A couple of weeks ago I was at a very inspiring conference here at UBC, focusing on sustainable business practices. Two speakers really inspired me and made me realize how much can be done in different fields to contribute to a better community. They were in marketing and finance, fields that I personally, maybe wrongly, associate with a strong drive for profit. This seemed to be a belief they shared as well – however, they showed how this is something that can be changed. And as a benefit, this concern about environmental and social issues might in the long run turn out to be very profitable as well.
In this blog post I will focus on Marc Stoiber, founder of the marketing firm Change and now a part of Maddock Douglas. According to himself, he one day woke up and realized that he had spent his life helping products he didn’t believe in. What lead up to this was a cleaning detergent with “a scent for every season – plus orange”. Essentially, he found himself creating needs that neither benefited the consumer nor society as a whole. After a short crisis, he decided to keep doing what he does best, i.e marketing. However, this time he would do it for “the good guys”.
In his speech, he pointed out how green and socially responsible marketing can add value to your brand. A stronger concern for sustainable products among consumers has opened up new possibilities for brands when positioning themselves. However, he emphasized that this should not be seen as the only reason for taking up these practices. Rather, it was more a reminder to companies and consumers that environmental and social concern doesn’t mean that we have to “give up” on profits and production.
In sustainable marketing, you no longer just focus on the 4P:s. No, taking it one step further it’s now…5C:s! In brief, he summarized it as follows:
1. Consumer-facing. Start your focus on things that are directly noticeable to the consumer. This way, the consumer will instantly be aware of the changes being made and can get proof that the company is actually trying to change for the better. This will make it easier for the company to reach out with its less “obvious” changes, as the consumer already is involved in the company and trusts them more.
2. Competitive. Sustainability opens up a new way for companies to compete. It opens up possibilities to differentiate a brand from competitors.
3. Core – As always, it is important to tie the company’s spending on sustainability to its core competencies. A clothing brand should focus on organic fabrics, not research on solar panels. One might think this goes without saying but according to Marc it is a common problem for companies to just dive into “the green market” without thinking it through first.
4. Conversational – Try for an active communication with the consumer. Both point out what you are doing well but also what could be changed for the better. This will instil trust, which in turn leads to loyalty.
5. Credible – For sustainable marketing to work, the efforts must seem credible and honest. Providing objective, scientific evidence that your changes do make a difference goes a long way to ensure the consumers that it is not just a PR stunt.
As you can see, concern about companies’ social and environmental impacts should not be seen as standing in the way for growth. On the contrary, it offers companies new possibilities to differentiate themselves. At the same time, this should not be seen as the only reason for investment in sustainability. Rather, the social, environmental and economic benefits all make up a sum that is greater than its parts.