Marketing is at a critical juncture, facing the urgent need to address sustainability challenges. According to a recent analysis by Associate Professor Julia Fehrer from the University of Auckland, alongside colleagues Professor Mark Peterson and Professor Bård Tronvoll, the traditional marketing focus on sales and customer satisfaction often overlooks the environmental and social costs associated with these outcomes. The authors argue for a fundamental shift towards creating sustainable systems that benefit businesses, communities, and governments alike.
In their comprehensive review of sustainability research within marketing, Fehrer and her co-authors identified three pivotal theories that can guide this transformation. They emphasize the necessity for marketers to move beyond merely promoting ‘green’ products and instead foster a broader vision of value creation that incorporates sustainability.
Harnessing Sustainability for Competitive Advantage
One of the key concepts presented in the analysis is the resource-advantage theory. This framework suggests that sustainability is not merely a moral obligation; it can also provide businesses with a significant competitive edge. Firms that adopt unique sustainability strategies—such as closed-loop supply chains or regenerative farming—can differentiate themselves in the marketplace. An illustrative example is Silver Fern Farms, a major exporter in New Zealand that has successfully launched carbon-neutral beef. This initiative not only enhances their product offering but also positions sustainability as a premium selling point.
Furthermore, New Zealand’s agritech sector demonstrates innovative approaches to sustainability. Companies are employing precision farming techniques to minimize fertilizer usage and rehabilitate soils, effectively integrating environmental goals into their business models. These strategies reflect a proactive commitment to sustainability rather than a simple compliance with regulations.
Shifting Perspectives on Market Dynamics
Another significant lens through which to view sustainability in marketing is the service-dominant logic. This approach encourages businesses to reframe their understanding of markets not as static arenas for transactions but as dynamic, interdependent systems. At the core of service-dominant logic is the idea that the true value lies in the service provided, rather than the product itself.
For instance, a washing machine can be viewed less as a standalone item and more as a means to deliver the service of clean clothes. This perspective opens avenues for innovative business models, such as product-as-a-service offerings and repair-and-refill systems. A notable example is Greenbox, a company that manages the entire lifecycle of IT equipment. By focusing on compliance and sustainability, Greenbox not only ensures data security for clients but also extends the life cycle of hardware, reducing environmental impact.
The analysis also highlights the concept of market shaping. This idea urges marketers to take an active role in redefining the rules and standards that govern their industries. By challenging existing norms, businesses can drive systemic change. For example, Ecostore has been a pioneer in advocating for new packaging standards in New Zealand, introducing plant-based and refillable options. Through these efforts, the company is not only enhancing its brand but also reshaping consumer expectations and influencing recycling practices.
Additionally, Māori businesses exemplify the integration of sustainability into their operational philosophies. By embracing the principle of kaitiakitanga, which emphasizes the responsibility to care for the land for future generations, these enterprises offer valuable models for sustainable practices that transcend conventional market strategies.
The authors conclude that marketing must evolve to meet the complexities of today’s sustainability challenges. Their literature review identifies four critical priorities, including leveraging New Zealand’s small, interconnected economy and the Māori perspective on intergenerational stewardship. While facing obstacles such as fragmented infrastructure and the tension between economic growth and ecological limits, these challenges also present opportunities for innovation.
The research conducted by Fehrer, Peterson, and Tronvoll illustrates the urgent need for marketing to shift its focus towards sustainability. By adopting these new frameworks and strategies, the marketing discipline can make a meaningful impact on both business performance and societal well-being. This article reflects the views of the authors and is published by Waipapa Taumata Rau University of Auckland.
