Ethical Marketing and the New Consumer

by Chris Arnold

I bought this book at the same time as Marketing 3.0 although it’s taken me longer to get round to reviewing it. Like the other book, it has a clear focus on business values as drivers of marketing. I liked this book for its own ethos – that “being ethical” is more fundamental to ethical marketing than developing an “ethical reputation” and that ethical action should be holistic throughout the business with a concern for all its stakeholders.

It’s also realistic, recognising that the bounds of a business’ ethical stance cannot be entirely “pure”. One person’s ethical priorities will not be the same as another’s and it’s impossible for one business to get every ethical decision perfectly “spot on”.

The great challenge for businesses selling ethical products and services (or selling products and services ethically) is that consumers are confused about what standards they should apply to their decision making. Their priorities, like any others, are challenged by the current economic environment and even reporting on ethical buying can give mixed messages.

As I write, it’s being reported in the press that ethical goods are bucking the recession trend with 17% growth in two years (Co-operative Bank’s annual Ethical Consumerism Report). Pick that apart and you find that sales of organic food have slumped whilst people are still treating themselves to ethical clothing and cosmetics. Fairtrade goods are enjoying growth. So are energy efficient home appliances – but are they ethically or economically-driven purchases? Or a bit of both?

It’s not a simple picture so what is the ethical marketer to do? Apart from be pleasantly surprised that the ethical market hasn’t collapsed as predicted?

The book presents a simple tool – the R&E Line – where the factors that affect sales can be placed on a continuum from rational to emotional. The author claims that a ruthlessly honest approach to this exercise can present some real surprises.

In terms of prioritising your ethical stance, a further tool, the Ethical Sphere, clarifies a number of Key Ethical Values – a useful way of ensuring you have covered all the relevant bases.

There is discussion around the confusing use of terminology. What exactly does “green” mean? How weasly can the use of “organic” be? Just what is a “carbon footprint”? The ethical marketer clarifies the way their values are demonstrated in their business decisions rather than throwing up a smoke screen of baffling terminology.

The latter part of the book discusses issues affecting sectors such as fast fashion, insurance and finance, and obesity and health demonstrating the wide scope that comes under the “ethical” umbrella and giving some practical examples of how businesses have made decisions about the ethics (or otherwise) of how they operate and market themselves.

Useful for small businesses? Yes. Some practical tools, and plenty of examples from small (and once-small) businesses in amongst the big brands.

Useful takeaways:

People vs Planet – people issues have a stronger tug on the heartstrings. Our concerns start with self, then spread to family, community and only then to planet. Should you think about moving your product positioning from being environmentally-friendly to friendly to the home environment, for instance?

The empowered consumer can use the pound in their pocket to make a point, not just a purchase.

Who do customers believe most when it comes to your ethical proposition? It’s your employees! All your stakeholders are important.

Your ethical principles have to be holistic – your ethical communication has to be all-encompassing – look out for some bloopers in the book from businesses that should know better.