BML340 - STRATEGIC GREEN MARKETING - INTRODUCTION

BML340/MSCES02: Approaches to Strategic Green Marketing (for Businesses and Destinations)

Module Learning Outcomes § On successful completion of this module students will be able to: § Critically evaluate, through industry examples, a range of

concepts of relevance to green marketing management and strategy, such as segmentation, product development and portfolio analysis § Critically evaluate a strategic environmental analysis of a range of

marketing initiatives for sustainable businesses § Demonstrate, through a breadth of research, knowledge/insight in

contemporary strategic marketing theory relating to green marketing § Apply analytical skills through the design of appropriate marketing

strategies for sustainable businesses § Communicate effectively in written and verbal form

Module Structure § Stage 1: Where is the company now? § The following sessions will introduce you to the concept of

strategy and the key elements involved in establishing strategic direction. § Stage 2: Where does the company want to be? § The following sessions will focus on the nature of the competitive

environment, and how this in turn influences the strategic direction. § Stage 3: How will it get there? § These final sessions focus on the specific aspects of strategy

that a company may seek to adopt and how then can be implemented

BML340/MSCES02: Session 1: Introduction

Aims: The aims of this introductory session are to: § To introduce the concept and evolution of the term ‘green

marketing’ § To highlight critical success factors for strategic green marketing

in relation to an understanding of: § Competitive advantage and competitive strategy § Strategic planning § Marketing § Sustainability

§ To map out the overall content and learning outcomes of the

module

Strategic Green Marketing Scenario 1: •

It is 2023 and your company is being featured in Marketing Weekly as a organisation that has developed and implemented an effective green marketing strategy over the last five years.

Consider the critical success factors that got you to this point?

Critical Success Factors: An Understanding of Green Marketing Green Marketing: Hennion and Kinnear (1976, p. 1) ‘concerned with

all marketing activities that have served to help cause environmental problems and that may serve to provide a remedy for environmental problems’ Peattie (2001b, p.130):

First Age: ‘Ecological Green Marketing’

Critical Success Factors: An Understanding of Green Marketing Green Marketing: From end of 1980s emergence of sustainability

debate (envionment; society and economy) sees emergence of Second Age ‘Environmental Green Marketing’ Peattie (1995) ‘the holistic management process

responsible for identifying, anticipating and satisfying the needs of customers and society, in a profitable and sustainable way’

Critical Success Factors: An Understanding of Green Marketing Green Marketing: Fuller (1999; p.4) defined Green Marketing as “the

process of planning, implementing and controlling the development, pricing, promotion, and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met (2) organizational goals are attained, and (3) the process is compatible with eco-systems’ Emergence of new products and services

Critical Success Factors: An Understanding of Green Marketing Green Marketing: The Third Age of Green Marketing ‘Sustainable

Green Marketing’: requires a more radical approach: marketers should seek ‘to meet the full environmental costs of production and consumption to create a sustainable economy’ (Peattie, 2001b, p.129).

Moving from product ownership to product use, from

products to services, from linear to closed-loop supply chains, from global distribution chains to relocalization of supply systems

Critical Success Factors: An Understanding of Green Marketing

Critical Success Factors: An Understanding of Green Marketing People

Process

Planet Physical Evidence Plastics

Packaging

Critical Success Factors: An Understanding of Strategy Defining Strategy: ‘Strategic planning...involves concurrently integrating planning and management...the proactive approach of planning should be intertwined with the, frequent reactive reality of management’ [Source: Hall and Page 1999 cited in Mason, 2003, p. 74]

Critical Success Factors: An Understanding of Strategy Defining Strategy: — What business strategy is all about is, in a word, competitive

advantage...The sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company’s strength relative to that of its competitors in the most efficient way’ [Source: Grant, 1993, p. 11]

Critical Success Factors: An Understanding of Strategy Defining Strategy: — ‘The principal concern [with competitive advantage] is to avoid

doing the same thing, on the same battle ground, as the competition...the aim is to attain a competitive situation in which your company can: (a) gain a relative advantage through measures its competitors will find hard to follow and (b)

extend that advantage further’ [Source: Ohmae, 1982]

Critical Success Factors: An Understanding of Strategy Defining Strategy: Environmental Analysis: understanding and anticipation of

short and long-term changes in the operational environment influencing service excellence Resource Analysis: understanding of the organisations’

physical, financial, operational and human resource base and its ability to deliver service excellence Aspiration Analysis: identification of the aspirations and

interests of the major stakeholders involved in the delivery of service experience [source: Adapted from Hall,2000, pp. 37; 75]

Porter (1990): Determinants of National Advantage in Particular Industries

[Source: Ritchie and Crouch, 2005, p.16]

Critical Success Factors: An Understanding of Competition

[Source: Thompson, 1993, p. 213]

Critical Success Factors: An Understanding of Competition

Generic Strategies – Porter (1990)

Critical Success Factors: An Understanding of Competitive Strategy Defining Competitive Advantage: Comparative Advantage

Relates to differences in the endowment of factors of production

Competitive Advantage

The business’s ability to use these resources effectively over the long-term

Relates to the effective utilisation of resources (comparative advantages) - therefore highlighting the importance of a strategy

[Source: Evans et al, 2003, p. 219]

Critical Success Factors: An Understanding of Competitive Strategy

Critical Success Factors: An Understanding of Competitive Strategy

Poon (1993) Competitive Strategies

Critical Success Factors: An Understanding of Competitive Strategy

Poon (1993) Competitive Strategies

Critical Success Factors: An Understanding of Competitive Strategy

Poon (1993) Competitive Strategies

Critical Success Factors: An Understanding of Competitive Strategy

Poon (1993) Competitive Strategies

Critical Success Factors: An Understanding of Competitive Strategy

Poon (1993) Competitive Strategies

Critical Success Factors: An Understanding of the Strategy Process What is it we want?

Stage 1 Mission and goals

Where are we now?

Competitors External environment Internal environment

Where do we want to go?

Market penetration Greater customer focus

How do we get there?

Stage 2 Analysis of business situation (SWOT)

Market research Market characteristics

Stage 3 Objectives

Quality service Product development

Stage 4 Strategy

How are we doing?

Stage 5 Monitoring and evaluation Source: Adapted from Cooper, 1993

Critical Success Factors: An Understanding of The Strategy Process

Big Red Strategy Bus

Critical Success Factors: An Understanding of Sustainability

Critical Success Factors: An Understanding of Sustainability

Destinations

Critical Success Factors: An Understanding of Sustainability

Destinations

Critical Success Factors: An Understanding of Sustainability

Tourism & Hospitality Businesses

Critical Success Factors: An Understanding of Sustainability

Events

Critical Success Factors: An Understanding of Sustainability

Businesses

Critical Success Factors: An Understanding of Sustainability

Farming

20 Rules for Green Marketing 1.

Green is mainstream

2.

Green is cool

3.

Green products work equally or better – and are often work a premium price

4.

Green inspires innovative products and services that can result in a better consumer value, enhanced brands, and a stronger company

5.

Values guide consumer purchasing

6.

A life-cycle approach is necessary

7.

Manufacturer and retailer reputation count now more than ever

8. To Savewhat me! extent do these stillareapply or do we 9. rules Businesses their philosophies newrepresents ones?an importance 10. need Sustainability

consumer need, and is now an integral part of product quality

11. The greenest products represent new concepts with business models with significantly less impact 12. Consumers don’t necessarily need to own products; services can meet their needs, perhaps even better 13. The brands consumers buy and trust today educate and engage them in a meaningful conversation through a variety of media 14. Green consumers are strongly influenced by the recommendations of friends and relatives, and trusted third parties 15. Green consumers trust brands that tell all 16. Green consumer don’t expect perfection 17. Environmentalists are no longer the enemy 18. Nearly everyone is a corporate stakeholder 19. Authenticity 20. Keep it simple

[Ottman, 2011]

Learning Outcomes: At the end of this session you should be able to: § Define the concept and evolution of the term ‘green marketing’ § Discuss the critical success factors for strategic green marketing

in relation to an understanding of: § Competitive advantage and competitive strategy § The strategic planning process § Marketing – principles and practice § Sustainability - principles and practice

§ To map out the overall content and learning outcomes of the

module