Digital Marketing Lecture 10
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Transcript of Digital Marketing Lecture 10
digital marketing
10
Sustainability for the digital generation
unethical marketing…
sometimes accused of being intrinsically bad…
encourages materialism, strips the
planet of valuable resources, promotes
greed, selfishness, hedonism and sets
aspirations too high
results in crime, loan sharks, serious debt, damage to the environment, to individuals, to communities, to the planet?
marketing ethics…
diverse as people’s views on any moral issue
are we happy with the ‘free-market’?
forced ‘self-regulation’ through consumer power…
…or should we have a interventionist, regulatory approach?
state controls in place to stop abuse of power
voluntary, self-regulating codes of conduct?
it is the role of the marketer to find
the line between ethical practice
and using marketing techniques
effectively to gain competitive
advantage
marketing ethics…
CSRcovers a wide range of issues…
employmentlabour and production in the supply chain
environmental concerns such as sustainability
refusal of ‘unethical’ practices
also about exercising care in where and how marketing communications are targeted
ethical decision making models
certain tests have been developed, Laczniak and Murphy
(1996) suggest…
‘the golden rule’ – act how you expect others to act
‘the professional ethic’ – act in a way that a panel of objective, professionals would view as appropriate
‘the tv test’ – can you explain your actions comfortably to your public via tv?
‘categorical imperative’ – act in a way deemed
universally appropriate for anyone in the same situation
ethical decision making models
transparency
depends on our perception and interaction with the internet…
can we add a new model?
don’t engage in any activities you wouldn’t like
shared and discussed over the internet..?
viral effect speed in communications
so…what actually is sustainability?
coming to terms with sustainability
human sustainability
the opportunity for all people to maintain fulfilling, productive lives while preserving or replenishing the natural and economic systems that make their well-being possible.
coming to terms with sustainabilitymarketing sustainability
can be thought of in two distinctly different ways…
the need to sustain the resources we use from our natural
environment… not knowingly doing any harm and working to
minimise our negative impact
the need to sustain competitive advantage and growth
within our market sector
the evolution of a new paradigm …
sustainable marketing
is the process of creating, communicating, and delivering
value to customers in such a way that both natural and
human capital are preserved or enhanced throughout
Martin and Schouten, 2011
sustainable marketing means marketing sustainably, that is, in
a sustainable manner
sustainable marketing means marketing sustainability — as a concept, a cultural value, and a set of practices
…and
three dimensions of sustainability
the ongoing ability of an economic system to provide for all human needs
environmental sustainability
the ongoing preservation of essential ecosystems and their functions
economic sustainability
social sustainability
the ongoing ability of communities to provide for the wellbeing of all their members
triple bottom line
EnvironmentalReduce footprint that negatively impacts on environmentLower pollutants and emissionsReduce energy wastageReduce usage of non-renewable energyMinimise climate change agentsUse sustainable packagingRecycleSource local produce
SocialCSR InitiativesFair TradingSupport local suppliersReduce promotion of potentially harmful substancesSupport well being of society – internal and external
EconomicEnsure future economic development of companyCreate sustainable financial bottom lineMinimise negative impact on other countries economiesSave money by reducing energy use
updated from CIM, 2009
sustainability continuum
PeoplePlanet
ProfitMarketing Strategy
Disciplines – e.g. Urban Planning, Law…
Macro Environment - PESTEL
Servicescape – attributes, hierarchies, service, brand, PR CSR – ethical operations,
sourcing, health education, fair trade, worker welfare, social inclusion
Broader Environment – recycling, energy, raw materials, water, waste, packaging GM, chemicals
Consumers’ – values, risk, enjoyment, power, involvement
Communitys’ – inclusion, involvement, access
Networks – CSR adoption, voluntarism
Richardson, 2010
The four S’s of sustainable marketing
Sustainable Marketing
Satisfaction of customer needs
Safety of products and
production for all
Social Acceptability or product, production
and activities
Sustainability of products, production
and activities
Richardson, 2010
Richardson, 2010
is sustainability essential,
fashionable or irrelevant?
some people argue that sustainability is just the business buzzword
of the day and that if they ignore it, it will go away.
…consider Freidmanite economics
…or caveat emptor
others see sustainability as the new “must do” that business must embrace, or die
…consider John Grant “The Green Marketing Manifesto”
are there merits to both sides of this argument?
declining supply and increasing demand
…and…
a continuous decline in natural resources and ecosystem services
a continuous increase in the demand for those resources and services
natural resources… resources occurring naturally in the environment such as wood, water, soil, minerals, coal and petroleum
ecosystem services… collective activities of natural systems that renew resources and sustain life
ecological footprint… the amount of earth’s resources required to support a particular lifestyle
• 18WWF Living Planet Report 2014,
Globalfootprintnetwork, 2011
current and future bio-capacity
…what can digital marketing offer?
shifting our product-dominant logic
focusing strategy on what needs people are trying to meet rather than on what products they will buy
dematerialization
the process that allows fewer resources to be used to create
the same or equivalent benefits
referred to as ‘green products’
3d printing…
companies may partner with non-governmental organisations, or, more
interestingly, with the crowd… reached through digital media
although experts in their core competencies, many managers may not be
well versed in the philosophies, communication strategies, and systems-
level thinking that true sustainability requires
crowdsourcing… consumer driven ideas and solutions
the collaboration advantage
Martin and Schouten, 2011
crowdsourcing options
99designs
chaordix
cluster
poptent
redesignme
fiverr
creative commons
kluster
the long tail
the probability distribution within a demand curve
the final 80% has the same potential sales revenue but would
take longer
traditional retailers would only stick the most profitable 20%
technology enables these ‘niche’ products to reach their market
…and ‘niche’s are better at satisfying personal needs
the long tail…
new market channelsC2C and C2B
freecycle, gumtree, craigslist and eBay
Mazuma, sellmygadget, Marks and Spencer…
transparency and accountability
shamed and shared online
Obviously wikileaks set the standard for politicians and governments
apple and foxconn
dove
primark and major supermarkets
Panama Papers
must avoid ‘greenwashing’ and ‘astro-turfing’
linking digital communications and sustainable
marketing
Moore’s Law
principle #1—rapid innovation and change are the norm
The expectation that computing capacity of transistors or chips will
double roughly every two years.
Martin and Schouten, 2011
consider how this will impact on the triple bottom line – people, planet and profit – this will continue to change
digital communications will continue to shift and develop at
a rapidly increasing rate
principle #2—consumers increasingly prefer digital media
permission marketing…marketing communication via email, which is
sent with the explicit permission of recipients
deliver personalised and relevant content communicated via
preferred digital platforms – less wastage and resources
linking digital communications and sustainable
marketing
Martin and Schouten, 2011
principle #3—digital products dematerialize
consumption
with digital products – music, books, films
linking digital communication and sustainable marketing
removal of need for some material products - payperuse
even paperless billing!
principle #4—digital communication aids process sustainability
large scale rethinking of supply chains, business
models and markets
M and S… plan a
linking digital communications and sustainable
marketing
Grant, 2011
principle #5— digital communities drive sustainability
linking digital communications and sustainable marketing
digital communities can fund projects, ideas and businesses
through considered used of digital marketing techniques and
technology we have the ability to…
market sustainability and support it in communities
in summary…
as well as marketing sustainably… using digital techniques and
technology to improve processes, dematerialise products and communications
sources
• http://www.johnelkington.com/TBL-elkington-chapter.pdf Accessed 20th March 2011
• http://intelli.cim.co.uk/e/d.dll?m=1294&url=http://www.cim.co.uk/dwnldr/450575
Accessed 20th March 2011
• http://www.davechaffey.com/E-marketing-Insights
• C. Li and J. Bernoff, 2008. Groundswell: Winning in a world transformed by social technologies. Boston: Harvard Business School Press.
• Kourdi, J (editor), 2011: The Marketing Century, Chichester:Wiley and Sons
• Martin, D and Schouten, J, 2012 (Advance Copy) Sustainable Marketing, London: Pearson Hall
• Richardson, N. 2010:A Quick Start Guide to Mobile Marketing, London: Kogan Page
• Smith, P.R. and Chaffey, D. (2005). E-marketing Excellence. (2nd Edition). Elsevier Butterworth Heinemann