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MarketingandManagement intheFoodIndustry DiscussionPaperNo.6

StrategicandInstrumental SustainabilityMarketing AConceptualFramework

FrankMartinBelz/BirteKarstens

October2005 ISBN3938236051

MarketingandManagement intheFoodIndustry DiscussionPaperNo.6

StrategicandInstrumental SustainabilityMarketing AConceptualFramework

FrankMartinBelz/BirteKarstens

____________________________________________________________________
TechnischeUniversittMnchen(TUMBusinessSchool) ProfessorshipforBreweryandFoodIndustryManagement AlteAkademie14,D85354FreisingTel.:+498161713279Fax:+498161713209 http://www.food.wi.tum.de

Kurzzusammenfassung
Aspekte wie Lebensmittelsicherheit, gesunde Ernhrung, Adipositas, Umweltschutz und KinderarbeitsindeinigedergroenHerausforderungen,vordenenLebensmittelherstellerin Westeuropaheutestehen:einerseitsstellendieseFaktorenRisikenfrdasMarkenimageund denMarktanteildar;andererseitsbeinhaltensieChancen,sichimgesttigtenLebensmittel marktneuzupositionieren(z.B.imBereichderBiolebensmitteloderderFairTradeProduk te).DerDiskussionsbeitraggibteinenberblickdarber,wieundwarumLebensmittelher stellerstrategischesundoperativesNachhaltigkeitsMarketingbetreiben,umdiesenHeraus forderungenzubegegnen.ErstelltdenkonzeptionellenBezugsrahmenundersteHypothe senderreprsentativenStudievor,dieimJahr2006vonderProfessurfrBWLBrauund Lebensmitteltechnologiedurchgefhrtwird.

Schlsselbegriffe
StrategischesNachhaltigkeitsMarketing;OperativesNachhaltigkeitsMarketing;Lebensmit telproduzenten;Westeuropa

Abstract
Issuessuchasfoodsafety,health,obesity,thenaturalenvironment,childlabour,andlabour conditionsbecomeincreasinglyimportantfortheWesternEuropeanfoodprocessingindus try.Ontheonehandthesedevelopmentsrepresentrisksforbrandimageandmarketshares, ontheotherhandtheyofferopportunitiesforfoodcompaniesinmaturefoodmarkets(e.g. organic food products, fair trade products). The discussion paper outlines how and why food processing companies take up strategic and instrumental sustainability marketing in ordertodealwiththesechallenges.Itpresentstheconceptualframeworkandhypothesesof a representative study which is planned to be conducted in 2006 by the Professorship for BreweryandFoodIndustryManagement.

Keywords
Strategic Sustainability Marketing; Instrumental Sustainability Marketing; Western Euro peanFoodProcessingIndustry

Contents

1 2.

Introduction ................................................................................................... 1 CharacteristicsofSustainabilityMarketing .............................................. 3


2.1 2.2 2.3 DefinitionandConceptionofSustainabilityMarketing ....................................3 CharacteristicsofStrategicSustainabilityMarketing .........................................6 CharacteristicsofInstrumentalSustainabilityMarketing ...............................11

3.

InfluencingFactorsofStrategicandInstrumental SustainabilityMarketing ............................................................................ 15


3.1 ExternalDrivers:SustainabilityMarketingbetween PublicPushandMarketPull................................................................................17 3.2 InternalDeterminants:Coordinatingthe RelevantCharacteristicsSuccessfully .................................................................18

4. 5.

MeasuringtheSustainabilityMarketingSuccess................................... 20 ConceptualFramework.............................................................................. 21

References ................................................................................................................ 23 AbouttheAuthors .................................................................................................. 26


StrategicandInstrumentalSustainabilityMarketing

Introduction

Sustainabilityisakeychallengeforfoodprocessingcompaniesinthe21stcentury.Onthe onehandsustainabledevelopmentoffersnewmarketingopportunities;ontheotherhandit alsoinvolvesrisks.HIPP,oneoftheleadingproducerofbabyfood,hasbeencommittedto producehealthyfoodproductsinhighestqualityinunisonwiththeenvironmentforal most15years.Indoingso,theybecameoneoftheleadingcompaniesintheWesternEuro peanmarketforbabyfoodandalargeprocessoroforganicresources.Green&BlacksLim ited,anEnglishprocessoroforganicchocolate,biscuitsandicecreamalsoaimsatthehighest product quality by supervising every step from bean to bar. Over the last 15 years they have combined a passion for organic chocolate products and ethical values which makes them the fastestgrowing confectionary brand in England. Yet another example of market differentiationthroughsustainabilityisFRoSTA,amanufactureroffrozenfood.In2003they launched new FRoSTA brand products which all meet the selfimposed FRoSTA Purity Law. Nutreco, an international food company at various stages of fish, poultry and pork production chainsaccords the highestpriority to the productionandsupply of food prod uctsthataresafe,healthyandnutritious.Inparticularforthediscreditedmeatindustry,the obligationtofoodqualityandsafetythroughmonitoringandqualitysystemsisinescapable and essential. A step forward takes Unilever, one of the worlds leading suppliers of fast movingconsumergoods(i.e.foods,homecareandpersonalcare).Theymadethecommit menttosourcealltheirfishfromsustainablestocksinordertosecuretheirfuturesuppliesof rawmaterials.Diageo,theworldsleadingproducerofalcoholicdrinkbrandsaddressesthe socialissue of alcohol abuse. InJuly2005, theyannounced plansto launchaGlobal Con sumerInformationPolicywhichincludesresponsibledrinkingremindersandfactsofnu trition,allergensandalcoholcontent/servicesize.Threeyearsago,theyalreadydevelopeda CodeofMarketingPracticeforAlcoholicBeveragestogiveguidanceforallthoseinvolved inthemarketingprocess. The illustrative examples show, that sustainability involves a wide range of issues such as organicfarming,fairtrade,foodsafety,overfishing,alcoholabuse,andsoon.Overthelast 20yearsecological,health,andsocialproblemsturnedintomarketingissuesbecausepolitics andsocietyputmoreemphasisontheirdemandsandrequirementsonthemarketi.e.mar ketershavetoaddresstheseissues.Apossible(andpromising)waytodealwiththeseissues canbeseenintheconceptofsustainabilitymarketingassuggestedbyBelz(2005b).Itgoesbe

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yond the conceptions of green marketing, ecomarketing or ecological marketing as dis cussedinthe1990(Charter/Polonsky1999;Meffert/Kirchgeorg1998;Ottman1998;Peattie 1995; Peattie 1992). Sustainability marketing can be defined as building and maintaining sustainableandprofitablerelationshipswithcustomers,thenaturalandthesocialenviron ment (Belz 2005b, p. 2). It attends to the socioecological demands and eventually turns them into competitive advantages by delivering customer value and satisfaction. The re searchprojectStrategicandInstrumentalSustainabilityMarketingintheWesternEuropean FoodProcessingIndustrymainlyfocusesonthefollowingtworesearchquestions: ! HowdoWesternEuropeanfoodprocessingcompanies(re)acttothechallengeofsus tainabledevelopment?TowhichdegreeandinwhichformdoWesternEuropeancom paniesinthefoodprocessingindustrypractisestrategicandinstrumentalsustainability marketing?(characteristicsofsustainabilitymarketing;chapter2) ! WhydoWesternEuropeanfoodprocessingcompaniestakeupsustainabilitymarketing? Whichfactorshaveapositive,respectivelynegativeinfluenceonthesuccessofsustain abilitymarketing?(driversanddeterminantsofsustainabilitymarketing,chapter3) The main focus of the study are food processing companies in Western Europe. The food market in Western Europe can be characterized by stagnancy and saturation (CIAA 2004). Hence, sustainability marketing presents opportunities for market differentiation and mar ket development. The focus on food processing companies has been chosen because they play a decisive role in the whole food chain from farm to fork. They can influence up streamactivitiesi.e.agricultureandpackagingaswellasdownstreamactivitiesi.e.distribu tion,consumption,retrodistribution.Thus,foodprocessingcompanieshaveahighrespon sibility with respect to sustainable development. The unit of analysis are sustainable food productswhichcanbebroadlydefinedasfoodproductsthatreducetheenvironmentalbur den, consider social aspects and satisfy consumer needs better than competing offers do (Belz2005b,p.17). In the present paper a conceptual framework for the upcoming empirical quantitative study will be developed. Based on a critical literature review, the characteristics of the strategic andinstrumentalsustainabilitymarketingareoutlined(Karstens2005)(chapter2).Hypothe sesonthenatureofsustainabilitymarketing,externaldriversandinternaldeterminantsare deducted(chapter3).Furthermore,somethoughtsofthemeasurementofsuccessintermsof

StrategicandInstrumentalSustainabilityMarketing

sustainabilitymarketingarepresented(chapter4).Thepaperconcludeswiththesynopsisof theconceptualframeworkaswellasanoutlookonfurtherresearchproceedings(chapter5).

2.

CharacteristicsofSustainabilityMarketing
DefinitionandConceptionofSustainabilityMarketing

2.1

Modern marketing can be briefly defined as managing profitable customer relationships whichimpliesattractingnewcustomersbypromisinghighervalueaswellaskeepingcur rent customers by delivering satisfaction (Kotler/Armstrong 2004, p. 5). A product is mar ketedsuccessfullyifthemarketerunderstandstheneedsandwantsoftheconsumer,devel ops products that provide superior value and prices, promotes and distributes them effec tively.Sustainabledevelopmentisakindofdevelopmentthatmeetstheneedsofthepresent without compromising the ability of future generations to meet their own needs (World CommissiononEnvironmentandDevelopment1987).Theconceptofsustainabledevelop ment implies intragenerational equity (i.e. equality between North and South) and inter generationalequity(i.e.betweenonegenerationandanother).Therearethreedimensionsof sustainable development: environmental, social and economic. A major challenge for com panies is to integrate and balance the three aspects of sustainability in a responsible way. They have to maintain financial stable and competitive while including ecological require ments and social demands. Regardless the winwinwin rhetoric, the integration of the threedimensionsisaverydifficulttask,fullofconflictsandtradeoffs.Thisisparticularly trueforsustainabilitymarketing,whichmaybedefinedasbuildingandmaintainingsustain able and profitable relationships with customers, the social environment and the natural environment (Belz 2005b, p. 2). Sustainability marketing integrates social and ecological criteriaintothewholeprocessofmarketing.Exhibit1illustratestheconceptionofsustain abilitymarketingwhichexistsofsixsteps:1.analysisofsocioecologicalproblems;2.analy sisofconsumerbehaviour;3.normativesustainabilitymarketing;4.strategicsustainability marketing; 5. instrumental sustainability marketing; and 6. transformational sustainability marketing(furtherreadingsBelz2005a;Belz2005b).

FrankMartinBelz/BirteKarstens

1.Step:Analysisofthesocialandecologicalproblems,generallyandspecificallywithrespect toproductswhichsatisfycustomerneedsandwants;

2. Step: Analysis of consumer behaviour with special respect to social and ecological con cerns;

3. Step: Corporate commitments to sustainable development in the mission statement, developmentofsustainabilityvisions,formulationofsustainableprinciplesandguide lines,settingofsocioecologicalmarketingobjectivesandgoals(normativeaspectsofsus tainabilitymarketing);

4. Step: Socioecological product quality as well as sustainability segmentation, target ing,positioning,andtimingofmarketentry(strategicaspectsofsustainabilitymarketing);

5.Step:Integrationofsocialandecologicalcriteriaintothemarketingmix,i.e.products, servicesandbrands,pricing,distributionandcommunication(instrumentalaspectsofsus tainabilitymarketing);

6.Step:Participationinpublicandpoliticalchangeprocesses,whichtransformexisting institutionstowardssustainability(transformationalaspectsofsustainabilitymarketing).

1.Step:Analysisofsocio ecologicalProblems

2.Step:Analysisof ConsumerBehavior

3.Step:Normative SustainabilityMarketing

4.Step:Strategic SustainabilityMarketing

5.Step:Instrumental SustainabilityMarketing

6.Step:Transformational SustainabilityMarketing Exhibit1:ConceptionofSustainabilityMarketing Source:Belz2005b,p.3.

StrategicandInstrumentalSustainabilityMarketing

In which way doessustainable development change the natureof marketing? What is dis tinctiveaboutsustainabilitymarketing?Thereareatleastsixdistinguishingfeaturesofthe sustainabilitymarketingconcept(seeBelz2005b,p.2122): 1.Ecologicalandsocialproblems:Inconventionalmarketingliterature,theecologicalandsocial problemsofproductsalongthewholelifecyclearehardlyconsidered.Therefore,theanaly sisremainsonarathersuperficiallevel.Usually,thesituationofthenaturalenvironmentis briefly analysed as part of the macro environment of the company. The shortages of raw materials and increased pollution are mentioned without any further consequences for the conceptionofmarketing(Kotler/Armstrong2004,p.123124;Peattie1999,p.63).Incontrast, the analysis and identification of ecological and social problems are points of departure in sustainabilitymarketing. 2. Intersection: The identification of the intersection between socioecological problems and consumer behaviour is crucial for sustainability marketing. Social activists with big hearts putastrongemphasisonthesolutionofsocioecologicalproblems,butwidelyneglectcon sumer wants and demand. They follow a kind of antimarketing or alternative marketing approach. Mainstream marketing mainly focuses on consumer demand overlooking the social and ecological environments. Sustainability marketing tries to find solutions to the socioecologicalproblemsandatthesametimemeetcustomersdemand. 3.Normativeaspects:Inconventionalmarketing,thelongtermaimisthebuildingofprofit able customer relationships. Traditional marketing goals are increases in sales, profits and marketshares.Incontrast,sustainabilitymarketingaimsatsustainableandprofitablerela tionshipswithcustomers,thenaturalenvironmentandthesocialenvironment,thusmeeting the triple top line. Besides common marketing goals like sales, market shares and profits, ecological and social objectives are also important. Furthermore, sustainability marketing critically questions underlying assumptions and reflects key concepts of marketing (e.g. needs,wants,andconsumersovereignty). 4. Information asymmetries: Social and ecological qualities of products are often credence qualities(e.g.organicfarmingorfairtradeproducts).Thecustomerhastobelievetheinfor mationgivenbyproducersorthirdpartieswithrespecttothesocialandecologicalqualities ofproducts.Thesekindsofinformationasymmetriesopenthedoorforopportunisticbehav iour on the supply side,which may lead to scepticism on the demand side and, finally,to

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nonpurchasesandmarketfailure.Thatiswhysignalling,credibilityandtrustarecrucialin sustainabilitymarketing. 5. Time aspects: Classical marketing is focussed on sales and transactions. It is rather short termorientedandhasabiastowardsthepresent.Modernmarketingrepresentsaparadigm shift from transactions towards relations. That is why it is called relationship marketing (Christopher/Payne/Ballantyne 1991). It aims at building lasting customer relationships in ordertoproducehighcustomerequity.Sustainabilitymarketinggoesmuchfurther.Itaims at building lasting relationships with customers, the social environment and the natural environment. Thus, longterm thinking and futurity are fundamental components of sus tainabilitymarketing(Peattie1999,p.58). 6.Transformationalaspects:Inconventionalmarketing,themacroenvironmentisoftentaken forgranted.Manycompaniesregardexternalforcesasuncontrollableelementstheyhaveto adapt to (Kotler/Armstrong 2004, p. 132). In sustainability marketing, the macro environ mentisperceivedasaconstrainttoovercome.Withintheexistingframework,therearefew economicincentivestobehaveinasustainableway,bothforproducersandconsumers.To changetheexistingframeworksinfavourofsustainability,commoneffortsofgovernments, nongovernmentalorganizationsandcompaniesarenecessary,onlocal,nationalandinter nationallevels. Altogether,theconceptofsustainabilitymarketingdiscussessixdifferentstepsasoutlined above.Here,themaintheoreticalfocusislaidonthestrategicandinstrumentalsustainability marketing. Issues concerning the other steps, i.e. the analysis of socioecological problems and of consumer behaviour as well as the normative and transformational sustainability marketingwillnotbetakenintoaccount.Theygobeyondthefocusoftheresearchproject StrategicandInstrumentalSustainabilityMarketinginWesternEuropeanFoodProcessing Industry.

2.2

CharacteristicsofStrategicSustainabilityMarketing

Afterdefiningthekeytermsanddescribingtheunderlyingconception,thecharacteristicsof strategic sustainability marketing(SSM) are outlinedwhich have been analysed and detected sofarinanumberofstudiesoverthelastdecade(seeforadetailedoverviewBelz2001and Karstens2005).Ingeneral,strategicmarketingdealswithquestionsconcerningproductof fers, market segmentation, targeting, positioning, and timing (Kotler/Armstrong 2004, pp.

StrategicandInstrumentalSustainabilityMarketing

5455). Key issues of strategic sustainability marketing are the kind and level of socio ecologicalproductqualities;sustainabilitymarketsegmentation;targeting;positioning;andtimingof market entry. With respect to the food processing industry, these strategic aspects will be explainedinthefollowinginsomefurtherdepth: Socioecologicalqualitiesoffoodproducts Themainfocusoftheresearchprojectisonfoodprocessingcompanies.However,thesocio ecological quality of food products does not only depend on how they are processed, but also what they are made of, how they are packaged, how far they are transported and by whichmeans,howtheyareused,andhowtheyaredisposed.Herethewholeproductlife cyclefromfarmtoforkrespectivelyfromstabletotablehastobetakenintoaccount,i.e. agriculture, processing, packaging, distribution, consumption, and retrodistribution (Belz 2004, p. 99). Thus, the socioecological quality of food products is a complex, multi dimensionalphenomena. Intermsofagriculture,generallythreedifferentpracticescanbedistinguishedwhichinflu encethesocioecologicalproductqualityaswellasthenaturalenvironment:(1)industrial izedagriculture,(2)integratedproduction(IP)and(3)organicfarming(Belz2004,pp.9799). Whileindustrializedagriculturefocusesonimmediateeffectswithlittleregardtosoilpro tection and biodiversity, organic farming avoids the use of synthetic chemicals as well as genetically modified organisms (GMOs). IP is inbetween industrialized agriculture and organicfarmingusingfarmingmethodswhichhavelittleimpactaspossibleonthenatural environment without adopting all restrictions and compromises of organic farming. Fair tradeputsitsfocusoncertainsocialissuesindevelopingcountriese.g.guaranteedminimum wages, child education and reliable contracts. During processing, aspects like food safety, hygiene and working conditions come into effect regarding the socioecological product quality.Additionally,differentkindsofprocessingtechniquesinfluencetheproductquality directly(e.g.lossofvitamins,reductionofaminoacidsandchangesintasteandflavor,etc.) aswellasthesocialecologicalenvironment(e.g.waterandenergyconsumption,safetypre cautionsfortheworkers,etc.).Regardingpackagingthreedifferentkindsofresourcerecov erystrategiescanbedistinguished:(1)packagingreuse,(2)materialsrecycling,and(3)ma terials transformation (Fuller 1998, p. 154164). If the socioecological product quality is broadlydefined,thekindofpackagingstrategyhasarelevantimpactonit,dependingalso

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on the material used for packaging e.g. paper, cardboard, plastics, glass, and metals. The kindofdistributionalsodeterminesthesocioecologicalproductquality.Thedistanceandthe meansoftransportationareherebyofimportance(Skoppek/Karstens2005,p.185).Interms ofconsumption,thestorageandthepreparationofthefoodproductsinfluencetheenviron mentalimpacti.e.theenergywhichisused.Butalsothenutritionalvalueofthefoodprod uctplaysadecisiverolewhenconsideringconsumptionanditssocialconsequencessuchas obesity(Seiders/Petty2004,pp.153154).Disposalandrecyclingofwasteneedtobeconsid eredaswell.Withregardstotheretrodistribution,itisespeciallyimportanttosetincentives fortheconsumerstomakerecyclingasconvenientaspossible. Food processing companies can influence both, upstream and downstream activities. Whereas upstream activities relate to activities on the supply side (i.e. food production), downstreamactivitiesrefertoactivitiesonthedemandside(i.e.fooddistributionandfood consumption). Therefore, food processing companies play a crucial role in the whole food chain from farm to fork and have a responsibility for upstream as well as downstream activities.Exhibit2showsthesynopsisofthecomplex,multidimensionalphenomenaofthe socioecological product quality along the stages of the agrifood chain with selected pa rametervalues.

Stagesfrom FarmtoFork Agriculture

SelectedParameterValues

industrializedorganic agriculturefarming lessgentlemethodsgentlemethods highenergyuselowenergyuse materialtransformationpackagingreuse highenergyuselowenergyuse longdistancesshortdistances highenergyuselowenergyuse lownutritionalvaluehighnutritionalvalue complexRDsystemconvenientRDsystem highenergyrecyclingcomposting

Processing Packaging Distribution

Consumption Retrodistribution (RD)

Exhibit2:SocioecologicalQualityofFoodProducts:Synopsis

StrategicandInstrumentalSustainabilityMarketing

Marketsegmentation Market segmentation is a major requirement in order to deduce and implement successful sustainabilitymarketingstrategies.Themarketconsistsofmanytypesofproductsandcus tomers and through segmentation consumer groups i.e. market segments are shaped in which the respective consumers respond in a similar way to marketing efforts (Kot ler/Armstrong2004,p.54).Therearethreebasicoptionsforsustainabilitymarketsegmenta tionwhichseemtoberelevantforthestrategicsustainabilitymarketing:companiescanei therpractisedinthesocioecologicalniche,inmarketsegmentsorinthemassmarket.Thedeci sionforoneortheother ofthesestrategicoptionsdependslargelyonthesizeofthecom pany,itsfinancialresourcesanditsmarketposition(Belz2005a,p.24). Criteriaformarketsegmentationcanbeofgeographical(region,country,state,etc.),socio demographical (gender,age,income, etc.), psychographical (attitude, lifestyle, etc.) or be haviouroriented(userrates,benefits,etc.)nature(Kotler/Armstrong2004,pp239246).Geo graphical segmentation is of special importance in the food market. The food habits and tastesoftendifferfromoneregiontoanother.Manysmallandmediumsizedfoodcompa niescompeteonlocalandregionallevels.Theylocalisetheirfoodproducts,promotion,and saleseffortstofittheneedsofindividualregions(e.g.Bavarianbreweries).Largefoodcom panies mainly compete on national and European levels. They build up strong brands by advertising heavily. The socioecological dimension and importance of sustainability mar ketingmayvaryfromonecountrytotheotherdependingonfactorslikeconsumerbehav iourandpublicopinion. Targeting Afterthesegmentationofthemarketthecompanyneedstodecidewhichsegmenttotarget. This decision is closely connected to the question of the relevant target group. In other words,thechosenmarketsegmentandtherelevanttargetgroupneedtobecongruent.Gen erally, it is possible to distinguish between three different groups of consumers: socio ecological actives, those that can be socioecological activated and socioecological passives (Belz 2001,p79).Thisclassificationcorrespondstothepreviouslydescribedsocioecologicalmar ket segmentation, i.e. socioecological niches, market segments and mass market. The first group is highly sensitized for socioecological issues and well informed. For them socio ecological product features have high selfesteem and recognition benefits. Therefore, they

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arewillingtocutbackatthefunctionalbenefitandifnecessaryaccepthigherpricesaswell as higher costs (e.g. information costs). These consumers can be assigned to the social ecologicalniche.Thesecondgroupappreciatessocioecologicalaspectsaswellanddetects therein certain selfesteem and recognition benefits, but these consumers are not offhand prepared to accept disadvantages in functional benefits and increase of costs. The third group assigns no value added to socioecological product features and normally does not accepteitherlossinbenefitsorexaltationsincosts.Consumersofthistargetgroupbelongto the mass market. According to their individual perception and evaluation of benefits and costswhichisbasedonanumberofpersonalandsituationalfactorstheconsumersbelong tooneortheothertargetgroup. Positioning Tieduptothedecisionsofthesocioecologicalproductqualityaswellasthesustainability market segmentation and targeting are questions of positioning: Which role do ecological and social dimensions play in positioning? Are they important features of the product brand?Ifso,towhichextent?Generally,therearethreepositionsforcompetitiveadvantage: socioecological product qualities as dominant, equal or flanking dimensions in relation to priceandperformance(Meffert/Kichgeorg1998,pp.277279).Ifthesocioecologicalproduct dimensioniscommunicatedastheprimarybenefitpriortoperformanceandprice,adomi nant positioning strategy is strived at. In doing so, particularly the socioecological actives areapproached.Inthecaseofanequalpositioningstrategythesocioecologicaldimensionis addressed with the same intensity as performance and price. This option seems to be ade quatewhentargetingthosewhocanbesocioecologicallyactivated.Inthethirdpositioning strategy the socioecological dimension constitutes only a flanking dimension which sup portstheprimaryproductbenefitspriceandperformance.Thispositioningstrategyshould beappliedifthesocioecologicalpassivesarestrivedat. Timingofmarketentry In addition to the strategic decisions concerning socioecological product quality, sustain ability market segmentation, targeting and positioning, the issue of the right timing is im portant. In the case of introducing sustainable products in the food market two opposed market entry barriers are of great importance: primary consumer related market entry barriers

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StrategicandInstrumentalSustainabilityMarketing

versus secondary competitor related market entry barriers (Meffert/ Kirchgeorg 1998, pp. 231 232).Enteringthemarketatanearlystagemayimplythatthetechnologicalinnovationsmay stillbeafflictedwithinitialproblemsandtheconsumersarenotyetsensitivetosustainabil ityissues.Inordertoovercometheprimarymarketentrybarriersitisnecessarytoeducate theconsumersandcontinuouslyimprovethesustainablefoodproducts.Secondarymarket entrybarriersarecompetitorrelatedinsteadofconsumerrelated.Inthiscasethecompany enters the market at a later stage when the leading company has already established the reputationofasustainabilitypioneerandgainedsignificantmarketshare. Exhibit 3 summarises the so far detected, relevant characteristics of strategic sustainability marketing which have been described prior in this chapter and presents their parameter valuesintheirmostextremeform. Characteristics socioecological productquality marketsegmentation targeting positioning timingofmarketentry

Parametervalues highsociolowersocio ecologicalqualityecologicalquality nichemassmarket activespassives dominantflanking leaderlaggard

Exhibit3:CharacteristicsofStrategicSustainabilityMarketing:Synopsis

2.3

CharacteristicsofInstrumentalSustainabilityMarketing

Toimplementthesustainabilitymarketingstrategies,aninstrumentalsustainabilitymarketing (ISM)hastobedeveloped,i.e.acomprehensivemarketingmixwhichintegratessocialand ecological criteria. The sustainability marketingmix includes sustainable products, services andbrands;pricing;multichanneldistributionandcrediblecommunication.

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Sustainableproducts Ingeneral,aproductisanythingthatcanbeofferedtoamarket forattention,acquisition, use, or consumption that might satisfy a want or a need (Kotler/Armstrong 2004, p. 276). Thisimpliesthatproductscanbephysicalobjects,services,events,persons,places,organisa tionsandideasaswellasmixesoftheseentities.Forfoodproductshowever,itisreasonable tolimitthedefinitiontophysicalproductsbecausetheycontributedirectlytotheconsum ersphysicalhealthandformthecoreofthesustainabilitymarketingactivities.Inabroader sense,servicescorrespondingwiththeproductcanbeconsideredaswell(e.g.catererswho offerorganicmeals,foodprocessingcompanieswhichtakeonlineorders,etc.).Theproduct constitutesthekeyelementinthemarketofferingandhenceinmarketing. Sustainableproductscanbedefinedasproductsthatreducetheenvironmentalburden,con sidersocialaspectsandsatisfycustomerneedsbetterthancompetingoffersdo(Belz2005b, p.17).Theyhaveahighersocioecologicalefficiencythanotherproductsinthesamecate gory. However, the socioecological benefits of products change over time depending on aspectssuchas thelatest technologyand the societal pursuit (Ottman 1998).By definition, sustainableproductstrytorealiseallthreecomponentsofthesustainabilityconcept:onthe one hand they consider and integrate environmental and social aspects along the entire valuechainandontheotherhandtheyarecompetitiveandeconomicsuccessfuloverape riodoftime(insocioecologicalnichesandbeyond). Sustainableproductsarenotsynonymouswithsocioecologicalproductswhichwidelyfailto attach importance to the economic dimension. These kinds of products focus primarily on environmentalandsocialissuesandtendtoneglectconsumerwantsandneeds.Therefore, socioecologicalproductsareonlysuccessfulinnichesoroveraperiodoftimebuttheysel domremainpermanentlyinthe(mass)market. Prices The price is the amount of money which is charged for a product or a service or in a broadersenseisthesumofallthevaluesthatconsumersexchangeforthebenefitsofhav ing or using the product or service (Kotler/Armstrong 2004. p. 345). The pricing is deter minedbythreefactors:costs,customersandcompetitors.Itisarguedfrequently,thatsustain ablefoodproductsgeneratehigherproductioncoststhanconventionalfoodproductsdueto higher labor intensity, higher production risk, crop reduction, etc. Socioecological active

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StrategicandInstrumentalSustainabilityMarketing

consumersperceiveavalueaddedandarewillingtopayahigherprice.Inthiscasethepro ducersorprocessingcompaniescanskimthecreamofdemandforsustainablefoodprod ucts.Nevertheless,inordertobecomecompetitiveandtoaddressthelessactiveconsumers, it is necessary that suppliers of sustainable products reconsider pricing and pass possible cost savings through directly to the consumer in order to demonstrate that sustainable products do not have to be inevitably more expensive than other high quality products (more for the same). Only taking production costs into consideration would be short sighted. Pricing should rather be customervalue oriented than cost oriented, in particular withsustainableproductswhichoffertheconsumerspecificvaluesconventionalproductdo notoffer. Multichanneldistribution To provide the consumer with (fresh) sustainable food products without increasing their purchasecostsisthetaskofagooddistributionsystemwithinthesustainabilitymarketing mix.Fortheproducerthisimpliesbuildingreliablerelationshipswiththeconsumersaswell aswiththesuppliersandresellersinthesupplychain(Kotler/Armstrong2004,p.399).Buta significantpartofsustainablefoodproductsisstilldistributedthroughsmallenterprisedis tributionchannelse.g.selectivehealthfoodshops.Consumersbelongingtothetargetgroup ofthosethatcanbesocioecologicalactivatedorthesocioecologicalpassiveswillnotaccept additional costs and time spending to purchase sustainable products. Therefore a high de greeofdistributionisessentialifsustainableproductsshouldbemarketedsuccessfullybe yondtheniche(Belz2005b,p.19).Thiscanonlybeachievedthroughamultichanneldistri butionstrategywhichcombinesdirectaswellasindirecttradechannels. Customized,benefitorientedandcrediblecommunication Quiteoftenthemarketingmixisreducedtothefourthpcommunicationbutwithout aninnovativesustainableproduct,attractivepricesaswellaseasyaccesstothoseproducts the sustainability marketingmix would not be complete. Nevertheless, it is the bilateral communication between the company and its current and prospective customers which buildsandmaintainsanykindofrelationshipwhichagainconstitutethecoreofsustainabil itymarketing.Ingeneral,thecommunicationsmixiscomposedofaspecificcombinationof advertising,salespromotion,publicrelations,personalsellinganddirectmarketingtoolsin

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FrankMartinBelz/BirteKarstens

ordertoachievethemarketingobjectives(Kotler/Armstrong2004,p.467).Whenmarketing sustainable food products however two product specifics which need to be considered particularly in the communication mix come into effect. Firstly, socioecological product qualitiesoftenconstitutecredencequalitieswhichcannotbeinspectedorexperiencedbythe consumerneitherbeforenorafterthepurchaseoftheproduct(Darby/Karni1973,pp.68 69). Consequently, many consumers are skeptical if the promised product qualities really applye.g.iftheappleisreallyorganic.Therefore,itisthetaskofsustainabilitycommunica tion to ensure and convey credibility and reputation to the unsettled consumer who acts differently according to the particular target group (Schrader 2005, pp. 6174). This can be achievedbymeansofsustainabilityfoodandpackaginglabelsbyindependentthirdparties (e.g.MarineStewardshipCouncil,BioSuissebud,andTransFair)(Belz2005b,p.18).Addi tionally, the marketers have to balance information and animation in order to provide the consumerwithenoughcredibleinformationaswellasadequateemotionalstimulitopush sustainablepurchases(Schrader2005,pp.6869). Secondly,consumersdecideinfavorofsustainableproductsiftheirindividuallyperceivedand evaluatednetbenefitisvaluedhigherthanthenetbenefitofacomparableconventionalprod uct(Belz2001,p.78).Asaresultofthispersonalevaluationthebasicclassificationoftarget groups can be developed. For those that can be socioecological activated and the socio ecological passives the collective sustainable benefit is not relevant in terms of a purchase decision. Only if an individually perceived benefit comes along with the collective socio ecological benefit, sustainable buying patterns and consumer behaviour can be expected (Schrader 2005, pp. 6465). Therefore, it is the goal of sustainability communication to pointouttheindividualbenefitwiththeaidofsocalledmotivealliances:thesocioecological benefit needs to be combined with conventional purchase criteria such as taste, health, freshness,convenienceordesign(Belz2003,p.354). Exhibit4showsthesynopsisofthecharacteristicsoftheinstrumentalsustainabilitymarket ingintermsofthedifferenttargetgroupsrespectivelymarketsegmentsinthefoodindustry.

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StrategicandInstrumentalSustainabilityMarketing

Niche Socioecologicalactives Highest socioecological product quality neces sary; in parts optimiza tion of socioecological product quality with no regards to conventional productqualitycriteria

Marketsegments Thosethatcanbe socioecologicalactivated Highsocioecologicalfood product quality necessary; only few compromises concerning conventional productqualitycriteria

Massmarket Socioecologicalpassives Minimal socioecological standards necessary; no compromises at the expense of conventional food prod uct quality criteria; socio ecological characteristics oftenevencontraproductive

Foodproducts Price

Slightly higher prices of Only the same or lower Very high prices of socioecological products prices of socioecological socioecological food enforceable compared to foodproductsenforceable productsenforceable conventionalproducts Small, selective health food shops; direct mar keting, e.g. on markets or at farm stores; mail orderbusiness High degree of distribu tion essential, e.g. organic Very high degree of distri supermarkets; integration bution essential; multi of socioecological prod channeldistribution ucts into the conventional range,e.g.foodretailing

Communi Distribution cation

Factualargumentative Radical emotionally com communication; domi Emotionalargumentative munication; supplemented nantly information communication with factual information on basedcommunication demand

Exhibit4:CharacteristicsofInstrumentalSustainabilityMarketing:Synopsis Source:BasedonBelz2001,p.90.

3.

InfluencingFactorsofStrategicandInstrumental SustainabilityMarketing

The following chapter describes the external drivers and internal determinants which have a positive respectively negative impact on the implementation and success of sustainability marketing. Parts of the conceptual framework are based on empirical findings of a study conductedbytheInstituteforEconomyandEcologyoftheUniversitySt.Gallen(IWHSG) and the Swiss Coalition of Ecological Aware Corporations (BU) in October 2003 (Belz 2005a). Beyond these research findings, further assumptions are withdrawn from the rele vantliteratureandotherempiricalstudies(e.g.Kirchgeorg1990,Marshalletal.2005).

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Firstofall,itisnecessarytodefineanddistinguishtherelevanttermsusedinthissection, namely:externaldrivers,internaldeterminants,influencingfactorsandsuccessfactors.Ex ternaldriversandinternaldeterminantsarefactorswhichhaveagreatimpactonthesuccessof sustainability marketing. The former influences the sustainability marketing from the out side(e.g.consumerdemand,publicopinion)andthelaterfromtheinside(e.g.focusedmar ketingmix, owners personality). Therefore they are both influencing factors which have an impactonthesustainabilitymarketingsuccess,i.e.theyarealsosuccessfactors.Thefollowing sectionwilloutlinetherelevantexternaldriversandinternaldeterminantsanddeducepre liminaryhypotheses. Exhibit 5 shows the most important influencing factors of sustainability marketing drawn fromthestudymentionedabove.Itpresentstheanswerstothequestion:Whicharethekey influencing factors for the socioecological engagement in marketing activities? Altogether fivealternativeswereavailableandmultipleanswerswerepossible.Fourofthesefivefac torsconstituteexternaldriversi.e.customers,public,legislatorandcompetitors,whereasthe managementistheonlyrelevantinternalinfluencingfactoridentifiedintheempiricalstudy.

Customers Management Public Legislator Competitors 0%


Exhibit5:InfluencingFactorsofSustainabilityMarketing Source:Belz2005a,p.30.

60% 50% 47% 27% 23% 10% 20% 30%

n = 221
40% 50% 60% 70%

Externaldrivers

Internaldeterminants

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StrategicandInstrumentalSustainabilityMarketing

3.1

ExternalDrivers:SustainabilityMarketingbetweenPublicPushand MarketPull

The public and the customers are the two most important external drivers in terms of the companysengagementinsustainabilitymarketingactivities.Bothfactorsthecustomersas themarketpullandthegeneralpublicasthepublicpushneedtobebroughtintoanex ternalfit. Thepublicpushconstitutesthesecondmostrelevantexternalinfluencingfactorforsustain abilitymarketing:47%ofthecompaniesclaimthatthegeneralpublicisanimportantfactor for their socioecological commitment. It seems to have agreat impact on theimplementa tionofsustainabilitymarketingwhichconstitutesamajordifferencetomainstreammarket ingwherethecriticalpubliconlyplaysaminorrole(Belz2005a,p.29).Theconsiderationof environmental and social aspects has become a crucial factor for marketers because socio ecologicalproblemshaveturnedintomarketingproblemsoverthelast20years.Thiscanbe seenasaresultofthecriticalgeneralpublicwhichputsmoreandmoreemphasisonitsde mandsonthemarket.Thereforetheintensityofthepublicpushconstitutesakeyfactorbe causeparticularlyforprocessingfoodcompaniesinthepubliceyewithastrong(buteasy toharm)branditisimportanttokeepupahighreputationandanundamagedimagein ordertobecredibleduringaperiodoftimewhichischaracterizedbycrowdingout,fierce pricecompetitionandfoodscandals.Foodprocessingcompanieswhichfaceapublicpush aremainlyreactingi.e.theymanageriskstomaintaintrustandcredibility(Little2005,p.13). Thisleadstothefirsthypothesis: H1: Whereasthepublicpushresultsmainlyinriskavoidancemanagementasoutlinedabove the market pull rather leads to a market differentiation strategy which becomes more and more significant particularly among market leaders focusing on winning tomorrows cus Thepublicpushinfluencestheimplementationaswellasthecharacteristicsofstrategicand instrumentalsustainabilitymarketing.Thestrongerthepublicpush,themoredistinctiveare the strategic and instrumental sustainability marketing characteristics in terms of risk management. This means that the sustainability marketing is primarily concerned with keepingupagoodbrandimageonthecorporateaswellasontheproductlevelandthatit dealswithmaintainingandbuildinguptrust,credibilityandagoodreputation.

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FrankMartinBelz/BirteKarstens

tomers(Little2005,p.13).Accordingtothesurveythemostimportantandpowerfulinflu encingexternalfactoristhecustomeritself:60%ofthecompaniesdeclarethatthecustomer isthemainfactorfortheirsocioecologicalcommitment.Consumersandretailersmakede mands on the company for sustainable products and services. Therefore this market pull constitutesacrucialfactorintermsofthesuccessfulimplementationofsustainabilitymar keting.Companiescanrespondtothesedemandsbyofferingsustainableproductsdifferen tiatingthemselvesfromtheircompetitorsrespectivelyoccupyingnewnichesormarketseg ments.Thisisparticularlyimportantintimesofstagnatingandsaturatedfoodmarkets.In thisrespectthesecondhypothesiscanbeformulated: H2: Themarketpullinfluencestheimplementationaswellasthecharacteristicsofstrategicand instrumentalsustainabilitymarketing.Thestrongerthemarketpull,themoredistinctiveare the strategic and instrumental sustainability marketing characteristics in terms of market differentiationandmarketdevelopment.Here,thesustainabilitymarketingfocusesonsetting upnewmarketsegmentsandbrandloyaltyaswellasestablishingcustomeracquisitionand customerretention.

3.2

InternalDeterminants:CoordinatingtheRelevantCharacteristics Successfully

Inadditiontotheexternaldriverstherearecertaininfluencingfactorswithinthecompany whichhaveacrucialimpactonthesuccessfulimplementationandperformanceofsustain abilitymarketing.Oneinternaldeterminantwhichhasalreadybeenmentionedaboveisthe management.Itscommitmenttosustainabledevelopmentseemstobeastronginternalin fluencing factor (e.g. Marshall et al. 2005, pp. 104107). Besides influencing factors which comealongwiththecompanyassuch,i.e.sizeandlegalform,businesshistoryandowners personality, industry affiliation and visibility (public exposure), there are three important interrelationswhichseemtobeofimportanceconcerningthesuccessofsustainabilitymar keting.Theseassumptionsaredrawnfromtheanalysisofthecharacteristicsofstrategicand instrumental sustainability marketing in chapter 2. Like the external drivers, the internal determinantsneedtobebroughttoaninternalfitinordertoachievesuccess.

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StrategicandInstrumentalSustainabilityMarketing

Firstly,onthestrategiclevelthereneedstobeafitbetweenthefundamentalstrategicman agement (SM) of the company and the strategic sustainability marketing (SSM). Here the assumptionismadethatthedevelopmentofasuccessfulsustainabilitymarketingstrategy can only be realized if it fits the fundamental management strategy or vice versa. This impliesageneralorientationtowardssustainabilityofthestrategicmanagementwhichgoes beyondlipservice. Secondly, it is inevitable that the instrumental sustainability marketing (ISM) is coherent whichimplicatesthatallmarketingmixinstruments,i.e.products,prices,distribution,and communication are coordinated and harmonize with each other (sustainability marketing mix). Lastbutnotleast,thestrategicsustainabilitymarketingandtheinstrumentalsustainability marketing need to fit: a promising sustainability marketing strategy will have no further impact if the sustainability marketingmix does not reflect and implement the sustainable strategicplanningandobjectives. The analysis of the strategic and instrumental characteristics of sustainability marketing leadsthereforetothefollowinghypotheses: H3: H4: Fortheinstrumentalsustainabilitymarketing(ISM)itisessentialtobeconsistentinitself: targetingacertainconsumergroupneedsacertaincombinationofsustainabilitymarketing mix elements (4 Ps). If the sustainability marketingmix is not coherent, the possibility of successfulsustainabilitymarketingseemslimited. H5: Furthermore,itissupposedthatafitbetweenthestrategicsustainabilitymarketing(SSM) andtheinstrumentalsustainabilitymarketing(ISM)i.e.thesustainabilitymarketingmixis essential:asustainabilitymarketingstrategywillhavenofurtherimpactifthesustainability marketingmixdoesnotreflectandrealizethestrategicgoals. There needs to be a fit between the fundamental strategic management of the company (SM)andthestrategicsustainabilitymarketing(SSM). Itisassumedthatthesustainabilitymarketingstrategyissuccessfulifitisfullyintegrated intothebusinessstrategy.

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4.

MeasuringtheSustainabilityMarketingSuccess

Marketingwasdefinedasmanagingprofitablecustomerrelationships.Thus,thesuccess ofconventionalmarketingcanbemeasuredontheonehandbythedurationandintensityof thecustomerrelationshipandontheotherhandbythecompaniesprofitsearnedfromthat relationship. Key measures for marketing performance are: profits, sales, market shares, number of new customers, customer satisfaction, repetition sales, substitution sales, brand awareness,brandrecognition,brandimage,brandloyalty,etc.Similarly,thesuccessofsus tainabilitymarketingcanbemeasuredbythedurationandintensityoftherelationshipwith customers on the one hand, and the profits companies earn from that relationship on the other hand. But in the case of sustainability marketing there seem to be two possible ap proacheshowtomeasureitssuccess. First, the sustainability marketing success (SMS) can be measured through an indirect, uni dimensionalapproach.Inthiscasethekeymeasurewouldbethesalesofsustainableprod ucts.Theargumentisasfollows:Themoresustainableproductsaresoldsubstitutingcon ventional products, the more benefits there are for the social and ecological environments becausesustainableproductsreducetheenvironmentalburden,considersocialaspectsand satisfy customer needs better than competing offers do. The advantage of this measuring approach lies in its rather simple application and implementation i.e. the sales figures of sustainable products in comparison to conventional products. In doing so, the sustainable foodproductasunitofanalysisformstheexclusivefocusoftheapproach.Butitisquestion able, whether this indirect, unidimensional measurement satisfies all three sustainability dimensionsinanappropriatewayorwhetheritoversimplifiesthecomplexconceptofsus tainability. Thereforeasecondapproachwillbeintroduced.TheSMScanaswellbemeasureddirectly andinamultidimensionalform.Ifsustainabilitymarketingisdefinedasbuildingandmain tainingsustainableandprofitablerelationshipswithcustomers,thesocialenvironmentand the natural environment, there are three different kinds of dimensions which need to be takenintoaccount:customers,thesocialenvironment,andthenaturalenvironment.Every ofthosedimensionscanbebrokendownintofurthersubmeasuresi.e.theabstractdimen sionsneedtobeoperationalizedandevaluatedappropriately:

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StrategicandInstrumentalSustainabilityMarketing

Customers(economicdimension):profits,sales,marketshares,numberofnewcustomers, customersatisfaction,repetitionsales,substitutionsales,brandawareness,brandrecog nition,brandimage,brandloyalty,etc.

Social Environment (social dimension): food safety, health, obesity, employee satisfaction, equaltreatment,childlabor,industrialsafety,workingconditions,fairtrade,etc.

NaturalEnvironment(ecologicaldimension):processefficiency,productefficiency,packag ingefficiency,etc.

The key challenge of the direct, multidimensional measurement lies in the operationaliza tion of the term sustainability respectively its three dimensions. Nevertheless, it is debat ablewhetherthissecondapproachisnotmoreappropriateandadequateinordertomeas uretheSMSsinceitconsiderstherelevantissueinmoredepth. Forthequantitativestudy,basedonawrittenquestionnaireitneedstobefurtherdiscussed and pretested, whether the direct measurement or the indirect measurement of the SMS is morefruitfulandpracticable.

5.

ConceptualFramework

Exhibit 6 presents the conceptual framework of the research project Strategic and Instru mental Sustainability Marketing in the Western European Food Processing Industry. It shows the overall synopsis of the previous elaborated correlations and hypotheses of the strategic and instrumental sustainability marketing concept. As dependent variable, the sustainabilitymarketingsuccessstandsattherightsideofthesynopsis. As external drivers, the customers i.e. the consumer and the retailer as well as the public havecertainsocioecologicaldemandsonthefoodprocessingcompany(H1H2).Therefore, they influence the companys behaviour because the company needs to respond to theses demands;bothintermsofriskmanagementandmarketdifferentiation.Butthefoodproc essingcompanyisalsodeterminedbyinternalinfluencingfactors(H3H5).Hereitseemsto be important that all corporate operations are coordinated and that they harmonize with eachother.Alltheseexternaldriversandinternaldeterminantsinfluencethesuccessofthe strategicandinstrumentalsustainabilitymarketing(exhibit6).

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External Drivers
Social and Natural Environment

Internal Determinants
Company

Success

Customers
(Market Pull)
H1

H3

SM

SSM

Sustainability Marketing

H5 H2

Success (SMS)
ISM

Public
(Public Push)

P P P P
H4

SM ISM SMS Exhibit6:Conceptual Framework of the Research Project Strategic and Instrumental Subsequent to the further development of the conceptual framework and the deduction of thepreliminaryhypotheses,thewrittenquestionnairewillbedesignedandpretesteduntil theendofthisyear.Thesurveywillbeaccomplishedatthebeginningof2006,followedby theanalysisandevaluation. SustainabilityMarketingintheWesternEuropeanFoodProcessingIndustry StrategicManagement SSM StrategicSustainabilityMarketing

InstrumentalSustainabilityMarketing PPPP SustainabilityMarketingMix SustainabilityMarketingSuccess H1H5 Hypotheses1to5

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StrategicandInstrumentalSustainabilityMarketing

References
LITTLE, ARTHUR D. (2005): The Innovation High Ground: How Leading Companies are UsingSustainabilityDrivenInnovation,in:Prism2005,No.1,pp.927. http://www.adlittle.com/insights/prism/?pArticle=290(date20050930)

BELZ,FRANKMARTIN(2001):IntegrativeskoMarketing,ErfolgreicheVermarktungvon kologischen Produkten und Leistungen (Integrative EcoMarketing, Successful MarketingofEcologicalProductsandServices),Wiesbaden. BELZ, FRANKMARTIN (2003): NachhaltigkeitsMarketing (Sustainability Marketing), in: DieBetriebswirtschaft(DBW),Vol.63,No.3,pp.352355. BELZ, FRANKMARTIN (2004). A transition towards sustainability in the Swiss agrifood chain(19702000):usingundimprovingthemultilevelperspective,in:Elzen,Boelie/ Geels, Frank W./ Green, Ken (Eds.): System Innovation and the Transition to Sus tainability,Cheltenham,UK,pp.97113. BELZ, FRANKMARTIN (2005a): NachhaltigkeitsMarketing: Konzeptionelle Grundlagen und empirische Ergebnisse (Sustainability Marketing: Conceptual Basics and Em pirical Findings), in: FrankMartin Belz/ Michael Bilharz (Eds.): Nachhaltigkeits MarketinginTheorieundPraxis(SustainabilityMarketinginTheoryandPractise), pp.1939. BELZ,FRANKMARTIN(2005b):SustainabilityMarketing.BlueprintofaResearchAgenda, DiscussionpaperNo.1,MarketingandManagementintheFoodIndustry,Freising. CHARTER, MARTIN/ POLONSKY, MICHAEL JAY (Eds.) (1999): Greener Marketing, A GlobalPerspectiveonGreeningMarketingPractice,Sheffield. CHRISTOPHER,MARTIN/PAYNE,ADRIAN/BALLANTYNE,DAVID(1991):Relationship Marketing.Bringingquality,customerserviceandmarketingtogether.Oxfordetal. CONFEDERATIONOFTHEFOODANDDRINKINDUSTRIESOFTHEEU(CIAA)(2004): DataandTrendsoftheEUfoodanddrinkindustry2004,Brussels. DARBY, MICHAELR./ KARNI, EDI (1973):Free Competition and the Optimal Amount of Fraud,in:JournalofLawandEconomics,Vol.16,No.4,pp.6788. KARSTENS,BIRTE(2005):VomkozumNachhaltigkeitsMarketing.EinekritischeLitera turanalyse (From Eco to Sustainability Marketing. A Critical Literature Analysis), DiskussionsbeitragNr.2,MarketingundManagementinderLebensmittelindustrie, Freising.

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KIRCHGEORG, MANFRED (1990): kologieorientiertes Unternehmensverhalten (Ecologi calorientedManagementBehaviour),Wiesbaden. KOTLER,PHILIP/ARMSTRONG,GARY(2004):PrinciplesofMarketing,10thedition,New Jersey. MARSHALL, SCOTT R./ CORDANO, MARK/ SILVERMA, MURRAY (2005): Exploring IndividualandInstitutionalDriversofProactiveEnvironmentalismintheUSWineIn dustry,in:BusinessStrategyandtheEnvironment,Vol.14,No.2,pp.92109. MEFFERT, HERIBERT/ KIRCHGEORG, MANFRED (1998): Marktorientiertes Umweltman agement(MarketOrientedEnvironmentalManagement),3rdedition,Stuttgart OTTMAN, JACQUELYN A. (1998): Green Marketing, Opportunity for Innovation, 2nd edi tion,Lincolnwood,Illinois. PEATTIE,KEN(1992):GreenMarketing,London. PEATTIE, KEN (1995): Environmental Marketing Management. Meeting the Green Chal lenge,London. PEATTIE, KEN (1999): Rethinking Marketing. Shifting to a Greener Paradigm, in: Martin Charter/ Michael Jay Polonsky (Eds.): Greener Marketing. A Global Perspective on GreeningMarketingPractice,Sheffield,p.5770. SCHRADER, ULF (2005): Von der koWerbung zur NachhaltigkeitsKommunikation (From EcoAdvertising to Sustainability Communication), in: FrankMartin Belz/ Mi chael Bilharz (Eds.): NachhaltigkeitsMarketing in Theorie und Praxis (Sustainability MarketinginTheoryandPractise),pp.6174. SEIDERS,KATHLEEN/PETTY,ROSSD.(2004):ObesityandtheRoleofFoodMarketing:A PolicyAnalysisofIssuesandRemedies,in:JournalofPublicPolicyandMarketing,Vol. 23,No.2,pp.153169. SKOPPEK, HUGO/ KARSTENS, BIRTE (2005): NachhaltigkeitsMarketing eines eu ropischenGrohandelsunternehmens(SustainabilityMarketingofaEuropeanWhole saleBusiness),in:FrankMartinBelz/MichaelBilharz(Eds.):NachhaltigkeitsMarketing inTheorieundPraxis(SustainabilityMarketinginTheoryandPractise),pp.181196. WORLDCOMMISSIONONENVIRONMENTANDDEVELOPMENT(1987):OurCommon Future,UNWorldCommissiononEnvironmentandDevelopment,NewYork.

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InternetReferencesforcitedFoodProcessingCompanies
(Date20050804) DIAGEO,www.diageo.com FROSTAAG,www.frosta.de GREEN&BLACKS,www.greenandblacks.com HIPPAG,www.hipp.de NUTRECON.V.,www.nutreco.com UNILEVERN.V.,www.unilever.co.uk

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AbouttheAuthors
FrankMartin Belz, born 1966, is Professor for Brewery and Food Industry Management at the Technische Universitt Mnchen (TUM Business School), Academic Director of the Master Con sumerScienceandleaderofthejointresearchprojectSustainable ConsumptionandConsumerPolicyinthe21stCentury.Hestud ied Business Administration at the universities of Giessen and Mannheim(Germany),majoringinmarketing. In1995hereceivedhisPhDattheUniversityofSt.Gallen(Switzerland).Between1995and 2001Dr.FrankMartinBelzwasseniorresearcherandlecturerattheUniversityofSt.Gallen, participatinginvariousinterdisciplinaryandinternationalresearchprojects.In2001Frank Martin Belz was appointed Professor for Business Administration at the University of St. Gallen.He publisheda number of worksin the areas ofcorporate environmental manage mentandsustainabilitymarketing,includingsixbooksandseveralpapersinBusinessStrat egy and the Environment, Die Betriebswirtschaft, Die Unternehmung, Marketing ZfP, and Um weltWirtschaftsForum.Hehasalsobeeninvitedtospeakonthetopicofsustainabilitymarket ingatarangeofconferencesandseminarsinWesternEurope,NorthAmerica,andAsia. Birte Karstens, born 1976 in Hamburg, has been a research assistant and PhD student at the Professorship for Brewery and Food Industry Management at the Technische Universitt Mnchen (TUM Business School) since February 2004. She stud ied BusinessAdministration and Applied Cultural Science at the UniveristyinLneburg(Germany)andDenpasar(Indonesia)ma joringinmarketing,communicationandpublicrelations. Her diplomathesisfocused on the development from ecomarketing to sustainability mar ketingandhasbeenpublishedasdiscussionpaperNo.2intheseriesMarketingandMan agementintheFoodIndustryoftheprofessorship.

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DiscussionPapersMarketingandManagementintheFoodIndustry
No.1 Belz, FrankMartin (2005): Sustainability Marketing: Blueprint of a Research Agenda,May2005,ISBN3938236000 No.2 Karstens, Birte (2005): Vom ko zum NachhaltigkeitsMarketing: Eine kritischeLiteraturanalyse,January2005,ISBN3938236019 No.3 Mller, Susan (2005): Normatives NachhaltigkeitsMarketing: Motivlage von Unternehmen sozialkologischer Pionier und Leadunternehmen der Lebensmittelbranche,January2005,ISBN 3938236027 No.4 Belz, FrankMartin / Pobisch, Jasmin (2005): Shared Responsibility for Sustainable Consumption? The Case of the German Food Industry, January 2005,ISBN 3938236035 No.5 Brndli, Christian (2005): Preisgestaltung von Bioprodukten im Lebensmittel handelEininternationalerVergleich,February2005,ISBN 3938236043 No.6 Belz, FrankMartin / Karstens, Birte (2005): Strategic and Instrumental Sustainability Marketing. A Conceptual Framework, October 2005, ISBN3938236051 All discussion papers are available as a free download at http://www.food.wi.tum.de. In print, they can be ordered for 20 at any bookshop or directly at the Professorship for BreweryandFoodIndustryManagement.

____________________________________________________________________
TechnischeUniversittMnchen(TUMBusinessSchool) ProfessorshipforBreweryandFoodIndustryManagement AlteAkademie14,D85354Freising,Phone+498161713279Fax+498161713209 Email:Jeanette.Kralisch@wi.tum.de,http://www.food.wi.tum.de