Lecture „Sustainability Marketing – A Global Perspective“ supported by:

Prof. Dr. Frank-Martin BelzTechnische Universität MünchenTUM School of Management

Lecture 6: Strategies

Episode 1: Theory

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Lecture 6: Overview

Sustainability MarketingTransformations

Sustainability MarketingStrategies

Sustainability MarketingMix

Consumer Behaviour

Socio-ecologicalProblems

Sustainability MarketingValues and Objectives

Source: Belz and Peattie 2012, p. 30

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Lecture 6: Overview

Episode 1: Theory

Episode 2: Case Study E-Golf

Episode 3: Interview

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Learning Objectives

Learning Objective 1:Explain how ecological and social problems translate into market and marketing issues.

Learning Objective 2:Describe the major steps involved in developingsustainability marketing strategies.

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Structure of the Episode

• Introduction

• Screening Sustainability Issues and Actors

• Segmenting Sustainability Markets

• Introducing Sustainability Innovations

• Positioning Sustainable Products

• Partnering with Sustainability Stakeholders

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introduction

Key Questions:

• Where?

• When?

• How?

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introduction

Source: Belz and Peattie 2012, p. 148

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Source: Belz and Peattie 2012, p. 141

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Market Actors

• Customers

• Suppliers

• Competitors

• Shareholders

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Public Actors

• Media

• Online media

• Interest groups

• Local communities

• Online communities

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Political Actors

• Government

• Administration

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Source: Based on Durns 1972 and Dyllick 1990

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Photo: Hannes GrobeSource: http://commons.wikimedia.org/wiki/File:1991_polar-bear_hg.jpg

Climate Change

Screening Sustainability Issues and Actors

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Photo: Tom RafterySource: http://en.wikipedia.org/wiki/File:Al_Gore_at_SapphireNow_2010.jpg

Screening Sustainability Issues and Actors

An Inconvenient Truth

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Screening Sustainability Issues and Actors

Source: Based on Dyllick/Belz/Schneidewind 1997, p. 40

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Segmenting Sustainability Markets

• Geographic

• Demographic

• Behavioural

• Psychographic

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Segmenting Sustainability Markets

LOHAS

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Segmenting Sustainability Markets

LOVOS

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

Knowledge

NewExisting

Application

New

Existing(I)

Incrementalimprovements

(II)Development of

alternative technologies

(III)Creation of novel products

and service niches

(IV)Co-evolution ofnew systems

Source: Based on Tood and Bessant 2009, p, 581

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

Photo: HLWSource: http://en.wikipedia.org/wiki/File:BMW_328i_F30_2012_vl_2.jpg

(I) Incremental Improvements: Efficient Cars

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

Photo: S 400 HybridSource: http://en.wikipedia.org/wiki/File:Toyota_Prius_III_20090710_front.JPG

(II) Alternative Technologies: Hybrid Cars

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

(III) Novel Product and Service Niches: Car Sharing

Source: Mobility Genossenschaft 2012

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

(IV) Co-evolution of New Systems: Sustainable Mobility

Source: Rhein Main Verkehrsverbund (RMV) 2012

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

Innovation Exnovation

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Introducing Sustainability Innovations

Year

Primary Consumer

related

Secondary Competitor

related

19971993

Market entry barriers

Source: Belz and Peattie 2012, p. 158

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Positioning Sustainable Products

Two Key Questions:

• If sustainable products have a competitive advantageover conventional offerings, should it be communi-cated to the customer?

• Which role does the socio-ecological value addedplay in communication related to traditional purchasing criteria such as performance and price?

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Positioning Sustainable Products

Four Options:

• Focus

• Equal emphasis

• Integral part

• Refrain

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Performance/Price

Socio-ecologicalAspects

Positioning Sustainable Products

Source: Meffert/Kirchgeorg 1999: 279

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Performance

Price

Positioning Sustainable Products

Socio-ecologicalAspects

Source: Meffert/Kirchgeorg 1999: 279

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Performance

Price

Positioning Sustainable Products

Socio-ecologicalAspects

Source: Meffert/Kirchgeorg 1999: 279

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Performance

Price

Positioning Sustainable Products

Source: Meffert/Kirchgeorg 1999: 279

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Partnering with Sustainability Stakeholders

Source: Freeman 1984, 2000

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Open Sustainability Innovation

„... opening up the company, especially researchand development, and involving different kindsof stakeholders into the development process ofsustainable products and services.“

Source: Belz and Peattie 2012, p. 163-164

Partnering with Sustainability Stakeholders

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Partnering with Sustainability Stakeholders

Source: www.300house.com

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Partnering with Sustainability Stakeholders

Source: www.300house.com

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Partnering with Sustainability Stakeholders

Source: www.300house.com

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Open Sustainability Marketing

„... opening up the company, especially its marketing, and involving different kinds of stakeholders into thedevelopment process of marketing sustainable productsand services.“

Source: Belz and Peattie 2012, p. 164

Partnering with Sustainability Stakeholders

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Partnering with Sustainability Stakeholders

Source: Procter & Gamble

Source: Alliance to Save Energy Source: WWF Source: Energy Saving Trust

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

Review and Discussion Questions

1. What are the five steps involved in developinga sustainability marketing strategy? Brieflydescribe each stage.

2. What role does energy efficiency of householdappliances play in your country? Analyse howenergy consumption of household applianceswas transformed from an ecological problemto an issue of markets and marketing.

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

References

• Belz, F.-M., Peattie, K. (2012): Sustainability Marketing:A Global Perspective, 2. ed., Chichester, p. 137-165.

• Downs, A. (1972): Up and down with ecology: The ‚issue attention cycle‘, The Public Interest, 20 (summer): 38-50.

• Driscoll, C., Starik, M. (2004): The pimeordial stake-holder: Advancing the conceptual considerationsof the natural environment‘s stakeholder status, Journal of Business Ethics, 49(11): 55-73.

[Sustainability Marketing – A Global Perspective]Lecture 6: Strategies • Episode 1 • Prof. Dr. Belz

In Cooperation