Introduction to the research phenomenon

This research examines sustainable green marketing of products provided by small and medium enterprises (SMEs). The main purpose is to study the challenges and opportunities SME´s have to face in the economic contexts of sustainable green marketing. The EcoCuva model is proposed and constructed to meet such challenges, and we argue that the EcoCuva model provides a viable and fresh approach, and a new tool for analysis and implementation of new product developments of SME’s.

The approach is to identify a holistic sustainable green marketing management system using analytical and holistic thinking. Sustainable and green marketing offers a philosophical approach, which I call the dialectic balance (Willamo 2005). In this study dialectical balance means dialogue between the damage and positive thinking from the perspective of rubbish and cultural theory (Thompson 2005, 2002, 1979, Thompson et al. 1990). This marketing phenomenon I call ecoproductization, and the phenomenon has theoretical and practical foundations (figure 1). Findings were utilized by developing classical utility value analysis (CUVA) of the sustainable green marketing management (figure 3).

The marketing of ecological products of SME entrepreneurs faces the problem of credibility and trustworthiness (Polonsky et al. 1997, Wasik 1996:14-15), because the products are deprived of environmental policy developed through the ecological status of the products.

Marketing ecological products of SME entrepreneurs is also challenging, as the environmental management systems have been developed for the needs of large corporations and small entrepreneurs, while the core business is based on the values of thinking and operating. SMEs have had to adapt to the prevailing situation. Current environmental management approach is based on chaining changes and this process of change is too difficult for small entrepreneurs to manage. The problem starts from the very beginning of the life cycle thinking developed for the production of the ecological product, which is based on the product-linked damage thinking (Braunschweig et al. 1996, Charter et al. 1999, Hofstetter 1998, Hofstetter et al. 2000, Lewis & Gertsakis 2001, Polonsky et al. 1997). The problems come into play at the stage when the marketing of ecological products is planned (Polonsky et al. 1997). When thinking of damage, the product itself is harmful to the environment, so the way in which marketing is feasible and what are the challenges of SME operations are highlighted.

From the perspective of environmental marketing this is problematic, as the production language originating from the measurement of the physical characteristics of products restricts the possibilities for marketing to participate in the specification of product characteristics. In more traditional marketing, the product is specified in a broader manner. The dominant practice has become intensified along with the linking of managerial measures. For instance, through energy efficiency and ecodesign, legislation has attained the directive level (EU directive 2005/32/EC). The concept of ecodesign is traditionally used more widely than in the

directive significance. Damage thinking also belongs to the background of ecodesign (Lewis

& Gertsakis 2001). As the specification of ecological products and production has a strong managerial position (Tukker & Tischner 2006, Schaltegger et al. 2006, Fuller 1999, Wasik 1996), I concentrated on the comprehension of linking of the process of change from the marketing perspective by utilising the concept and model of the life cycle analysis. According to Wasik (1996:14-15), life cycle analysis methods become global guidelines and the issue is how we certify green claims in a marketplace that demands credible green marketing. This phenomenon arising from the marketing perspective I call ecoproductization.

From the marketing perspective, the marketing of an ecological product is difficult to implement, because of the environmentally friendly image that is related to an ecological product (Polonsky 1997:219). Despite the product being developed through damage thinking, the product has been set in environmental discussion through environmental friendliness. Nevertheless, I failed to find the answer to the question of who originally came up with the concept of environmental friendliness. Behind the term could be the notion of a better managed environment. However, it is more perceptible that political decision makers have grasped the concept through a problem that has come up, or because of the increase in environmental crimes or catastrophes. Wasting of natural resources and the increase in environmental crimes have been apparent, and there has been the intention to support the perspective of environmental protection. In this way, the understanding is given that consideration for the environmental matters in a product facilitates the marketing of the alteration as a product characteristic, as environmentally friendly. I set both assumptions simultaneously and accepted production related damage and marketing to the image of a more positive product, environmental friendliness, through this newly created concept I was able to conduct the search for the phenomenon that arose, ecoproductization – a new way of thinking for resolving the challenges faced by SMEs in sustainable green marketing.

Other challenges include the marketing of ecological products, which is problematic for SMEs, because environmental management systems better take into account the possibilities for larger companies to participate in the decision making for creating changes in products that improve ecological characteristics (e.g. Charter et al. 1999) and the conducting of these changes requires resources that are limited in SMEs. The implementation of environmental systems is costly, time consuming and labour intensive, which inevitably means the development of ecological products, or indeed new products, provides larger companies with a competitive edge compared to SMEs. The strength of SMEs lies within their values (Lazlo 2008, Doyle 2000 and 2006). The value-based marketing for SME entrepreneurs provides possibilities to utilise value content product information (Doyle 2006) as sustainable branding (Ottman 2010), but sustainable branding can be complex and it can be pricey to do well for companies and consumers can tire of the same green messages and imagery (Ottman 2010:107-109). The challenge comes from how and in what way the SME entrepreneur finds its role on the ecoproduct markets. Trade-off is a factor in the good quality of an environmental message (Ottman 2010:107-109). In environmental policy, generally we can also see that the sustainable green marketing of SME entrepreneurs is set as the role of a provider of information and advice.

In order for the SME entrepreneur’s perspective to come to light, it needs to be assessed how the dominant environmental management system is suitable as the marketing

management system for an SME. What possibilities does an SME have for implementing sustainable green marketing through the process of change and value-bound activity? As the marketing inspired by production has its roots in green marketing and in value-bound markets in sustainable marketing, I combined both discussions within environmental marketing to form sustainable green marketing because traditional environmental marketing is not balanced in the sustainable development official documents (Mitchell et al. 2010:160-170) and environmental marketing orientation is not established. Early version of sustainable marketing through the unification of ecological marketing, green marketing, and sustainable marketing in a concept called environmental marketing. Environmental marketing dilemma is social paradigm and then sustainability standards should be applied using an open systems approach informed by political and ethical deliberation included in role of cultural factors (Mitchell et al. 2010). Sustainable marketing performance could be further improved through better integration with sustainability management principles (Mitchell et al. 2010:167) and making decisions in a proactive way (Hammond et al. 1999:).

Both these elements, sustainable and green marketing are required by networking and cooperating beyond the boundaries of the enterprise, which means managers can learn from other people’s experiences and errors (Welford 1994:28) and ecological development work demands very close and intensive networking and cooperation (Jämsä et al. 2011, Luhmann 2004, Lebow & Simon 1997). Hitchens (et al. 2006) presents between firm competitiveness, management environmental culture and the importance external advice on the used cleaner production in four countries and in three industrial sectors. The result is SMEs fail to take up available external advice, which is often good quality. Also external advice is important but it is not valued by SMEs. A better way to create the level of environmental performance is to improve activities from within the SME (Hitchens et al. in Schaltegger & Wagner 2006:274-290). This focus could be linked to the decision-making processes (Alas et al. 2006:270) alongside system analysis thinking with cultural and rubbish theories (Banerjee 1999:17, Thompson 1979, 2002, 2005, Thompson et al. 1990), then there may be better cooperation communication. Many scientists state that environmental marketing research work is very complex and it is almost impossible to conduct marketing research in the traditional way (Ottman 2010). Sustainability is also a super complex mental process issue (Marcum 2009) and the term sustainable development has been criticised as ambiguous and open to a wide range of interpretations, many of which are contradictory (Welford 1995:121-122). This is evident in the non-development of environmental marketing management and management systems.

Research positioning is based on the literature on sustainable and green marketing and its applications, environmental policy, decision making and applications, and on small and medium-sized entrepreneurs. Many marketing theories are inappropriate for SMEs and are not helpful in the understanding of their environmental markets and scientists found that marketing function contributed positively to the success of the ecobusiness of SMEs and the ability to think strategically (Walsh 2009:571, Hitchens et al. in Schaltegger & Wagner 2006:274-290). The review of the starting point of the previous research supports sustainability philosophy and economical thinking, discusses the phenomenon of environmental marketing productization, and rebuilds sustainable green marketing. One interest for this study is to find the connection between environmental policy and traditional marketing thinking. Key

concepts of the study are ecoproductization, sustainable green marketing, and classic utility value analysis. The key concepts are presented in context of their chapter.

1.2 From damage thinking to positive thinking