The Role of Integrated Marketing Communications in Sustainability Marketing

G.satish ,M.anushaNalanda institute of engineering and technology

MBA 1st year Mail id: gottimukkalasati.com@gmail.com Mail id: anusha.mkd@gmail.com

ABSTRACT Sustainability has become an increasingly important issue. All firms operating in domestic and global business must be cognizant of all aspects of sustainability. Marketing has to operate in this new environment. This paper looks at sustainability and its importance in today's business world from the perspective of marketing and Integrated Marketing Communications {IMC} in maximizing the firms’ efforts in this area. More and more online marketing is helping businesses build and develop new, innovative and successful IMC programs, and special attention will be given to this function and how it works with other components. Sustainability is first examines in terms of its macro aspects. Next several micro examples are used to show how they tackle the challenge of sustainability from the perspective of IMC. Based on these firms and organizations, the paper looks at what will occur in the upcoming years regarding sustainability and IMC. The paper will wind up with a relevant summary and conclusions section. The paper emphasizes the synergistic importance in developing excellent IMC programs. NEW MARKETING Marketing used to be thought of as being synonymous with sales. To be a good marketer, according to the "old school," one had to sell, sell, sell. Harold Hill, The Music Man, was the epitome of a successful marketer. There was a certain sleaze aspect to this sales approach, so

marketing began to shift its focus from selling to the consumer to finding out what that consumer wanted, and then delivering a product that satisfied that desire. Thus was born the Marketing Concept. {Kotler and Armstrong, Pg.10} Time passed and there developed more of a feeling for the needs of society, and a social conscience was affixed to the Marketing Concept. This new focus has been massaged and tweaked so that a new kind of marketing has evolved. Today there is a long run aspect to the discipline that involves many shareholders, spotlights value. Philip Kotler and Gary Armstrong see marketing as The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. {Kotler & Armstrong, G-5} Any marketing task is accomplished by effectively combing the tools of the trade to achieve that stated mission. Those tools were named the four P's by Jerry McCarthy in his book Basic Marketing. Professor McCarthy felt effective marketing required the expert blending of Product, Price, Place and Promotion. { Perreault and McCarthy, p. 40} Marketing managers are much more concerned with building long-term relationships with customers, employees, channel members and all members of the worldwide community. This is an important concept that relies on the teamwork efforts of all involved. Kotler and Keller feel that there have been huge shifts in the field of marketing. One need

only peer around the corner to see myriad activities that were non-existent only a few years ago. Students today are BlackBerry Babies many of whom have never read a real newspaper, or called their girlfriend/boyfriend for a date using a land-line telephone. These very same future world leaders are, however, very concerned about the world they live in. Managers are cognizant of the changes and are more and more turning toward holistic marketing. Kotler and Keller look at Holistic Marketing as the development design, and implementation of marketing programs, processes, and activities that recognize the breadth and interdependencies of today's marketing environment. The four key dimensions are: Internal Marketing, Integrated Marketing, Relationship Marketing, and Performance Marketing. {Kotler and Keller, Pg. xxix} INTEGRATED MARKETING COMMUNICATIONS This paper will take one of those P's, Promotion, and look at how it can be used to help achieve the goals of effective sustainability. Promotion requires the creative mixing of the basic tools which include advertising, sales promotion, public relations {PR}, sales management, direct, Internet, outdoor, etc. Belch & Belch see Integrated Marketing Communications {IMC} as A strategic business process used to develop, execute, and evaluate coordinated, measureable, persuasive brand communications programs over time with customers, prospects, employees, associates, and other targeted relevant internal and external audiences. The goal is to generate both short-term financial returns and build long-term brand and share holder value. {Belch and Belch, Pg. 775} The authors then go on to enumerate the concept of IMC Management which they see as The process of planning, executing, evaluating, and controlling the use of various promotional mix elements to effectively communicate with a target market. { Pg. 775}

It is important to note the importance of online marketing as a relatively new component of the IMC mix. As previously mentioned, the youth of the world have very little contact with newspapers. An informal poll of students in two marketing classes found that only 10% read a newspaper every day. Also, it is a misconception to feel that this trend is limited to the young. One of the authors recently visited his barber, a man looking back on his 70th birthday. This hair clipper made a big deal about how he can now get his early morning news from a slick new cell phone without ever getting out of bed. This same author had a brother-in-law, a successful District of Columbia attorney, and inveterate reader of the Washington Post, who canceled his subscription to the Post, opting to read it online. A Dell Sunday insert advertisement encourages readers to Go online today for more deals from Dell. See: DELL.COM/DEALS. (Baltimore Sun, 1 November 2009) The Dell ad is further evidence that the backbone of IMC is the synergism created when all components work together to achieve the stated objectives. In many ways this concept is easier said than done. A lot of cooperation is required. In recent years the theory of IMC has become a reality. Don E. Schultz, a long-time veteran expert in this area, along with colleagues Kitchen and Kim provide some very encouraging views on the current status of IMC. These authors relate that the integration of marketing functions has moved from theory to practice. Its specific applications may vary from market to market, indeed, from enterprise to enterprise - but integrated marketing communications programs have become standard for marketing organizations, agencies, and the academic community. (Kitchen, Kim, and Schultz, Pg. 1) Little doubt remains regarding the marketing power of good, effective IMC programs. They work well for Dell, and thousands of others around the world. Hopefully, creative IMC applications can

help make the world a more sustainable place to live in. Such programs can be effective in bringing about more sustainable practices, but can also help those firms who are taking steps to practice what they preach improve their brand image. In the following paragraphs the concept of sustainability will be explored. That will be followed by citing examples where firms have used sustainability to promote their brands. SUSTAINABILITY Only a Rip van Winkle type of individual would fail to note that the world has turned green. Everywhere one turns the topic crops up. Making the world more sustainable is discussed in board rooms, farms, college classrooms, academic conferences, etc. Everywhere one looks they see green, and it is not St. Patrick's Day. Jaquelyn Ottman in 1998 saw sustainability as meeting the needs of the present without compromising the ability of future generations to meet their needs and survive. ( Ottman, Pg., 87) Kotler and Armstrong in 2009 look at sustainability from a marketing slant. They define "sustainable marketing" as Marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. {Kotler & Armstrong, P. 584}. There is a constant theme in terms of this topic. This paper looks at the macro and micro aspects of sustainability in terms of how firms, educational institutions, etc. use good practices. The next step is to use IMC to promote their efforts. On a macro level, the topic is viewed from the prospective of getting more people to "Go Green!" How does IMC help in this endeavor? SUSTAINABILITY AND THE MACRO ENVIRONMENT The macro aspects of sustainability are vital. If the world is going to be a more sustainable place, then corporations and other organizations must adapt to the new reality and adopt IMC as a vehicle to be used to get this point across. The basic

philosophical change is a conscious move that internalizes what economists call “externalities.” Shareholders require that corporate accounting report production costs which include the internal costs of the raw material and labor that take place on the manufacturing floor. Stakeholders now require that shareholders become cognizant of the external costs like cleaning the polluted air or water. Stakeholders require that recycling the waste generated which was considered “someone else’s” problem, be treated as corporate responsibility. The plastic water and soda bottles already require deposit in some states, in an attempt to discourage filling landfills. The cost of recycling them is considered to be an externality by the shareholders, but required outside stakeholders to create a mechanism for internalizing the cost. On a macro level, we are experiencing a new environment. For example there is growing concern from citizens groups about environmental issues (pollution free air and water, climate change, energy conversation). These concerns often require action from government or non-government organizations (NGO), or from the political process. The Internet has increased the influence of the citizenry by allowing them to communicate online, organize by interest groups, and start blogs. People become more aware of the fact that they eventually must pay for externalities. Finally, there is a growing awareness, coupled with actual resources dedicated by the U.S. Government and the current administration to environmental issues. There are actual incentives for producing Hybrid cars, alternative energy sources (solar and wind), energy conversation (via tax credits for solar panels) air purification (as in cash for clunkers) and other social externalities (insuring those without health insurance and increasing investments in infrastructure and education. All these initiatives coupled with the financial crisis and the economic downturn increase the

role of the Government, thus making intervention in the free market system combined with increasing popular awareness of environmental issues a new phenomenon and a force to reckon with. The above trends increase the pressure on business organizations and others. Self regulation can help silence calls for government regulation. Taking on increased commitment to environmental issues can increase the support of stakeholders, and through that their view of the company and the support for its products and services. Businesses that ignore externalities or destroy the environment generate liabilities. Those that increase their social responsibilities, internalize externalities and are committed to a sustainable environment create assets. Lazlo uses the term sustainable value to form a framework which identifies the sustainable value as the stakeholders’ value. Businesses firms and not-for-profit organizations, should strive to increase shareholders value that at the same time also increases stakeholders’ value. The framework is made of four quadrants, with stakeholders and shareholders placed on the Y and X axis. Organizations can: 1. Increase shareholders value at the expense of stakeholders’ value 2. Increase stakeholders’ value at the expense of shareholders’ value 3. Increase shareholders value and decrease stakeholders’ value 4. Decrease stakeholders’ value and shareholders’ value The last option characterized business for many years. Corporations can increase stakeholders’ value at the expense of shareholders values. -----To be continued The macro aspects of increasing the public awareness and harnessing business and not for profit organizations to help influence and guide actions which further global sustainability are the subject of the next section where we provide examples of organizations and how they use IMC to that end.

SUSTAINABILITY AND THE MICRO SUSTAINABITY Not for Profit Organizations Integrated Marketing Communications is important in terms of showing what has been done, what is being planned, and to encourage others to learn from good examples, and develop excellent sustainable marketing programs. Government organizations, educational institutions, public-interest lobbies, etc. must do their part to make the world a better place to live in both now and in the future. All these organizations promote the concept of sustainability, and have made great strides over the past ten years. For the most part, individuals around the world are cognizant of the concept. Online marketing has been a wonderful way for the dissemination of information on sustainability. Government The Environmental Protection Agency {EPA} can be looked at as a major role player in communicating to everyone {epa.gov}. The EPA follows the internationally accepted definition of sustainability as meaning the meeting of the needs of the present without compromising the ability of future generations to meet their own needs. In their early days the EPA served as a watchdog making sure everyone followed the rules and were not polluters. Near the end of the first decade of the 21st century their mission is now to make sustainability the next level of environmental protection drawing on advances in science and technology, application of diverse government regulations and policies, and promoting green business practices {EPA, Pg. 1} Non-Government Organizations The Sustainability Institute is another example of an organization working to promote the "green" concept. This is a non-profit organization founded in 1996. This Institute applies systems thinking, system dynamic modeling, and organizational learning to economic,

environmental and social challenges {Sustainer, Pg.1}. Another organization working to promote sustainability would be an organization named SustainAbility. This organization, founded in the late 1980's, sees themselves as a strategy consultancy and think tank working with senior corporate decision makers to achieve transformative leadership on the sustainability agenda {Sustainability.com, Pg.1} In terms of macro promotion it should be pointed out the value of this organizations Web address. That address probably was easy to get in 1987. How easy would it be today? Publishing organizations have been a major factor in promoting sustainability. The Edward Elgar Publishing Company's fall 2009 brochure titled Environment & Ecology lists myriad books about sustainability. {Elgar}There are books on Tourism and the Environment (Becken, Pg.21}; Sustainable Cities {Janssens, etc.}; Handbook of Corporate Sustainability {Quaddus and Saddique}; Sustainable Innovation and Entrepreneurship {Wustenhagan}, and many more. The Elgar publication also promoted a new journal coming out in early 2010. The publication will be called The Journal of Humans Rights and the Environment. Stylus Publishing 2009 catalog, printed on recyclable paper, reads Earthscan: Publishing for a sustainable future {Styluspub}. Two of the publications listed are Sustainable Regional Retail Centers by Waer and Sibley {Waer} and Governing Sustainable Cities {Evans, etc} It is clear that there is a global interest in promoting the concept of sustainability. It is the effective use of the tools of IMC, blended together in a strategic manner that helps make the concept become a reality. Some measures of success are spelled out by Chris Laszlo in his very timely book called Sustainable Value: How the World's Leading Companies Are Doing Well By Doing Good {Laszlo). In his book there are eight disciplines that are the backbone

of developing and creating sustainable values. Those eight disciplines are: 1) Understand the current value position 2) Anticipate future expectations 3) Set sustainable value goals 4) Design Value creation natives 5) Develop the business case 6) Capture the value 7) Validate results and capture learning 8) Build sustainable value organizational capacity {Laszlo, Pg. 136}. What then have some firms done to maximize sustainability efforts? More specifically, how have they used IMC to achieve the goals set forth by Laszlo (2008). Several firms/organizations/universities will be looked at including Toyota, Pepsi Cola, Black and Decker, Boeing Aircraft, Arizona State University, Michigan State University, University of Maryland and Giant Foods. Educational Institutions Actually it is hard to find an example of an educational organization that is not involved in some form of "green" IMC. Part of this is done in response to certain pressures to go with the tide. However, many firm go green because they honestly believe that this is the right thing to do, and that their actions will make a difference. Since the authors are educators, a good starting point would be educational institutions, i.e., Michigan State University and the University of Maryland at College Park. MICHIGAN STATE UNIVERSITY {MSU}- The latest word coming from East Lansing is "Be Spartan Green." The MSU home page provides a link to their "Be Spartan Green" site. {MSU} The Web page is loaded with examples of the things going on at MSU including a brand new recycling facility. The fall 2009 issue of the MSU Alumni Magazine, with its green cover page, covers the new recycling center and other efforts. (MSU Alumni Magazine, Cover Page). Mark Fellows writes about the green activities going on at MSU. He writes that Environmental stewardship makes sense...we have world

class faculty, staff and students who can not only help the university but provide economic and environmental solutions for Michigan and around the world {Fellows, Pg. 25}. At the Eli Broad College of Business undergraduate students can specialize in Environmental Studies and combine that with a business area of interest, e.g., finance. Even sports gets involved as the theme for the 2009 homecoming game on 17 October was "Be Spartan Green." UNIVERSITY of MARYLAND COLLEGE PARK {UMCP}-In October of 2009 UMCP was named "America's Greenest Campus. Winning this contest reinforces the level of activism and interest that our students have in environmental issues said Mark Stewart, UMCP Sustainability Coordinator. {www.newsdesk.umd.edu} A news release on October 15, 2009 Governor Martin O'Malley, the Maryland Department of the Environment, and the Maryland Higher Education Commission offered their congratulations. On the front page of the UMCP home page { } on 8 November was a banner pronouncement stating that junior Joanna Calabrese was awarded the Udall Scholarship for environmental leadership. The UMCP home page will allow a searcher to go to the Sustainability site. At College Park, East Lansing and college campuses around the world sustainability is in the classroom, on the sports fields, in administrative offices, and almost everywhere on campus. It is "buzz IMC" working every day. Business organizations Giant Food-Giant Food is the largest food chain in the Washington, DC, Maryland & Virginia. Recently Giant changed their logo and redesigned their website. These changes favor a new color scheme that includes a lot of green. They have been community conscious for years, and now this has carried over to sustainability. The Giant Web site is their major IMC tool that promotes sustainability. They have a Plastic Bag Recycling Program. They

accept plastic shopping bags, dry cleaning and newspaper bags. They then send the bags to their recycling company where they composite decking. In addition, they sell reusable bags in their stores. They will take deduct five cents from each customer's total shopping bill. Giant has a large fleet of trucks and they work to fuel usage and CO2 output. They work closely with the trucking industry and the Environmental Protection Agency {EPA} to reduce greenhouse gases and air pollution. {Giant Foods Web} Giant, always has acted like a good citizen, has been a leader in sustainability in their marketing area. They extol their "green" efforts in almost all IMC areas from store POP displays, newspaper advertisements, radio spots, etc.

SUMMARY AND CONCLUSIONS-Sustainability is a vital part of the world of the 21st century. It is part of almost every one's life. Almost all are concerned with making life more pleasant today and to take steps to insure that future generations are not deprived of vital resources. Sustainability issues involve everyone in your organization- from the CEO to the janitor. They all have varying degrees of understanding, involvement, and perspectives about what can be done to assist in making your company more sustainable. (Planet Partnerships)

This paper has looked at some of the issues related to sustainability. One of the major concerns revolves around the issue of communications. First, how do you communicate with the population to get them to be more green in their lives. This would be a macro approach. The second area this paper covers is the micro aspects. Here firms such as Giant Foods, Samsung, etc. were looked at, and their efforts to be more sustainable analyzed. The approach

was to look at how these firms used an integrated promotions approach to send a unified message. The hope is that this Integrated Marketing Communications approach will be effective in attaining their promotion objective, and hopefully thus helping to successfully achieving the marketing objective. The encouraging news coming from this research is that sustainability is no longer an alien concept. There appears to be lots of awareness of the need to be more green in our business and personal lives. Likewise, there are many firms, organizations, individuals, etc. beating the bushes to promote sustainability. The firms looked at appear to be using IMC to both promote what they are doing, but also to encourage others to "go green!" Has the battle been won? No! there are still miles to go, and lots to be accomplished. There are these exciting signs that IMC is working for many firms. The results will hopefully be a world where everyone is green and not just the Irish. References Arizona State University http://sustainability.asu.edu/ (Accessed 11-20-09) Becken, Susanne (2005) The Role of Tourist Icons For Sustainable Tourism, Journal of Vacation Marketing, Vol 11, No 1, Pgs., 21-30. Belch, George, and Belch, Michael (2009) Advertising and Promotion: An Integrated Marketing Communications Perspective, McGraw-Hill/Irwin, New York, NY. Biderman, David (2009). Retailers Get Innovative, The Journal of Commerce, November 16, Pgs. 30-34. Calibamboo www.calibamboo.com (Accessed 11-20-09) Edward, The Edward Publishing Company (2009) Environment & Ecology (Fall, 2009) EPA http://www.epa.gov/ (Accessed 11-20-09) Evans, etc ( 2005 ) Governing Sustainable Cities

Janssens, Maddy. (2009) Diversity, Economic Growth, and Social Cohesion, University College London. Lazlo, Chris (2008) Sustainable Value: How the World's Leading Companies Are Doing Well by Doing Good (Stanford University Press) Kotler & Armstrong. (2009). Principles of Marketing (13th Ed.) (Pearson) Kotler & Keller. (2009). Marketing Management (13th Ed.) (Pearson) Perreault, William D. & McCarthy, E. Jerome ( 1979 ) Essentials of Marketing: A Global-Managerial Approach (7th Ed.), R. D. Irwin, Chicago, IL