MKTG 189 FINAL

1. Describe the concept and stages of the product life cycle from cradle to grave. Why is it a valuable tool for addressing the new rules of green marketing.

-Cradle to Cradle: an approach that seeks to create production techniques that are not just efficient, but also are essentially waste free. All material inputs and outputs are seen either as technical or biological nutrients. technical can be recycled or reused and biological can be composted or consumed. -Cradle to Grave: Refers to a company taking responsibility for the disposal of goods it has produced, but not necessarily putting products constituent components back into service. When a firm's perspective focuses on the environmental impact created by their products or activities from the beginning of its life cycle to its end or disposal. from extraction to transportation to manufacturing to distribution to use to reuse to disposal. The new rules of green marketing: conventional is out, sustainability mktg is in, and new strategies take a holistic view. With this change comes the new green marketing paradigm: consumers: people with lives. products: regionally tailored, locally sourced, can be services, and cradle to cradle. Marketing: focuses on values, educating and empowering consumers, creating brand communities, and word of mouth marketing. Corporate: need to be transparent, proactive, and allied with stakeholders and consumers. What this means is that companies who take a cradle to grave perspective/approach can appeal to these new rules of green marketing solely by making their operations and business more transparent.

1. For sustainability marketers, explain the different channels through which consumers can gain access to products and services.

1- Convenience in purchase: -accessibility in distribution -distribution chain impacts -availability in distribution -conv through packaging -conv through augmented benefits (choice editing, credit, more info) -delivering sut and conv in purchase 2- Convenience in use: -determined by attributes -time use (can it save consumers time) 3- Convenience in post-use: -product disposal in very important 4- Online Convenience: -this has changed the world of marketing

1. Ottman describes five strategies for eco-innovation. Briefly explain these strategies, include one example for each strategy.

1-innovate at the system level a- Change elements of the system -changing a whole system can be a daunting task, so changing elements can be more feasible -Example : soladey brushesh (photocataclic titanium dioxide rod that reacts with light to replace toothpaste) b-dematerialize -reconcieve a product so that it requires fewer inputs to generate the same value with a smaller impact. (ereaders) c-create a new system -sometimes the most effective way to reduce eco impacts is to abandon a product system altogether and create a new better system (better world charging stations) 2-develop new materials -There are currently thousands of materials in the market for consumer, commercial, and industrial use, and new materials are constantly being developed. Each materials is for a specific use and carries its own environemtnal impact. The creation of new materials leads to sustainable development opportunities and opportunities for innovation. -CocaCola created a plant-based bottle made 30% from sugar and cornstarch, both by products of sugar production, resulting in a 25% decrease in carbon emissions as opposed to a normal plastic bottle. 3-create new technologies 4-create new business models 5-restore the environment

1. What is a sustainable brand? There are four sustainability brand development strategies. Describe them briefly and give an example.

A sustainable brand has products and services that are branded to signify to consumers a form of special added value in terms of environmental or social benefits. There are four main steps to creating a sustainable brand: 1- Creating: Sustainable pioneers are new to the market and create their own new brands. They are free to name and shape the brand according to their ideas, beliefs, mission, culture, and values. On the other hand, established companies have to either create new brands or integrate sustainability into their existing brand. 2- Naming: The brands name should suggest something about the brand's qualities and benefits. It should be easy to remember, distinct, simple, extendable to other products, easy to translate, and capable of registration and legal protection. 3- Positioning: In positioning their sustainable brand, marketers risk falling into the pitfall of the sustainability marketing myopia: focusing on the socio-ecological attributes more than the core benefits to consumers. To avoid this marketers should create products that have inherent consumer benefits (save energy and save money), or align the product's socio-ecological attributes with core benefits and buying criteria (motive alliances). (whole foods created the correlation of taste and freshness with organic and local products). 4- Developing: Lastly there are four ways to develop a sustainable brand: 1- Line Extension: A company introduces additional items in the same product category under the same sustainability brand. For example, AA a clothing company started in LA to avoid the socio-ecologic impact of textile production overseas, and now has more than just T-shirts, and just released a 100% organic cotton t-shirt line. Or Hydroflask, a company that makes reusable water bottles, released a beer growler. 2- Brand Extension: The use of a successful sustainability brand to launch a new or modified product in a new category. For example, Tesla just released their solar panels. 3- Multi-sustainability Brands: Implies that a company has two or more sust brands in the same product category. A way to establish different features and appeal to different product groups. For example, Starbucks own's seattle's best for consumers interested in craft coffee houses. Or Levi's who owns dockers to appeal to more formal wear category. 4- New Sustainability Brand: Creating a new sust brand name altogether when entering a new product category. For example, MUD jeans who created a new brand for a new category: leasing jeans.

1. Labelling is an important means of communicating with consumers about sustainable consumption. Explain the advantages and disadvantages of sustainability labels.

Advantages: 1- Sustainability labels can carry a variety of types of messages about the product, the company behind it, and the particular sustainability issue. 2- Sustainability labels can be voluntary or mandatory, and vary in the number of issues they address and the depth of info they provide. 3- They can communicate properties that consumers may want to avoid, or that may attract consumers. 4- They can provide more information to consumers for evaluating a purchase decision. 5- verification of the labels is crucial and the style of verification is important to communicate clearly. Disadvantages: 1- Sustainability Issues tend to be complicated and thus are hard to convey on a small label or short advertising slot. 2- The issues are often serious, but consumers increasingly want to be entertained, making striking a balance diffficult 3- Online channels are increasingly vital, but also increasingly hijacked, manipulated, and astroturfed. 4- Greenwashing which can take the form of -vagueness -no proof -hidden tradeoffs -irrelevance -fibbing -lesser of two evils -sin of worshiping false label

1. How do you define sustainable products and services? What are the main characteristics of sustainable products and services?

Offerings that satisfy customer needs and significantly improve the social and environmental performance along the whole lifecycle in comparison to conventional and competing offers. Six Characteristics: 1- Customer Satisfaction: If SPAS dont satisfy customer needs, they won't last in the market. 2- Dual Focus: SPAS have a dual focus on both ecological and social aspects. 3- Life Cycle Orientation: SPAS consider the whole lifecycle, from cradle to grave. 4- Significant Improvements: SPAS have to make a worthwhile contribution to tackling socio-ecological problems on a global level, or provide measurable improvements in socio-ecological product performance as indicated by a life cycle assessment. 5- Continuous Improvements: SPAS are not absolute measures but rather are dependent on the state of knowledge, the latest technologies and social aspirations, all which change over time. A product that meets consumers needs and social aspirations today may be obsolete tomorrow, thus they must constantly improve. 6- Competing Offers: a SPAS may still lag behind competing offers. Thus, the offerings of comeptitors are yardsticks for improvement opportunities with regards to customer, social, ecological, and environmental performance. Examples of SPAS include: organic food, FT labeled products, MSC labeled products, FSC labeled products.

1. Delivering sustainability and convenience in purchase- select a retailer - explain several sustainability best practices.

Something is convenient if: -appropriate in time and place -removes discomfort -well suited to one's needs Dimensions of convenience: -conv can refer to a type of good or service, a type of store, or an attribute in the customer solution. -It can be provided during all stages of the customer journey Sustainability and convenience: -the q needs to be asked, convenience is great to consumers but at what cost to social and env? -marketers can make the product convenient in use for sustainability or against it: tide pods or evs -they can make it convenient post-use: drop off duracell batteries or return kombucha bottles Starbucks does a great job of delivering convenience in a sustainable manner without harming env. -Pre-purchase: Not only does starbucks purchase responsiby produced raw materials, but also their manufactured goods and other items found in stores come from responsible production (cabinets are made from 90% recycled materials) -purchase: reduces purchasing evaluation by offering 100% responsibly produced products as a result of their CAFE program started in 2004 which helps farmers grow coffee in more responsible and sustainable ways and thus meet starbucks criteria. -they also offer convenience through not only descriptive labels, but also signs that explain what each label means. -use: as of 2015, Starbucks only offers recycleable containers and has recycled materials in all cups. They even had a program in 2013 when they offered $2 loaned reusable mugs. post-use: every starbucks has recycling cans in stores and starbucks uses the recycled paper cups to make their napkins. Additionally, the revenue generated by consumer spending goes towards charitable 3rd parties and improving the starbucks suppliers. online: starbucks has an entire portion of their website dedicated to sustainability and information on their campaigns and where your money goes when you buy certain products.

1. Explain the two price-setting approaches: value-based vs cost-based pricing and their implications for sustainable products.

Value-based pricing: a customer-driven pricing strategy in which the business looks less at the cost of production, and more at how much consumers are willing to pay for perceived values. The key to pricing is the buyer's perceptions of value, not the seller's cost. -for sustainable businesses this provides an opportunity to charge a premium for socio-ecological conscious products because niche markets will pay extra for that perceived value (emotional load=premium). - However, because it is a niche market and not a whole makret, there is a value-action gap towards sustainable products in the globla market. -sust busns need to offer inherent benefits or motive alliances to reduce this value-action gap. -sust busn need to also consider the tupes of consumers in their target market (if they are conscious (passives) then this premium strategy might not work) Cost-based pricing: is exactly what it sounds like. It occurs when a busn takes cost of production into account and adds a profit margin to determine their pricing. In other words, they create a price that covers all production costs and includes a profit margin as well. -one can argue that low costs contribute to sustainable because they meet some social needs, but the question needs to be asked of whether or not these low prices come at the social or ecological cost elsewhere. -For busn with sustainable production process the cost of production will often decrease over time, making it more attractive. -however, if you aim for sust prod process and competitors do not follow suit, you are at a cost disadvantage.