Marketing Management - Exam 4 Review Lecture Notes

EXAM #4 – Chapters 13 - 16 CHAPTER 13: DIGITAL MARKETING Digital Marketing: the marketing of goods or services using digital mediums, such as email, websites, search engines, & social media platforms Social Media: internet-based applications that enable users to create their own content & share it with others who access these sites Mobile Computing: technology that allows transmission of data, voice, & video via any wireless-enabled computing device, without a fixed physical connection Unique Advantages of Digital Marketing  Target market selectivity — precise targeting  Tracking — can see how users interact with brand  Deliverability — 24/7 at audience’s convenience  Flexibility — easy to update & change quickly  Research — third behind TV & radio, growing  Interactivity — engages audience  Integration — coordination with other promotion efforts  Relativity inexpensive when comparing the cost-to-reach radio The Digital Marketing Revolution  Societal implications of an always-connect consumer o Pervasiveness of social technologies today o “Never leave home without it” o Social media has impact on individuals & society Fear of Missing Out (FOMO): a feeling of isolation & concern about mission out on what is occurring in the world around someone  Digital Revolution’s Impact on Marketing Practice o Digital technology is altering customer expectations of all businesses o 3 Categories of Media Investment:  Paid Media  Owner Media  Earned Media  Digital Revolution’s impact on Marketing Practice o Brand Democratization  In the past, companies used “brand marketing” to attach a differentiating set of features to their brand in customers’ perceptions  But many expects see the value of this sort of company-controlled brand management as fading away  Coors Executive — “brands don’t belong to companies any more, they belong to the people who choose to buy them”  Thanks to social media, the process of defining, building, communicating & maintaining a brand is a collaborative one — customers share experiences with each other  More competitors + more channels = more noise o Digital communication has lowered the barriers to market entry in many sectors  Enabling many smaller, more nimble competitors to compete head-to-head with established brands o Fragmentation of media means more channels with smaller audiences, more difficult to reach mass audience o Marketers must produce messages relevant to each consumer, which means marketers must:  Understand your customers & providing them with content that is valuable — that is useful, informative, engaging, & entertaining  Make content visible in places where customers spend their time MAR 3023 | 1 EXAM #4 – Chapters 13 - 16  Make sure that the message is delivered or accessible to the customer at the point when the consumer most needs it to make a purchase decision Website Design: Establishing an Online Brand Presence Planning — understand customers’ online motivations in order to establish objectives that reflect customer goals o To learn — for self-education, for research, to keep informed o To have fun — to pass the time, be entertained, to escape o To socialize — to connect, to share, to discuss, to be part of a community o To express oneself — to share opinions, to entertain, to emote, to be creative o To advocate — to influence others, to actively support, to join a cause o To do business — to work, to manage finance, to sell o To shop — to compare, to purchase  Choosing a domain name o Making a memorable first impressions starts with the choice of good domain name (URL) o Should make site stand out in a positive way o Helps if brand name & domain name are the the same o Shorter is always better — easier to find & remember o Avoid hyphens, underscores, other symbols o Research competitors’ domain names  Identifying a hosting service for the website o A domain name is like the name of a brick-&-mortar store; getting a web hosting account is like renting the store space in the mall to run the business o Free hosting services  Most free hosting services make money by selling ads on client pages — ex requiring firm to place a banner on page  Free services often have limits on web space & size/type of files that can be uploaded o Paid hosting services  Typically offered in pricing tiers — greater speed, reliability, control, features, support come with higher-prices tiers Design Wireframe: a visual guide that represents the skeletal framework of a website o Usually lacks typography, color or graphics o Main purpose of wire framing lies in blueprinting the functionality, behavior & priority of content o Useful for determining how user interacts with site  Color is closely associated with emotional states  Typography includes fonts & spacing between letters & lines  Images can influence viewer perceptions Development  The point at which the functional site is created  A content management system (CMS) is used to manage the website (ex: WordPress - used on more than half the world’s websites, free/open source)  Common Pages: o Home Page — the landing page for the website; can either be a static page that explains a little about a person or organization or a dynamic page that updates with each new blog post o About Page — presents information about the company, management, or individuals as well as any other information that should matter to visitors Testing & Launch  Once site is created, it is important to test how well the pages load & display o Does it work as intended? Does it work in all browsers?  Mobile Testing: MAR 3023 | 2 EXAM #4 – Chapters 13 - 16 o Google released service that tests website’s mobile-friendliness & page speed for desktop all in one place Website Usability: the ease with which website visitors can achieve their objectives for visiting the site  Learnability — the capability of a product to enable the user to learn how to use it – complex designs can deter users  Efficiency — the capability of the website that allows visitors to be able to do what they are supposed to do or what they came to do quickly – long page loading times & too many pages on the path through the website can diminish efficiency  Memorability — allows users to be able to navigate & use the website quickly & easily each time they visit – avoiding drastic changes often ensures this  Errors — minimal possible errors on the website, & making sure users know how to recover if they do make an error  Satisfaction — a website that is pleasant to use that is focused on the visitors themselves Search Marketing: Increasing Online Brand Visibility  First Moment of Truth (FOMO) — 3-7 seconds after a shopper first encounters a product on a store shelf – marketers have the best change of converting a browser into a buyer by appealing to their senses, values & emotions during those 7 seconds  Second Moment of Truth (SMOT) — occurs after the customer has bought the product & started using it, further converting the customer to re-purchase that brand or product later down the road Zero Moment of Truth (ZMOT): the moment when a customer uses a digital device to begin learning about a potential purchase Search Engine Optimization (SEO): adjusting or rewriting website content & site architecture to achieve a higher ranking in search engine results pages to enhance PPC listings Search Engine Marketing (SEM): the process of generating website traffic by purchasing advertisements on search engines  93% of online experiences begin with a search engine Search Marketing: a marketing practice with a goal of generating traffic from search engines through both paid & unpaid efforts; includes SEO & SEM Search Engine: a software system designed to search for information on the internet  SEO focuses on increasing traffic through "organic", unpaid search  SEM focuses on increasing traffic through paid listings Paid Listing: purchased links that typically appear either at the very top of upper right of a search-results page  How does online search work? o Search engines like Google, Yahoo, Bing will build an index of all web content using automated software programs called webcrawlers or spiders o When a user makes a query, the search engine then provides a list of websites ranked by relevance or usefulness to the user's search terms  Paid Search Results  Google sponsored links  Organic Search Results  Most google search results Social Media Marketing Social Media Marketing: marketing practices that uses combinations of digital tools such as websites, online videos, email, blogs, social media, mobile ads, mobile apps, & other digital platforms  Uses digital tools & other digital platforms to engage consumers anywhere  More organizations using this resource to -- increase brand visibility, grow customer engagement, promote B2C & C2C conversations, provide context, activate customer advocacy, &/or listen to the voice of the customer Engage Consumers through Social Media MAR 3023 | 3 EXAM #4 – Chapters 13 - 16  Consumers now expect brands to establish & maintain a strong social media presence (3-4 social channels) Move Customers through #CallToAction Call to Action (CTA): an image or line of text that prompts visitors, leads, & customers to perform a desired action  CTAs are not new to marketing, but incorporating a CTA in digital content is relatively new  Helps increase interactive nature of the experience Conversion Rates: the percentage of visitors who take a desired action Use Social Media to Improve Brand Loyalty & Customer Advocacy  Integrate social media into loyalty rewards programs  Doing so improves loyalty-program experience & thus improves program participation & brand advocacy Content Marketing Content Marketing: creating & distributing valuable, relevant & consistent content to attract & retain a clearly defined & profitable audience  If businesses deliver valuable information to customers, customers reward them with sales/loyalty  Content underlies the success of digital marketing -- it is the fuel that powers the digital marketing engine o Search engines reward businesses that consistenly publish quality content with better SEO results o Great content improves reputation, drives lead/sales Content Marketing Techniques Blog: an online journal in which people to companies post their thoughts & other content White Paper: a concise yet authoritative report or guide that seeks to inform readers about a complex issue & presents the issuing body's philosophy on the matter Email Marketing: highly-targeted, personalized, relationship-building email messages Video Marketing: the posting of digital video content on brand website or social media sites such as Youtube, Facebook, etc. Content Marketing Sources Expert Content: credible, 3rd-party articles & reviews from unbiased journalists; also called earned media User-Generated Content: content created by a brand's fans & followers Branded Content: any content developed & owned by a brand Trends in Content Marketing  Infographics - Life Streaming - Emoji - "Streisand Effect" Location-Based Marketing: the use of GPS data transmitted from a mobile device to adapt content, messaging, or service delivery to a target's location Location-Based Service: a social, entertainment, or information service that allows a company to reach & engage with its audience using tools & platforms that capture the geographic location of the audience Geo-Fencing: a location-based technology that uses small sensors to send messages to smartphone users who enter a nearby, defined geographic area Branded Entertainment Branded Entertainment: an entertainment-based vehicle that is funded by & complementary to a brand's marketing strategy, giving the brand an opportunity to connect with its audience in a unique, engaging way o Brand is embedded into content  Branded vs. Product Placement o Branded content wouldn’t exist without the brand  Soup Operas  VS Show  Jose’ Cuervo’s Margarita Pour-Off  Hottest mom in America  Wrinkle-cream Advert MAR 3023 | 4 EXAM #4 – Chapters 13 - 16  BMW’s “High Road” Social Media & Monitoring Social Listening & Customer Service Social Media Monitoring: see social listing Social Listening: the process of identifying & assessing what is being said about a company, individual, product, or brand on the internet (social media monitoring)  Key is to respond before complaints damage online reputations, allows firm to solve problem quicker  Successful responses drive loyalty  Allows firms to differentiate their brands based on their customer service  Service is the new marketing Social Media Marketing Metrics  # of Mentions -- most common to measure  Engagement is one of the most important areas to measure in social media  Reach measures total audience size Sentiment Analysis (Opinion Mining): analyzing feelings (attitudes, emotions, opinions) behind words using natural language processing tools  Share of voice is often used by firms to make comparisons between brands  Social Media Marketing Dashboards -- provides data visualizations that illustrate performance over time  Positive ROI is ultimate criteria Digital Advertising Digital Advertising: marketing media that is digitally displayed  Forms o Static – low-time commitment & easy to control ads, but only provide one-time deals & one-way communication  Includes: website pages, social media profiles, eBooks, whitepapers, banner ads, one-way webinars o Animated – exhibits high conversion rates, increased loyalty, & improved search visibility, however may be more expensive & requires change often  Includes: blogs, RSS feeds, social media feeds, native advertising, & emails  Multiple Sizes  “Take Over” page content  Traditional Display Ads o Standard internet advertising bureau sizes  Banners o Low click-through rates o Brand reinforcement  Skyscrapers — “vertical banners”  Pop-Ups  Interstitials — runs before or between every page  Lead Capture — giving deals/information in exchange for information  Synchronized Banners — animating banners & other ads o Synergy between the two on the same page Interactive Advertising Buerau (IAB)  Nonprofit Trade Organization founded in 1996  International membership from media, marketing, agencies  Develops industry standards, conducts research, offers education, provides legal & lobbying support for online advertising industry MAR 3023 | 5 EXAM #4 – Chapters 13 - 16 CHAPTER 14: CUSTOMER RELATIONSHIP MANAGEMENT What is Customer Service? Customer Service: all of the activities a firm engages in to satisfy the needs & wants of its customers  Human Methods —  Mechanical Methods — ATM, Self-Checkout Kiosks, Placing Order on a Web Page o Referred to as “Self Service Technologies” (SST) What is Service? Old View  “Service a technical after-sale function that is provided by the service department”  OR “service is the tasks completed by low-wage, non-professional employees, delivered in industries where the real “product” being sold was the manufactured good” What is Service? New View  Services includes every interaction between any customer & anyone (or thing) representing the company, including: dealers, salespeople, receptionists, schedulers, management & executives; “touchpoints” o Zane’s Cycle Shop Product Vs. Good Vs. Service  “Products” = “Goods” & “Services” o “Products” exist on a continuum from “pure” goods to “pure” services, with many products in-between that are a mix of both goods & services o Product Continuum — o Tangibility Continuum — Why Do Services Matter?  Services dominate U.S. world economies  Services are growing dramatically  Customer satisfaction & loyalty are driven by service excellence  Services can provide high profit margins & growth potential  Services can be used as a differentiation strategy in competitive markets, even by manufacturing firms Percent of U.S. by Industry The Growth of the Service Economy  Agricultural employment has fallen to 2% of all jobs  People use to be good at making things, but fewer people involved  Instead, people are providing services Percent of U.S. GDP by Industry Percent of U.S. Labor Force by Industry EX — Automotive Industry  Perceived as goods manufacturing industry o After-sales services & parts = 80% of all revenue opportunities, & > 50% of the average dealer’s profits  Largest creator of shareholder value for auto manufacturers on a percentage basis  JD Power & Associates study — strong correlation between customer satisfaction with after-sale services & customer intent to repurchase the same brand; ie. Lexus  Hyundai’s success is due largely to its differentiation strategy of offering “10/100000 miles” guarantee EX — Personal Computer Industry  Personal computers are now becoming more & more of a commodity  20% of revenue are in the initial sale, most revenue opportunities are from after-sale services & add-ons  Company responsiveness to customer service calls are the single biggest driver of customer satisfaction when its product o IBM Corporation MAR 3023 | 6 EXAM #4 – Chapters 13 - 16 Establishing Customer Service Policies Timeliness: the ability of a company to deliver a good or service by the time a customer expects to have it available for sale or consumption Order Cycle: time elapsed between a customer places an order until the product is delivered Reliability: the company’s ability to deliver what was ordered, when it was expected, without problems Customer Communication: two-way communication flow between customer & a company Ease of Doing Business: amount of effort required of customer to do business with the firm Role of Social Media in Customer Service  Marketers use social media to inform customers, provide assistance & gather feedback  Customers expect help immediately, at any time of day, on any day of the week, around the world Social Media Platforms: web-based technologies that enable a company to build & manage social media solutions & services  Include — Facebook, Google+, Twitter, LinkedIn  Companies also can monitor sites for info  Not-for-Profits also rely on social media  Can be a cost-effective tool for smaller marketing budgets  Tracking Performance through Customer Service Fill Rate: a metric that measures the percentage of an order shipped on time & complete Item Fill Rate: a metric that measures the percentage of the total number of items on the order that the firm shipped on time Dollar Fill Rate: a metric that measures the value of goods shipped on time versus the total value of the order Line Fill Rate: a metric that measures the percentage of items (SKUs) on the order shipped on time & complete Perfect Order Rate: a metric that measures how many orders have been filled, delivered, & billed without error On-time Delivery: a metric that measures how many shipments are delivered per the requested delivery date Order Cycle Time: a metric that measures the length of the order cycle, or the ability of the order system to react to customer orders Customer Communication Metrics: measurements of a firm's effectiveness in communication with customers at the pre-transaction, transaction, & post-transaction points Responsiveness: a metric that measures the firm's ability & willingness to provide fast service, answer customer inquiries, & resolve problems o Post-Incident Surveys — measure failure/recovery experience o Customer Service website experience o Relationship Surveys — strength of relationship with firm o Customer Loyalty — repeat buying as evidence of satisfaction o Hold Time — amount of time customer has to wait to talk to or receive a response back from a CSR o Abandonment Rates — percentage of customer who hang up the phone or stop an email/text conversation before reaching CSR Marketing Concept: a marketing strategy that reflects the idea that a firm's long-term success must include a company-wide effort to satisfy customer needs & wants Gaining & Keeping Loyal Customers  The ultimate goal of achieving customer satisfaction is to promote brand loyalty, which will drive long-term profitability Satisfaction: a state that is achieved when companies meet the needs & expectations customers have for their goods or services  Limitations on Customer Satisfaction o Satisfaction depends on customer perceptions  If a gap exists between what firm delivers & what customer wants, other companies can exploit it o Satisfaction doesn’t always correlate with purchase MAR 3023 | 7 EXAM #4 – Chapters 13 - 16 o Each customer’s needs & wants must be treated separately from those of other customers “One size fits all” doesn’t work if needs vary widely Focus of the future has to be on “one-to-one” marketing, not mass marketing — personalized communication, customized product offerings Collaborative Filtering: a mechanism that filters large amount of information about many consumers' previous purchases that may be related in some way in order to predict consumer preferences Geo-fencing: a technique that uses GPS to build a virtual fence around a location, such as a store, & send individually targeted advertisements to a customer while he or she is in the location Improving Customer Relationships Relationship Marketing: a strategy that focuses on attracting, maintaining, & enhancing customer relationships, thus building brand loyalty  RM must establish customer value  RM must deliver customer value o By meeting or exceeding customer expectations Clientelling: a method of personalizing service by tailoring product information for individual customers, in order to provide an exception & personalized shopping experience Empowering Service Employees Empowerment: giving employees permission to make decisions & take action to help customers  Not just “permission”, also requires providing employees with resources, guidelines, training o EX — the Ritz Carlton Service Failure Recovery  Apologize & ask customer to forgive  Review complaint with customer  Fix problem & check with customer on satisfaction level  Document problem & find root cause o Complaining customers give managers — o Complaining customers are giving managers — o Complaining customers — Customer Relationship Management  Companies empower their employees by making customer relationship management (CRM) a large part of their marketing strategy Customer Relationship Management: the process by which companies get new customers, keep the customers they already have, & grow the business by increasing their share of customers' purchases Touch point: any point at which a customer & the company come into contact  Objectives are CRM o Track consumer behavior over time o Capture data to identify profitable customers o Interact with customers to learn needs & wants o Use information to tailor goods or services  To analyze stored data, CRM uses data mining Data Mining: a process that involves the computerized search for meaningful trends in a large amount of data Customer Segmentation Analysis: A method of analyzing data that created customer profiles & categorizes them Recency-Frequency-Monetary (RFM) Analysis: a method of analyzing data that categorizes customers by their buying patterns Lifetime Value Analysis (LTV): a comparison of the costs of retaining customers & the costs of acquiring new customers with the goal of determining how much money each type of customer requires   MAR 3023 | 8 EXAM #4 – Chapters 13 - 16 Predictive Modeling: analysis that uses sophisticated algorithms based on patterns of previous buying behavior to try to determine the future actions of customers  CRM leverages customer information o To tailor customer promotions to individuals or segments to encourage new or re-purchase o To combat buyer’s remorse (“cognitive dissonance”) by congratulating buyer, answering questions, reinforcing best aspects of purchase o To improve B2B relationships  Cross-sell products  Track customer service complaints  Tailor promotional programs Security & Ethical Issues in Customer Relationship Management  Privacy issues are becoming more acute o Companies are collecting & keeping more data & more personal data about customers o Risk of misusing, selling, or losing control of data  CRM systems must have robust firewalls to protect customer privacy  Laws have been put in place to protect private information of citizens; health, financial, contact  Firms must exhibit constant vigilance o Train employees, monitor & enforce policies “In the long run, customer service is not just about handling customer questions or product returns. More broadly, it is about gaining the trust of customers & building relationships with them, so that they will continue to do business with your company” — p.490 Determining the Effectiveness of Customer Relationship Management Share of Customer: a measure of the quantity of purchase dollars each customer spends on the company's products Customer Equity: a ratio that compares the financial investments a company puts into gaining & keeping customers to the financial return on those investments Customer Focus: a measure of the extent to which a company puts effort into servicing its customers' needs, based on an understanding of each customer's profitability Lifetime Value: the net present value of a customer's business over the span of their relationship with an organization CHAPTER 15: BRANDING Branding Brand: name, term, symbol, design, or any combination of these that identifies & differentiates a firm's products Brand Loyalty: when a consumer displays a steadfast allegiance to a brand by repeatedly purchasing it Brand Recognition: the degree to which customers can identify the brand under a variety of circumstances Brand Marks: the elements of a brand not expressed in words that a consumer instantly recognizes, such as a symbol, color, or design Brand Image (Recognizability)  What is your personal brand? Protective Techniques  Word association (Proctor & Gamble experiment)  Sentence completion  Story completion  Picture/Cartoon Responses  Role Playing  Third-Person techniques Developing Your Personal Brand Brand Image: the unique set of associations target customers or stakeholders make with a brand Components of a Successful Brand MAR 3023 | 9 EXAM #4 – Chapters 13 - 16     Deliver a product that provides value Create a consistent brand image Create consistent brand messaging Capture feedback Brand Equity Brand Equity: the value the firm devices from consumer's positive perception of its products Benefits of Brand Equity  Increases firm's ability to succeed in a difficult competitive environment  Facilitates a brand's expansion into new markets  Contributes to positive perceptions of product quality Measuring Brand Equity  Qualitative Methods o Free Association -o Projective Techniques - Quantitative Methods o Brand Recognition o Brand Recall Customer Lifetime Value (CLV): the total amount a customer will spend from acquisition through the end of a relationship with a brand Brand Strategies Brand Extension: the process of broadening the use of an organization's current brand to include new products  Meet customer expectations  Avoid cannibalization Cannibalization: when new products take sales away from the firm's existing products rather than generating additional revenues or profits through new sales Brand Revitalization: also called rebranding -- a strategy to recapture lost sources of brand equity & identify & establish new sources of brand equity Co-Branding: a strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company's brand Private-Label Brands: also called store brands -- products developed by a retailer & sold only by that specific retailer like Great Value by Walmart Manufacturer Brands: brands that are managed & owned by the manufacturer rather than a reseller Packaging Packaging: all of the activities of designing & producing the container for a product  Used to promote & reinforce brand image Packaging — the last 5 seconds of marketing  “The first moment of truth”  2/3rds of supermarket decisions involve in-store decisions o Needs to have strong visual statements o To “jump out” at the customer  Brand reminders (important) information  Packages can give impression of higher quality (perfume bottles) What is Personal Branding? Personal Branding: The practice of people marketing themselves & their careers as brands. While previous self-help management techniques were about self-improvement, the personal branding concept suggests instead that success comes from self-packaging  Attire, grooming, posture, body language  How you package & present your ideas, thoughts, accomplishments, & unique value o Resume, emails, written communication, through your online presence, & in your portfolio MAR 3023 | 10 EXAM #4 – Chapters 13 - 16 The Role of Social Media in Branding Customer Engagement through Social Media  Consumers seeking discounts, brand advocates, & sharing brand information Klout Score: a measure, on a scale of 1 to 100, of a user’s influence based on his or her ability to drive other people to act on social media sites  Branding through customer service Social Media Branding Goals  Allows firm to develop deeper relationships with customers  Generates positive word-of-mouth communication across social networks Monitoring a Social Brand  Google alerts, social mention, twitter search, talkwalker Global Branding Global Brand: a brand marketed under the same name in multiple countries  The global strength of U.S. brands o All U.S. companies benefit from U.S. technology companies o Consumers in developing countries desire American-sounding brand names  Adapting brands to the global market o Finding balance between being global & being local o Appeal to local culture through packaging o Common U.S. mistake is grouping nations Branding for Nonprofit Organizations  Complexity of goals & audience to be addressed makes branding even more critical o Must be unique o Pleasing to the eye & ear o Easy to remember o Reflective of organization’s work  Nonprofit brand equity — brand image must match its mission; strong brand aids fundraising  Just as important for nonprofits to measure & work to improve brand equity CHAPTER 16: SOCIAL RESPONSIBILITY & SUSTAINABILITY Old View  Almost half a century ago, Nobel Laureate economist Milton Friedman said: “the social responsibility of business is to increase its profits”  This view has summarized the mission of private enterprise in America ever since Now, A New View?  Larry Fink — CEO of BlackRock  Offering a “new model of shareholder engagement”  “Society is demanding that companies, both public & private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society” Corporate Social Responsibility  Firms balance profitability & social well-being when determining success Corporate Social Responsibility (CSR): an organization’s obligation to maximize its positive impact & minimize its negative impact on society  It’s good business — consumers buy from firms that value & support the same causes that they do, so it can drive sales  It can serve as a point of competitive differentiation  It improves employee recruitment & retention  It offers positive publicity & builds positive brand image MAR 3023 | 11 EXAM #4 – Chapters 13 - 16  It can be cost effective in the long run if done right Stakeholder Responsibility: the obligations a firm has to those who can affect the achievement of its objectives  Economic — to be profitable, for employees, investors, community  Legal — to understand/obey laws & regulations in areas where firm does business (local, state, national, international)  Ethical — to follow the moral standards expected by society  Philanthropic — to give back to the communities in which the firm does business Corporate Philanthropy: the act of organizations voluntarily donating some of their profits/resources to charitable causes  Developing a successful CSR program o Good stakeholder management, corporate leadership o Integration of CSR into corporate policy at all levels  Toyota’s Corporate Social Responsibility Statement  Analytics for auditing a CSR program o Include all significant stakeholder groups in the auditing process o Use both quantitative & qualitative measurements  ROI, employee turnover, brand image, customer awareness, customer perceptions  Volunteerism Corporate Volunteerism: the policy or practice of employees volunteering their time/talents for charitable, educational, or other worthwhile activities, especially in the community Sustainable Marketing Sustainability: a commitment to adopting a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs Sustainable Marketing: the process of creating, communicating, & delivering value to customers in a way that recognizes & incorporates the concept of sustainability What is a “sustainability vision”?  When a sustainability efforts are central to an organizations’ vision/mission o Drives innovation within the organization o Engages employees & other stakeholders o How the world is enriched or diminished by the firm’s good/services Marketers must communicate this vision  Articulate it in a sustainability vision statement Sustainability Vision Statement:  Patagonia, Starbucks, Chevron, FAU Consumerism: a movement made up of citizens & government entities focused on protecting consumers & promoting their interests  Anti-consumption campaigns as resistance to commodity culture & corporate brands  Campaigns to convince consumers to avoid purchasing items that are inconsistent with sustainability o Anti-Fur Campaign, Beat the Microbead, Improving Working Conditions in the Garmnet Industry, AntiBlack Friday Five barriers to encouraging sustainable consumer behavior  Lack of consumer awareness & knowledge about how to reduce the social/environmental impact of their purchasing behavior  Negative quality perceptions of sustainable products  District of sustainability claims from companies  Perception that sustainable products are always higher priced  Low availability of sustainable choices in small communities or developing parts of the world Environmental Marketing MAR 3023 | 12 EXAM #4 – Chapters 13 - 16 Green Market: a group of sustainability oriented customers & the businesses that serve them Environmentalism: a movement of citizens, government agencies, & the business community that advocates the preservation, restoration, & improvement of the environment Environmental Marketing Strategies Tactical Greening: a type of environmental marketing activity that involves implementing limited change within a single area of the organization Quasi-Strategic Greening: a type of environmental marketing activity that involves substantive changes in marketing actions as well as broad-based coordination among non-marketing activities Strategic Greening: a type of environmental marketing activity that integrates & coordinates all of the firm’s activities … Strategy 1: Eco-Efficiency — to seek to reduce costs & environmental impact Strategy 2: Beyond-Compliance Leadership — focus on communicating company’s attempts to adopt environmentallyfriendly practices Strategy 3: Eco-Branding — to create a credible green brand Strategy 4: Environmental Cost Leadership — firms seek a price premium Strategy 5: Sustainable Value Innovation — to re-shape industry through creation of differential value for consumer Benefits of Environmental Marketing  Favorable public opinion & loyal customers Environmental Regulations: the laws designated to protect the natural environment against undue harm by individuals & organizations  Laws to protect the natural environment  Provide marketers with opportunities Global Environmentalism & Sustainability Global challenges & opportunities  Political barriers o Ban on incandescent light bulbs Rationalizing global sustainability  U.S. economies  EU citizenship, corporate accountability, moral commitment Impact of Social Media on Corporate Social Responsibility CSR if about communication  A change from reactive to proactive approach Social Media-based corporate social response initiatives  IBM’s SmartPlanet, GE’s Ecomagination Challenge, Target-Search Institute Partnership for Play Learning Social Media & global sustainability Sustainable Tourism: the practice of recreational traveling in a way that maximizes the social & economic benefits to the local community & minimizes the negative impact on cultural heritage & the environment MAR 3023 | 13