An introduction to sustainable marketing, the need for it, segmentation by sustainability and examples of sustainable marketing

1. Karthik Jeganathan
PGDAM 2018-2019
karthik@purplemango.co.in

2. Introduction
Cost of Growth
The Role of Marketing/Advertising
Sustainable Marketing
Moving Up the Ladder: Sustainable Segmentation
Does it Work?
The Need: Better Messaging
Classroom Presentation
Conclusion

3. It took the world’s population until the 19th
century to reach 1 billion. By the turn of the 20th
century, the world population had reached 6
billion and is estimated to reach 9 billion by 2050
(U.S. Census Bureau 2012).
At the same time, our consumption is growing at
a pace that the planet cannot keep up with.
Currently, it takes the planet 1.5 years to
regenerate the renewable resources that are
used within one year.

4. This unsustainable lifestyle is called ecological
overshoot, which means that people use more
than the planet can provide. This ecological
overshoot occurred for the first time in the 1970s
and has continued ever since. (WWF 2012, 18-
41.)

5. This pursuit of constant economic growth and
consumption is seen as a means to improve
peoples’ standard of living. But the cost of this
growth is enormous and unsustainable.
Is the way we measure growth flawed? For
instance, if many people are sick and need
medical treatment, the GDP increases but at the
same time a more efficient health system, which
would lower costs, would also lower the GDP.
(Stieglitz 2009.)

6. Are we trading short-term profits for long-term
loss?
When corporations measure performance from
quarter to quarter and countries from year to
year, we lose sight of the bigger picture.
https://www.youtube.com/watch?v=G4H1N_yXBiA

7. Who do we rely on? EVERYONE (government,
business, individuals)
Marketers in particular have been faced with
environmental and social criticism over the
years. Marketing is, at least partly, regarded as
responsible for the current condition the planet
is in, by constantly creating demand and
encouraging consumption (e.g.: planned
obsolescence, cultural pollution, etc.)

8. Since conventional marketing is considered
mainly responsible for continuously increasing
consumption, the goal of sustainable marketing is
to promote sustainable consumer behaviour and
offer suitable products, with the aim of economic
and environmental sustainability.

9. Sustainable marketing is a holistic approach with
the aim of satisfying the wants and needs of the
customers while putting equal emphasis on
environmental and social issues, thus generating
profit in a responsible way.
In order for sustainable marketing to be
successful, consumer behaviour and
consumption patterns have to be reconsidered.

10. Possible sustainable segmentation (DEFRA
2008, 42-45)
Segment Ability/Willingness Barriers
Positive Greens High
Waste Watchers Medium/Low • Think they are doing enough
• Scepticism
Concerned
Consumers
Medium • Think they are doing more than
they actually do
• Difficulty adapting lifestyle
• Scepticism

11. Segment Ability/Willingness Barriers
Side-line
Supporters
Low/Medium • Low knowledge about
sustainability
• Difficulty in changing habits and
adapting lifestyle
Cautious
Participants
Medium/Low • Difficulty changing habits and
adapting lifestyle
• Losing self-identity
• Low priority
• Do not want to be identified as
green
• Not the social norm

12. Segment Ability/Willingness Barriers
Stalled Starters Low • Low priority
• Scepticism
• Low knowledge about
sustainability
• Inconvenience, costs
• Difficulty in adapting lifestyle
• Losing self-identity
• Do not want to be identified as
green
Honestly
Disengaged
Low • No opinion about or interest in
sustainability
• Not the social norm
• Low priority

13. Over the years, many sustainability campaigns
have been appealing to our better intentions,
from hotels primarily requesting you hang your
towels, to brands asking you to recycle for the
“next generation.”
The modus operandi is to cajole, coerce and
guilt-trip us into doing the right thing, for the
higher purpose of sustainability. That’s a lot of
existential angst to load into a shopping basket.

14. Getting consumers to act on their good
intentions still represents the final frontier for
sustainability. A study from National Geographic
found that although the number of global
consumers who say they are very concerned
about the environment (61%) has increased since
2012, sustainable purchasing behaviour has
actually decreased in key markets such as the US,
Germany, Japan and China.

15. Confronting consumers with the threat of climate
change or loss of biodiversity can be intimidating
and cause guilt or fear, which does not
necessarily lead to a change in behaviour.
Although consumers might feel guilty, they might
also feel that the claims are false or at least
exaggerated, as well as being manipulated. (Belz
& Peattie 2009, 187; Emery 2012, 219-221.)

16. The problem with sustainability marketing? Not
enough “me”
Consumers are more receptive to change when
communications appeal to their self-interests or
focus on their benefits. Although consumers do
care about the environment and social issues,
they want to know what is in it for them when
they use sustainable products.

17. As a brand, whether you are trying to motivate
behaviours or sell products, you need to start by
asking “what’s in it for my customers?”
By showing consumers what sustainability can do
for them (rather than what they can do for
sustainability), marketers can close the values-
action gap a lot faster.

18. Examples:
H&M Campaign
https://www.youtube.com/watch?v=s4xnyr2mCuI
Heineken
https://www.youtube.com/watch?v=-3n7qKojyH0
Mud Jeans (Business Model)
https://www.youtube.com/watch?v=8COUfBNRaDk

19. Classroom PresentationClassroom Presentation
Use one of the techniques discussed in the
session on Advertising Strategy to create an ad
to reduce plastic use
Motivation Drivers/Ease Drivers

20. ConclusionConclusion
Sorry Future Generations
https://www.youtube.com/watch?v=eRLJscAlk1M