Sustainability Led Marketing in Small Business: Philips Lumileds Lighting Company - Term Paper Example

SUSTAINABLE LED MARKETING IN SMALL BUSINESS Foundation Department Table of Contents Introduction 3 Sustainability Led Marketing in Small Business Introduction Scholars and economists such as Theodore Levitt have delved into the issue of sustainability led marketing. The aim of engaging in sustainability driven marketing is bringing to light the significance of taking into consideration company capability and product qualities, aimed at ascertaining client satisfaction. According to Dahlstrom (2011), sustainable marketing is a method of promoting environmentally safe products at the retailing level and improving a firm’s commitment to sustainable practices for the public. Mostly, productive traditional marketing procedures are used in a particular context. Sustainable marketing aims at winning consumers who have adapted to eco-friendly products made by businesses, which have embraced sustainable production. For a sustainable business, companies seek to enhance their production processes to minimise the side effects it causes to the environment. A sustainable business ensures that it reduces air pollution, water pollution and the side effect the product has on the consumer using the product or the service (Meffert et al. 2014, p. 156). Sustainable business is more of a business that looks toward enhancing or achieving corporate social responsibility to the community it serves. Company That Enhances the Use of Sustainable Marketing The illustration above implies that sustainable business aims at creating an environment where people believe that the product being manufactured by the company is the best in the market. In addition, it implies that the qualities a company’s product cannot be compared with any other firm in the same industry. Consumers are made to believe the product they are consuming was manufactured in a clean environment that not any other company can achieve (Belz & Peattie, 2010, p. 31). To bring to light a better understanding of sustainable marketing, Philips Lumileds Lighting Company will be used as a case study, as it enjoys the use of sustainable led marketing procedures. Philips Lumileds Lighting Company is an American light product manufacturing company that is located in San Jose, California, USA. The Company was established in 1999 with the aim of producing solid-state lighting solutions that include automotive lighting, LCD televisions, computer displays, creating a signal, and general lighting. It is the world-leading producer of high power light emitting diodes. In partnership with LUX EONPower Light Company, they came up with long life cost-effective light emitting diodes that have been ranked as the world-leading producer of light emitting diode lighting. In lieu of this information, it is clear that this firm is successful in its operation as a light products manufacturing company. The success of the company may be facilitated by effective marketing methods used by the company According to Mintel (2014), a market researcher, the company has been using green marketing procedures to make their product a practice as stated by practice theory. The most used marketing strategy is by making consumers believe the company has undertaken innovation on their product in more than one hundred years. Thus, it will create an impression that no any other company can produce as good quality product as they do (Dahlstrom, 2011). On their website, the same sustainable marketing procedure is used where on the background message displayed is that of green marketing. For example, the statement, “We create light because it illuminates what is important” is a good illustration of sustainable marketing. The above statement aims at persuading the consumers to believe that that the lighting product produced by the company is not just an ordinary light but also, one that focuses on important things only. Another message as indicated in the above website is “We create light because the far we go the more there is to see”. The marketing quote aims at taking consumer attention and start viewing the more things they would see by using light products produced by the firm. The third marketing quote in their website is ‘We create light because seeing is understanding’. The quote attracts the consumer who believes that the light illuminated by the firm’s product will lead them to experience the benefit of quality lighting Organisation Development Stage Philips Lumileds Lighting is most likely to be at the maturity level where the company is capitalising on ensuring that service to their customers is up to standard by creating more cost-effective and environment-friendly light products. At this stage sustainable marketing aims at making people believe that the product the company makes is the finest and the best in the market. At this stage, the company good will on the product it is offering to consumer meets all requirement of minimal effect on the environment is well known by the consumers. In Philips Lumileds Lighting, reduction of environment effects is highly catered. Philips Lumileds Lighting may also be in an interactive stage that is experienced in all stages of development. In this stage, companies identify any upcoming problem and come up with the strategy to solve this problem (Rothwell, 2010, p. 20). Philips Lumileds Lighting Company realized the problem of high cost of lighting and developed a solution where they discovered the light emitting diode lighting, which is more economical and very attractive to consumers. Philips Lumileds Lighting is also likely to be in the proactive stage of organisation development cycle. At the proactive stage, the marketing strategy used is to make the consumer believe that the light product they are giving to their consumer is the improved. In this stage, sustainable marketing method used is the one that make customers believe the product they get is the innovated one and which has no negative effect on the environment. The marketing strategy used by this lighting company on its website is the one that make believe that the light product they are buying is the one that meet their intended purpose without affecting the rest of environment negatively. Understanding the Concept of Sustainability Led Marketing in Small Business According to Silberman and Hansburg (2006), firms are likely to be inactive in the birth stage of the organisation. The inactive birth stage implies the firm may propose to maintain the present activities or culture of marketing since there is no any other comparing option. At this stage, sustainable led marketing aims at communicating to the people that the product they are producing are good and have no defect. For example, creating awareness of product awareness and the product usually meet the prescribed purpose. Secondly, the firms are likely to be in reactive status at the second stage, and on adolescent stage. At the reactive and adolescent status, the firm is growing, and management should be keen to note any problem as it occur and issue a solution to it. At this stage, sustainable marketing can be achieved by firm discovering their roles to the economy and develop the marketing strategy that connect them with the community for example engaging in community activities. The firm in this stage may involve in activities like cleaning the environment and sending representatives in any other social community’s activities. Thirdly, according to Cooney (2009), the firm is likely to be interactive in all phases of organisational development. In interactive stage, evolving products are noted and actions to develop them are initiated. In this stage, sustainable marketing will be achieved using a marketing strategy that makes customers believe that the firm is reacting to solve the problem at every juncture when the problem is discovered. At the maturity level, the firm has already experienced failure and success in all aspects, and it starts identifying areas that need restructuring and renewal for increased performance of the business. The firm may change the management, increase structure, and change any other none performing components of the organisation. At this level, the sustainable marketing strategy to be used is the one that ensure that service to their customers is up to standard, are more cost effective, and environment-friendly. At this stage, sustainable marketing aim at making people believe that the product the company is producing is super fine and the best in the market in all perspective (Cooney, 2009, p. 51). The last stage in an organisation is the proactive or renewal stage where the firm’s weak point has been discovered and a proposition to change them in order to achieve the firm’s objective is made. If marketing culture initially adopted by the firm cannot meet the firm’s objectives of the new culture, the management should consider advancing current business status. The advancement can be undertaken by using aspects as improved current technology may be applied to help meet these objectives (Wansink, Brian and Van Ittersum, 2012 p. 112). Using the example of Philips Lumileds Lighting Company at this stage, any possibility of new improved lighting is predicted and implemented to meet the future expectation of consumers in lighting their lives. Assessment and Evaluation of the Aspect of Sustainable Led Marketing As argued by Rennie (2008), a sustainable business is an organisation that has little negative effects on the environment, society and economy in achieving its objective. Similarly, a sustainable business is an organisation ensuring that all stakeholders and non-stakeholders rights are been observed (Belz, 2012). A business will be considered sustainable if it incorporates sustainability policies in its business decision. Meeting consumer goal is another procedure of maintaining a sustainable business. A sustainable business add value to all other environment surrounding it that is clean air, conducive environment for people to stay as well as making the environment acceptable by passerby (Belz, 2012). The marketing strategy Philips Lumileds Lighting is using qualifies in creating sustainable business in that: It Creates the Effect of Reduced Cost of Production Using the Philips Lumileds light products will save the customer revenue, which would not have been realized using normal convection lighting bulbs. The company products are long lasting and hence the cost of replacing them is greatly reduced. The light products produced have no negative effect on the environment and hence there is no cost of maintaining the environment further by the consumer to meet their expectation. It Creates Attractive Environment Marketing strategy being deployed by Philips Lumileds Lighting Company is one that create in their customers that by using improved light which have been invented in more than one hundred years they will get the best light admirable by everyone and which will make their rooms attractive than it has ever been before. Creating a Calm Environment Light emitting diode produces calm light, which make people feel at peace as they rest. Philips Lumileds Lighting is using the light emitting diode as the most acceptable product for their company to make as a mode of marketing to have people accept their other products as stated by Brian and Koert in their 2012 publication. Meeting Consumer’s Needs The marketing strategy to be used by Philips Lumileds Lighting Company is one that create into their consumer that their need will be met by acquiring their products. Their product should have a considerable price and should be at consumers reach at the time of the demand. Reducing Wastage of Resources It is the role of every individual to utilise scarce resources to the maximum. The marketing strategy used by Philips Lumileds Lighting Products Company is the one that make people believe that they save a lot of power that could have been used by other conventional lighting products and hence saving countries resources. The consumer will prefer to use products that enhance proper utilization of economic resources both in the country and in their homes (Sneirson 2009, p. 212). For the firm to be enabling in marketing, it must adhere to the sustainable marketing strategy as the one possessed by Philips Lumileds Lighting Company as the method of winning consumers heart. Economic theory argues that different factors of production works together to achieve set goals and objective (Penfield, 2008, p.54). This theory focuses on the maximization of scarce resources, proper utilization, and minimization of the high cost of production. Use of Philips Lumileds products is an outright comparison of economic theory, which maximizes use of the scarce resource (energy) and saves on the power bill. Conclusion Evidently, the firm aim at utilizing the scarce resources effectively and in the minimum way possible. Philips Lumileds Lighting realised that using light emitting diode would create a conducive and attractive environment to customers at their houses and in their places of work. According to practice theory of marketing, the service becomes logical when customers cannot do without the services being offered by an organization. The customer makes the service their practice and will always attend for the services (Korkman, 2006 p. 60).The use of cost effective lighting products by Philips Lumileds Lighting makes the customer prefer their products and always attend for their services. The recommendation given is that, it is advisable for Philips Lumileds Lighting Products Company to focus on their core objective and ensure that sustainable marketing procedure does not create a loss to the company. Secondly, the Company should not only focus on theoretical marketing, but also on practical demonstration to the consumers on their marketing claims. It is important for them to understand Korkman’s (2006) assertion that the practical aspect of marketing is highly preferable compared to the theoretical approach. References Belz F-M & Peattie, K. 2010. Sustainability marketing: a global perspective. Hoboken, N.J: Wiley. Burmann .2010.Sponsored user-generated branding p. 2. Cooney, S. 2009. Build a green small business: profitable ways to become an ecopreneur. New York, McGraw-Hill. Dahlstrom, R. 2011. Green marketing management. London: Cengage. Grant, J. 2009. The Green Marketing Manifesto. Chichester: John Wiley & Sons, Ltd. Korkman, O. 2006. Customer Value Formation in Practice: A Practice-Theoretical Approach. Report A155. Helsinki: Han ken Swedish School of Economics Finland. Meffert, H., Kenning, P., Kirchgeorg, M., & Wobker, I. (2014). Sustainable marketing management : grundlagen und cases. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=930928. Mintel. (2014, October 23). Mintel releases 2015 US consumer trends. Retrieved April 2015, from http://www.prnewswire.com/news-releases/mintel-releases-2015-us-consumer-trends-813911160.html Penfield, P. 2008. "Generating for the Environment, Drive down costs while helping Mother Nature." APICS Magazine, Vol. 18 Philips Lumileds Lighting Company. n.d. Retrieved from http://www.lumileds.com/. Rennie, E, 2008. “Growing Green, Boosting the bottom line with sustainable business practices." APICS Magazine. Vol. 18. Rothwell, W. 2010. Practicing organization development a guide for leading change. San Francisco: Jossey-Bass. Silberman, M. & Hansburg, F., 2006. Working People Smart 6 strategies for success. San Francisco: Berrett-Koehler. Sneirson, J. 2009. "Green Is Good: Sustainability, Profitability, and a New Paradigm for Corporate Governance". Iowa Law Review 94(3), p. 987. Read More