Abstract
PurposeThis paper aims to highlight a model of industry drivers (industries’ environmental reputation and competitive intensity) that affect the sustainability marketing strategy segmentation, targeting and positioning based on customers’ environmental concern and explore the circumstances under which such a strategy affects performance.Design/methodology/approachThe authors examined 64 Iranian export companies, which adopted sustainability marketing strategies across seven different industries. Achieved data are analyzed using a structural equation model methodology.FindingsThe results indicate that industries’ environmental reputation is positively related to the sustainability marketing strategies based on customers’ environmental concern and leads to superior financial and market performance. They also posit that competitive intensity has no significant effect on sustainability marketing strategies.Research limitations/implicationsThis study specifically examines the impact of industry drivers on sustainability marketing strategy and performance. Logically, there might be other factors affecting the sustainability or other value dimensions that are not addressed in this study.Practical implicationsThis paper provides some understanding of how organizations strength their sustainability marketing strategy, and they have to consider what factors to adopt such strategy. This paper also facilitates a better understanding of the customers’ needs and concern as a factor influencing sustainability marketing strategy adoption and implementation. Identifying the customer segmentation and market targeting based on the industry’s environmental can lead to the business will normally tailor the marketing mix (4Ps) with the needs and expectations of the target in mind.Originality/valueThis paper strengthens the effect of environmental concern of customer to understand what influences the success of the sustainability marketing adoption and implementation by investigating the most influential factors such as industries’ environmental reputation and competitive intensity.
Highlights
Sustainability has become strategically important due to the dramatic growth of environmental problems and public awareness of these crises at the global level (Leonidou et al, 2013)
Research limitations/implications – This study examines the impact of industry drivers on sustainability marketing strategy and performance
Another principle goes beyond specifying the needs of customers and shows that companies should create a relationship with customers in their marketing strategies, which is beneficial to the companies, society and the environment (Kumar et al, 2013)
Summary
Sustainability has become strategically important due to the dramatic growth of environmental problems and public awareness of these crises at the global level (Leonidou et al, 2013). Companies are especially more willing to explore the possibility of environmental issues in their business practices, as the adverse effects of their activities on the environment are deniable The importance of this topic has given rise to an enormous amount of research in the past, which has shown companies must adopt sustainability in their marketing strategy to survive (Leonidou and Leonidou, 2011). Integrating marketing strategies with customer needs and demands is one important principle that has been addressed in previous research (Crittenden et al, 2011) Another principle goes beyond specifying the needs of customers and shows that companies should create a relationship with customers in their marketing strategies, which is beneficial to the companies, society and the environment (Kumar et al, 2013). We used multi-item measurements for the entire study structure, which is visible in Appendix
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