Download (marketing) accountability

Accountability and
sustainability: evaluation of
corporate practices
Vesna Žabkar, Ph.D.
ToSEE, May 14, 2015
Definition of (marketing) accountability
American Marketing Association (2005, p. 1):
“The responsibility for the systematic management of
marketing resources and processes to achieve
measurable gains in return on marketing investment and
increased marketing efficiency, while maintaining quality
and increasing the value of the corporation”.
Defining sustainability
Ability for long-term maintenance (environmental, social equity
and economic demands - the 3 Es).
‘the consumption of goods and services that meet basic
needs and quality of life without jeopardizing the needs of
future generations’ (OECD, 2002).
Market capacity & resource capacity problem
From activities to performance
ORGANIZATIONS’
EXTERNAL
ACTIONS (“what
they do”)
PERCEPTUAL/
UNOBSERVABLE
MEASURES
(“what customers
thnk”)
BEHAVIORAL
OUTCOMES/
OBSERVABLE
MEASURES
(“what customers
do”)
FINANCIAL
PERFORMANCE
of the
organization
(“what they get”)
Source: Gupta, S. and V. Zeithaml (2006). "Customer Metrics and Their Impact on Financial
Performance." Marketing Science 25(6): 718.
From activities to performance
ORGANIZATIONS’
EXTERNAL
ACTIONS (“what
they do”)
PERCEPTUAL/
UNOBSERVABLE
MEASURES
(“what customers
think”)
BEHAVIORAL
OUTCOMES/
OBSERVABLE
MEASURES
(“what customers
do”)
FINANCIAL
PERFORMANCE
of the
organization
(“what they get”)
Source: Gupta, S. and V. Zeithaml (2006). "Customer Metrics and Their Impact on Financial
Performance." Marketing Science 25(6): 718.
From activities to performance
ORGANIZATIONS’
EXTERNAL
ACTIONS (“what
they do”)
PERCEPTUAL/
UNOBSERVABLE
MEASURES
(“what customers
think”)
BEHAVIORAL
OUTCOMES/
OBSERVABLE
MEASURES
(“what customers
do”)
FINANCIAL
PERFORMANCE
of the
organization
(“what they get”)
Source: Gupta, S. and V. Zeithaml (2006). "Customer Metrics and Their Impact on Financial
Performance." Marketing Science 25(6): 718.
From activities to performance
ORGANIZATIONS’
EXTERNAL
ACTIONS (“what
they do”)
PERCEPTUAL/
UNOBSERVABLE
MEASURES
(“what customers
think”)
BEHAVIORAL
OUTCOMES/
OBSERVABLE
MEASURES
(“what customers
do”)
FINANCIAL
PERFORMANCE
of the
organization
(“what they get”)
Source: Gupta, S. and V. Zeithaml (2006). "Customer Metrics and Their Impact on Financial
Performance." Marketing Science 25(6): 718.
Customer impact
1. Customer awareness
2. Customer associations
3. Customer attitudes
4. Customer attachment
5. Customer experience
Sustainability as marketing’s
superphenomena
“Sustainability has been creeping up on Eric Fromm’s homo
consumens for a long time (Kotler 2011). Marketing has
well-known negative impacts.
It encourages rapid consumption of limited natural
resources,
it does not restrain the wants it encourages, and
it over-fulfills materialistic wants and under-serves
nonmaterial wants”
Source: Achroll, Kotler, 2012
Business side of sustainability
Market for sustainability
Increased profits
Reduced employee turnover
Improved productivity
Generating competitive advantage
Accessing capital
Better brand recognition and loyalty
The new horizon for management
Accountability &
sustainability
Customer care with
long-term interests
Cost accounting
featuring nature
costing
Decision calculus
with commitment to
managerial values
Customer care with long-term interests
(1) Proactively communicating the harmful
side-effects of wasteful consumption
(2) growing segments of environmentally
conscious consumers
(3) demarketing/countermarket ing certain
products, technologies
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