Marketing Briefing

8/13/2019 Marketing Briefing

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DRIVING SUCCESS

Marketing and sustainable development

DEDICATED TO MAKING A DIFFERENCE


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What is sustainable development?

The term sustainable development means different thingsto different people. But, in essence, it is concerned withmeeting the needs of people today without compromisingthe ability of future generations to meet their own needs.

Sustainable development therefore involves:A broad view of social, environmental and economic outcomes;

A long-term perspective , concerned with the interests and rights of futuregenerations as well as of people today;

An inclusive approach to action, which recognises the need for all peopleto be involved in the decisions that affect their lives.

This briefing has been prepared by Mike Peirce of CPI and Katherine Madden of WBCSD, with case study material from Danielle Capenter Sprungli, WBCSD, cartoonsfrom David Lewis, copyediting from Dr Sophie Mills and quotes from HR professionals drawn from an Ashridge research report prepared for the WBCSDs Accountability and Reporting programme. The advice from Jake Reynolds and Jon Hanks of CPI has been invaluable throughout the process.

Adapted from Beyond Reporting: Creating business value and accountability, Engen, T, and Di Piazza, S, 2005

Who isresponsible

Responsiblefor what

To whom

Through whatmechanisms

Cross-functionalConnection

With what

outcomes

Supply ChainManagement

Risk ManagementProduct Responsibility

ManagementSuppliersStandard Setting BodiesNGOsCompetitors

Greater role in strategyAuditTrainingStandards/Monitoring/ComplianceEstablishing workingrelationships

SalesMarketingCorporate AffairsProduct Development

Deliver accountable

supply chain throughstrategic embedding

Human Resources

Employee Recruitmentand RetentionMotivationCompetencies

ManagementEmployeesWider Business CommunityInstitutionsRegulators

Peer learningTraining and developmentCreating culture amongstemployeesLeadership

Corporate AffairsMarketing

Use sustainable

development as a marketingtool and to enhanceemployee performance

Marketing

BrandsReputation

Corporate AffairsMarket AwarenessInternational AgenciesRegulatorsCompetitorsCustomersMediaNGOs

R&DStakeholderIntelligence(customer feedback,dialogue, benchmarking)

PRMarketingCorporate Affairs

Create more sustainable

products and services

Finance

FiduciaryResponsibilitiesReputation

ShareholdersFinance DirectorsManagementThe MarketCompetitorsInvestorsShareholdersAssessment BodiesRegulators

AnalysisInvestor surveysAnnual GeneralMeetings (AGMs)Disclosure

Public/CorporateAffairsMarketing

Meet broader fiduciary

responsibilities

Public/CorporateAffairs

Reputation

ManagementEmployeesNGOsAdvisory PanelsCompetitorsWider Business CommunityInstitutionsRegulators

Connecting businessfunctions andmanagement withstakeholder concernsRelationship building

All functions and units

Raise company profile

Integrating sustainable development in your organisation

Sustainable development is not just the responsibility of environmental specialists or communications professionals.

It requires contributions from people across all functions of an organisation.


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This briefing has been designed for marketing managersand people with responsibilities for communications,brand management and new product development.

It focuses on the issue of sustainable development, aterm which many marketers have become accustomed

to hearing alongside jargon such as stakeholderengagement and Corporate Social Responsibility (CSR).

Sustainable development is a compelling idea for many people. It is concerned with how business can contributeto some of the most significant challenges that the worldfaces today from climate change and biodiversity, to working conditions and health amongst the poorest inthe world.

But marketing managers have struggled to translatethese ideas into viable commercial propositions intomarketing strategies that create competitive advantage,build trust or develop new business opportunities.Moreover, marketers have often faced criticism for being part of the problem for pushing the consumption of unsustainable products and lifestyles.

The briefing does not claim there are any easy routes formarketers to benefit from the challenge of sustainable

development. Instead it asks you to test the role andrelevance of sustainable development in your everyday work: how it can help your business address itsstrategic goals and generate long-term value; and what you can do to make this happen.

In short, how can you make sustainable developmentgood for your career and good for your company?

Driving Success describes three critical challenges

facing marketers today - practical problems identifiedand debated by marketing managers themselves.

Creating competitive advantage through brandinnovation (pp 4-7)

Building trust with customers, consumers andsociety (pp 8-11)

Developing market opportunities (pp 12-15)

Driving Success is not an A to Z manual onmarketing and sustainable development, but it doesprovide a starting point to think about the key issuesin your company today.

The briefing guides you through a series ofquestions summarised on pp 16-17 whichtake you from the broad challenge of sustainable

development to some practical actions.

Driving Success highlights a variety of ways in which companies are beginning to respond toopportunities of sustainable development.

These cases are distributed throughout thebriefing, and are supplemented by a set offurther resources on pp 18-19.

It would be in allour interests for someof the creativity thatabounds in themarketing industryto be more rigorouslyapplied to the task of

combining marketinginnovation with socialand environmentalconcern.Steve Hilton and GilesGibbons, Good Business


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Companies create competitive advantage by understanding the shiftsin society from technological innovations such as genetic profilingto the unwinding consequences of events such as 9/11.

These trends are the foundations of marketing strategy, and the emergenceof sustainable development as a matter of public and corporate concern isone such change in the marketing environment. In recent years, hundredsof companies have developed ethical policies or mission statements, andaccording to the 2004 Global Reporters survey, over 1,500 businesses haveproduced reports on their social or environmental performance.

These initiatives appear to be grounded in market realities. For example, aWeber Shandwick survey of 8,000 consumers in 2001 indicates that 80% ofhigh-education/high-income people in the USA have considered switching

brands when a company was negatively portrayed in the media in respect ofsocial responsibility issues. Equivalent figures for European countries rangedfrom Germany with 75%, to the UK with 66%, and Italy lagging with 42%.

But is there really an opportunity for marketers to use sustainabledevelopment as a lever of brand innovation, rather than the greenwashillustrated in the cartoon below? Marketers rightly insist thatappealing tosustainability values will not overcome a fundamental weaknessin product

quality, yet with excellent products there isevidence that social and environmentalaspects can be used to differentiate orcreate a profitable niche.

Creating competitive advantagethrough brand innovation


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Sustainability values can be a successfuldifferentiator a key part of the functionaland emotional attributes of a product or service.

Many marketers argue that integrating sustainability values into a brand can contribute to market growth. As one professional has commented, As long asperformance, price and place are right, thencorporate responsibility can become a differentiator,

although a significant price premium is not possible.

Several high profile companies have built theircorporate brands on the basis of such innovation;examples include the Body Shop (against animaltesting), Ben & Jerrys (sustainable agriculture)and the Co-operative Bank (ethical finance).

Like these businesses, others have tried todifferentiate specific products on the basis of theirsocial and environmental impacts. For example,Toyota has used celebrity endorsements to promotethe environmental credentials of the Prius, theirhybrid fuel car, it has also approved plans to use

more distinctive badging on its hybrid Highlander andLexus models. And niche businesses (increasingly

joined by mainstream retailers) supplying fairtrade coffee and organic products have targetedconsumer concerns regarding working conditionsand chemical pollution in the food supply chain,often using eco-labels and social labels to enhance

the consumer understanding of their products.

Yet directly promoting an ethical or environmentalposition may not always be the best approach toenhancing your brand.The energy company BPlaunched a campaign in 2004 for its new Ultimatefuel offeringMore Performance, Less Pollutionand More from your car. Less from your exhaust.In contrast, its competitor, Shell, chose to marketits new fuel, Optimax, on the core attractor of engine performance, and paid less attention tocommunicating the products positive impact onfuel economy and lower emissions.

The single mostimportant factor forcompanies is not theproducts they make ortheir distribution but ahealthy relationshipwith the global tribe

who share an affinityfor their brandsThere has been afundamental changein consumer loyaltiesand brand owners willalso be required tomake a fundamentalchange. They willactually have to begin

living their brandvalues not just paylip service to them inmarketing messages.

Kevin Allen,McCann-Erickson WorldGroup, Can SustainabilitySell?, UNEP, 2002


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The opportunity for differentiation is perhapsmore significant in the business-to-businesssector.

Business-to-business companies are increasingly identifying opportunities to position their productsand services in the wider context of their socialand environmental impact as well as their costand functionality.

As one marketer has suggested: Corporatecustomers are more interested in these issuesthan individual customers.Your average Joe doesntcare so much much less than we like to admit.

Another marketer has confirmed the basis ofthis business-to-business market: The challengeis what do customers care about: sometimes it is just price and delivery, but functionality can includeaspects of sustainability, like reducing yourcustomerswaste so their operations run better,helping them deal with and/or eliminateregulatory issues.

Weighing up the evidence

But do these arguments add up for you and yourcompany? Do sustainable development issues really

make a difference to what customers and consumers want from your products and services? And how can you use these issues to refresh or extend your brand?

In thinking about these issues, consider the following questions and examine the case studies on thefollowing page.

Are pressure groups and governments concerned with the consumption of your products (or yourcustomersproducts) and their impact on thequality of life in communities where they areproduced and disposed?

How significant are these issues to customers andconsumers in your sector?

Do the social and environmental impacts of your products help or hinder your communications should sustainable development be positionedas a core product feature, or is it more effective tofocus on performance and promote sustainabilityby more subtle means?

Are your competitors investing in the developmentof new products with positive social andenvironmental attributes?

In my experience very few consumers come outand say I want products that help the environment.But if we listen hard, we might hear them say,I want to do more with less. I want my life to bemore simple. I dont want to waste. Those wordshave strong eco-efficiency undertones and give

us the incentive to keep delivering more valuewith less resource.

Joe Mallof, SC Johnson, USA, Walking the Talk

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Approaches to success

DaimlerChrysler is using coconut fibre filled seat-backs and headrests inits Brazilian vehicle production to reduce the environmental impact ofits vehicles, while helping local Brazilians reforest their land and createeconomic opportunities for the region. Using natural fibre productsprojects a positive public image by positioning the company as sociallyresponsible. It also helps the company reduce disposal costs, as locallegislation requires the automobile industry to increase the recyclabilityand biodegradability of vehicles. In marketing the seat-backs,DaimlerChrysler has emphasised that the cushions adhere to thesame standards as its other components, maintaining its image as atop quality luxury car manufacturer.

DaimlerChrysler has worked closely with the local supplier POEMAtec,which brings together the state government, the municipality, the Bank

of Amazonia, and German company DEG. It has helped POEMAtec obtainmore favourable lease terms, shared its own research and development,and guaranteed a market for POEMAtecs products, thereby reducingits risk exposure.

At 3M, cross-functional, new product development teams use Life CycleManagement (LCM) to systematically address the environmental, healthand safety opportunities and issues of new products. 3Ms LCM processfocuses on the broader impact of products from development and

manufacturing, through distribution and customer use, to disposal.In the case of 3M's TB Quat Disinfectant, a cross-functional team madeup of representatives from marketing, product development and productresponsibility worked together to address an untapped need forready-to-use broad-spectrum, non-acid disinfectant cleaners that couldbe safely used to clean a variety of surfaces. Using 3Ms LCM process,the team worked closely with its customers to develop a new cleaningproduct that both assures the proper level of disinfectant and hasminimal environmental impact. This cross-functional approach helpedlead to success in both product design and marketing by integratingthe objectives of both groups at early stages of development.

NatureWorks PLA is a family of packaging and fibre polymers madefrom non-petroleum based, annually renewable resources such as corn.By applying their unique technology to the processing of natural plantsugars, NatureWorks LLC, a subsidiary of Cargill, has created anenvironmentally responsible material that reaches the consumer infood packaging, cold drinking cups, duvets, pillows and blankets.

The strategy for NatureWorks PLA is tied to the market for fresh food,natural and organic produce and natural beverages like milk , juice andflat water. NatureWorks PLA creates marketing advantage for these foodsby extending their natural benefits to the entire product offering. Earlyheavy market demand has come from the Asia Pacific Rim and Europe,coinciding with consumer interest in purchasing convenient fresh foodsand making a contribution to the environment.

Identifying product opportunities CASESTUDY

CASESTUDY

CASESTUDY

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Influencing new productdevelopment

Exploring the potential ofpartnerships


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Reputation the goodwill that an organisation has acquired from itspast performance is the foundation of future success, the basis onwhich a business will be trusted in years to come.

Despite rebounding from a post-Enron low, companies remain amongthe least trusted institutions in society, with some businesses particularlyvulnerable to pressure group campaigns and consumer boycotts.

As a result, many marketers are asking themselves how to minimise therisk of criticism from stakeholders, and whether sustainable developmenthas a role to play in these efforts. Perhaps more positively, they are alsowondering what part their companies ambitions and achievements onsocial and environmental issues can play in building and maintaining trustwith consumers, customers and society as a whole. Its about walking

your talk as the cartoon illustrates.

Some marketers are also concerned that reputation and trust may notbe sufficient to preserve their brands in the longer-term: current patternsof consumption are not sustainable, and so customers and consumersmust be educated in order to protect or secure the resources on whichbusiness is based.

Building trust with customers,consumers and society

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Products with sustainability attributes willonly appeal if they are clearly consistent withthe values and activities of the company.

Many people care about the social and environmentalimpacts of business. A survey of Fortune 100s Most Admired Companies, for example, recently showedthat the average reputation score for those companies with an expressed commitment to business ethics

was around five per cent higher than for the group without such a commitment.

Yet people trust companies when they believe they are acting according to their values, and not justbecause it happens to make sense in that particularinstance. Credibility comes from the confidence thata business will continue to behave ethically in thefuture: a business will gain little reputationalbenefit and more likely harm from helping acommunity if local people see the contribution asa short-term bribethat will be withdrawn as soonas its immediate objective is achieved.

Marketers have a critical role in building trust.In particular, they can help to create inspiringcommunications, which are honestly based on theabilities of the organisation and the resources thatit can realistically devote to enhancing its socialand environmental performance.

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Brands are aboutlifestyle, values andself-imagebutpeople want to knowmore about thecompany behind thebrand these days

and this trend willcontinue.

Marketing Manager,Ashridge/WBCSD survey


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Reputation and trust may not be sufficientto safeguard a brand. To succeed, marketersmust lead the path towards more sustainableconsumption.

International policy makers are paying more andmore attention to some of the greatest challengesto society and the environment. For example, UK Prime Minister Tony Blair placed poverty in Africa

and climate change at the top of the G8 agendafor 2005.

These issues are critical to the long-run successof business. In short, companies cannot operateeffectively in societies and economies which fail toprotect and support the production and consumptionof their products and services. Business needsreliable access to sources of raw material, safe working conditions for production, storage anddistribution, thriving consumer markets, and safemechanisms for the disposal of product waste.

There is much that governments must do. But if

consumers arent switching to more sustainableproducts, then it will also fall to business to breakthe current patterns of consumption.And it is oftenthe marketer who will be best positioned to createthis connection between business and consumers.


But what do these issues imply for your company and

your career? Is sustainable development a significantissue of trust in your business sector, and, if so, howcan you influence your team, as well as other functions,divisions or regions?


How closely correlated are the social andenvironmental impacts of your products with thereputation of the business?

Is your current business model threatened by changes in the global economy and environment,or is it largely unaffected?

Are social and environmental issues on the radarof your consumers and customers?

What are the most effective ways in which youcan influence your companys communicationsabout sustainable development?

We know that where brands lead, consumers willfollow. So it is clear that the mission of corporateaffairs managers, branding consultancies, PRconsultants and advertising agencies must be to

encourage and assist the open, public associationof brands with sustainable principles.Mike Longhurst, McCann-Erickson

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WMC, an Australian resources company, aims to enhance its scientific andenvironmental credibility through forming partnerships with researchinstitutions, government departments and community groups. The AridRecovery Project demonstrates WMCs claim that modern miningoperations are not only compatible with conservation, but can be keyfacilitators of major conservation projects. Students, NGOs, indigenousgroups and the general public have these ideas reinforced when visitingthe Arid Recovery Reserve that is immediately adjacent to the miningoperation. These three factors all improve the public perception ofWMCs environmental credibility, with long-term gains for the companyin terms of access, licence to operate and staff and shareholder pride.

Corporate reporting on non-financial issues is becoming standard practiceamongst large companies, with over 650 organisations having reportedaccording to the Global Reporting Initiatives Sustainability ReportingGuidelines. Sustainability reporting enables NGOs, investors, corporations,governments, trade unions and other stakeholders to gauge theprogress of organisations in the implementation of voluntary initiativesand other practices supportive of sustainable development. A commonreporting framework provides the basis for benchmarking and a processfor identifying opportunities for internal management improvements.

Incorporating an external assurance statement further enhancescredibility. Some companies have used well-known environmentalistsor human rights specialists to provide independent comment on theirreports, whilst others have been benchmarked against assuranceguidelines, such as AccountAbilitys AA1000 Assurance Standard, toprovide confidence in the data that are communicated.

In April 2003, Novo Nordisk launched the TakeAction! volunteeropportunity where employees can apply to become volunteers forthree weeks at a local diabetes clinic in a developing country.

Volunteers are invited to use their competencies to help develop theclinic's processes and expertise in close collaboration with local staff.The clinic's staff determines the specific qualifications they need at a

specific time and the job offers are posted on both the TakeAction!website and the internal Novo Nordisk Jobsite. This initiative contributesto Novo Nordisk's sustainable development objectives by raisingawareness about diabetes in developing countries; helping employeesbroaden their understanding of diabetes in a developing country;giving a broader understanding of customers needs; supporting theperception of Novo Nordisk as leading the fight against diabetes; andbuilding stakeholder trust among employees and partners in thecountry in question.

Involving staff in communityprogrammes

CASESTUDY

Making credible external claims CASESTUDY

Exploring the potential ofpartnership

CASESTUDY

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Developing market opportunities

Much of the discussion about marketing and sustainabledevelopment focuses on developed markets on the levels ofconsumption amongst the worlds richest people and the changingnature of their preferences.

This debate reflects the business profiles of most major corporations.Yet these companies face fierce competition for growth in developedcountries whilst, in contrast, the most disadvantaged people in theworld represent a market with enormous potential. And if the worldspopulation expands in line with current predictions, over 90% of peoplewill be living in (what are now) developing countries within 30 years.

It is no surprise, then, that marketers are increasingly interested in theopportunities amongst the worlds poor, which may involve addressing

their basic needs as the cartoon illustrates. But is this wishful thinking,or are there compelling commercial reasons for business to pay attentionto developing markets?

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Two arguments are often heard. The first highlights theglobal trends which are encouraging companies to startengaging with the poor, and creating pressures on thosethat ignore their potential contribution.

The second perspective suggests that a robust businessmodel can be generated by applying new ways of working in developing markets in particular, a partnershipapproach which can reinforce the companys overallbrand-building on social and environmental issues.

Yet even if this case can be made, marketers mustconsider the implications of rolling out currentconsumer lifestyles in developed countries. As theState of the World report from the WorldwatchInstitute argues: If the levels of consumption that...the most affluent people enjoy today were replicatedacross even half of the roughly 9 billion peopleprojected to be on the planet in 2050, the impact onour water supply, air quality, forests, climate, biologicaldiversity, and human health would be severe.

Global trends are creating a favourableenvironment for companies to start engagingwith the poor.

Companies are under greater scrutiny than everbefore, with attention on the impact of productsthroughout their entire life-cycle. Newcommunications technologies have transformedthe quality of information at the fingertips of

policy-makers and consumers.

This world-wide audience with an internetpopulation now exceeding one billion - isdemanding of business and increasingly criticalof its impact on society and the environment.For example, a report from the US business group,the Conference Board, recently suggested:42% of people think companies should be wholly or partially responsible for solving social problems.

Governments have also emphasised the potentialfor the private sector to address critical social goals.The UN, in particular, has looked to business to

contribute to the Millennium Development Goals,its ambitious targets for reducing poverty andimproving living-standards.

At the same time, many not-for-profit organisationsare prepared and able to help companies operating in poor countries and poor neighbourhoods.They are beginning to realise how companies can helpthem achieve their own goals of improvedsanitation, water supply, healthcare, housing andbusiness opportunities in the developing world.

There are many positiveways for business tomake a difference in thelives of the poor notthrough philanthropy,though that is also veryimportant, but through

initiatives that, overtime, will help to buildnew markets.Kofi Annan, United Nations,Secretary General


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Companies are developing a variety of viablebusiness models in poor communities.

There is no one business case for working in poorcommunities.

Some marketers have identified immediateopportunities to extend the reach of their productsand services. These initiatives include innovative

approaches to packaging and distribution that allow prices to be reduced to an affordable level whilstmaintaining the fundamental values of the brand.

In other cases, companies have taken a longer view,seeking to help low-income people build moresecure livelihoods. Business initiatives can createmore reliable markets by enriching people andencouraging entrepreneurship, and so expanding the size of local markets. Income-generating jobsare a foundation for security, and projects whichprovide access to clean water, sanitation, housing and healthcare can help people to maintain theirhealth and continue to work.

This approach can be attractive to marketers.By operating in these markets, companies may gaina first mover advantage, positioning themselves tobenefit as the countries become richer and furthercommercial opportunities emerge.

In addition to building future income streams, working with the poor can also contribute tothe companys brand-building on social andenvironmental issues providing reputationbenefits with governments and communities,and improving employee recruitment, retention

and morale.


But do these arguments add up for your company? How significant is the opportunity for growth in developing markets and how might you bring this to reality?


Is your company facing pressure to invest indeveloping countries?

How important are poorer communities in thestrategic direction of your company?

Is there a potential market for your products andservices in poorer communities, and how does theopportunity compare to alternative investmentsin developed countries?

Can you transform your service offering to create a viable business proposition?

Do you have the necessary resources and skillsin place, and do you understand what partnershipsand relationships you need to develop?

What are the social and environmental implicationsof expanding your companys operations indeveloping countries?

Companies need to go through a learning processto move down the pyramid from their conventionalmarkets (top 11% income bracket)and adapt to thenext market segment.

George Carpenter, Procter & Gamble

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Procter & Gamble is using a network approach to sell its NutriStar productin Nicaragua. NutriStar is a fortified drink, with essential micro-nutrients,including iodine and iron. Using a collaborative business model, in

which the US Agency for International Development (USAID) initiatedconnections with key Nicaraguan Ministries and thought leaders andacted as a credential for both P&Gs science and P&G as a company, thecompany has positioned the P&G brand in new markets and developeda new commercial product designed for a large customer base.

ABB provides power and automation technologies to utility and industrycustomers. The companys Access to Electricity programme, designed topromote sustainable economic, environmental and social development inpoor communities, is yielding its first concrete results in the 1,800-strongvillage of Ngarambe, on the edge of the Selous National Park in Tanzania.ABB and WWF, the global conservation organisation, have teamed upto ensure the sustainable development of the village. Changes andimprovements in such areas as small businesses, education and health

care are already noticeable. The project is serving as a model forfurther, larger Access to Electricity projects aimed at easing povertyin other rural or semi-urban parts of Africa and Asia.

Through public-private partnerships, HPs i-community programme aimsto turn regions into thriving, self-sustaining economies where access to

technology permanently improves the livelihoods of the population byraising literacy rates, creating income, providing access to governmentservices, education and health care, and opening new markets.

The programme seeks to build leadership and IT capabilities withinthe community and establish a sustainable and replicable model forsocio-economic growth.The initiative aims to help people worldwideaccess the social and economic opportunities of the digital age whilefocusing on sustainability for the community and for HP.

The housing deficit in Mexico is estimated at 4.2 million houses, withmany responding to this problem by self-constructing their own homes.Holcim Apasco helps people self-build concrete homes to an acceptablestandard and improve the availability of affordable construction materialsthrough its Mi Casa distribution centres. In these centres, professionalbuilders, trained by the Mi Casa programme, dispense advice on proper

building techniques to would-be builders. At the same time, Mi Casasupplies cement on a bag-by-bag basis at reasonable prices, and offerscounselling on legal aspects and financing opportunities.

Holcim believes its growth opportunity for the group lies in enteringemerging and developing markets where the demand for cement isincreasing. As a bag-by-bag customer base characterises many of thesemarkets, the company needs to understand the most cost-effectiveways to make its products and services relevant and affordable to thecommunities it aims to serve.

Using innovative approaches toserve consumer needs

CASESTUDY

Exploring the potential ofpartnerships

CASESTUDY

Building the employability ofyour customer base

CASESTUDY

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Planning for change

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CompetitivenessQuality of life

Employment

Economic developmentEquityEnvironmental protectionBiodiversity

PriceFunctionalityConvenienceBrand loyaltyValues

Risk managementInnovationBrand strengthGrowth opportunitiesCost control

The Marketing Environment

Government

Communities

Customers

Investors andshareholders

Company

Employees

You

VisionStrategyCompetitive positionManagement prioritiesWays of working

Pay and conditionsPeer recognitionPride in the company

Marketing mixProductPricePlacePromotion

So what does sustainable developmentmean for marketers?

Several issues stand out.The strategy and tacticsadopted must be achievable by the marketing team within its budgetary constraints and the skills,experience and interests of its people.

But, more than this, the marketing strategy mustrespond to the wider environment in which thecompany is operating:

Reflecting and inspiring the ambitions of themarketing team and other employees;

Aligning with the companys strategy, valuesand culture;

Helping to deliver sustainable returns to investors; Addressing customer and consumer needs, andinforming and educating people about the impactsof their purchasing practices;

Identifying and responding to emerging societaltrends, and exploring the opportunities to deliverproducts in collaboration with the communitiesin which the company operates;

Responding to governmental and regulatory expectations, and influencing the public policyagenda.

You will have your own priorities in contributing to your marketing plan issues that reflect the particularobjectives and working practices of your company,and other aspects of its competitive and regulatory environment.

But to help you get started, the table opposite highlightssome introductory themes under each element of thetraditionalmarketing mix: product, price, place andpromotion.

How can the challenges, comments and case studies outlined in this briefing help to inform the development andimplementation of a robust marketing plan an approach that reflects commercial realities, not to mention thepractical challenge of being understood and accepted by people throughout the company?


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Customers

Are customers interestedin sustainabledevelopment?

What issues(or relationships) willattract customers?

How much willcustomers be willingto pay?

How much willcustomers be willingto pay?

Will customers purchasevia new channels?

What are the particularservice needs in poorercommunities?

Do you understandcustomer expectationsof your marketing?

Are customers interestedin sustainability?

Do customers respond tosocial and environmentalaccreditation?

Communities andGovernment

What are the keysustainable developmentissues?

Are you talking to all theright people?

Are communities readyand able to partner?

What social orenvironmentalcontribution will result?

What are the mostsignificant environmentalimpacts?

Are you talking to theright people?

Are your products athigh risk of mediacriticism?



Company

Are technical expertsconnected to the companyssustainability knowledge?

Do you have the skills andprocesses to conduct a life

cycle analysis of your products?

Are the necessary skills inplace to engage, and is thecompany a credible partner?

What savings can beachieved?

Are accounting systems inplace to measure wider andlonger-term costs?

Has a business model beendeveloped for serving poorercommunities?

Are monitoring andcertification systems inplace?

Are your communicationsagencies aware of yoursustainability commitments?

Are control procedures inplace to assess product risk?

Investors andShareholders

How big is the market?

What is the expected impacton margins?

How long can a premium bemaintained?

What is the expected impacton operating profits?

What are the set-up costsand longer-term savingsfrom new channels?

What is the investmentrequired and the expectedreturn?

How big is the market?

What are the financialimplications of reputationaldamage?

What are the financialimplications of reputationaldamage?

What are the financialimplications of productwithdrawal?

ProductEnsuring new product development processes areinformed by the companys sustainable developmentobjectives.

Understanding the nature of customer interest insustainability issues, and the potential market forsustainability-focused products and services.

Understanding the social and environmental impacts ofyour products throughout their life-cycle.

Identifying opportunities to generate products inpartnership with not-for-profit organisations orgovernment agencies.

PriceExploring the opportunity to link a proportion of yourproducts prices to a relevant social or environmentalcause (i.e. a cause-related marketing approach).

Identifying opportunities to increase margins and/orimprove price competitiveness through environmentalefficiencies.

Identifying any price premium that can be capturedthrough the sustainability attributes of your products.

Factoring the full social and environmental costs ofyour products into the price.

PlaceAttracting customers through new distributionchannels (e.g. Internet), which minimise social andenvironmental impacts.

Identifying markets in which your products willpromote social inclusion and economic regeneration.

PromotionWorking closely with a variety of stakeholders tounderstand the perceptions and expectations of yourbusiness across society.

Emphasising the sustainability attributes of yourproducts in promotions.

Examining the strength of existing claims regarding thesocial and environmental attributes of your products.

Ensuring marketing materials are in line with the socialand environmental performance of your company.

Developing adequate control procedures to identify andinform consumers of possible product risks.


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As the language of sustainable development enters the businessmainstream, the responsibility for managing social and environmentalissues is slowly shifting from the corporate fringe to an importantbusiness function.

Sustainable development specialists (and those with equivalent positionsor responsibilities) are no longer just responsible for the managementof philanthropic initiatives, community engagement programmes orenvironmental impact assessments.

Instead, in leading companies, these managers are expected to act asagents of change: to develop the structures, systems, ways of workingand personal values that will support the organisations sustainabledevelopment objectives; and to encourage others in the company to

act as enthusiastic agents of change.

This functional briefing (and others in the series) clearly doesnt providea complete solution this is the first step in developing a comprehensivebusiness case for functional specialists. However, the briefings do providea series of questions with which to trigger conversations across yourcompany and influence its future direction.

Guidance for the sustainabledevelopment manager

How the brief was preparedThis briefing was developed to provide both supporting materials for BEPsSenior ExecutivesSeminars and as part of WBCSDs Capacity Buildingprogramme, which provides tools and training to help companiesimplement sustainable development initiatives across their operations.

The functions chosen for this briefing were selected by sustainabledevelopment managers themselves identified as the critical enablers andblockers of change at a workshop held by CPI.

The briefing was developed through a range of interviews, cross-industry workshops and research, including an Ashridge report prepared for the WBCSDs Accountability and Reporting programme. The briefing wasreviewed by individual company members of WBCSD, partners of CPI,and alumni and core faculty of BEP.

We would like to thank everyone who contributed their ideas and comments,and in particular those who shared their experience in the consultationsessions and interviews. If you are interested in hearing more about theseleading companies and how they are moving sustainable development intothe mainstream, please contact CPI, WBCSD, or the following members of the

WBCSD Capacity Building programme.

Karin Ireton: [email protected]

Dawn Rittenhouse: [email protected]

David Russell: [email protected]

Mark Wade: [email protected]

The briefing is released in the names of BEP, CPI and WBCSD.Although thebriefing builds on the experience of each organisation, the views expressed donot necessarily reflect those of every member company, partner or associate.

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Using the briefingFrom discussion with our networks and members, weexpect the briefing to be used in a number of ways and we look forward to hearing about your experience:

As a tool to raise awareness and deepenunderstanding of sustainable developmentissues in the marketing function. The briefingcan be distributed directly to functional managersas a stand-alone awareness-raising tool.

As a resource to build bridges betweensustainable development specialists and themarketing function. The briefing can provide thebasis of a dialogue with the marketing function todiscuss issues and opportunities for the promotionof sustainable development.

As a source for company training materials.The briefing can provide the supporting informationor evidence for bespoke company training materials.(Reasonable reproduction of material included inthe briefing is accepted by all parties, but the sourcedocument should be referenced in all cases.)

As a component of staff developmentprogrammes. The briefing can be used aspreparatory or take-away reading material for staff development programmes on sustainable developmentin the marketing function. Alternatively, specificelements of the briefing can be used as a sourcefor parts of your development programmes.

As a resource for strategy planning. The briefing can be used by business leaders (with or without

the direct support of sustainable developmentprofessionals) to inform the strategic developmentprocess within the marketing function.

A range of other materials can be used alongside thefunctional briefing.The diagram below highlights just afew of the learning materials and programmes availablefrom BEP, CPI, WBCSD and elsewhere, which can helpat each stage of the process of organisational change.

The diagram also indicates some of the companies with emerging experience in the implementation ofsustainable development programmes.

Sustainable development resources

Embeddingsustainable

development inthe organisation

Deepening knowledgeand understanding of

sustainable development

Raising awarene ss and interest insustainable development

Company and professional experienceAlcan, Alcoa, Anglo American, Ashridge, Caterpillar, CIPD, Dupont, EDF, ERM, DTT, Finnforest

Corporation, Heidrick and Struggles, Heineken International, Hoffman La Roche, IMD,Interface, KPMG, Norsk Hydro, Novo Nordisk, Shell, Sony, STMicroelectronics, Stora Enso Oyj,

SC Johnson, Severn Trent, Statoil, Swiss Re, Syngenta, Vodacom.

Management systems Global Compact

www.unglobalcompact.org Global Reporting Initiative

www.globalreporting.org SIGMA guidelines

www.projectsigma.com Greenhouse Gas Protocol

www.ghgprotocol.org

The business case Walking the Talk

www.wbcsd.org Conversations with Disbelievers

www.conversations-with-disbelievers.net WBCSD case study library

www.wbcsd.org/web/casestudy.htm Sustainability through the market

www.wbcsd.org

The facts and figures Background Briefings

www.cpi.cam.ac.uk/bep Tomorrows Markets

www.wri.org

Bespoke/specialist programmes WBCSD sector projects e.g.

mining,forestry,cementwww.wbcsd.org

Postgraduate Certificate inCross-sector Partnershipwww.cpi.cam.ac.uk/pccp

CPI customised leadershipprogrammes, learningevaluations and learninglaboratorieswww.cpi.cam.ac.uk

Learning networks Advanced Diploma in

Sustainable Businesswww.cpi.cam.ac.uk/slns

BEPs Senior Executives Seminarswww.cpi.cam.ac.uk/bep

WBCSD Capacity Buildingprogramme e.g. learning bysharing and young managers teamwww.wbcsd.org

Getting started Chronos

www.sdchronos.org Functional Briefings

www.wbcsd.org www.cpi.cam.ac.uk

WBCSD Learning moduleswww.wbcsd.org

Chronos, the e-learningtutorial from CPI andthe WBCSD makessustainable developmentrelevant and meaningfulto the everyday work ofemployees by equippingthem with the competenceand knowledge they needto deliver on corporatepriorities

The University of CambridgesAdvanced Diploma inSustainable Business is apractical business programmethat focuses on implementingthe principles of sustainabledevelopment in ways thatallow companies to remaininnovative and competitivewhilst moving their

organisations towards sociallyresponsible business practices

A series of BackgroundBriefings from HRH ThePrince of Waless Business& the EnvironmentProgramme (BEP) providesessential data on the statusand trends for the globalstocks of natural, human,social, manufactured andfinancial capital, and theresponse to date frombusiness, governmentand civil society.

Walking the Talk: TheBusiness Case for SustainableDevelopment includes casestudies and personalinterviews with leadingindustrialists; it makes thecase that the solving ofenvironmental and socialproblems is essential forfuture growth.

Learning programmesTools and materials


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HRH The Prince of Waless Business

& the Environment Programme

HRH The Prince of Waless Business & theEnvironment Programme (BEP), which is runby the University of Cambridge Programmefor Industry, was established in 1994 byHRH The Prince of Wales.

The Programme helps senior executivesexplore the business case for sustainabledevelopment and integrate sustainabilityprinciples into their organisations. Businessleaders and representatives from the publicsector and NGOs participate in one of theSeminars held each year in Cambridge,New York, Salzburg and Cape Town.

The Programme has introduced over 1,000executives from over 400 organisations inmore than 30 countries to the sustainabilitydebate. They then become members ofan active and influential alumni network.

The Programme is sponsored globally by ABN Amro, BP, Cisco, Ford Motor Company,International Finance Corporation,RWE Thames Water, Shell International,Unilever and Vodafone.

Regional partners in Europe are BAA,Barclays, Enviros Group and National Grid

Transco; and in Southern Africa are Anglo American, Barloworld, Engen Petroleum,Development Bank of Southern Africa andSC Johnson.

www.cpi.cam.ac.uk/bep

The University of CambridgeProgramme for Industry

The University of Cambridge Programmefor Industry (CPI) provides leadershipdevelopment programmes and learningservices for senior individuals and majororganisations around the world. Its focus

is on developing capacity within business,governments and civil society to respondto contemporary societal challenges.

CPIs expertise lies in understanding howpeople learn and in developing learningprocesses that can change individuals andorganisations in ways that will move societytowards sustainability. Its programmes drawon world-class contributors from academic,policy and practitioner circles and its activealumni networks provide a vehicle for ongoingdebate and development. CPI collaborateswith academic and other partners and itswork is underpinned where relevant byapplied research.

The work of CPI supports the mission ofthe University of Cambridge, which is tocontribute to society through the pursuitof education, learning and research at thehighest international levels of excellence.

www.cpi.cam.ac.uk

The World Business Council for Sustainable Development

The World Business Council for SustainableDevelopment (WBCSD) is a coalition of 175international companies united by a sharedcommitment to sustainable developmentvia the three pillars of economic growth,

ecological balance and social progress.Our members are drawn from more than30 countries and 20 major industrial sectors.We also benefit from a Global Network of 50+ national and regional business councilsand partner organizations.

Our mission is to provide businessleadership as a catalyst for change towardsustainable development, and to supportthe business license to operate, innovateand grow in a world increasingly shapedby sustainable development issues

Our objectives include:

Business Leadership to be a leadingbusiness advocate on sustainabledevelopment.

Policy Development to participate in policydevelopment to create the right framework conditions for business to make an effectivecontribution towards sustainabledevelopment.

The Business Case to develop andpromote the business case for sustainabledevelopment.

Best Practice to demonstrate thebusiness contribution to sustainabledevelopment solutions and share leadingedge practices among members.

Global Outreach to contribute to asustainable future for developing nationsand nations in transition.

www.wbcsd.org

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