Sustainable Marketing Page 1 AWARDED BEST PAPER RESEARCH TRACK, MPI/WEC 2012 Sustainable Event Marketing in the MICE Industry: A Theoretical Framework Susan M. Tinnish, PhD Sapna Mehta Mangal Abstract A new era is dawning for organizations focusing on sustainability. Changes in views about resource management, shifting consumer demands and a longer-term focus on corporate social responsibility (CSR) is encouraging organizations to consider sustainability in all aspects of organizational life. Meetings and events are not immune from this trend. While marketing is about encouraging consumption, this discipline is not untouched by the focus on sustainability. Marketing serves as a bridge between an organization and its stakeholders. Marketing needs to be concerned about the resources it uses to satisfy consumer needs and wants and also be concerned about the effects of this consumption on human life and biosphere (Sheth & Parvatiyar, 1995, p. 6). Events are a strategic communication tool available to deliver key messages to different stakeholders. Events utilize branding, theming and messaging to communicate their messages. Planners use vehicles like signage, banners, promotional items, invitations and registration, handouts, exhibits and nametags/lanyards. Inherent in all events, therefore, are marketing elements which help drive branding, theming and messaging. This conceptual paper serves as an introduction to the topic of sustainable marketing to help planners react to the challenges of sustainability. Adapting a model used for marketing in the forestry industry (Kärnä Hansen and Juslin, 2003), the authors create a framework in which planners can build an integrated sustainable marketing plan. Moreover to fill a void in the literature and practitioner-focused resources, this paper focuses on the holistic view of sustainability with a specific emphasis on marketing and communication practices. Keywords: corporate social responsibility, sustainable marketing, meetings, events, environmental marketing Sustainable Marketing Page 2 Introduction This conceptual paper seeks to create new pathways between sustainability; marketing and the meetings, incentives, convention and exhibition (MICE) industry. In this paper, the authors explore how planners in the MICE industry can create events that are more sustainable. For simplicity sake, all meetings, incentives, conventions and exhibitions will be referred to as events. We seek to give planners a model for integrating environmental and social responsibility into traditional event planning. The use of “sustainability” as another lens (outside of economic considerations) can create a different product (the event) as well as impact the process (event planning). Sustainable marketing also has the opportunity to influence participants’ behavior. With marketing serving to encourage consumption, it is not surprising that marketing can be seen as less than sustainable. Likewise, many events include large-scale production elements, entertainment, and “shows” creating a similar impression about the lack of sustainability. And while neither activity will ever be completely sustainable, we regard changing views about resource management, shifting consumer demands and a longer-term focus on corporate social responsibility as a new opportunity for planners to apply the concept of sustainable marketing to events. Today, sustainability is often defined based on the definition of sustainable development put forth by the World Commission on Economic Development (WCED) in its report, Our Common Future, in 1987. According to the WCED, sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs (WCED, 1987). The commission further asserted that sustainable development required the simultaneous adoption of environmental, economic, and equity principles. Currently, the definition is commonly referred to as the Brundtland Commission definition as the WCED was later named the Brundtland Commission. Thus sustainability is defined as a balanced focus on economic, social (sociocultural), and environmental issues – the three pillars. The authors differentiate between environmental sustainability (“greening”) and the holistic approach to sustainability Sustainable Marketing Page 3 Current trends indicate a strong interest in sustainable meetings by planners. The "2009 State of the Sustainable Meeting Industry" report, from Meeting Strategies Worldwide, finds that about half of all professional planners – 51% of independent planners, 47% of corporate planners, and 44% percent of association and government planners – are going green, and corporate belttightening is contributing to the trend (Meet Green). The 2010 study by the American Society of Association Executives (ASAE) noted that 69% of members had eco-friendly practices in place at their meetings and another 11% planned to do so in the next year. This is a twenty percent increase from the 2007 results (Kornegay, 2011). While marketing and events may be seen as the antithesis of the concept of sustainability, we propose to show a pathway for planners to use marketing to achieve a more sustainable product, process and impact on the participants attending the event. Literature Review We examine two threads of literature in our review: marketing definitions and marketing management, planning and strategy. These two areas provide the conceptual basis upon which we can build a conceptual model for planners involved in events and marketing. Marketing: Definitions The MICE industry’s “greening” and environmental focus towards sustainable marketing cannot be justified without comprehending the entire realm of marketing theories that surround and influence the building block of sustainability. The idea of sustainable marketing travels under various names with numerous nuances depending on the focus on environmental sustainability or a more holistic (three-pillars) approach to sustainability. Various scholars have developed concepts: (1) social marketing, (2) societal marketing, (3) green marketing (Peattie, 1992 as cited in Fuller, 1999, p. 3; Ottman, 1993 as cited in Fuller, 1999, p. 3), (4) ecological marketing (Fisk, 1974; Hennison and Kinnear, 1976), (5) sustainable marketing, (6) greener marketing (Charter, 1992), and (7) environmental marketing (Coddinton, 1993 as cited in Fuller, 1999, p. 3). Due to overlaps in definitions and subtle nuances, the literature review presented here will provide a background of five marketing terms, their origins and how they impact sustainability. Sustainable Marketing Page 4 These include social marketing, societal marketing, green marketing, ecological marketing, and sustainable marketing. Social Marketing Companies need to pay closer attention to their social marketing and embed this marketing form to reach their sustainable goals in the twenty-first century. The term social marketing was coined in the early 1970’s, and its overtones can be seen in the present day. Social marketing is the driver needed to persuade and improve the quality of life for citizens. As put forth by Kotler and Roberto (1989) social marketing can be classified as a social change management which offers a framework with which to change unhealthful or unsocial behavior of others. It is a form of marketing tactics for the good of citizens. Societal Marketing Social marketing was criticized by early marketing pundits and the tendency for companies to confuse it with societal marketing. The extension to the societal marketing looked at going beyond just the role of advertising and mass media to convey the social marketing message. According to Schwartz (1971 ) the societal marketing concept encourages firms to “market goods and services that will satisfy consumers under circumstances that are fair to consumers and that enable them to make intelligent purchase decisions, and counsels firms to avoid marketing practices which have dubious consequences for society.” To date, most programs that foster sustainable behavior have been information intensive. In these campaigns, media advertising and the distribution of printed materials are used to foster behavior change. In short, societal marketing is concerned with ensuring that commercial marketers go about their business properly, without prejudicing either their customers or society as a whole. (Baker, 2003). Green Marketing The efforts to meet demands presented by the growing population in the twenty-first century posed a challenging front for marketers. At the start of the twenty-first century, the consequences faced by the world as a result of the aggressive pursuit of economic growth are crystal clear. The world is faced with a significant imbalance, rising levels of greenhouse gasses in the atmosphere, a hole in the ozone layer caused by CFC releases, widespread destruction of the rain forests, and Sustainable Marketing Page 5 a growing list of endangered species and ecosystems are just a few of the indicators (Belz and Peattie, 2009; Baker, 2003). During the 1980’s the environmental mindset increased and a “green buyer” mentality grew in parts of Europe and North America. As a result green marketing or environmental marketing products were produced, targeted to green customers that had the ability and desire to spend more on products that were more ecological friendly (Belz and Peattie, 2009). Baker (2003) defines green marketing as “the holistic management process responsible for identifying, anticipating and satisfying the needs of customers and society, in a profitable and sustainable way.” The two challenges faced by green marketing need to be underscored. Ecological and social issues have become major macro influences on companies and the markets within which they operate in the short term. In the longer term, as companies continue to embark on their sustainability journey, companies need to make fundamental changes where management paradigm shifts are necessary, this underpins marketing and the other business functions (Shrivastava, 1994). The stark difference between societal and green marketing is that the former is aimed at elevating particular society concerns and the latter is taking a global concern prospective. Green marketing may be simple and easy to comprehend; however, the challenges arise when it is put into action. Marketers’ interest in eco-performance may reflect external drivers of legislation, customer demand and public opinion, or internal drivers relating to top management commitment, corporate strategy or the pursuit of competitive advantage (Bannerjee, 1999). Ecological Marketing The environmental concern of the 1970s led to the green marketing wave which in turn spawned the ecological marketing concept (Hennison & Kinnear, 1976). The focus of ecological marketing stems from acknowledging a looming ecological calamity and the willingness for marketers to assume responsibility to avoid this fate. Ecological marketing is largely concerned with those industries with the most severe environmental impacts, and with developing new technologies to alleviate particular environmental problems. In both the ecological and societal marketing concepts, the emphasis on socio-environmental issues for marketers has mostly been framed in terms of costs and constraints (Baker, 2003). Sustainable Marketing Page 6 Sustainable Marketing Fuller (1999, p. 4) defines sustainable marketing as: The process of planning, implementing, and controlling the development, pricing, promotion, and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met, (2) organizational goals are attained, and (3) the process is compatible with ecosystems. Sustainable marketing is considered a macro marketing notion whereby the notion of sustainable development is embraced (Belz & Peattie, 2009). It is where ecological, social and economic issues unite. In summary, sustainable marketing is considered a holistic marketing that is ecological driven, viable, ethical and relationship based. It is a long-term approach to marketing that is considered “improved” marketing that draws from these viewpoints and is intended to endure (Belz & Peattie, 2009). Like Andersone and Gaile-Sarkane (2010, p. 199), we adopt the perspective that sustainable marketing is a contemporary umbrella marketing term than encompasses cause-related marketing, social marketing, corporate social responsibility and green marketing. Marketing Management, Planning and Strategy Marketing strategy can be defined as the total sum of the integration of segmentation, targeting, differentiation, and positioning strategies designed to create, communicate, and deliver an offer to a target market (El-Ansary, 2006) with an interplay of three forces “the strategic three Cs” the customer, the competition, and the corporation” (Emery, 2000). El-Ansary presents taxonomy of marketing strategy concepts and integrative frameworks that differentiate and integrate marketing formulation from marketing implementation processes. He notes that marketing strategy as a sub-discipline of marketing is not well documented (El-Ansary, 2006). He notes that marketing strategies are segmentation, targeting, differentiation, and positioning. Marketing management is a program designed for marketing strategy implementation. This distinction is important as we examine how to design and implement a marketing strategy into an event in a way that incorporates the strategic, structural, and management/operations antecedents to creating customer value. Sustainable Marketing Page 7 Various scholars have addressed the view of marketing planning (Pujari & Wright, 1996; Banerjee, 1999; Wehrmeyer, 1999; Arnold & Quelch, 1998). Ultimately, marketing is vital to an enterprises’ strategic management. A failure in marketing can block an organization from achieving its goals. Marketing strategy is considered one vital link to overall efficiency as well executed marketing plans increase customer loyalty and decrease customer defections (Hill & Jones, 2010). The execution of events requires planning; likewise the execution of marketing requires planning. In the literature, we discovered a theoretical framework which offered an interesting foundation upon which to analyze and build a framework for sustainable marketing for events. Kärnä, Hansen and Juslin (2003) conducted an empirical study to measure, describe, and compare how social responsibility is emphasized in the values of members of the forestry wood value chain in four European countries. They utilized a framework based on Juslin’s (1992, 1994 as cited in Kärnä, et al., 2003) integrated model of marketing planning which also incorporates concepts mentioned Ansoff (1965, as cited in Kärnä, et al.,2003) and Shirley, Peters and El-Ansary (1981, as cited in Kärnä, et al.,2003 ). In their framework, environmental marketing is integrated into marketing decisions on three hierarchical levels: marketing strategies, structures and functions. Environmental marketing planning is also based on business values emphasizing social and environmental responsibility. Their framework is shown in Figure 1. They note that the implementation of strategies is not possible without structures which account for environmental issues. Marketing structures and functions should carry out and support the environmental marketing strategies. Without a strong connection and interrelationship among strategies, structures and functions, an organization can make unfounded claims about their performance leading to greenwashing1. 1 Terrachoice describes greenwashing as the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service. (The Seven Sins of Greenwashing, http://sinsofgreenwashing.org) Sustainable Marketing Page 8 Figure 1 Theoretical framework (Kärnä, et al., Figure 2., 2003) Intersection of Marketing within Events With marketing serving to encourage consumption and many events encouraging consumption, it is not surprising that both can been seen as less than sustainable. And while neither activity will ever be completely sustainable, most organizations accept the need to be more socially and environmentally responsible by creating a new opportunity to apply the concept of sustainable marketing to events. In the traditional framework of event marketing2, the discipline focuses on promoting consumption through market segmentation, targeting , differentiation and positioning using the four Ps of product, pricing, promotion and place. In the context of events, marketing may include some or most of these elements – in the case of public sporting events, public trade shows (e.g., the garden show), association events, franchise events, etc. as these organizations use marketing to entice participants to “consume” the product by attending. However, in other cases, like corporate events, segmentation, targeting and differentiation are less important as the audience 2 We use the term event marketing to distinguish it from traditional, pure marketing. Sustainable Marketing Page 9 is a captive; the participants do not have a choice about attending. Due to their position in the company, the participants have been segmented and targeted to attend. Despite the differences between product marketing and marketing an event, marketing remains a critical component of an event. Even at events where marketing is not about purchasing the “right to attend,” marketing is certainly about “consuming” the main messages of the event. Thus, planners are focused on correctly marketing using placement or distribution through typical event messaging channels including signage, name badges, graphics, PowerPoint presentations, handouts, materials, save-the-date promotions, invitations, promotional products, banners, newsletters, daily trade show papers, etc. Rationale for a Focus on Sustainable Marketing within Events In the United States, the natural environment did not have a significant impact on marketing practices until the 1970s, due to limited regulation and ambivalence or lack of focus with respect to environmentalism or Corporate Social Responsibility (CSR) (Menon & Menon, 1997, p. 52). Sustainability has become a critical part of most organizations today (Epstein, Buhovac and Yuthas, 2010). According to Ludema, Laszlo and Lynch (2012), sustainable value creation is becoming a key driver of competitive advantage for organizations. They suggest that organizational leaders are shifting their perspective on sustainability from seeing it as an obligation to seeing it as an opportunity. Sustainability is and can be embedded in a variety of functions in any organization from supply chain to product development. In addition, we would argue that events have an important role to play. Sustainability and “green” events are increasingly relevant. The topic is popular in trade publications (e.g., Meetingsnet.com. Green Meetings page, n.d.; CVENT’s Green Meetings Made Easy page, n.d.) and the MICE industry now has various standards such as ISO 20121 and APEX/ASTM to guide planners in the execution of more sustainable events. We would argue that communications is particularly critical. Events are about communication and how that “message” is delivered is a marketing decision. Events use a variety of tools (signs, brochures, name badges, presentations with logos, etc.) to carry forth their messages which are Sustainable Marketing Page 10 directly related to marketing. Events are ubiquitous affecting organizations of all shapes and sizes. “Historically, face-to-face meetings have played an important role in the social, and especially the political life, of Western and non-Western societies” (Schwartzman, 1989 as cited in Arvey, n.d.). We consider events as the organizational “grease” that allows business to be transacted. While planners can start in a variety of areas for increasing the sustainable aspects of their events, we would argue that marketing is an ideal starting place. We advance this perspective for six reasons: 1. First, marketing allows a holistic perspective on sustainability, not a more narrow focus on “green” or eco-friendly activities. 2. Events occur in situ3. The in situ nature of events requires cooperation between planners, suppliers and other event stakeholders - before, during and after the event. Desirable goals, such as lowering greenhouse gas emissions, reducing waste, and increasing energy and water efficiency can only be met if high levels of participation from key stakeholders occur. Thus education must occur throughout the event planning process if higher levels of sustainability are sought. This same level of communication and persuasion is required in sustainable tourism (Weaver, 2008, p. 185). 3. Events possess unique capabilities to create awareness, educate and model behavior. Sustainable marketing offers the opportunity to help drive change. When overlaid with sustainable marketing, events hold special communication capabilities. Marketing in events is centered on a process of managing relationships with people. Marketing at an event has similar possibilities as that of social marketing. Social marketing refers to the application of marketing principles, concepts and tools to problems of social change. Social marketing programs are designed to influence individual’s behavior to improve their well-being or that of society. An example of a social marketing message would be “Don’t Text and Drive.” Mothers Against Drunk Driving is an organization dedicated to social marketing. 4. Planners have more discretion and control over making changes to the marketing and communication elements of their events than other aspects of planning. For example, 3 In situ is a Latin phrase meaning in the place; events are both produced and consumed in place. Sustainable Marketing Page 11 while a planner can determine a destination for an event and select a more sustainable destination over another choice, the reality is that once the destination or hotel is chosen, the planner must work within the given infrastructure of the hotel or venue or city to make the event more sustainable. For example, if a city does not support composting, then the effort and cost to compost for one event (e.g., hiring a private hauler to take away the compost) may be perceived as greater than the benefits. Marketing is more independent. 5. The marketing function serves as a management function, a business process and a philosophy. The marketing discipline can serve as the lens to make decisions, guide the planning process and serve as an overarching ideal for events. 6. Marketing is influenced by the social, technical and cultural ecosystem. Likewise, marketing has the capacity to influence the social, technical and cultural ecosystem. Organizations have started incorporated environmental and sustainability elements into their marketing (Menon & Menon, 1997). When building the business case for sustainable marketing for events, planners can find justification in five areas. 1. Differentiate the brand. This is true for planners and suppliers. Suppliers have an opportunity to serve as “partners” for progressive companies, (Charter, Peattie, Othman, & Polonsky, 2002). 2. Protect reputations and build strong brands. Corporate reputation results from perceptions of stakeholder behavior and from brand associations by stakeholders (Menon & Menon, 1997, p. 63; Font, n.d.) 3. Drive innovation and creativity. When forced with new constraints, the human spirit often creates better and more innovative solutions. 4. Save costs. Having a sustainable perspective does not automatically mean additional costs. For example, choosing not to print all the event materials will result in initial cost savings. 5. Bring a positive element to the human resource strategy. The people element of the organization at an event can reap tremendous benefits from participating in a sustainable organization, effort or event. Sustainable Marketing Page 12 Businesses have additional justification to build the business case for sustainability which is outside of the scope of this paper. However, the existence of these additional reasons gives added credence to the organization valuing sustainability. These reasons include investor influence/social investing (Labadie, 1991 as cited in Menon & Menon, 1997), avoiding potentially restrictive legislation through self-regulation, etc. Sustainable Marketing in Action Building on the framework of Kärnä, Hansen and Juslin (2003), we would propose that planners can focus a sustainable marketing plan based on three hierarchical levels: Strategies Structures Functions The idea of strategies and tactics aligns with Menon and Menon’s (1997) review of an “enviropreneurial marketing strategy” in which they outline the dimension (strategy, core values and organizational and implementation infrastructure). Kärnä et al. (2003) define structures as the environmental management systems, organization and contact channels. Menon & Menon (1997, p. 56) describe organizational and implementation infrastructure as including coordination mechanism, investment (financial and non-financial), commitment (resource allocations committed short or long-term) and supplier and customer value chains. The core of sustainable marketing is strategic decisions in which the three pillars of sustainability are emphasized and captured as a source of competitive advantage. Implementation of the strategies is not possible without structure. In the context of an event, structures represent the organization of the event and the planning process and decision support systems. Marketing structures and the marketing functions (communication, branding, advertising, messaging) are planned and executed so they support the marketing strategies. Thus structures and functions are tools to implement strategies. Sustainable Marketing Page 13 These three hierarchical levels are influenced by organizational values as proposed by Kärnä, et al. (2003). In addition we would note that in the context of an event, the three levels are also influenced by the alignment of the event to the business values. Our theoretical framework is shown in Figure 2. Figure 2 Theoretical Framework for Sustainable Event Marketing We have built on Kärnä et al.’s (2003) framework with the addition of the following mediating influences: (1) champions, (2) awareness of stakeholders, and (3) knowledge of stakeholders. We will now review each element in our framework. Sustainable Marketing Page 14 Sustainable Marketing Planning In the design world, environmental management has been a driving force behind eco-(re)design of existing products and eco-innovation which results in the creation of new products (Charter and Clark, 2007). Arthur D. Little (2004 as cited in Charter and Clark, 2007) recognized that the broader concept of sustainability could also result in innovation with “the creation of new market space, products and services or processes driven by social, environmental or sustainability issues.” We will use the term sustainable innovation and eco-innovation synonymously as has been done by others (Charter and Clark, 2007). Marketing has a potential pivotal role to play in sustainable event marketing as they sit at the intersection of the organization, its stakeholders and messaging/branding. Any effort to truly embed sustainability into an organization requires a change of organizational processes as companies like InterFace, Philips and SC Johnson discovered as they worked to (re)design eco-products (Charter and Clark, p. 7, 29, 35). This experience provides a broad context for using the Kärnä et al. model (2003) as a starting point for marketing and events. We posit that the model results in three different outcomes: 1. Change event planning process and products used (change process) 2. Change events and messaging (change product) 3. Change behavior of participants, exhibitors and attendees (change others) Earlier we noted the nuances between pure marketing and event marketing. At events, marketing may include these some or most of the marketing elements (market segmentation, targeting , differentiation and positioning using the four Ps of product, pricing, promotion and placement) depending upon whether the event is a public event or private event. Despite the differences between product marketing and marketing an event, marketing remains a critical component of an event. Marketing may not be about purchasing the “right to attend” but it is certainly about consuming the main messages of the event. Thus, planners are focused on correctly marketing using placement or distribution through typical event messaging channels including signage, Sustainable Marketing Page 15 name badges, graphics, PowerPoint presentations, handouts, materials, save-the-date promotions, invitations, promotional products, banners, newsletters, daily trade show papers, etc. Events will carry primary messaging – the main purpose for the event. However, events can incorporate a second level where information is shared about sustainability. Events have characteristics similar to small businesses that allow them to be an appropriate channel for messaging. Carrigan, Moraes, & Leek (2011) examine the role that small and medium-sized enterprises (SMEs) can have on sustainability. They examined small firms in the town of Modbury in the United Kingdom and found that the owner-manager of the SME was critical as SME owners “are often inseparable from the business in terms of values, policies and practices; the personal motives and ethics of owner-managers and the responsible behavior demonstrated by SMEs are interrelated (Carrigan, Moraes, & Leek, 2011, p. 518). In an event environment the champion may take the form of the owner-manager of the event (the business owner) and the owner-manager of the event planning process (the planner). Mediating Factors The presence of champions in this setting caused us to consider the role of champions within events. Whether the champion is the planner or a member of management, the champion can translate vision into action. Champions are most effective when they possess literacy around sustainability, awareness of the issue and pro-sustainability attitudes (Tilley, 1999 as cited in Carrigan, Moraes, & Leek, 2011, p. 519). Tilley’s work caused us to add two additional factors to Kärnä et al.’s framework: Awareness, knowledge (managerial and technical). Other scholars also reinforce the need for values (Menon & Menon, 1997; Tilley, 1999 as cited in Carrigan, Moraes, & Leek, 2011, p. 519) Discussion This framework allows planners to think more strategically about the role of marketing, sustainability, messaging and events. Our proposed framework demonstrates that sustainable marketing contributes strategically to an organization in three important ways through (1) embedding sustainability in the product, (2) embedding sustainability in the planning process, Sustainable Marketing Page 16 and (3) embedding sustainability in the product to drive behavioral change. Using our framework, planners can consider the following strategies, structures and functions to create their own sustainable marketing plan. Organizational Values Planners have the opportunity to act more strategically by aligning their organizations with the trend toward sustainability or align their events with existing organizational values focused on sustainability. In doing so, planners can protect their organization’s reputations and help build stronger brands and differentiate their company. Many people are attracted to organizations that share similar values. Employee involvement in any sustainable process improvements emerges as an important element in a firm’s environmental responsiveness. Environmental performance improvements (such as waste minimization) result directly from employee involvement. Two researchers demonstrated that good environmental practices also had a positive result on employee satisfaction and loyalty. Kassinis and Soteriou report on the work of Enz and Sigua who study the operations of four hotels (each hotel was named as environmental best practice champions in a Cornell University study of best practices in the U.S. lodging industry). The work of Enz and Sigua indicated that the practices had a positive impact on employee morale (and thus satisfaction) and enhanced the staff’s pride in the hotel. Similar results are reported by Goodman in the case of Scandic hotels (Kassinis & Soteriou, 2003). Furthermore, Kassinis and Soteriou (2003) studied the impact of environmental practices on customer satisfaction, loyalty and market performance. They surveyed 1,238 hotels from the 1999 Official Hotel Guide. The target population included hotels in the countries of Austria, France, Germany, Greece, Italy, Portugal, Spain, the United Kingdom, Cyprus, Malta and Monaco. Kassinis and Soteriou tested the following hypothesis: 1. Higher levels of use of environmental management practices lead to higher levels of customer satisfaction. 2. Higher levels of customer satisfaction lead to higher levels of customer loyalty. Sustainable Marketing Page 17 3. Higher levels of customer loyalty lead to higher levels of market performance. 4. Higher levels of use of environmental management practices lead to higher levels of market performance. Their results suggested a positive relationship between environmental practices and customer satisfaction, between customer satisfaction and loyalty and between loyalty and performance. They found hypothesis 1, 2, and 3 to be true. These findings are supported by other literature, which suggests that performance gains associated with the adoption of environmental practices are related to cost reductions, resource savings, opportunities for innovation, customer retention and loyalty and improved employee morale. In addition, the results are backed by the service management and marketing literatures, which show that improvements in satisfaction lead to higher revenues and reduced future transaction costs through improved customer loyalty. While Kassinis and Soteriou expected a positive direct link between environmental management practices and market performance, as outlined in hypothesis 4, the data do not lend support to this hypothesis. They suggest three reasons. First, the characteristics of services versus goods may explain the lack of a direct relationship between environmental management practices and market performance. Secondly, in future research they advocate the use of finer measures of environmental management practices that cover the entire value chain of service activities (2003): A distinction between front- and back-office measures Measures of resource savings programs (such as energy management measures in hotels) An assessment of housekeeping and maintenance practices that reduce impacts, waste and costs Consideration of environmentally responsible practices in the design and construction of facilities (i.e., the construction of “green” rooms with a longer average life) An evaluation of the use of environmental information systems that allow customized reporting, sharing of information among managers and also provide a benchmarking system Third, Kassinis and Soteriou cited the need to consider issues related to suppliers. They point to the importance of supplier–service provider collaboration to achieve environmental innovations Sustainable Marketing Page 18 that reduce the production of waste and the introduction of environmental considerations in the selection of goods provided. Thus, a focus on sustainable marketing can help retain the best staff appealing to their altruistic side and echoing values that are important to them. As stakeholders, employees and suppliers are important in value alignment; yet another critical stakeholder group is senior management. Planners need to recognize that investigating the attitudes and behaviors of senior marketing managers toward sustainable marketing can enhance the understanding of the challenges relating to implementing sustainability within firms, as well as the drivers associated with integrating sustainability into activities. Strategies In Kärnä et al.’s (2003) framework this element consists of strategies for products, customers and competitive advantage. In our Sustainable Marketing Planning model, strategies follow a parallel structure. Product: The strategy of the product is set by event design which answers the question “How sustainable do we want to be?” as this strategy will determine how a planner can position the event and what is the appropriate messaging. Will we pursue a confined strategy or a more holistic strategy where the organization considers all three pillars of sustainability when mapping strategy of event? These two questions define the product. Customer: Customer decisions revolve around two questions: (1) what do our customers want and (2) if we change our event, will our participants be less satisfied with a more sustainable product. Anecdotally, one of the authors remembers a conversation with a planner years ago where she commented, “My senior management will never give up their bottled water.” While over the course of five years when this conversation took place, the prevalence and acceptability of bottled water has changed, all planners must still focus on creating a product that delivers the right type of value for their customers. All event attendees are not the same and basic marketing Sustainable Marketing Page 19 strategies of understanding their demographic and psychographic profiles and understanding their preferences/needs/requirements remain the same. Competitive Advantage: Events compete against other events. In addition, events compete for “mindshare” from the participants. Thus the strategy around competitive advantage is formulated by asking two questions: (1) will we attract new customers (participants) if we create a more sustainable event and (2) what are like-events and very different events doing which might impact our events? Ultimately, any planning system is about prioritizing. In assessing what changes are appropriate for a sustainable marketing planning process, it can be useful to assess where is the “low hanging fruit.” The following questions will help planners assess the organizational readiness for the change: What is the potential impact of the change? What barriers exist to engaging in this change? What resources exist to overcome the identified barriers? Structures In Kärnä et al.’s framework this element consists of management, operations and planning and information systems. Management: Functionally, a planner must understand who is on the team. This gives rise to four critical questions: (1) Who are the players?, (2) Who is the event owner? , (3) How can this organization develop a learning orientation that constantly rethinks aspects of sustainability? and (4) How will management encourage staff and employees to adopt a philosophy of sustainability? Operations: With a team in place, a planner must consider how they will produce an event with sustainable marketing elements. Thus, they will face four questions: (1) How do I need to reorganize my organization?, (2) What new resources are required?, (3) What re-allocation of Sustainable Marketing Page 20 resources can occur? and (4) How will I assess (e.g., Life Cycle analysis) the environmental impact of the manufacturing, content, package, label advertising, distribution, use and disposal of products used? Planning and Information Systems: Planners operate using a known system consisting of checklists, standards, forms and templates. Introducing a new element into the planning process requires that the entire process needs to be re-thought. Planners will ask themselves these questions: (1) How do I need to reorganize my planning processes?, (2) How will the organization make business decisions based on three pillars of sustainability?, (3) How will the organization define relationships with suppliers, participants and other key stakeholders?, and (4) Will we need new relationships to supplement existing relationships? Once a planner has built a new planning process for themselves incorporating sustainable marketing, they will want to tell their story which will require appropriate metrics and data. Thus, creating the need to understand (1) What data do I need?, (2) Who has the data?, (3) How will I use the data?, (4) How will I convey the information in a compelling and interesting way that supports the event and the organization? Functions In Kärnä et al.’s (2003) framework this element consists of advertising, communication, marketing information and pricing. The new function in sustainable marketing is education. Education begins with the planner self-educating and extends to staff and event owners. However, education does not stop at the organization’s formal boundaries as more stakeholders need education including: (1) suppliers, (2) attendees/participants and (3) other stakeholders (i.e., exhibitors, sponsors). Planners can heed lessons learned in tourism management. McKercher (as cited in Weaver, 2008, p. 181) reveals a “fundamental truth’ about tourists when he states that tourists are concerned with being entertained. Likewise, planners must work to create interpretation, a distinctive form of education that goes beyond the simple disclosure of facts to instead reveal meanings and relationships. Interpretation should be enjoyable, entertaining, personally relevant, well organized and thematic (Weaver, 2008, p. 185). Just as a Sustainable Marketing Page 21 tourist can walk away or tune out messages while on vacation, an event participant can also tune out during an event. This accentuates the importance of marketing. Education can take the following forms: Craft marketing messages that connect sustainable attributes with desired value Frame environmental product attributes as solutions for specific participant needs Create engaging and educational internet sites Secure endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those endorsements and eco-certifications Encourage participant evangelism via social media Education may result in the following behavioral changes: Alter preferences Reduce consumption Change habits (eliminate bad habits, promote good habits) Seek assistance or donations Improve the environment Create awareness in others As a result of following a sustainable marketing planning process as specified, planners will realize changes in the product, their process and participant behavior. Each of these outcomes is sketched out below to identify potential outcomes. Change the Product As a result of changes in the planning process, the resultant product will change. This suggests the following functions which would directly impact the product: 1. Seek out environmental friendly products 2. Seek out standards or certifications 3. Evaluate eco-labels and other claims of environmental friendliness 4. Promote sustainable practices in advertising, promotion and communication 5. Use online methods of communication Electronic ticketing and reservations systems Online registration Sustainable Marketing Page 22 6. Use electronic rooming lists, room layouts and banquet event orders 7. Create online program/agenda 8. Create online exhibitor kits 9. Downloadable speaker presentations and handouts 10. Supply electronic event evaluations 11. Signage Limit the number of signs necessary at the event Design signs for reuse (don’t include the date or location) Make signage from recycled or recyclable or biodegradable materials Use electronic signage whenever possible 12. Minimize printing or make responsible choices Avoid use of printed materials Use post-consumer recycled content paper (minimum 30%) that is unbleached or bleached without chlorine Use vegetable-based inks Print double-sided 13. Repurpose conference supplies School programs Leverage venue of CVB about donation programs 14. Donate wood products from exhibit halls 15. Reuse name badges 16. Recycle name badges Change the Process By adopting a sustainable marketing mindset, planners will change their planning process. As a driver, sustainable marketing can affect supply chain management, vendor selections and sourcing practices. Ultimately, sustainable marketing can drive innovation and creativity and potentially save costs. The path toward sustainability in any aspect of an event is never ending. The process will encompass the idea of continuous improvement. Failing to seek improvement and innovation is Sustainable Marketing Page 23 definitely an unsustainable business practice. Author Daniel Goleman (2009) uses the term “perpetual upgrades” when talking about industrial process. The idea has merit for event planning and sustainable marketing: “The logic of the perpetual upgrade tells us that we will have to constantly reinvent and rethink almost all industrial processes if we are ever to make them truly sustainable. Competition and marketplace transparency will create inexorable pressure to continuously raise the bar on ecological impacts” (Goleman, 2009). Change Behavior The 3R’s are a common mantra around environmental sustainability: Reduce, reuse and recycle. When thinking about events, marketing has another redirect. While theoretically most people see the need to consume less or consume differently, the reality of human behavior and of events is that we will continue to consume. Therefore, it is necessary that sustainable marketing redirect or reorient people to consume more preferable products/services/practices. Consumer sensitivity to issues related to sustainability does not always translate into purchase behavior. It is the responsibility of sustainable marketing to use their communication and promotional tools to convert this latent desire actions, behavior and activities. Finally, by creating a sustainable event, event planners can change behavior. Participants can receive behavior cues from the messaging in the event and the execution of the event. Carrigan, Moraes, & Leek (2011, p. 516) ascribe that consumption is deeply intertwined with social relations and norms, thus making individual behavior change towards sustainability a matter of facilitation change in individual behavior, as well as in social norms and relations...” Events, by their nature, have social norms and relations, which can be changed – especially when new norms are explicitly stated (marketed), promoted through social cues and modeled through behavior. Carrigan et al. (2011, p. 521) discuss how inconsistencies around attitudes and behaviors can be resolved if one considers that behavior is constrained by lack of alternatives and product confusion. Although people might want to make the right individual choice, they are challenged by the insecurities of not knowing what the “right choices are (Connolly and Prothero, 2008 as Sustainable Marketing Page 24 cited in Carrigan et al. (2011, p. 521). Events offer the opportunity for people to do the right thing as they are offered an alternative (e.g., composting whereas composting is not offered to them in their work or residential environment) and they are clearly directed by marketing on what is the right choice, thus eliminating confusion. Marketing is also critical to provide messaging around incentives to change participant behavior. Consider the example of recycling name badges. This is an easy, cost-saving measure to reuse an everyday event communication tool. If this process of how to recycle the name badge is not marketed correctly, people will revert to their habits and, likely, leave with their name badges still on their lapels or around their necks. They have every intention of recycling but it is not “everyday” event behavior which occurs with little cognitive deliberation. Recycling name badges for many participants is not a routinized behavior yet. To unfreeze behavior using Lewin’s model of behavioral change may require what Jackson (2005, p 521 as cited in Carrigan, et al. 2011) cites as “behavior lock-ins” through the “creation of appropriate institutional structures and incentives.” Translated into an event setting – creating obvious stations/boxes with appropriate signage reminding people to recycle their name badges situated in the right place (placement to reiterate the 4P’s of marketing) and possibly offering an incentive like “Recycle your name badge and you could win a [discount} to our next association event” or “Recycle your name badge and you could win a [fill in the blank]” Ultimately, we would expect that as participants repeat these behaviors at multiple events, their cognitive processing will diminish (they no longer need to think about recycling their name badge) and the behavior will become automatic prompted by norms and contextual cues (I am leaving the event). Change is never easy – especially behavioral change. Griskevicius, Cantú and van Vugt (2012) explore the evolutionary bases for behavior. They pose the question “Why do humans continue to degrade the environment and experience social problems?” (Griskevicius, et al., 2012, p. 117). They answer that question by posing five ancestral tendencies: (1) propensity for self-interest, (2) desire for relative status, (3) unconsciously copying the behavior of others, (4) valuing the present over the future and (5) disregarding impalpable concerns (Griskevicius, et al., 2012). Of these five tendencies, events create the opportunity to use these hard-wired modes of thinking to change to sustainable thought – unconsciously copying the behavior of others and disregarding Sustainable Marketing Page 25 impalpable concerns. Humans have evolved to instinctively copy and mimic the behavior of others. This behavior is an adaptive strategy that allows humans to minimize the cost of individual trial and error. Griskevicius, et al. (21012, p. 121) cite the example of how energy use in the home is affected by the behavior of neighbors although the home residents state that the behavior of their neighbors has the least effect on their own conservation habits. Events are superb opportunities to allow humans to observe, learn and mimic sustainable behaviors like recycling, using refillable water bottles or composting. Messaging both pre-event and during the event can support learning these behaviors. Again, Griskevicius, et al. (2012, p. 122) caution to use positive messaging; they advocate avoiding message such as “83% of people are not recycling” but instead creating powerful messaging about the desirable behaviors that people are exhibiting. The tendency to disregard impalpable concerns captures the idea that a general lack of concern is often due to skepticism, apathy, a lack of knowledge and also, importantly, an inability to grasp large-scale but slow-moving environmental problems. They note “our brains have simply not evolved to ring the alarm when confronted with novel dangers rarely faced in our past, such as position” (Griskevicius, et al., 2012, p. 124). In today’s world we also lack the tangible connection between behavior and the environment. For example, people do not see how food is grown, how it is processed, packaged and transported to us. Sustainable events often post information about the food-miles traveled for specific items offered for eating and drinking. This type of marketing messaging begins to make the visceral more real as people begin to see the connection between their eating habits and the costs behind each non-local item. Other ideas present in the literature about behavior change suggest that an event can harness many intrinsic elements (social setting, leadership, role modeling) to affect behavior change through catalytic individuals/ opinion leadership (Rogers, 2003, p. 27), power base of the converts (Menon & Menon, 1997), early adaptors (Rogers, 2003) or a “trusted bridge (Carrigan, et al., 2011). The scope of this paper is not to delve into the dynamics within the context of the event “conversation” itself. Thus, the existence of these elements as well as those discussed above sufficiently documents the opportunity for behavioral change. Sustainable Marketing Page 26 Limitations From a theoretical perspective, our framework allows planners to think more strategically about the role of events as a channel for creating sustainable messages and as a channel for creating awareness and, potentially, behavioral change. However, this framework is entirely theoretical and has not been empirically tested. Moreover, we have operated under the assumption that it is appropriate to take a model used in the forestry industry for marketing and reposition the same framework in the MICE industry. Many of the advantages of sustainable marketing derive from considering the messaging of the event. Many planners do not control the content of the event. Some of the benefits of sustainable marketing are derived from the event message. We posit that, although planners see events as strategic, until they have a link between content and messaging, the model may be of limited application to planners. Conclusion The proposed framework allows planners to think more strategically about the role of marketing, sustainability, messaging and events. Our proposed framework demonstrates that sustainable marketing contributes strategically to an organization in three important ways through (1) alignment with sustainability-oriented values, (2) embedding sustainability in the planning process and (3) embedding sustainability in the product to drive behavioral change. Planners have the opportunity to act more strategically by aligning their organizations with the trend toward sustainability or align their events with organizational values. In doing so, planners can protect their organization’s reputations and help build stronger brands and differentiate their company. Many people are attracted to organizations that share similar values. Thus, a focus on sustainable marketing can help retain the best staff appealing to their altruistic side and echoing values that are important to them. By adopting a sustainable marketing mindset, planners will change their planning process. As a driver, sustainable marketing can affect supply chain management, vendor selections and Sustainable Marketing Page 27 sourcing practices. Ultimately, sustainable marketing can drive innovation and creativity and potentially save costs. Finally, by creating a sustainable event, planners can change behavior. Participants can receive behavior cues from the messaging in the event and the execution of the event. A focus on leaving the community better than before the event was held there (legacy projects) can motivate people and offer them a chance to give back. Having a clearer understanding of organizational phenomena like sustainable event marketing and implementation through events is one way we hope to give back to the industry. Hopefully, our efforts will influence planners and, in one small way, pave a clearer path toward sustainable events through the marketing discipline. Sustainable Marketing Page 28 Bibliography Andersone, I. and Gaile-Sarkane, E. (2010). 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