainment Trade-in allowances Continuity programmes Tie-ins

59 Events and experiences platforms Sports Entertainment Festivals Arts Causes Factory tours Company museums Street activities

60 Public relation and publicity communication platforms Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine

61 Direct and interactive communication platforms Catalogues Mailings Telemarketing Electronic shopping Blogs TV shopping Fax Voic Websites

62 Other common communication platforms Word-of-mouth marketing Person to person Chatrooms Blogs Personal selling Sales presentations Sales meetings Incentive programmes Samples Fairs and trade shows

63 IMC builds brands Integrating marketing communications to build brand equity

64 Figure 19.2 Elements in the communication process

65 Field of experience Sender s field Receiver s field

66 Response hierarchy models Sources: a E. K. Strong (1925) The Psychology of Selling, New York: McGraw-Hill, p. 9; b R. J. Lavidge and G. A. Steiner, (1961) A model for predictive measurements of advertising effectiveness, Journal of Marketing, October, 61; c E. M. Rogers (1962) Diffusion of Innovation, New York: Free Press, pp ; d Various sources

67 An ideal ad campaign The right consumer is exposed to the message at the right time and place The ad causes consumer to pay attention The ad reflects consumer s level of understanding and behaviors with product The ad correctly positions brand in terms of points-of-difference and points-of-parity The ad motivates consumers to consider purchase of the brand The ad creates strong brand associations

68 Creative brief Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations

69 Thank you for your attention! Program Director Creative Industries Management