Sustainable Marketing Planning

There are two major parallel challenges facing managers and leaders: first, how to
adapt to global changes in markets, competition and supply, and second, how to grow
a business while observing recognisably sustainable practices. Companies must now
align their values with customers who increasingly seek people-friendly and planet-
friendly products and services. Using sustainable marketing techniques to create value
ultimately leads to improved customer satisfaction, better professional relationships
and increased effectiveness.
With marketing planning absent from the current textbook offering, this book
provides practical insights, tools and frameworks to help readers produce tactically and
strategically appropriate marketing plans. Showing how to embed sustainability in these
strategies and reflecting on the historical and current criticisms aimed at marketing,
students will be shown how to implement changes while being encouraged to reflect
on why they are needed. Full of tools and frameworks to improve comprehension,
including chapter-by-chapter learning outcomes, summaries, exercises, applied activities
and mini case studies, it bridges the gap between theory and practice effectively and
accessibly. Finally, PowerPoint lecture slides and Multiple Choice Questions sections
are provided for each chapter as electronic resources.
Presenting contemporary themes and challenges at the cutting edge of business
research and practice, this book should be core reading for advanced undergraduate
and postgraduate students of sustainable marketing, marketing planning and marketing
strategy, as well as professionals seeking to improve the competitive advantage of their
organisations.

Neil Richardson is the course director for postgraduate marketing programmes

for Leeds Business School, UK. He has extensive experience as an academic and
practitioner, including working with world-class companies in sales, marketing and
customer services. He has published several books and academic articles on sustainable
marketing.
Sustainable Marketing Planning

Neil Richardson
First published 2020
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an Informa business
© 2020 Neil Richardson
The right of Neil Richardson to be identified as author of this work has been
asserted by him in accordance with sections 77 and 78 of the Copyright, Designs
and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without intent
to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Richardson, Neil, 1963 January 25– author.
Title: Sustainable marketing planning / Neil Richardson.
Description: New York : Routledge, 2019. | Includes bibliographical references
and index.
Identifiers: LCCN 2019025793 (print) | LCCN 2019025794 (ebook) |
ISBN 9780367025205 (hardback) | ISBN 9780367025212 (paperback) |
ISBN 9780429399114 (ebook)
Subjects: LCSH: Green marketing. | Consumption (Economics)—Environmental
aspects. | Social responsibility of business.
Classification: LCC HF5413 .R53 2019 (print) | LCC HF5413 (ebook) | DDC
658.8/02—dc23
LC record available at https://lccn.loc.gov/2019025793
LC ebook record available at https://lccn.loc.gov/2019025794
ISBN: 978-0-367-02520-5 (hbk)
ISBN: 978-0-367-02521-2 (pbk)
ISBN: 978-0-429-39911-4 (ebk)
Typeset in Sabon
by Apex CoVantage, LLC
Visit the eResources: www.routledge.com/9780367025212
Contents

List of figuresxi

Introduction 1

1 Why Sustainable Marketing? 3

Marketing – a definition  4
1.1  Sustainable marketing and its influences  5
Sustainability – a historical perspective  6
Stakeholder theory  8
Strong stakeholder theory versus weak stakeholder theory  9
Friedman versus Freeman  11
Corporate Social Responsibility (CSR)  13
Wicked problems  15
Social Marketing  15
Defining sustainability  16
Sustainability and business  17
Sustainable Marketing  19
1.2  Sustainability . . . the new organisational orientation  20
Market orientation – a definition  24
Benefits of adopting a market orientation  24
1.3 Critical marketing 25
Corporate Social Irresponsibility (CSI)  27
Identity 30
The negative side of loyalty  32
Myths perpetuated by (or about) marketers  32
1.4  Corporate values versus customer-centric values  35
Corporate values  36
The Value Proposition (VP)  38
Consumer values  39
Co-creating value  40
1.5  The sustainable consumer and buyer behaviour  41
Norms 42
The elusive sustainable consumer  43
The consumer (B2C) Decision-Making Process (DMP)  44
vi  Contents
Individual internal human influences  48
Other human factors  50
Consumer purchasing scenarios  51
The planet and the consumer DMP  52
Organisational buying behaviour . . . the B2B market  53
Influences on business buyers  53
1.6  Sustainable marketing research  55
Cognitive processing . . . or chunking  55
Areas of marketing research  56
Market research and the sales department  56
Academic research  57
Higher concepts  57
The research process  58
The research question (RQ)  59
Research objectives (ROs)  59
The research plan  59
Topic guide  61
Primary data versus secondary data  62
Data collection  64
Questionnaires 64
Questionnaire validity  65
Pilot questionnaires  67
Sources of questionnaire bias  67
Problems with green questionnaires  67
Focus groups  68
Interviews 68
Analysis 68
Presenting findings  70
Mobile research  71
Marketing agencies  72
Barriers to effective research  72
1.7  Systems and customer centricity  73
The five planets theory  73
Economic systems  73
Organisational systems  75
The Marketing Information System (MkIS)  76
CRM 77

2 The Marketing Mix 84

2.1  Communications (aka marcomms)  85
Noise 86
Word of Mouth (WoM)  89
Push, pull and profile strategies  89
The Comms Mix  90
 Contents vii
Advertising 90
Public Relations (PR)  91
Integrated Marketing Communications (IMC)  92
Digital platforms  94
The use of Communications Agencies  95
Measuring Marcomms  95
2.2  Convenience (aka place)  96
Marketing channels  96
The use of intermediaries  97
Brick and/or click  98
Market coverage  98
Distribution logistics  99
Sustainable distribution  100
2.3  Customer Benefits (aka Product)  102
Anatomy of a product  102
Classifying goods  104
The Product Portfolio  105
Product Life Cycle (PLC)  105
The PLC as a coordinating tool  109
The Product Adoption Curve (aka the diffusion curve)  112
New Product Development (NPD)  113
The NPD process  115
Barriers to good NPD  117
Developing sustainable products  117
Choice editing  118
2.4  Cost to consumers (aka Price)  119
Pricing perspectives  119
Pricing techniques  121
Technology and pricing  122
Vouchers and cashback  122
Sustainable pricing  123
2.5  The Services Mix  123
Services marketing versus marketing services  124
Characteristics of services  125
The extended marketing mix for services  125
Service quality  128

3 Sustainable Marketing Planning 133

Objectives, strategies and tactics  134
3.1 Planning frameworks 136
Scenario planning  137
Goal setting  137
3.2 Situation review 141
Marketing audits  142
viii  Contents
The internal marketing environment  143
Internal environment analysis tools  143
McKinsey 7S framework  143
Core Competence Framework  144
Boston Control Group (BCG) matrix  147
Directional Policy Matrices  149
Value Chain Analysis (VCA)  151
The “Micro” marketing environment  153
Communities and networks in the Micro environment  155
Online communities  156
Tribes 156
Creating networks and communities  157
Microenvironment analysis tools  158
Porter’s Five Forces  158
5Ms 160
Mendelow grid  161
Balanced Scorecard  162
3.3  External environmental frameworks and analysis  164
The macro environment  164
Identifying future trends  165
Macro-frameworks 165
Economics 166
Politics 168
Information 169
Sociocultural 170
Technology 171
Legal 172
GDPR 173
Online GDPR  175
Environment 175
Reduce, recycle, repair, repurpose and reuse  176
Ethical 176
Issues with the environmental tools and frameworks  177
The SWOT summary  178
3.4  Generating useful SM objectives  179
TOWS analysis  180
3.5 Strategic SM choices (i) – Sustainable segmentation, targeting
and positioning  182
Segmentation 182
Segments and sustainability  184
Targeting 186
Ethical targeting  187
Positioning 188
Sustainable positioning  189
 Contents ix
3.6 Strategic SM choices (ii) – choosing a strategy to achieve SM
objectives 193
Schumpeter’s Creative Destruction  193
Mintzberg’s deflected and realised strategies  194
Strategy formulation  195
Porter’s Generic Strategies  195
Ansoff 196
Practical steps towards Sustainable Marketing (SM)  197
3.7  Issues of control and measuring value  198
Key Performance Indicators (KPIs)  198
540-degree feedback  199
Hard and soft controls  199
Budget 200
A sustainable marketing benchmarking framework  201
3.8  Barriers to adopting Sustainable Marketing Planning  203
Focus 203
Responsibility for ownership  203
Shareholders 205
Multiple stakeholder interests  205
Short-termism 206
Predominant sales orientation  206
SMEs don’t need to plan  206
Crisis management  207
Overcoming barriers to adoption  207

4 Marketing themes in the 21st century 213

4.1  Relationship Marketing (RM)  213
Defining RM  213
CRM and RM  215
Loyalty 215
Loyalty versus satisfaction  216
Measuring and monitoring online loyalty  218
Benefits of RM  218
4.2  Internal Marketing (IM)  219
Defining Internal Marketing (IM)  220
Internal supplier–customer relationships  221
Internal Marketing (IM) and the marketing mix  222
IM and segmentation  224
Benefits of Internal Marketing (IM)  224
Key criticisms of Internal Marketing (IM)  226
Practical steps towards implementing Internal Marketing
(IM) 227
Marketing’s role in supporting the organisation’s market
orientation 227
x  Contents
4.3 Sustainable entrepreneurship 228
Values, norms and sustainable entrepreneurs  229
Sustainable entrepreneurs in the community  231
Ownership and sustainable entrepreneurship  231
Growth 231
Environmental resilience  232
4.4 Sustainable branding 233
Brand personalities  234
Brand equity  235
Brand positioning  236
Brand communities  237
Reputation 238
4.5  Global Sustainable Marketing  239
Key factors in global marketing  240
Foreign Direct Investment (FDI)  241
Vulnerable states  242
Global marketing and the Macro environments  243
Increasing investment in Sustainable Development  245
Sociocultural factors  245
Gender balance  246
Technology factors  246
Global marketing and the Micro environments 246
Global Marketing and the Marketing Mix  247
Sustainable distribution  248
4.6  Digital marketing in the sustainable age  248
Mobile 250
The Internet of Things (IoT)  250
Out of Home (OoH)  250
Virtual Reality (VR)  251
Augmented Reality (AR)  251
Personalisation and customisation  251
Digital marketing research  251
Onsite versus offsite data  252
Analytics 252
Big Data  252
Kelley’s 3S approach: Search, Site and Social  253
Listening 254
4.7  SMEs and micro-enterprises  254
The Decision-Making Unit (DMU)  256
SMEs and sustainability  256
SMEs’ sustainability barriers  256
Tools and frameworks  257
4.8  Charities, not-for-profits and third-sector organisations  258

Index264
Figures

1.1 Different approaches to consumption and consumer value approaches 6

1.2 Stakeholder connectedness 8
1.3 Strong stakeholder theory versus weak stakeholder theory 9
1.4 Stakeholder typology: one, two or three attributes 10
1.5 Stakeholder bargaining strength 11
1.6 Carroll’s pyramid portraying levels of organisational CSR 14
1.7 Elkington’s seven revolutions to a sustainable future 18
1.8 The role and nature of markets 21
1.9 Attributes of pre-sustainability organisational orientations 22
1.10 Absolute marketing: ethics and legality matrix 27
1.11 The CSR versus CSR dichotomous model and potential outcomes 28
1.12 Chronology of changes in value 40
1.13 Stakeholder positions assuming trade-off model of sustainability 44
1.14 DMP, adapted for the TBL 46
1.15 Abraham Maslow’s Hierarchy of Needs 49
1.16 Frederick Herzberg’s dual factory theory of motivation 50
1.17 Contrasting consumer barriers and facilitating factors 53
1.18 B2B DMP applied to a TV manufacturer 54
1.19 The Systematic Marketing Research Process 58
1.20 Triangulating the eight topic guide themes with the questionnaire 63
1.21 Comparison of interviewer-administered and self-completed
questionnaires65
1.22 Comparison of questionnaire validity modes 66
1.23 Influences on the circular economy 74
1.24 Another comparison of interviewer-administered and
self-completed questionnaires 76
2.1 Linear model of communications 85
2.2 Single-step model of communication and two-step model of
communication88
2.3 Expanded Comms Mix 93
2.4 Brick versus click distribution 99
2.5 Anatomy of a product 103
2.6 Product line mix and depth applied to Proctor and Gamble 106
2.7 A generic Product Life Cycle (PLC) 107
2.8 Different PLC scenarios 111
2.9 Product adoption curve or product diffusion curve 112
xii  Figures
2.10 New-Risk Product Continuum 114
2.11 The NPD process 115
2.12 Benefits sought in service encounters 124
2.13 SERVQUAL: the gaps model of service 128
2.14 The extended services mix and SERVQUAL 129
3.1 The POST model, featuring strategic, objective and tactical flows 135
3.2 Planning process models and frameworks 138
3.3 Marketing environments influencing value creation 142
3.4 McKinsey 7S framework 144
3.5 Advantages and disadvantages of the McKinsey 7S framework 145
3.6 Core competencies – client versus agencies 146
3.7 Boston Control Group (BCG) matrix 148
3.8 Directional policy matrix (DPM) 150
3.9 DPM criteria – industry attractiveness versus business strengths 150
3.10 Weightings for DPM criteria 151
3.11 Porter’s Value Chain Analysis 152
3.12 Porter’s Value System 153
3.13 Porter’s Five Forces table 159
3.14 Original offerings and related substitutes 159
3.15 5Ms as applied to Biffy, a fictional importer of dog
grooming products 161
3.16 Mendelow grid, featuring sources of power 162
3.17 Balance Scorecard 163
3.18 Balanced Scorecard showing typical strategic objectives,
measures and information sources 164
3.19 PEST and other macro-frameworks 165
3.20 Flowchart for information requests under GDPR 174
3.21 Generic SWOT summary 179
3.22 SWOT summary for a restaurant chain opening a
vegan outlet in Leeds 180
3.23 TOWS analysis with detailed objectives for vegan restaurant 181
3.24 Mapping the mix against marketing objectives
from the TOWS analysis 182
3.25 APPROVES – a sustainable segmentation framework 183
3.26 Segments for those who eat meat versus those who do not 184
3.27 Possible sustainability behaviours of consumer versus citizen
segments attending festivals 186
3.28 Contrasting different positioning factors and approaches 188
3.29 Positioning strategies using contrasting price and quality 189
3.30 Hart’s environmental sustainability portfolio 190
3.31 Sustainable marketing grid 191
3.32 Sustainability perception continuum, influenced by heuristics 192
3.33 SM positioning grid 193
3.34 Mintzberg’s realised versus intended strategy 194
3.35 Porter’s Generic Strategy  195
3.36 Porter’s Generic Strategy  196
3.37 Ansoff’s strategy matrix 197
3.38 Key mobile metrics 200
 Figures xiii
3.39 Sustainable marketing benchmarking framework
(Richardson, 2015) 202
3.40 Sustainable marketing polar diagram 202
3.41 Barriers to (sustainability) adoption 204
4.1 Customer value pyramid 214
4.2 Traditional, social media and sustainability loyalty ladders 216
4.3 Customer satisfaction versus customer loyalty matrix 217
4.4 Kotler’s service profit chain applied to Relationship Marketing (RM) 220
4.5 Boundary-spanning employees at the internal–external
markets interface 223
4.6 Internal marketing: segmentation 225
4.7 Benefits of IM expressed as organisational performance indicators 226
4.8 Brand personality frameworks 235
4.9 Kapferer’s brand identity prism applied to a vegan coffee shop 236
4.10 Kapferer’s positioning model applied to three
sustainable scenarios 237
4.11 Push-and-pull factors for Global Marketing 240
4.12 PLATFORM macroenvironmental analysis framework 244
4.13 Adoption, adaptation and NPD in global markets 248
4.14 Incoterms for all modes of transport 249
4.15 Attributes in relation to company size 255
4.16 The Small Firm Value Chain 257
Introduction

First, I would like to take this opportunity to thank you for buying this book. Having
bought it, you’re now one of my customers, which means a lot to me. As you progress
through the chapters, you’ll recognise the theme of marketers creating value for cus-
tomers. My sincere hope is that you will take value from this book during your studies
and later in your professional career.
Marketing draws on many of the great discourses, namely philosophy, sociol-
ogy, economics and psychology. Indeed, many marketers see it as a form of applied
psychology that shapes how managers make decisions and then implement changes
(based on these decisions). Hence, this text will be a practical resource to those
studying marketing decision-making and implementation. It supports undergradu-
ate, postgraduate and professional marketing students. The fundamental principles
are covered in order to provide a thorough underpinning for strategy, planning and
metrics-related modules. Furthermore, the text features teaching tools to improve
comprehension: each chapter has learning outcomes, key findings, applied activities
and practical examples. It critiques the theory and brings the real world into the
classroom.
Throughout my career, I’ve worked for (and with) organisations such as charities,
SMEs and genuinely world-class companies. I’ve witnessed management decision-
making that has at times been inspired but also ill-informed. Marketing managers
face two parallel challenges: first, how to adapt to changes (in fragmenting markets,
hyper-competition, oversupply or globalisation), and second, how to grow a busi-
ness while practising recognisably sustainable practices. Companies must align their
values with their customers, who increasingly seek products and services that create
customer value while remaining people- and planet-friendly.
Organisational drivers rarely change (e.g. attracting/retaining customers, devel-
oping customer relationships and growing satisfaction); however, the sustainability
challenges are introducing previously unseen complexities into everyday business.
Marketing is changing almost daily – for example, media ethics (think Leveson), emer-
gent consumer concerns (banking, fair trade) and ever-evolving business needs. Using
sustainable marketing (SM) techniques to create value ultimately leads to improved
customer satisfaction, better professional relationships and increased effectiveness.
This text is unique in that it extensively covers marketing planning and addresses key
sustainability challenges simultaneously.
All business students must be interested in the issues of corporate failure, recov-
ery and turnaround techniques. No doubt, there are many factors that contribute
2  Introduction
to failure, and each scenario is unique. I’ll discuss these factors throughout the text;
however, I have no doubt that the largest threat to a company’s future is likely to be
ineffective marketing.
Poor marketing; nothing more, nothing less. Many (ill-informed) people think mar-
keting is superficial, ephemeral or at worst deceptive. So I’ll consider the role of criti-
cal marketers, the persistent marketing myths and why scepticism exists.
Some say the digital age has increased the power of consumers’ making purchas-
ing decisions. Hence, firms must adopt a more customer-centric approach. Digitalisa-
tion has benefited both consumers (who have more choice) and companies (who have
improved market access and reduced costs). The networking nature of social media
makes it easier for marketers to collaborate with communities and achieve reputa-
tional endorsement. That said, networks are often the source of many societal and
green problems for companies. Think of the child-labour scandals that arise and the
reputational damage they inflict. Potential buyers will seek to take value from certain
brands above others in the same product category. To achieve this, companies strive
to build brand awareness and equity. However, such brands are increasingly viewed
through the prism of sustainability. The two issues are now inextricably linked.
When teaching Chartered Institute of Marketing (CIM) students over the last
15 years, I’ve been asked a diversity of questions. I’ve incorporated the answers to
these questions into this book and offered honest, sometimes critical answers. These
students (both client-side students and agency-side students) represent the whole
spectrum of companies involved in marketing. Many marketing texts focus on larger,
specifically manufacturing, organisations. They promote theories or tools that don’t
apply (meaningfully) to many enterprises today. Hence, this text is for students inter-
ested in all organisations: virtual, large or small, new or old, profitable, ecological or
charitable.
Planning is absent from many current sustainable texts; hence, this book provides a
bottom-up approach with the latest thoughts on tactical and strategic SM. It reflects
on the role of sustainability in the contexts of contemporary themes, including entre-
preneurialism, internal marketing, international marketing, small firms and digital
marketing (among others).
Finally, employers increasingly want graduates to be better marketing practitioners
rather than simply “academics”. Most texts fail to address this discrepancy; hence,
this book bridges this gap by adopting a “pracademic” approach. Students will be
given insights into how to implement changes while being encouraged to reflect on
why they are needed.
Best wishes,
Neil
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