The concept of sustainable development was first introduced by IUCN world conservation strategy in 1980. Sustainable development is a technique of economic growth under which resources are used to meet not only the demand of present generation but also for generations to come.
Marketing act as a business philosophy, and a collection of management techniques, orientated towards providing value to consumers, organisations and society.
Sustainability in marketing
Sustainable marketing is the process in which products are produced that is environmental friendly at the retail level and also helps the company to maintain sustainable practices at the social relations ...view middle of the document...
Here, Awareness means defining the problem to the consumer about the issues and difficulties which may cause in future.
Acceptance: - Second is to make people should accept the information provided and also believe that it is socially acceptable.
Ability: - Third is ability of the consumer. Consumer ability to enrol in sustainable behaviour is mostly restricted by time, financial cost, policies of government, available resources, etc.
Action: - Lastly, Action is to engage the people with reliability and effectively in the desired behaviour.
Assessing market demand for sustainable goods and services
The main concern for every business is to know the reality of the market. The issue is to know consumers mind. Whether they are aware of sustainability issues? If yes, then how many consumers are concerned and are they willing to pay more for sustainable products? According to the survey of executives from Accenture, it shows that in spite of concerned consumers are not willing to pay more for sustainable products and services. Less than half that is 47 percent of the executives expressed that consumers will not pay more for sustainable products and services. 60 percent of the executives admitted of charging premiums. Even when asked what actions they have done to respond to rising customer demand, 44 percent of the respondents claim to have promoted existing sustainability credentials, Out of which 43 percent have launched new products and services.
Eco-Labelling and green washing
Eco- labelling is labelling the sticker or rating the product which gives information to the consumer about the environmental impact of the product. According to research in Sweden, it is found that people are more aware about the issues and they are ready to pay more for eco friendly product. Green washing is the fake claims of ecological advantages attached to a product by the company. To prevent these practices Australian Trade Practices Act was passed in 1974. According to one report, The Victorian Hazelwood power plant generates 8% of Australia’s national electricity and 25% of Victoria’s electricity.
Emerging and alternative markets for sustainability
Lifestyles of Health and Sustainability (LOHAS)
It is a market segmentation scheme which is used to measures the values, attitudes and actions related to health and sustainability consumption and it gives information about the consumers likely to support more sustainable products and services.
The latest study on consumers by The Living LOHAS shows that the market for sustainable products and services has almost doubled in last four years. The research shows that growth lies with both consumable as well as durable products and services. More consumers are showing their interest in buying sustainable products. Apart from this, sectors such as the building industry and individual large corporate buyers in Australia are looking for certification schemes as important compliance with sustainability...