The effect of social, cultural and legal environments on sustainable marketing of energy efficient products in global market
The effect of social, cultural and legal environments on sustainable marketing of energy efficient products in global market
Add name and date hereTable of Contents
Introduction2
Cultural Environment.2
Technological Environment3
Legal Environment..4
Conclusion..5
Bibliography6
Introduction
Sustainability, eco-friendly consumption behaviors, reservation of natural resources, go green campaigns are just a few terms that are widely circulating all over the world in this day and age. Consumers have become more aware of their environment especially after Covid-19 (Emmert, 2021), and of the fact that its limited resources are on the path of depletion if corrective measures are not adopted. Consumers also believe that brands are equally as responsible as governments for bringing about these changes (World Economic Forum, 2021). No wonder that brands globally are trying to adapt to the trend of producing more environmentally sustainable products in order to fall in-line with their customers evolving eco-friendly purchase behaviors (Bukhari, 2011). It is therefore pertinent for global marketers too, to analyze various factors that influence such consumer behaviors and incorporate the findings to establish corresponding marketing strategies for brands, as it is impossible to create effective policies without understanding the determinants of consumption practices (Wilk,2002 as cited in Ur Rahman et al., 2021) .
In this paper we will discuss how technological, cultural and legal contexts impact the strategizing processes of global marketers to promote their green products, focusing specifically on energy efficient products.
Cultural Environment
A few studies have been carried out to determine the impact of cultural differences on varying eco-friendly behaviors. The foremost study was conducted by Hofstede in 1980, where two characteristics, individualism and collectivism, were studied across cultures and it was determined that consumers in individualistic countries care less about environmental sustainability than those in collectivistic countries (as cited in Ur Rahman et al., 2021). However, these determinants disregarded multidimensionality and the impact of motivating factors (Ur Rahman, 2021). Various other studies shed light on elements such as power structures and hierarchies within societies (Singelis, Triandis, Bhawuk, & Gelfand,1995; Triandis,1995; Triandis & Gelfand,1998 as cited in Ur Rahman et al., 2021), femininity, future orientation, and uncertainty avoidance (Chwialkowska, Bhatti and Glowik, 2020).
These studies help global marketers understand and predict consumer behavioral patterns and thus aid them in developing culture-specific marketing techniques. Marketing 360 identifies five different facets in which a culture may distinguish from another: material culture (technological and infrastructural resources used), language, education, religion and ethics and values. These in essence shape consumers mindsets which then translate into buying habits. For instance, a study was conducted across Sweden to determine the implications of varying cultures on purchase of energy efficient cars, and it was found that the French-speaking population had a greater share of consumption than the German-speaking populace (Filippini and Wekhof, 2021). Consequently, global marketers need to alter their strategies according to the sustainability standards of the culture they are targeting in order to become relevant.
Technological Environment
As Tamara Lover said. Marketing department of any company plays a major role in determining that a business reduces its waste and becomes more sustainable (as cited in Hemsley). And technology can aid businesses to create promotional campaigns in a more environment friendly manner; it can be used to digitalize campaigns which would not only be eco-friendly but would also be more cost effective without diminishing the effectiveness of the campaign itself (Schwartz, 2021; Hemsley). Cloud technology gives everyone access to digital assets, wherever they are in the world. Using a digital asset management solution lets global advertisers scale, centralise, organise and collaborate their content and control workflows. At the same time, decentralised usage improves productivity and saves money because regional marketers are empowered and can react quicker using local brand content (Velury as cited in Hemsley). AI and advanced analytics, IoT and blockchain, data sharing and eco-systems are a few digital tools that a company can use to create and launch promotional campaigns and ads (Close, Faure and Hutchinson, 2021).
If we talk about energy-efficient products, technology plays a vital role in their development as well as improvement. Research had indicated long ago that more than 50% of Americans would change their lighting consumption habits due to increase in energy prices (Shelton Group/Energy Pulse, 2006 as cited by Schwartz). Marketers have since recognized the progressing change and have marketed the technologically ever-evolving energy-efficient lighting to the receptive customers, thus resulting in massive consumption boost (Schwartz). Moreover, global marketers today adopt a technology ecoadvantage mindset, using advanced technological devices and methods to improve profitability as well as reduce negative environmental bearing (Close, Faure and Hutchinson, 2021).
Legal Environment
The legal aspect is of immense significance for global marketers as they are the one passing out information about the sustainable product to its customers. Any false or unsubstantiated claims can lead to legal action against the business; truth-in-advertising baseline must be taken into consideration at all costs (Sustainability, 2020). The Federal Trade Commission (FTC) has outlined the basic guide for all marketers in the US to prevent them from getting into legal jeopardy as environmental sustainability is a broad term and might reflect different meaning to different customers (Sustainability, 2020). These legislation frames also keep companies in check in terms of their strategic choices and marketing techniques, limiting some of their activities (Heiss and Napirkowska, 2010). While the frameworks might somehow be limiting, however, it is an opportunity for business and marketers to ensure their businesses are environment-friendly making it more appealing to its customers (Heiss and Napirkowska, 2010).
Laws regarding sustainable approaches have evolved and improved over the years and businesses have become more aware as well as cautious in their presence. Some states in the United States have filed cases against the Department of Energy for setting arbitrary thresholds for efficiency standards of home appliances, therefore forcing them to keep in-line with laws regarding environment protection (Walton, 2020). Moreover, under the Section 7 of the American Energy Manufacturing Technical Corrections Act the DOE is required to undertake a study in coordination with the industrial sector and other stakeholders on barriers to industrial energy efficiency, and eventually put together concurrent policies for implementation (as cited in Barriers to Industrial Energy Efficiency, 2015).
Conclusion
As the above reflection highlights, even though varying environments have become more rigorous and challenging over the past years, a large number of businesses have undoubtedly become more dynamic in participating towards becoming eco-friendly, vigorously producing and marketing their brands as sustainable and green.
Bibliography
Barriers to Industrial Energy Efficiency. (2015, June). In US Department of Energy. United States Department of Energy . Retrieved April 5, 2023, from https://www.energy.gov/eere/amo/articles/barriers-industrial-energy-efficiency-report-congress-june-2015Bukhari. (2011). Green Marketing and its impact on consumer behavior. European Journal of Business and Management, 3(4). https://core.ac.uk/download/pdf/234624075.pdfChwialkowska, Bhatti, & Glowik. (2020, September 20). The influence of cultural values on pro-environmental behavior. Journal of Cleaner Production, 268.
Close, Faure, & Hutchinson. (2021, October 11). How Tech Offers a Faster Path to Sustainability. BCG Global. Retrieved April 5, 2023, from https://www.bcg.com/publications/2021/how-technology-helps-sustainability-initiativesEmmert, A. (n.d.). The rise of the eco-friendly consumer. Strategy+Business. https://www.strategy-business.com/article/The-rise-of-the-eco-friendly-consumerFilippini, & Wekhof. (2021, January). The effect of culture on energy efficient vehicle ownership. Journal of Environmental Economics and Management, 105. https://doi.org/10.1016/j.jeem.2020.102400Heiss, & Napirkowska. (2010, June 1). The influence of legislation and political bodies on marketing strategies in the context of sustainable development and corporate social responsibility. Dissertation in Business Administration, Marketing. http://www.diva-portal.org/smash/get/diva2:325997/FULLTEXT01Hemsley, S. (2022, September 27). How technology cuts hidden environmental impacts of campaigns. Marketing Week. https://www.marketingweek.com/how-technology-can-cut-the-hidden-environmental-impacts-of-campaigns/M. (2020, October 6). Does culture really impact the marketing strategies? - Marketing 360. Marketing 360. https://www.marketing360.in/does-culture-really-impact-the-marketing-strategies/Schwartz, J. Marketing Energy Efficient Lighting [Power Point]. ICF International. https://www.efficiencyvermont.com/Media/Default/bbd/2009/docs/presentations/efficiency-vermont-marketingenergyefficientlighting_schwartz.pdfSchwartz, M. (2021, August 31). Council Post: How Technology Can Provide A More Sustainable Future For The Industrial Sector. Forbes. https://www.forbes.com/sites/forbestechcouncil/2021/08/31/how-technology-can-provide-a-more-sustainable-future-for-the-industrial-sector/
Sustainability in Advertising Law. (2020). Perkins Coie. Retrieved April 5, 2023, from https://www.perkinscoie.com/en/news-insights/sustainability-in-advertising-law.htmlThe global eco-wakening: how consumers are driving sustainability. (n.d.). World Economic Forum. https://www.weforum.org/agenda/2021/05/eco-wakening-consumers-driving-sustainability/Ur Rahman, Chwialkowska, Hussain, Bhatti, & Luomala. (2021, May 12). Cross-cultural perspective on sustainable consumption: implications for consumer motivations and promotion. Journal Aims and Scope, 25. https://doi.org/10.1007/s10668-021-02059-8Walton, R. (2020, April 15). Groups sue DOE over arbitrary threshold they say will avoid tougher efficiency standards for appliances. Utility Dive. https://www.utilitydive.com/news/groups-sue-doe-over-arbitrary-threshold-they-say-will-avoid-tougher-effic/576059/
