
Tensie Whelan, president of Rainforest Alliance, wrote that a lack of interest from consumers, a presumed high risk factor and a perception that sustainability is boring, expensive or too complicated are some reasons why marketing professionals fail to promote a green business model. There is always a risk when trying a new strategy and using sustainability as a marketing tool carries these risks. According to Whelan, it is unusual for companies to lose market share by embracing sustainability and points to McDonalds and UK tea brand PG Tips for increasing their sales after using sustainable products (environmental leader, 2013).
There is a market for sustainability because everyone wants to maintain a clean environment. Many of the consumers today like to buy products that are eco-friendly and many of the companies today have changed their operations to be more eco-friendly. Marketing sustainability can be a challenge but it seems like companies would benefit more from doing this because it allows their customers to see them handling their social responsibility.
Source: Environmental Leader. (2013, August 14). Why Marketers Ignore Sustainability-But Shouldn’t. Retrieved from http://www.environmentalleader.com/2013/08/14/why-marketers-ignore-sustainability-but-shouldnt/
Dr. Green,
To the question of an organizations change of heart being a direct result of customer demand. I believe that it does. Companies have seen a shift in how customers are not only looking for the best product with a good price they like for the product to be environmentally friendly. They have noticed that customers will pay more if it is a environmentally friendly product. I have found over time at work that companies continually are trying to innovate new products to fit a customers need. Since my company is aligned with the trucking industry the push for more fuel efficient engines has pushed us to develop new products. The new products are generally more expensive than their predecessors. But this is being driven by the customer. So companies are adapting to their customers and its being passed down the chain of suppliers. “In line with the value of the product comes the environmental and social burden incurred during different stages of production. With regard to this, focal companies of supply chains might be held responsible for the environmental and social performance of their suppliers. Focal companies are those companies that usually (1) rule or govern the supply chain, (2) provide the direct contact to the customer, and (3) design the product or service offered [208] and [220].” (Seuring, 2008) In order for a comapany to sustainably market to its customers it will need to pass customer demands down through its supply chain.
Refrences:
Seuring, S. (2008, October). From a literature review to a conceptual framework for sustainable supply chain management. Retrieved from http://www.sciencedirect.com/science/article/pii/S095965260800111X
5 Comments
A number of factors have caused business firms in some industries to incorporate an environmental ethic into their operations. The principal factor, of course, is the growing public awareness of the environmental degradation that has resulted as a consequence of the growth in population and natural resource consumption throughout the world during the last 50 years (Encyclopedia.com, 2007). As the article above and previous sentences state it only makes sense for business to include some type of sustainable marketing plan. Many consumers seek out and will only conduct businesses with companies that they know are environmentally aware and committed. Social and humanitarian causes are just as important to many consumers as well. Scripps Networks tells consumers in commercials on their channels that they are environmentally and humanitarianly supportive of certain organizations. For example, on their HGTV network they do work with Habitat for Humanity. They show commercials supporting that. This does many things like supporting both brands, but mostly promotes the corporate belief in social concerns.
Green Marketing.” Encyclopedia of Small Business. 2007. Retrieved September 25, 2013 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2687200287.html
Josh,
Excellent! Companies are more aware of environmental concerns.
All,
Do you consider this change of heart by businesses (previous focused on profitable solely…in general) a direct result of consumer demand or not?
Professor Green