WEEK-8 Learning Objectives• • Outline the basic principles of marketing • Critically assess the market demand for more sustainable goods and services • Explain sustainability marketing strategy and practice • Describe the principles of effective social marketing. Essential reading • Moscardo et al (2013), Chapters 10 • The Power of “Good Enough” How to Be Innovative Without Innovating, available at http://nbs.net/knowledge/the-power-of-good-enough/?utm_source=Newsletter+131001&utm_campaign=Newsletter+131001&utm_medium=email. • Davies, I.A., Lee, Z. and Ahonkhai, I. 2012. “Do Consumers Care About Ethical Luxury.” Journal of Business Ethics. 106: 37-51. • Please also access: http://nbs.net/knowledge/marketing-teaching/ • Top 100 CSR Companies by Reputation, 2013 available at http://www.developmentcrossing.com/profiles/blogs/top-100-csr-companies-by-reputation-2013 Recommended reading • Stefanie Lena Heinzle, S L and Wüstenhagen, R, 2012, Dynamic Adjustment of Eco-labeling Schemes and Consumer Choice - the Revision of the EU Energy Label as a Missed Opportunity? Business Strategy and the Environment. 21, Issue 1, 60–70. • ‘Volvo pioneers ‘sustainable mobility’ with self-driving cars’ available at http://ethicalperformance.com/article/8133?utm_source=Master+List&utm_campaign=44325f4d5c-The+week+in+CSR...+New+weekly+poll!&utm_medium=email&utm_term=0_92af8574fc-44325f4d5c-5734005 Video Watch and reflect: Many businesses are adopting highly innovative approaches to integrate sustainability into their products. Puma sports goods is a case in point – have a look at Puma’s ‘In Cycle’ approach to product development at http://www.youtube.com/watch?v=j9zfkYHtuMc. Retail is one area that has seen a great deal of competition around sustainability, particularly in Europe. The UK supermarket sector is amongst the most competitive in the world and much of this competitive activity has centred on sustainability. In 2007, Marks & Spencer, the UK’s oldest and most established retailer, put together a plan entitled ‘Plan A’ to become the world's most sustainable major retailer. Search for Marks and Spencer Sustainability Plan A on Youtube. Now read the case study on page 309 of the text and reflect on the key issues arising. Clearly this is a relevant issue for all developed and developing countries and one that is oft discussed in the Australian press - see http://www.lifehacker.com.au/2014/01/how-supermarkets-flog-you-junk-food-to-maximise-profits/. Now answer the questions following the case, in particular focusing on questions 1 & 3, namely the barriers that exist in your region to consuming healthy food that has been sustainably produced and the key elements that you would include in a social marketing campaign to support the adoption of sustainable food options? Create an entry under Week Ten in your Learning Journal and write no more than 250 words that address the issues raised. Case Study and Weekly Discussion Forum Ceago Vinegarden: How green is your wine? Environmental differentiation strategy through Eco-labels' The case traces the story of Ceago Vinegarden, a family-owned winery based in California whose owner is interested in adding an eco-label to his wine bottles in order to reach environmentally sensitive customers. Eco-labels provide additional information about a product. However, consumers might not recognize an eco-label or know what a particular eco-label represents for the product. This case highlights the challenges associated with the use of eco-labels as an environmental differentiation strategy when several emerging eco-labels are in competition. In no more than 250 words, you are asked to evaluate the costs and benefits associated with adopting an emerging eco-label that has little recognition with customers and to post your responses on the Weekly Discussion Forum. As always, you are encouraged to read and respond to the contributions made by your peers. The case examines whether there are any advantages of being a first mover in such a situation and what the options are for small companies interested in differentiating their products based on their environmental component. The case is available at http://escholarship.org/uc/item/5k657745. Summary Marketing is a process involving the creation, pricing, distribution and promotion of goods and services that customers want or need, and is about creating and supporting positive exchange relationships between a business and customers. In order to support this process, marketing requires an understanding of the motives and characteristics of groups of customers or markets. There are four main steps linking customer awareness of sustainability issues and responsible action — awareness, acceptance, ability and action. There is evidence that public awareness of, and concern about, sustainability issues is widespread and growing. However, this varies greatly across different sustainability issues, different places and different groups of people, and there are large gaps between this awareness and concern and changes in consumer behaviour. Despite this, consumers are beginning to change their patterns of behaviour, and two particular markets have been identified as significant and growing — LOHAS and LOVOS. Another segment that has been discussed is that of developing and selling products and services to people on low incomes, referred to as Bottom of Pyramid. In recent times there has been a move towards sustainability marketing, which can be defined as the development and implementation of marketing strategies and actions that seek to satisfy customer wants and needs while also considering and minimising the social and environmental problems associated with consumption. Social marketing can be seen as an extension of sustainability marketing that involves the application of market research and the four elements of the sustainability marketing mix — solutions, costs, convenience and communication — to persuade stakeholders to adapt or adopt their behaviour in ways that will support greater sustainability.