Environmental Issues in Marketing



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Pollution Prevention Educational Resource Compendium: Environmental Issues in Marketing University of Michigan, Dana Building 430 East University Ave. Ann Arbor, MI 48109-1115 734/764-1412 FAX: 734/647-5841 E-MAIL: nppc@umich.edu

Pollution Prevention Educational Resource Compendia Goal Statement and Summary: Education offers one of the greatest opportunities for achieving a more sustainable society. Today s students will be tomorrow s leaders. With them in mind, the NPPC offers pollution prevention compendia for faculty in a variety of disciplines. These compendia, developed by NPPC staff as well as university faculty nationwide, contain background materials, annotated bibliographies, course syllabi, selected readings, teaching tools, and lists of resources relevant to each discipline. The NPPC is producing and disseminating these compendia to help faculty incorporate the concepts and principles of pollution prevention into their courses; members of industry, government, and non-profit organizations may also find them useful when pursuing pollution prevention initiatives. As the scope of pollution prevention evolves, so will the compendia. The NPPC encourages contributions from business, industry, and academia. This is the Marketing compendium. Other compendia cover disciplines such as Accounting, Agriculture, Architecture, Business Law, Chemical Engineering, Chemistry, Coastal Zone Management, Corporate Strategy, Environmental Engineering, Environmental Studies, Finance, Industrial Ecology, Industrial Engineering and Operations Research, Operations Management, and Strategic Environmental Management. For more information, contact the NPPC. Copyright 1998 by the Regents of the University of Michigan. Educators may freely reproduce these materials for non-commercial educational purposes. Original produced on Hammermill Unity DP, a 50% post-consumer/50% pre-consumer recycled paper made from de-inked old newspapers and magazines. The National Pollution Prevention Center for Higher Education University of Michigan, Dana Building 430 East University Ave. Ann Arbor, MI 48109-1115 Phone: 734-764-1412 Fax: 734-647-5841 E-mail: nppc@umich.edu The mission of the NPPC is to promote sustainable development by educating students, faculty, and professionals about pollution prevention; create educational materials; provide tools and strategies for addressing relevant environmental problems; and establish a national network of pollution prevention educators. In addition to developing educational materialsand conducting research, the NPPC also offers an internship program, professional education and training, and conferences. Your Input is Welcome! We are very interested in your feedback on these materials. Please take a moment to offer your comments and communicate them to us. Also contact us if you wish to receive a documents list, order any of our materials, collaborate on or review NPPC resources, or be listed in our Directory of Pollution Prevention in Higher Education. We re Online! The NPPC provides information on its programs and educational materials through the Internet s Worldwide Web; our URL is: www.umich.edu/~nppcpub/ Please contact us if you have comments about our online resources or suggestions for publicizing our educational materials through the Internet. Thank you!

ENVIRONMENTAL ISSUES IN MARKETING Table of Contents Explanation of Compendium Contents Introductory Materials Overview of Environmental Problems Pollution Prevention Concepts and Principles Introduction to the Compendium Resources Resource List Annotated Bibliography Course Syllabi and Assignments All documents can be ordered separately see the NPPC Order Form. There is a small fee to cover the cost of photocopying and postage.

ENVIRONMENTAL ISSUES IN MARKETING Explanation of Compendium Contents Introductory Materials Overview of Environmental Problems. Each chapter highlights a major area of environmental concern: energy use, global change, resource depletion, land use and development, waste, air quality, water quality and quantity, ecological health, and human health. Includes definitions of concepts and terms, current data and research findings on the state of the environment, tables, figures, and guidance on obtaining more information. This document is designed to help faculty in all disciplines prepare course materials and lectures. For readers lacking extensive knowledge of environmental issues, it provides background information; for those already familiar with environmental problems, it is a concise convenient, source of current data. The format allows individual topic areas to be easily reproduced for distribution to students. Pollution Prevention Concepts and Principles. This shorter paper introduces the concepts, terminology, objectives, and scope of pollution prevention. It discusses how government and the private sector are currently perceiving and implementing pollution prevention and describes the barriers and benefits encountered in implementing pollution prevention activities. Introduction to the Compendium. Brief introduction to intended purpose of this compendium and advice on using it in college-level business courses. (Reprinted on last page of this Table of Contents.) Resources Resource List. The publications in this list describe environmental considerations in the field of marketing, from the way products are made and packaged to consumer psychology and government regulations. Organized by topic, the Resource List cites more than 200 relevant books, articles, reports, case studies, and Internet websites. It also explains how to obtain cases and other materials not commonly found in college libraries or bookstores and tells how to contact marketing faculty who are currently teaching about environmental issues and are willing to mentor colleagues new to the topic. Annotated Bibliography. Alphabetically lists and describes the 100 best publications cited in the Resource List, including all 26 cases. Course Syllabi and Assignments. This section contains syllabi from environmental marketing courses taught by Mark Cohen (Vanderbilt MBA course) and Gail Kirby (Santa Clara University undergraduate course). Included are discussion questions and student assignments.

ENVIRONMENTAL ISSUES IN MARKETING Introduction to the Marketing Compendium By Mark Cohen, Associate Professor of Management Owens Graduate School of Management, Vanderbilt University This compendium provides a comprehensive overview of marketing issues related to environmental protection and pollution prevention. It is organized around these eight topics: Current business trends in environmental strategies The relationship between product manufacturing, packaging and environmental marketing Consumers attitudes and willingness to pay for environmentally sensitive products Trends in advertising and marketing of environmentally conscious products Strategic approaches to marketing green products Consumer perception and government regulation of marketing claims; corporate communications The value of good corporate citizenship Partnerships with environmental organizations This compendium was developed for college professors interested in incorporating any or all of these topics into an existing course on marketing or in developing a full course on environmental issues in marketing. Faculty in other disciplines strategic management, government regulation of business, business law, public relations and communications, or manufacturing operations may also find this compendium a useful source of information to use in augmenting existing courses with one or two sessions on environmental topics. Resources cited include books, academic and trade journals, industry-specific case studies of pollution prevention and marketing, and Internet websites. Environmental protection is a relatively new topic in marketing. Prior to the mid 1980s, few firms touted their products environmental benefits or considered publicizing their environmental conduct or achievements. Following a series of advertisements believed by many to be deceptively touting the environmental benefits of various products, several State Attorneys General and the Federal Trade Commission initiated high-profile lawsuits, ultimately issuing a set of guidelines in 1992. Partly as a result of these cases, several countries and private nonprofit organizations have created uniform labeling and testing programs. Although there are obviously many benefits to giving consumers more extensive and truthful information about products environmental aspects, there is also a downside to these standardized programs. For example, many researchers have argued that the pressure from regulators has reduced the flow of information on environmental claims, as firms fear the negative publicity associated with being singled out as a bad actor. Although there is a technical distinction between pollution prevention and end-of-pipe pollution control, this line becomes somewhat blurred within the context of marketing. Rather than promoting the technology or type of pollution abatement a firm undertakes, most environmental marketing campaigns push a specific product, which itself might be advertised as having environmental benefits (e.g., being recyclable, made with nontoxic material, using less packaging). Some environmental ads are primarily aimed at promoting a good corporate image. These advertisements might address environmental innovations, list awards the company received, or simply talk about environmental concerns. Although a few specific products or marketing campaigns do involve some aspect of pollution prevention, compliance issues, or other public policy concerns, few of the written materials in this field make this distinction. Thus, most of the material cited here is general enough to apply to all forms of pollution prevention as well as more the traditional forms of end-of-pipe controls.

Suggestions for Using This Compendium Finding Resources The Resource List will help you choose relevant publications (both written and electronic) for yourself and your students. It includes information on obtaining case studies and other materials not usually found in college libraries. (Note that most of the readings used in this compendium s syllabi are cited in the Resource List.) From there, use the descriptions in the Annotated Bibliography to further refine your list of things to read and/or assign. Also, feel free to contact professors listed in Resource List for ideas on how to integrate environmental issues into your marketing course. The Resource List and Annotated Bibliography both cite a total of 26 recent cases published by the European Case Clearinghouse, Harvard, the Management Institute for Environment and Business, and the NPPC. Case studies can be excellent springboards for class discussion and student assignments. For instance, two of the cases depict The Body Shop and Ben & Jerry s firms that have generated continued controversy over the validity of their claims of environmental responsibility. Introducing such controversies to your students adds considerable realism to your course and highlights the fact that strong claims of environmental friendliness may bring about increased scrutiny and subsequent negative publicity if serious concerns are raised. Planning Courses This compendium includes recent syllabi for two environmental marketing courses. Santa Clara University professor Gail Kirby outlines an undergraduate business course with 30 meetings under a quarter system; I describe an MBA-level elective course within a module system of 7-week courses. Besides being adapted by professors who are introducing one or two topics into traditional marketing courses, these syllabi can also serve as models for business faculty developing entire new courses with environmental themes; the table below suggests several environmental topics to use within existing courses. Dr. Kirby and I are both willing to assist colleagues who are developing courses on this topic. Other faculty who have taught similar courses and are good contacts for current cases or readings include Betty Diener (U-Mass Boston), Donald Fuller (University of Central Florida), Thomas Klein (University of Toledo), and Michael Jay Polonsky (University of Newcastle); to learn how to contact them, see the Resource List. Another source for developing new syllabi is the Management Institute for Environment and Business Teaching Module series (1996; ISBN 1-56973-119-5; see Resource List for contact information) its Marketing and the Environment section was edited by Dr. Diener. Environmental Topics That Can Be Used in Marketing Courses Course Topics Cohen Syllabus Kirby Syllabus ADVERTISING AND Trends and effectiveness of green marketing; Topic 4 Topic 8 SALES PROMOTION regulation of advertising claims Topic 5 & 6 GLOBAL MARKETING Packaging and international issues Topic 10 MARKETING RESEARCH Who are green consumers? Topic 3 Topic 6 NEW PRODUCT Packaging and international issues; Topic 10 Topic 10 DEVELOPMENT environmental entrepreneurship Topic 12 NONPROFIT MARKETING Trends and effectiveness of green marketing; Topic 4 Topic 1 partnerships w/environmental organizations Topic 9 Topic 4 STRATEGIC MARKETING Public relations; new products, Topic 11 Topics 3 & 9 strategic opportunities Topic 13 PRODUCT MANAGEMENT Packaging and international issues Topic 10