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

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

Lecture 5: Values and Objectives

Episode 1: Brand Ethos

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Lecture 5: 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 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Lecture 5: Overview

Episode 1: Brand Ethos

Episode 2: Case Study American Apparel

Episode 3: Interview

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Learning Objectives

Learning Objective 1:Understand and reflect the basic assumptions and valuesof sustainability marketing.

Learning Objective 2:Describe the key term brand ethos.

Learning Objective 3:Explain the different kinds of objectives in sustainabilityMarketing.

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Structure of the Episode

• Beauty Brand Natura

• Challenging Basic Assumptions

• Values: Brand Ethos

• Objectives: Triple Bottom Line

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Beauty Brand Natura

Source: www.natura.net

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Beauty Brand Natura

Source: www.natura.net

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Beauty Brand Natura

Source: www.naturaekos.com.br

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

Basic Assumptions in Conventional Marketing

• The Sanctity of Markets

• The Sovereignty of Consumers

• The Satisfaction of Needs

• The Peripheral Nature of Nature

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

The Sanctity of Markets?

• Markets have difficulty valuing environmental resources

• Markets do not consider thresholds

• Markets do not take irreversible processesinto account

• Markets cannot predict the future demandfor species and other resources

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

The Sovereignty of Consumers?

Consumer rights

ConsumerResponsibilities

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

The Satisfaction of Needs?

• Subsistence

• Protection

• Affection

• Understanding

• Participation

• ...

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Source: http://en.wikipedia.org/wiki/File:MKGandhi.jpg

„Earth provides enough tosatisfy every man‘s need,but not every man‘s greed.“

Mahatma Ghandi

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

Source: Myers, D.G. 2000

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Firm

Firm

NaturalEnvironment

NaturalEnvironment

„Inside-out“perspective

„Outside-in“perspective

The Periphal Nature of Nature?

Challenging Basic Assumptions

Source: Belz and Peattie 2009, p. 109

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Photo: David IliffSource: http://en.wikipedia.org/wiki/File:Hopetoun_falls.jpg

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

Photo: Richard PalmerSource: http://en.wikipedia.org/wiki/File:Lake_mapourika_NZ.jpeg

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

Photo: R. Hadian, U.S. Geological SocietySource: http://en.wikipedia.org/wiki/File:Galunggung.jpg

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Challenging Basic Assumptions

Photo: Daphne ZarasSource: http://en.wikipedia.org/wiki/File:Dszpics1.jpg

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Values: Brand Ethos

Source: www.electrolux.com

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Values: Brand Ethos

ProductBrands

CorporateBrands

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Values: Brand Ethos

Self-employers

Do-gooders

Opportunists

Ethicalstrategists

low

low

high

high

Degree ofethical-moral

motives

Degree of economic-strategic

motives

Corporate Leaders

Source: Belz and Peattie 2012, p. 127

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Photo: Dame Annita RoddickSource: http://www.history.org.uk/resources/general_resource_3002,3012_89.html

"The business of businessshould not just be about money,it should be about responsibility. It should be about public good, not private greed.“

Annita Roddick

Source: http://www.thebodyshop.com/content/services/aboutus_anita-roddick.aspx

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

The Body Shop: Five Core Values

• Activate self-esteem

• Protect our planet

• Against Animal Testing

• Support Community Trading

• Defend Human Rights

Values: Brand Ethos

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Objectives: Triple Bottom Line

TripleBottom Line

EcologicalValue

SocialValue

CustomerValue

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Objectives: Triple Bottom Line

Economic Objectives

• Revenue

• Market share

• Profit

• Customer satisfaction

• Customer value

• ...

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Objectives: Triple Bottom Line

Ecological Objectives

• Material use

• Water use

• Emissions

• Effluents

• Waste

• ...

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Objectives: Triple Bottom Line

Social Objectives

• Product safety during use

• Impact of products on health

• Employee safety

• Employee satisfaction

• Fair wages

• ...

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Objectives: Triple Bottom Line

Code of Conduct

Source: www.nike.com

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

Review and Discussion Questions

1. Describe the four types of sustainability marketerswith respect to ethical/moral and economic/strategicmotives.

2. What does ‚brand ethos‘ mean? Give examplesof brands with sustainability ethos.

3. Do companies like The Body Shop, Electrolux andNike live up to their corporate core values? Searchwebsites that are critical about the companies anddiscuss the gap between rheroric and reality.

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

References

• Belz, F.-M., Peattie, K. (2012): Sustainability Marketing:A Global Perspective, 2. ed., Chichester: Wiley, p. 117-132.

• Crane, A. (2000): Marketing, Morality and the NaturalEnvironment, London: Routledge.

• Crane, A. and Matten, D. (2010): Business Ethics,3rd ed, Oxford: Oxford University Press.

[Sustainability Marketing – A Global Perspective]Lecture 5: Values and Objectives • Episode 1 • Prof. Dr. Belz

In Cooperation