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98 Cards in this Set

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Why have we expanded so much in the twentieth century? (Ch. 1)

Improvements in medical science and agriculture. It was an era of globalisation and material wealth. It was also the era of world war, cheap oil, lights, space exploration, mass tourism and computerised information technology.

What kind of mindset (paradigm) did we have during the twentieth century? (Ch. 1)

Economic growth


Technology is the solution (Promethean view)


The market

What challenges do we face for the twenty-first Century? (Ch. 1)

Population, Poverty, living


Health, Urbanisation, Resource depletion


Ecosystem damage , Eroding cultural diversity


Food, Water, Climate change

Hard sustainability (Ch. 1)

Focus on preservation of environmental quality by protecting the environment from economic activity.

Soft sustainability (Ch. 1)

Focus on ensuring that economic development could be maintained by keeping it within environmental and social limits.

Different approaches to deal with environmental issues. (Ch. 1)

Status quo oriented: Trying to maintain our current lifestyle and ensuring it will not be interrupted by environmental or social crises. Make positive changes that doesn't affect how we live and act today.
Reform oriented: Reforming existing approaches to development and systems of consumption and production.
Transformation oriented: Seek to transform societies and economies into something more profoundly sustainable. A more radical approach.

Sustainablility Marketing delivers solutions to our needs and wants that are... (Ch. 1)

Ecologically oriented: Taking account of the ecological limits of the planet and seeking to satisfy our needs without compromising the health of ecosystem and their ability to continue delivering ecosystem services.


Viable: From technical feasibility and economic competitiveness perspectives. Ethical: In promoting greater social justice and equity, or at the very lest in terms of avoiding making any existing patterns of injustice worse. Relationship-based: Instead of thinking in economic exchanges, move toward viewing it as the management of relationships between business & their customers and other stakeholders.

The model of evolution on the marketing perspective (Ch. 2)

1. the production orientation is internally focused and mainly concentrates on organizational goals. 2. emphasizes people's needs and wants. 3. considers ecological and social goals as well.

1. the production orientation is internally focused and mainly concentrates on organizational goals. 2. emphasizes people's needs and wants. 3. considers ecological and social goals as well.

Macromarketing (Ch. 2)

Marketing in general or on an institution (e.g channels, industries and associations), rather than from the perspective of individual players.



Asks how marketing should be carried out to meet the goals of society and to optimize social benefits.

Micromarketing (Ch. 2)

Focuses on the marketing activities of individual companies or business units within them.

Societal Marketing (Ch. 2)

Suggests that the three perspectives of organisational-, costumer- and societal goals leads to long-term opportunities and success.



Differentiates between immediate consumer satisfaction and long-run consumer benefits. According to these two dimensions products can be classified in four categories (Card 12).

Products classification categories in Societal Marketing (Ch. 2)

Deficient products 
(e.g. unsafe cars).
Pleasing products 
(e.g. sports cars). 
Salutary products 
(e.g. car sharing).
Desirable products 
(e.g. hybrid cars).

Deficient products


(e.g. unsafe cars).
Pleasing products


(e.g. sports cars).


Salutary products


(e.g. car sharing).
Desirable products


(e.g. hybrid cars).



Social Marketing (Ch. 2)

Refers to the application of marketing principles, concepts and tools to problems of social change. Social marketing programs are designed to influence the behaviour of individuals or communities to improve their well-being or that of society.

Ecological Marketing (Ch. 2)

Deals with marketing activities that cause environmental problems and that provide remedies for environmental problems. It looks at the marketing mix from an ecological point of view. Promotion's role is ambiguous, since on the negative side it stimulates demand but on the positive side it might benefit environmentally superior products.

Green Marketing and Environmental Marketing (Ch. 2)

Focuses on the target group of green consumers who would be willing to pay premium prices for more environmentally friendly products.
Green marketing includes environmental issues like the loss of species, the destruction of ecosystems and habitats, and poverty in developing countries.
Hard to compete with Green products: Who's the greenest? focus on environmental problems

Sustainable Marketing (Ch. 2)

Macromarketing. Accepts limitations of a market orientation and acknowledges the necessity of regulatory alterations to the market mechanism. Sustainable marketing fosters corporate and collective commitment to necessary alterations of institutional settings and price signals in favour of sustainable development.


It embraces the idea of sustainable development, which require a change in behaviour of everyone (both consumers and producers). Sustainable marketing focuses both on ecological, social and economic issues.

Elements of sustainability marketing (Ch. 2)

Two concepts that are long-term and relationship-oriented:


Marketing management → planning, organizing, implementing and controlling marketing resources and programmes to satisfy consumers' wants and needs, in order to achieve organizational objectives.
Sustainability marketing management → building and maintaining sustainable relationships with customers, the social environment and the natural environment.

The 6 key elements in managerial approach of sustainability marketing (Ch. 2)



Hint: Is the ground for the following chapters

1. Socio-ecologial problems | 2. Consumer behaviour


Identify key socia-ecological issues and develop marketing opportunities.


Sustainability marketing | 3. values and objectives 4. strategies


Strategic marketing decisions at a corporate level. Sets ground for..


5. Sustainability marketing mix


The sustainability marketing mix at a product level.


6. Sustainability marketing transformations


Org. in public and political processes: Change in favour of sustainability.

Sustainability Marketing (Ch. 2)

Is an understanding of social and environmental problems in general (macro level) and an analysis of the social and ecological impact of corporate products in particular (micro level).

The 4 C's in Sustainability Marketing (Ch. 2)

Customer solutions → go beyond selling physical products and present solutions to customers' problems. Knowing customers and their needs and offering products and services that satisfy customer needs and that consider social as well as environmental aspects.
Customer cost → does not only include the financial price a buyer has to pay, it also considers the psychological, social and environmental costs of obtaining, using and disposing of a product. Convenience → the customers want to use products and services that meet their needs and that are easy and convenient to use.


Communication → gores beyond promotion. It is a process of interactive dialogue within one-way communication from seller to buyer. It is essential to build trust and credibility.

Distinction between two dimensions of CSR


(Ch. 2)

Internal: employee rights, health and safety at work, the management of natural resources and the environmental impact of productions.



External: local communities, business partners, suppliers, consumers, human rights and global environmental concerns.

The triple bottom line of


Corporate Responsibility


(Ch. 2)

CFR (Financial)


CSR (Social)


CER (Environmental)



Sometimes a fourth: Ethical. Sometimes it's considered to be integrated in the all bottom line

Ethical issues: (Ch. 2)

Product issues: product safety, quality, design.


Price issues: price fairness, affordability, misleading prices.


Place issues: distribution rights


Promotion issues: advertising ethics, product placement.


Decision-making issues: CSR decision-making, ethical behaviour.


Consumer issues: consumer ethical decision-making


International/cross-cultural marketing ethics:


Interaction with religion, unethical multinational corporations.


Marketing research issues: privacy issues, ethical responsibility.


Ethics in marketing education: integration of ethical questions in marketing education.


Ethical issues related to Internet: Web privacy, consumer protection.

Global issues (Europe)



(Ch. 2)

Generally thought of as the heartland of sustainability marketing and there has been a rapid growth in markets for more sustainable goods and services in most European countries.

Global issues (North Amrica)



(Ch. 2)

Lags behind Europe in areas such as the rate of product introductions the willingness of consumers to buy sustainability-oriented products across a variety of categories and to respond to eco-labels.

Global issues (South America)



(Ch. 2)

A region of environmental wealth composed of countries that vary in their stage of economic development, style of government and priorities regarding sustainability.

Global issues (Africa)



(Ch. 2)

when discussing sustainability, it is usually in relation to fairly traded or environmentally certified suppliers of coffee, chocolate, timber and the development of eco-tourism.

Global issues (Japan)



(Ch. 2)

Has limited land area and few natural energy resources. Instead focuses on developing transportation and energy solutions that are efficient and often innovative.

Global issues (China)



(Ch. 2)

Not associated with sustainability marketing, recent association with expansion of coal- fired power stations and their associated air pollution.

Global issues (India)



(Ch. 2)

The world's second most populous nation, faces similar issues to China of coping with a society where many live under desperate conditions (e.g. poverty). Emerging interest in sustainability and marketing.

Global issues (Australia and New Zeeland)



(Ch. 2)

Have acted as centres for innovation in fields like ecotourism and sustainable food and wine.

The IPAT formula (Ch. 3)

Impact = Population x Affluence x Technology

Population (Ch. 3)



IPAT

The total number of people living on earth. The majority lives in Asia (China and India). Today its around 6.5 billion and is projected to grow to 9 billion by 2050.

Affluence (Ch. 3)



IPAT

Consumption per person. Based on consumption per capita, three classes can be distinguished on a global scale: poor, middle and the afJluence.

Technology (Ch. 3)



IPAT

Refers to tools and machines that may help problems, but also to the current state of knowledge of how to combine resources to produce products, solve problems, fulJil needs or satisfy wants.



In the IPAT formula technology can be broken down in to two elements:


IMPUT: the amount of resources used to produce a unit of consumption OUTPUT: the amount of waste or emissions generated by a unit of consumption.

The Factor Four (Ch. 3)

Wealth x 2 with 1/2 of the resources.



We must halve our consumption that we have today. Which is really hard because the population is growing at the same time.

Impact (Ch. 3)



IPAT

Sources: None renewable: Oil, Gas, Coal


Renewable: Air, water supplies, food corps, fish stocks, timber


Sinks: Global warming, Gases (e.g. carbon dioxide), pollution


Systems: Ecosystem change, permafrost melting


PLC (Product Life Cycle) (Ch. 3)



"Cradle to the grave"

Higher and higher socio-economic value


----------------------------------------------------------------------------------------------------->


Extraction > Transport > Manufacturing > Distribution > Use > Disposal


of raw


materials


------------------------------------------------------------------------------------------------------>


Higher and higher socioecological impact


*simplyfied **Micro-level

Socio-ecological impact matrix (Ch. 3)

A quantitative instrument for analysing and visualising the social and environmental hot spots of a product. It considers the life cycle on the horizontal axis and the relevant social and environmental aspects on the vertical. The colour indicate the impact of the product (high, medium, low). The fields in the matrix shows impact during that time in the lifecycle in terms of social and environmental impact.

LCA (Life Cycle Assassment) (Ch. 3)

A quantitate instrument that measures and assesses the impact of products on the natural environment and human health. The process of LCA consists of 4 interconnected phases*. You use this model, maybe for comparison of two alternative packages (glass vs. plastic).



*Goal and scope, LCInventory), LCImpact-Ass, LC interpretations

Goal and scope definition (Ch. 3)

The functional unit of analysis, the system boundaries and the geographic extent of coverage. Which stages to include in the analysis. Its used to compare alternative ways to provide customers with wanted value.

Life cycle inventory analysis (LCI) (Ch. 3)

The material and energy Jlow, related to the functional unit of analysis. The inputs and outputs are measured. (kWh & water consumption)

Life cycle Impact assessment (LCIA): (Ch. 3)

Involving 3 steps; Selection and deJinition of impact categories, assignment and inventory input and output data within the category and aggregation of inventory input and output data within the category.

Life cycle interpretation (Ch. 3)

All the data are interpreted and practical conclusions are drawn.

Limitations with LCA (Ch. 3)

- The definition of scope is vague and hard to compare


- Hard to keep up with the new materials and technology


- Limited selection of impact categories


(environmental dimensions and human health).


- Social dimensions such as cultural diversity is not considered.

Carbon footprint (Ch. 3)

Amount of greenhouse gases emitted by a product along the lifecycle.

Water footprint (Ch. 3)

The hidden amount of water used for the production of a certain good or service. Green water; volume of rainwater needed, Blue water; the amount of surface water and groundwater that evaporates as a result of the process, Grey water; the volume of water that becomes polluted during the production.

The Role of the media (Ch. 3)

People gets aware for a shot time before other news takes over. Media does not choose to inform the public of whats more important, but to what is easy to write and show in pictures. But also what will generate more readers (money)

Sustainable homes (Ch. 4)

The construction of the building


Heating, cooling and lighting


Energy-using devices


Household water use


Household waste management


Home furnishings

Sustainable food and drink (Ch. 4)

The sustainability impacts linked to food and drink will depend on the nature of the produce consumed, how much packaging it requires, where and how far away it is from, how it is prepared and the levels of waste generated.

Sustainable mobility (Ch. 4)

Moving towards a more sustainable mobility may involve reducing the amount of travel we do.



In general public transport options are viewed as superior in energy consumption and carbon emission per passenger, but this depends on the relative loading of the vehicles. Therefore car-pooling can represent more sustainable consumption behaviour.

Sustainable style (Ch. 4)

Clothing and footwear are another major category in terms of sustainability impact, this includes the resources consumed in manufacture and the amount of waste accounted for by old clothes and footwear. Washing of clothes is also a significant contributor to household energy bills and water usage.


The environmental impact has worsened because of the trend “Fast Fashion”, the creation of inexpensive fashion that are inspired from the designers.

The consumption processes in 6 points (Ch. 4)

1. Recognition of a want or need


2. Information Search


3. Evaluation of alternatives


4. Purchase


5. Use


6. Post-use

Recognition of a want or need (Ch. 4)


The consumption processes

Needs vary considerably between cultures.


These relatively broad and enduring forms of need are translated into more specific individual wants, usually expressed as a demand for a particular product or service.

Information Search (Ch. 4)


The consumption processes

- Passive or active accumulation and processing


- Personal, commercial, experiential sources


- Overload risk. Can rely on particular brands that they trust

Evaluation of alternatives (Ch. 4)


The consumption processes

Different products and brands are evaluated and choices are made between them.


Sustainability oriented consumers:


- weigh up the merits of particular solutions that are marketed to them


- make comparisons amongst sustainable goods and services


- not buying an option (due to environmental impact)

Purchase (Ch. 4)


The consumption processes

Has always been the focal point of mainstream marketing's view of consumption and weather consumers can be persuaded to change their purchasing behaviour to discriminate in favour of more sustainable products and services.

Use (Ch. 4)


The consumption processes

The use phase will generate more environmental impacts than either the production or disposal phase. The markets for an increasing number of products that were once considered to be durables (home furnishing or entertainment technologies) have become more fashion-oriented so that products reach the end of their use long before the end of their useful life.

Post-use (Ch. 4)


The consumption processes

Consumer behaviour in the post-use phase:


- disposing of the products,


- recycle or remanufacture it,


- selling, trading, putting into storage


- renting it out.

Three approaches (explanations) in


understanding sustainable consumer behaviour



(Ch. 4)

1. Rational (61)


2. Psychological (62)


3. Sociological (63)



...explanations.

Rational explanations


understanding sustainable consumer behaviour



(Ch. 4)

Emphasizes the economics of sustainable consumption, and how consumers weigh up the functional benefits and relative affordability of a product or service.



perceived benefits – perceived costs =


perceived net benefit

Psychological explanations


understanding sustainable consumer behaviour



(Ch. 4)

Focuses on how we think and feel about sustainability, consumption and ourselves and particularly on the attitudes and beliefs that we hold. Seeks to describe consumers in terms of psychological factors that reflects, and often combine values, behaviours and lifestyles.



What do I think is important? What do I believe about sustainability? What does it mean for me? Do I share some responsibility? Can I make a difference? How do I see myself?


Sociological explanations


understanding sustainable consumer behaviour



(Ch. 4)

Consumers willingness to change their behaviour for the common good is influenced by their belief in whether other will do likewise. How “normal” sustainable consumption activities are perceived to be also has a significant influence on weather consumers are willing to engage in them.

Variables influenceing key behaviours in


post-environmental values (Ch. 4)

– Perception of the environmental problem.


– Global environmental knowledge.


– Active concern and sense of obligation.


– Subjective norms.


– Available service provision.


– Socio-demographics.


– Wast knowledge.


– Knowing where/how to recycle.

Sustainable consumption in context (Ch. 4)

The attitude-behaviour gap represents on widely acknowledged from of inconsistency.
Exceptors, consumers who were strongly sustainability-oriented across a range of behaviours but who had one area as that remained as an exception, which would effectively negate the sustainability benefits of their other behaviours. (e.g. flying)

Geographic context (Ch. 4)

This matters because culture, political systems, wealth, climate and geography varies amongst countries. Different countries are faces with different challenges regarding sustainability.

Purchases as context model (Ch. 4)

Explains the inconsistencies within consumer behaviour at the purchase stage. The model explains the worth and benefits of making sustainable consumption choices.



1. Degree of compromise → purchasing a more sustainable product can mean sacrifices.


2. Degree of confidence → how sure the consumer is that the product addresses a genuine sustainability issue.


Purchases as context (Ch. 4)


Other characteristics of different types of social and ecological concerns in purchase/ consumption

- Value (low value = dispose, high value = resold)
- Frequency (purchases vary in frequency
)


- Visibility (Socially visible to other people )


- Complexity: (seek out and analyse information )
- For self or for others (Gift or not?)
- Necessity or indulgence (Everyday necessities more consideration)

Circumstance as context (Ch. 4)

Some of the inconsistencies between consumer attitudes and behaviours and across different types of consumption behaviours reflect circumstantial factors that consumers face.

Lifestyle as context (Ch. 4)

The overall lifestyle and the collective impacts of all the consumption activities of a household that determine the overall sustainability of its occupants. (e.g. living on your own and living in a shared household).

Who is the sustainable consumer?


(Ch. 4)

It is difficult to pin people down as sustainable consumers when their willingness and ability to engage in sustainability-oriented consumer behaviour clearly varies between consumption categories, context and process stages.

Green = Ethical = Sustainable? (Ch. 4)


Comsumers

There has seen a tendency amongst companies to treat consumers motivated by some form of ethical values as a homogeneous group and to assume that the socially concerned and environmentally oriented consumer will be the same person. This is not the case.


For example: Nuclear power represents a technology that tends to split environmentalists. Some sees it as sustainability solution, others as part of the problem.

The attitude-behaviour gap (Ch. 4)

Reflects the fact that environmental knowledge and strongly held pro- environmental values, attitudes and intentions often fail to translate into more sustainable purchases or recycling behaviours.



Consumer scepticism can be one source of this gap, but also habits, financial constraints, old brand loyalties, social norms.

Separating intentions from impacts (Ch. 4)

Pro-environmental behaviour are those that are motivated by environmental concern, rather than those that necessarily provide a positive benefit for the environment.

Collaborative consumption (Ch. 4)

Moving away from individual purchasing to develop solutions to consumer needs based on:



sharing, lending, trading, donating or swapping.

Consumers as co-creators (Ch. 4)

Consumers as partner in the co-creation of value. Sustainability marketing solutions can often require some form of involvement or contribution from the consumer.

Three areas in which theory and practice in relation to consumer behaviour need to progress



(Ch. 4)

1. Encompass the full consumption process across a wide range of


goods and services


2. Extend to encompass the mass market.


3. Change the social norm.



The key is to overcome consumer scepticism and generating trust by developing credible sustainability solutions and engaging in open sustainability communication.

Flaws in the market (Ch. 5)

– Its hard valuing environmental resources


– The ecosystem are resilient to stress factors up to a certain


– Markets do not take irreversible processes to account


– Markets can't predict the future demand for species and other


resources.

Dethroning (Ch. 5)

Consumers are not longer royal and the marketers the passive servant.



Neither a full freedom of choice nor complete information is actually given. The customer is no longer right.

Difference between needs and wants (Ch. 5)

– The need become want once it's directed to a specific object that may satisfy the need.


– After a certain point income does not increase life satisfaction.


– Sustainability marketing tries not just to satisfy wants and meet needs but also to generate opportunities and happiness and to achieve lasting satisfaction


Brand Ethos (Ch. 5)


Sustainability Marketing Values

– Seek to treat people with trust and respect.
– Build and maintain long term relationship rather than short term.
– Quality and innovation are part of the culture
– Feel responsibility for the natural and social environment and integrate
it to the daily business.

Four different types of sustainability marketers


(Ch. 5)

1. Self-employers – No ethical or economic motive


2. Do-gooders – Principles before profits!


3. Opportunists – Profits before principles!


4. Ethical strategists – Has mixed motives. They balance principles and profits with ecological, social and economic objectives.

The Triple Bottom Line (Ch. 5)

Economic objectives


Ecological objectives


Social objectives

Marketing strategy and sustainability


(Ch. 6)

Strategic sustainability marketing focuses more on answering the “Where?”, “When?” and “How?” questions necessary to translate sustainability marketing values into a commercially viable strategy.

Micro marketing environment (Ch. 6)

Includes a company's market and those actors it interacts with directly and relatively regularly. There are market actors, political actors and public actors.

Macro marketing environment (Ch. 6)

Consists of broader and less direct forces, which affect the micro environment, including:


natural, demographic, socio-cultural, technological, political and economic forces.

Developing a sustainability marketing strategy (The five steps)



(Ch. 6)

1. Screening sustainability issues and actors


2. Segmenting sustainability markets


3. Introducing sustainability innovations


4. Positioning sustainable products


5. Partnering with sustainability stakeholders

1. Screening sustainability issues and actors


Developing a sustainability marketing strategy



(Ch. 6)

Pre-problem stage, Discovery stage, Solutions stage, Decline stage, Post-problem stage



The issue-attention cycle is useful for sustainability marketers in understanding when and how ecological and social problems can interest the public and influence their behaviour as consumers.

2. Segmenting sustainability markets


Developing a sustainability marketing strategy



(Ch. 6)

Geographic


Demographic


Behavioural


Psychographic

3. Introducing sustainability innovations


Developing a sustainability marketing strategy



(Ch. 6)

Typology of sustainable innovations–model (p. 156)


Knowledge (vertical) Application (horizontal) (new/existing)



The timing of introducing new product or service innovations is crucial for the success of sustainability marketing strategies. There are benefits and challenges of being the first company to enter a market.

4. Positioning sustainable products


Developing a sustainability marketing strategy



(Ch. 6)

Four options to position sustainable products


1. Put a focus on the socio-ethological value added


2. Put equal emphasis on performance, price and socio-ecological aspects


3. Position sustainable products through communicating the socio-ecological value added as an integral part of product quality


4. Refrain from communicating environmental and social benefits

5. Partnering with sustainability stakeholders


Developing a sustainability marketing strategy



(Ch. 6)

Conventional mainstream marketing strategy theory puts a strong emphasis on competitiveness. Sustainability innovation is about opening up the company, especially research and development and involving different kinds of stakeholders into the development process of sustainable products and services. This involves discussing socio-ecological problems with stakeholders, co-creating, sustainable solutions, co-developing sustainability concepts, testing prototypes and introducing sustainable products to the market.

Sustainability marketing communications (Ch. 8)

The shift from conventional marketing communication to a sustainable approach to marketing communications requires a change in thinking, mindset and practices among marketing communicators. The emphasis on openness, dialogue, credibility and the need to consider the social and environmental consequences of marketing communications activity, will dominate the sustainability marketing communications agenda.

The Four “D-factors” in standards, certification and labelling communications. (Ch. 8)

– Define standards for process, performance or measurements


– Deliver through capacity-building, expertise, relationships, infrastructure and networks


– Demonstrate delivery through certifications or verification. Provide assurance.


– Demand influence by identifying and appealing to wants and needs among buyers.

Sustainability Marketing Messages appeals (Ch. 8)

Rational appeals


Emotional appeals


Moral appeals

Rational appeals (Ch. 8)


Sustainability Marketing Messages

Target the consumer’s self-interest, which could involve marketing organic foods as healthier or low-energy products as more economical.



It is worth nothing that the broader pursuit of the sustainability agenda is also deeply rational, since destroying the planet is hardly in the interest of a stakeholder

Emotional appeals (Ch. 8)


Sustainability Marketing Messages

Seek to make an emotional connection with customers, and this is done by connecting the benefits of sustainability strategies.



ex. children’s welfare or showing the plight of endangered animals

Moral appeals (Ch. 8)


Sustainability Marketing Messages

Aim to engage with people’s sense of right and wrong and in case of sustainability, stressing our duty to protect the environment for future generations.