Sustainable Marketing Mix
A product is a tangible good or an intangible service that is marketed to a consumer.
Tangible good: Can be seen, heard, tasted, or felt.
Intangible products: Mostly service based and provided by someone directly in contact with customers.
Fair Trade is a global trade system that ensures producers get a fair price for their goods.
A sustainable business increases efforts to reduce environmental impact through product packaging. The size, shape and materials that make up product packaging can be altered.
An eco-label is a label or symbol that educates and informs buyers of certain environmental claims.
Renewable materials utilize forest, fiber, and agriculture products.
Nonrenewable materials are derived from petroleum and other fossil fuels.
A consumer target market is a defined set of consumers who are interested in a product or market, have access to it, and can purchase it.
Market segmentation divides consumers into groups of customers. Each group reacts differently to promotion, communication, pricing, and other marketing mix variables.
Demographic Segmentation: Based on age, marital status, household income, education, children in household, and occupation.
Geographic Segmentation: Based on location and includes variables like population density and climate.
Pschographic Segmentation: Based on individual lifestyles, attitudes, and beliefs.
Behavioral Segmentation: Based on attitudes toward the product, user status, or user rate.
Types of Consumers:
Super greens are hardcore green consumers who only purchase sustainable products.
Green rejectors are not looking for or interested in green products.
Green middle ground are not hardcore green but not completely unaware or unappreciative of issues around sustainability.
Consumer packaged goods are consumed everyday by the average consumer. Women are their primary target audience.
The LOHAS ( Lifestyles of Health and Sustainability ) segment of the population is described as individuals committed to health, the environment, social justice, personal development, and sustainable living.
The Cultural Creatives segment of the population is described as individuals committed to spirituality, social justice, and environmentalism.
Price is the monetary (or bartered) amount a consumer pays for a product or service based on the product or service’s value or worth.
Sustainable companies should reexamine their costing methods to consider the real and actual social, economic, and environmental costs associated with products and services.
Sustainable products tend to be more expensive because the ingredients may cost more than in conventional products. This is known as the green pricing gap.
Effective targeting can minimize the green price gap by targeting those who have more money or particular market or consumer groups.
Combining a concrete benefit like saving money with a sustainable benefit strengthens the brand messaging and can help minimize the green pricing gap.
Place is where a product can be purchased and how it is distributed to the purchase location.
Transportation with fuel efficient loads, using alternative energy sources, and optimizing distribution routes can favorably impact the distribution channel in a sustainable way.
Logistics is the freight transport of goods and services from manufacturer to distributor and onward to point of consumption.
Reverse logistics is the movement of a product backward through the supply channel to be reused, recycled, or reprocessed.
As many consumers are concerned about the environment and carbon emissions from transporting goods over long distances buying locally has increased in popularity.
Promotion is the communication tools and tactics used to promote and market a company’s product.
A brand is an image in the consumer’s mind for a particular product or service.
Advertising is communications designed to increase awareness and encourage purchase pr a product or service. Advertising is an interruptive form of promotion.
Public relations involves influencing, informing, and persuading the consumer. Through public relations a product earns stories and coverage which is called “earned media”.
Personal selling includes one-on-one selling, word of mouth, cold calls, sales meetings, product presentations, and demonstrations.
Consumer promotions are programs that directly help to influence the consumer to purchase the product. For sustainable marketing they often include an incentive or donation that help people and the planet.
Social media marketing involves the use of social media sites to help generate awareness and engage consumers in a relationship with a brand. Social media marketing is permission based.
Digital marketing is the use of web-based marketing tools to target consumers. This may involve the company website, search engine optimization (SEO), pay-per-click, e-mail and many more.
Mobile marketing is marketing on a smartphone to give consumers instant access to what’s relevant.
Grassroots promotion and marketing combines different promotional approaches in a focused, creative, and low-cost way that is often local and community based.
End of Unit:
Click Next to proceed to next Unit.