Lecture „Sustainability Marketing – A Global Perspective“ supported by:

Prof. Dr. Frank-Martin BelzTechnische Universität MünchenTUM School of Management

Lecture 3: Socio-Ecological Problems

Episode 1: Macro Level

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Lecture 3: Overview

Sustainability MarketingTransformations

Sustainability MarketingStrategies

Sustainability MarketingMix

Consumer Behaviour

Socio-ecologicalProblems

Sustainability MarketingValues and Objectives

Source: Belz and Peattie 2012, p. 30

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Lecture 3: Overview

Episode 1: Macro Level

Episode 2: Micro Level

Episode 3: The Story of Stuff

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Learning Objective

You will understand the main socio-ecological problemson a macro level.

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Structure of the Episode

• Introduction

• Iconic Picture

• IPAT Formula

• Implications

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Neo, the Matrix and Marketing

Source: http://boscosgrindhouse.com/2012/07/30/boscos-franchise-collection-the-matrix-trilogy/

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: NASA Goddard Space Flight Center Source: http://visibleearth.nasa.gov/view_rec.php?id=2429

Iconic Picture

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Impact = Population x Affluence x Technology

Source: Ehrlich, P.R. & Holdren, J.R. (1971): ‘Impact of Population Growth‘, Science, 171 (March): 1212-16

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Population

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

012345678910

0 500 1000 1500 2000Year

Source: Graph based on data in The world at six billion, United Nations Population Division (1999)

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Affluence

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Author: UkkoSource http://upload.wikimedia.org/wikipedia/commons/7/73/Weizenbier-ukko.jpg

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: Scott Bauer Source: http://en.wikipedia.org/wiki/Pig

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Category of Consumption

Poor Middle Affluent

Housing Huts, shanties Moderate Buildings

Climate-controlled Buildings

Diet insufficient grain, unsafe

water

grain, clean water

meat, packaged food, soft drinks

Transport walking bicycles, buses private cars

Materials local biomass durables throwaways

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Global Consumer Class

0

50

100

150

200

250

Global Consumer Class (in Mio)

Share of the Population(in %)

100%

50%

0%

Source: Reproduction from Bentley, M. (2003): Sustainable Consumption: Ethics, National Indices and International Relations, PhD Dissertation, American Graduate School in Paris

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Technology

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: Joe Mabel Source: http://commons.wikimedia.org/wiki/File:Barrels_JM03.jpg

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

0

1

2

3

4

5

6

7

8

9

10

0 500 1000 1500 2000

World Population and Oil Consumption

Source: World population from US Census Bureau, overlaid with fossil fuel use (red) by Vaclav Smil from Energy Transitions: History, Requirements, Prospects.

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

2050

2050

?

?1990

Source: Von Weizsäcker, E., Lovins, A.M. & Lovins, L.H. (1998): Factor Four. Doubling Wealth, Halving Resource Use, London: EarthScan

„Factor Four“

IPAT Formula

Predicted worldEnergy consumption

Necessary reductionfor climate stabilisation

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formula

Impact

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: Hannes GrobeSource: http://commons.wikimedia.org/wiki/File:1991_polar-bear_hg.jpg

IPAT Formula

Climate Change

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Source: NASA/Goddard Space Flight Center Scientific Visualization Studio

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Peak Oil

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Trailer: A Crude Awakening: The Oil CrashSource: http://www.youtube.com/watch?v=Or-TyPACK-g

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

IPAT Formular

0

10

20

30

40

50

60

70

80

90

100

1960 1970 1980 1990 2000 2010

2007

50

100US $ /Barrel

1976

Oil Crisis1981

1990 1996

2000

2004

2005

2006

Banking Crisis2008

2011

2010

Source: Data based on www.tescon.de

History of Oil Prices

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Oil and Food Prices

70

90

110

130

150

170

190

210

0

20

40

60

80

100

120

140

Data: Nov 2000 to Nov 2010 by EIA, FAO. Chart courtesy Paul Chefurka

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: Vinod PanickerSource: http://photos.doniv.org/v/rann/43-design-of-the-rann.jpg.htm

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Photo: JaquesSource: http://de.wikipedia.org

Peak Water

IPAT Formula

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Peak Fish

Source: Data based on FAO

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Implications

Impact = Population x Affluence x Technology

Source: Ehrlich, P.R. & Holdren, J.R. (1971): ‘Impact of Population Growth‘, Science, 171 (March): 1212-16

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

Review and Discussion Questions

1. What does the IPAT formula say? What is the linkbetween the IPAT formula and marketing?

2. Why is the ecological question also a social questionof resource equity in a world with limited resources?Discuss!

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

References

• Belz, F.-M., Peattie, K. (2012): Sustainability Marketing:A Global Perspective, 2. ed., Chichester: Wiley, p. 51-61.

• Durning, Alan (1992): How much is enough?The Consumer Society and the Future of the Earth,New York: W.W, Norton Company.

• Von Weizsäcker, E.U., Lovins, A.M., Lovins, L.H. (1998):Factor Four: Doubling Wealth, Halving Resource Use,London: Earthscan.

[Sustainability Marketing – A Global Perspective]Lecture 3: Socio-Ecological Problems • Episode 1 • Prof. Dr. Belz

In Cooperation