Sustainable marketing - Free Samples - Myassignmenthelp.Com

Question: Discuss about theSustainable marketing. Answer: Introduction Climatic change is one of the key issues being faced by the contemporary business organizations in the current business scenario. This is due to the reason that, in the current scenario, the whole world is suffering from the issues in climate and environment (Seinfeld and Pandis ). Thus, in accordance to that, various initiative and regulations are being promoted to reduce the effect and implications of the climate change in the social life. One of the key areas being identified for generation of pollutants is the automotive sector. It is being estimated that more than 20 percent of the pollutants being produced by the man made activities are being generated from the automotive sector. Thus, it is of urgent need that the automotive sector should come with sustainable initiatives in order to curb the generation of pollutants (Epstein and Buhovac 2014). Ford is one of the oldest and most prominent players in the automobile industry. They are currently operating in different regions around the world and are having diversified product portfolio (Ford Corporate 2017). However, they are also being considered as one of the leading automobile organizations in contributing pollutants in the environment. Thus, it is also of urgent requirement for Ford to come up with various initiatives in order to curb their environmental impact along with offering their customers more environment friendly products. This report will discuss about the environmental factors that are being acted as the influencing factors for the automobile sectors to have implement change in their business policies. In addition, the various environmental factors will be analyzed in order to determine the influence of them in the automotive sectors. The implications of these environmental issues on the business potential of Ford as well as on the whole society will also be discussed. Moreover, the existing sustainability strategies being implemented by Ford will also be discussed in this report. Global factors influencing the automotive industry There are various issues being faced by the players operating in the automobile sector, which are influencing them in initiating for sustainable marketing. In the current environmental situation, majority of the developed and developing countries are initiating for stringent rules and regulations in order to curb the rate of pollution (Fontras et al. 2014). This is due to the fact that, developed countries such as America, Japan and United Kingdom along with the developing nations such as China and India is the major contributors of automotive pollution. This is leading to the health degradation of the population in the respective countries. Thus, the government in all the major economies is introducing various regulations to curb the present rate of pollution (Kurokawa et al. 2013). To adhere with these regulations, automobile manufacturers have to come up latest sustainability strategies. For instance, Government of India recently introduced the Euro IV norms for emission for the a ll the manufacturers being operating in India. The economical factor is also being responsible for influencing the automobile manufacturers in introducing sustainability strategies. With the development in the global economy in the recent years, the purchasing power of the customers is increasing. Thus, affordability of the customers in paying extra cost for hybrid and electric vehicles is more in the present scenario (Tseng, Wu and Liu 2013). In the recent sales report of the hybrid vehicles, it is been seen that this type of vehicles is selling in more volumes compared to other conventional vehicles. Thus, the economical environment for the hybrid vehicles is favorable and positive. This is further influencing the automobile manufacturers in marketing their eco-friendly products more to the customers. Thus, the sustainability activities of these organizations are being more promoted. Figure: 1 Sales report of the traditional and hybrid vehicles The social influence is one of the key influencing factors in motivating the automobile manufacturers to opt for sustainable marketing. The social culture in the current global market scenario is more favorable for the eco-friendly automobiles. Customers are more looking for the low level of emission and increased fuel efficiency (Khan and Kockelman 2012). Thus, automobile manufacturers are being more motivated in introducing greener products. With the rapid development in the technologies, introduction of the fuel-efficient products is becoming cost effective. Moreover, initiation of the technologies in producing hybrid and electric vehicles is also influencing the manufacturers in promoting more sustainable marketing strategies (Murphey et al. 2012). Triple bottom line analysis People According to the triple bottom line analysis, three areas or aspects should be considered by the contemporary business organizations in promoting more sustainable business activities (Willard 2012). The first aspect is the people or the social bottom line. The key issues that to be faced by Ford in initiating the social sustainability is the ethical issues that can be generated from the management of the human resources. According to the concept of the triple bottom line, organizations should provide all the benefits to their employees along with providing the products of having highest quality standard to the customers (Kuznetsova 2013). Ethical treatment of all the stakeholders is also one of the key considerations for social sustainability. Stakeholders include partners and suppliers for the organizations. Planet The next aspect is the planet or the environmental bottom line. According to this aspect, organizations should take care of the environment where they are currently operating. In the case of Ford, they should design their production process and marketing process in such a way that the entire process will have less impact on the environment (Wiles and Watts 2014). In sourcing the raw materials from the suppliers, Ford should initiate innovations and newer technologies in increasing the effectiveness of the sourcing process. The production process should adhere to the environmental standards and regulations and it should promote production of eco-friendly products (Nanda and Pring 2012). Moreover, initiation of the strategies such as repurposing, remanufacturing and recycling will help them in reducing the environmental impact from their operational activities. The marketing activities should also be having less environmental impact on the society. Social media marketing is one of the potential ways of sustainable marketing process (Tuten and Solomon 2014). Thus, Ford should initiate the use of social media as their key marketing tool. Already they have involved various social media platforms to promote their products. Profit The last aspect of triple bottom line is the profit, which is the core business objective for the organizations. The effective compliment of both the social and environmental considerations will help the organizations in leveraging more profit from the market. With the increase in the social awareness of the society about the environmental issues, it is required for the organizations to adhere their social and environmental considerations with their corporate governance. This will help them in enhancing their goodwill and reputation in the market. Perceived risks However, various risks can be generated from the initiation of sustainable marketing for Ford. One of the prime risks is the financial risk for the customers. This is due to the fact that, due to the initiation of the sustainable marketing strategies, the price of the product will be higher and thus it will be determined by the customers that whether they will have any benefits or not by paying extra amount (Hofmann et al. 2014). Moreover, organizations should have to make sure that their sustainable products would perform at par with the conventional products. The sustainable products should provide convenience to the customers more than that of the conventional products. Impact of sustainability issues on Ford Government legislations One of the key sustainability issues being faced by Ford is the introduction of various legislations and regulations regarding the pollution being emitted by the automotive industries. Without adhering with these regulations, the business potential of Ford will get reduced. This is due to the reason that, majority of the product portfolio of Ford is consist of petrol and diesel vehicles. Thus, introduction of the environmental laws will pose restrictions on the production of the diesel vehicles initially and petrol vehicles on the later stage (Vlachos et al. 2014). It will have adverse impact on the business potential of Ford. Moreover, governments in various countries are initiating for ban in vehicles having higher cubic capacity due to the reason that these vehicles are responsible for emitting more pollutants. On the other hand, Ford is having products with higher engine capacity such as Ford GT and Mustang. Thus, these legislations will have direct negative impact on the sales p erformance of Ford. Change in market trend The change in taste and preference pattern of the customers is also one of the key issues being faced by the automotive organizations such as Ford. In the current scenario, customers are more aware about the environmental issues and they are opting for eco-friendly products (Graham-Rowe et al. 2012). Thus, if Ford cannot change their existing product portfolio of conventional vehicles to greener vehicles, the sales potential will reduce significantly. It will also decrease the competitive advantages of them in the market. Thus, not adhering with the changing trend in the market will also have adverse impact on the business performance of Ford. Involvement of cost Another sustainability issue being faced by Ford is implementing change in the production process to cater to changing market requirement. The existing production process should change by them to produce the hybrid and electric vehicles. It will involve huge cost in changing the production process as well as the assembly line (Hwang and Tan 2012). In addition, the employees should be trained with the new technologies and with the new production process. Thus, for Ford it will be a huge cost-incurring project, to initiate the sustainability in the production process. Expertise in eco-friendly vehicles Vehicle manufacturers such as such as Tesla had opted for alternative vehicles from few years back. Thus, they have gained more expertise than that if Ford in this department. On the other hand, Ford has initiated the process of producing electric, hybrid vehicles much later, and that too by feeling the market pressure. Thus, the competitors of Ford are having more expertise than of Ford. It may have adverse impact on the initiation of the sustainability by ford. Issue with non renewable fuels In the current scenario, automobile manufacturers is facing the issue of shortage and first depletion of the fossil fuels and it is being projected that in the coming few years, this issue will increase rapidly. Thus, with the increase in the shortage of the fossil fuels, the demand for the conventional vehicles will get reduced (Abas, Kalair and Khan 2015). Hence, the only way to survive in the market is to initiate the alternative vehicles in the market. This is one of the key sustainability issues being faced by Ford in the present business scenario. Impact of sustainability on society The above discussed sustainability issues will not only have implications for the Ford as an organization, but also for the entire society. This is due to the reason that, the issue of sustainability of the organizations is related with the environment and society as a whole. Thus, it will directly affect the society (KIemes 2015). The pollutants being emitted by the automobiles will degrade the quality of the environment, which in turn will have ill impact on the health of the individuals. It is being reported that, excessive amount of emission of carbon dioxide and carbon monoxide will have serious impact on the human beings. Thus, due to the emission of the automobiles, the sustainability of the whole society will be at stake. Moreover, another issue being faced by the society in the present scenario is the wellbeing of the future generations. The core motive of initiation of sustainable activities is to secure the future of the future generation as well as keeping resources for t hem also. However, in the current state of affairs, the level at which the resources are being exploited, it will create issue for the future generation. Thus, initiation of the sustainable activities will help to reduce this issue. Climatic issue The degradation of the environment will have negative impact on the climate change. This is due to the reason that, the average global temperature will get increased due to the excessive emission of pollutants. This will in turn affect the global sustainability. Due to the change in the climate, the whole ecosystem will get changed and it will have implications for the entire society. Thus, the initiation of the sustainable marketing will help to reduce the impact on the environment to some extent, which will in turn reduce the probability of the climate change. Sustainable activities by Ford Ford has initiated the electrification schemes for their product portfolio. They have initiated with the introduction of the electric and hybrid cars. They have set a target of having more electric and hybrid cars more than the conventional cars. By 2020, they will invest more than $4.5 billion in research and development for the enhancing the utility of the electric cars (Corporate.ford.com 2017). Another sustainable initiative being taken by Ford is the initiation of the connected cars. According to them, technologies in the connected cars will help to reduce the road congestion and thus the time, energy and resources being wasted in the traffic congestion will get reduced (Korosec 2017). The cars of Ford are having latest technologies, which helped them in achieving the more fuel efficiency without being compromised on performance. Thus, the latest product portfolio of Ford is more fuel-efficient and they use less amount of fuels. Ford as one of their key aspects of sustainable policies is also considering vehicle safety. They have designed their vehicles and inducted technologies in order to provide the highest level of safety to their customers. All the ford vehicles are complied with NCAP safety ratings. This ensures the safety of the customers. Ford has also enhanced the process of their supply chain in order to gain higher amount of sustainability. The supply chain management initiated by Ford has set the standards for their suppliers to reduce the GHG emission and to achieve the energy efficiency target being set by them (Allen 2017). The manufacturing facility of Ford in Dearborn is being certified as gold LEED standard. They have initiated various environmental policies in their manufacturing facilities in order to reduce the environmental impact. One of the green initiatives being taken by them is the introduction of wildlife habitat in the facility (Media.ford.com 2017). Ford has initiated sustainability in their manufacturing facilities also. They have initiated advanced automated manufacturing process, which is more profitable and safe. All the aspects in the manufacturing facilities such as in line vehicle sequencing, waste reduction and quality control. It helped them in achieving cost efficiency and cost effectiveness in the manufacturing process. Automated manufacturing process of Ford is involving less amount of energy without being compromising in the performance. Ford has initiated a scheme named, Ford Authorized Leasing system. According to this scheme, Ford vehicles can be rented from the Ford dealership. They have employed trained employees in dealing with the customers interested in leasing Ford cars (Ford.com 2017). This scheme is helping the organization in two ways. One of the key benefits they are achieving is the added revenue from the customers. This is due to the reason that, customers not willing or not having the affordability to have a car is opting for leasing. Thus, Ford is able to cater to a larger section of the customers. On the other hand, leasing is helping them in reducing the level of emission from the cars due to the reason that, leasing is the concept of using the same car by different individuals, thus reducing the rate of emission by having more number of cars. Ford also promotes recycle process in their manufacturing facilities. It is being reported at their official website that each week they are recycling more than 5 million of aluminum to build the F series truck. Thus, sustainability is being gained from reducing the waste in the manufacturing process. Ford has also initiated the use of recycled fabric for the cars. The particular fabric is being manufactured from 100 percent recycled materials. It is being estimated by them that with the help of this initiatives, they will be able to conserve more than 600000 gallons of water and will help in reduction of the emission of carbon dioxide. They have also initiated a policy of developing electricity from the paint fumes. According to this policy, electricity is being produced from the fumes of the paint used in the painting process of the vehicles. Thus, the use of non renewable energy will get reduced. It is helping Ford in two ways. On one hand, Ford is making more profit due to the fact that; they do not have incurred cost for buying of energy resources. On the other hand, the sustainability of their production process can also be maintained effectively. Thus, the goodwill and the reputation in the market are being enhanced. All of the above discussed policies being initiated by Ford is helping them in gaining more competitive advantages in the market. This is due to the reason that, Ford is reducing their cost of production by enabling the low cost alternative strategies in their business activities. In addition, the global reputation of them of being a sustainable organization is also being enhanced. Due to their expertise in energy consumption, Ford has gained the EPAs energy star award. Only in United States of America, Ford had saved more than $ 25 million in energy billing. Thus, the sustainable policies being adopted by them is not only helping the society as a whole, but also helping in gaining competitiveness for Ford. Conclusion Having discussed the influencing factors for the automobile manufacturers in initiating sustainable activities, it can be concluded that, initiation of sustainable activities is required for the holistic welfare of all the stakeholders. Evaluation of the potential sustainability issues helped to identify the challenges that may be faced by the organizations in implementing the activities. Thus, it is the responsibility of the organizations in overcoming the probable challenges and implements the sustainable marketing strategies effectively. The sustainable initiative being taken by Ford has also been discussed. It shows the effectiveness of the policies being initiated by them. Moreover, the advantages that they have gained showed that effective implementation of the sustainable marketing strategies will create opportunities for the organizations. Reference Abas, N., Kalair, A. and Khan, N., 2015. Review of fossil fuels and future energy technologies.Futures,69, pp.31-49. Allen, A. (2017).Ford grows sustainable supply chain initiative - Supply Management. [online] Supply Management. Available at: https://www.cips.org/supply-management/news/2017/april/ford-expands-sustainable-supply-chain-initiative/ [Accessed 15 Sep. 2017]. Corporate.ford.com. (2017).Delivering Our Electrification Plans - Sustainability Report 2016/17: Ford Motor Company. [online] Available at: https://corporate.ford.com/microsites/sustainability-report-2016-17/stories/electrification.html [Accessed 15 Sep. 2017]. Epstein, M.J. and Buhovac, A.R., 2014.Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Fontaras, G., Franco, V., Dilara, P., Martini, G. and Manfredi, U., 2014. Development and review of Euro 5 passenger car emission factors based on experimental results over various driving cycles.Science of the Total Environment,468, pp.1034-1042. Ford Corporate. (2017).Company. [online] Available at: https://corporate.ford.com/company.html?gnav=footer-aboutford [Accessed 15 Sep. 2017]. Ford.com. (2017).Buy or Lease Your Next New Ford Vehicle | Lease-End Process | Official Site of Ford Credit. [online] Available at: https://www.ford.com/finance/lease-end/buy-or-lease-new-ford [Accessed 15 Sep. 2017]. Graham-Rowe, E., Gardner, B., Abraham, C., Skippon, S., Dittmar, H., Hutchins, R. and Stannard, J., 2012. Mainstream consumers driving plug-in battery-electric and plug-in hybrid electric cars: A qualitative analysis of responses and evaluations.Transportation Research Part A: Policy and Practice,46(1), pp.140-153. Hofmann, H., Busse, C., Bode, C. and Henke, M., 2014. Sustainability?related supply chain risks: conceptualization and management.Business Strategy and the Environment,23(3), pp.160-172. Hwang, B.G. and Tan, J.S., 2012. Green building project management: obstacles and solutions for sustainable development.Sustainable development,20(5), pp.335-349. Khan, M. and Kockelman, K.M., 2012. Predicting the market potential of plug-in electric vehicles using multiday GPS data.Energy Policy,46, pp.225-233. Kleme, J.J. ed., 2015.Assessing and measuring environmental impact and sustainability. Butterworth-Heinemann. Korosec, K. (2017).Ford Hires 400 Engineers In Push to Develop Connected Car Tech. [online] Fortune.com. Available at: https://fortune.com/2017/03/30/ford-canada-engineers/ [Accessed 15 Sep. 2017]. Kurokawa, J., Ohara, T., Morikawa, T., Hanayama, S., Janssens-Maenhout, G., Fukui, T., Kawashima, K. and Akimoto, H., 2013. Emissions of air pollutants and greenhouse gases over Asian regions during 20002008: Regional Emission inventory in ASia (REAS) version 2.Atmospheric Chemistry and Physics,13(21), pp.11019-11058. Kuznetsova, O.N., 2013. The new model of accounting of employee benefits of the entity.In the World of Scientific Discoveries, Series A,1(1), pp.46-53. Media.ford.com. (2017).Ford Transforming Dearborn Campus to Further Drive Innovation, Collaboration and Invest in Employees | Ford Media Center. [online] Available at: https://media.ford.com/content/fordmedia/fna/us/en/news/2016/04/12/ford-transforming-dearborn-campus.html [Accessed 15 Sep. 2017]. Murphey, Y.L., Park, J., Chen, Z., Kuang, M.L., Masrur, M.A. and Phillips, A.M., 2012. Intelligent hybrid vehicle power controlPart I: Machine learning of optimal vehicle power.IEEE Transactions on Vehicular Technology,61(8), pp.3519-3530. Nanda, V. and Pring, G.R., 2012.International environmental law and policy for the 21st century. Martinus Nijhoff Publishers. Seinfeld, J.H. and Pandis, S.N., 2016.Atmospheric chemistry and physics: from air pollution to climate change. John Wiley Sons. Tseng, H.K., Wu, J.S. and Liu, X., 2013. Affordability of electric vehicles for a sustainable transport system: An economic and environmental analysis.Energy policy,61, pp.441-447. Tuten, T.L. and Solomon, M.R., 2014.Social media marketing. Sage. Vlachos, T.G., Bonnel, P., Perujo, A., Weiss, M., Villafuerte, P.M. and Riccobono, F., 2014. In-use emissions testing with Portable Emissions Measurement Systems (PEMS) in the current and future European vehicle emissions legislation: Overview, underlying principles and expected benefits.SAE International Journal of Commercial Vehicles,7(2014-01-1549), pp.199-215. Wiles, C. and Watts, P., 2014. Continuous process technology: a tool for sustainable production.Green Chemistry,16(1), pp.55-62. Willard, B., 2012.The new sustainability advantage: seven business case benefits of a triple bottom line. New Society Publishers.