In 2010, Harvard Business Review published this article on “The Transparent Supply Chain”, which discussed the evolution of consumer interest in product origins. It provided several key and instructive take-aways for companies seeking to start down the sustainability path. One in particular – transforming marketing – revealed the importance of integrating both marketing and supply chain strategies.

Companies deciding to venture towards a more eco-friendly model need to view the added cost of doing so not as an expense, but as added value — then communicate that to their customers. The marketing team makes that happen. By first incorporating the customer’s sustainability requirements into the product offerings, marketing then translates that added value into a monetary value the customer assigns to it, conveying it to them with a price they are willing to pay. Ultimately, their goal is to ensure that the price is neither too high nor too low.

Pricing sustainable products begin with a unique selling position that consumers can translate into the value they seek at a price they are willing to pay. The marketers’ job is to always focus on the value being offered and understand the factors that will influence consumers' perception of price. Companies must acknowledge that sustainability will impacts costs – both positively and negatively. Yet, they should not set prices based exclusively on their expenses. Instead, focus on the offered value and charge accordingly.

When marketing is absent from product design and development, they relinquish their leadership role in delivering customer value. With sustainability becoming more relevant to consumers, this abdication becomes even more devastating. Marketers must have a clear understanding of their company’s corporate responsibility strategy and integrate it into the marketing mix. At the same time, they must also understand the specific customer needs, coupling both those requirements and the approach into the product design. Finally, they must ensure that product transparency is available to the consumer so they can make an informed purchasing decision.

Sustainability is increasingly becoming a critical part of business strategy. Companies see the value of sustainability in both the social benefits and the impact on the bottom line. Additionally, current customer research indicates that consumers care about sustainability…..

As the new year begins, many may wonder if life will return to normal. This is reasonable. Vaccines for COVID-19 are beginning to be distributed and new leadership in Washington DC is about to begin. Yet, a recent article in Marketing Insider by Molly Lewis suggests that “There Will Be No Return To Normal”.

When I was Vice President of Marketing at Farm to Feet, one of our sales representatives asked on behalf of a retailer the question, “why we did not include an American flag on any of our marketing or our packaging.” …. I responded by telling the sales representative that the United States flag code prohibits the use of the American flag for marketing and advertising purposes. Quite simply, I said, “using the U.S. Flag for marketing is disrespectful.”

Today, contract manufacturers are starting to create consumer brands of their own. This idea is attractive, especially when you consider the potential profit margins. Many manufacturers, however, are not structured for creating a brand. The biggest challenge these companies face is a lack of a marketing-centric outlook due to adhering to a superannuated sales-centric mentality.