Circular Economy
Short Definition
An economic model designed to eliminate waste and keep products, materials, and resources in use for as long as possible through regeneration, reuse, and recycling.
Context
Extended Definition
Circular Economy represents a fundamental shift in how value is created, distributed, and sustained within modern business and marketing systems.
In the perspective of Contemporary Marketing Management, it moves beyond the traditional goal of maximizing consumption and embraces a model of continuous value circulation, where design, production, and communication are all oriented toward durability, reuse, and regeneration.
This approach transforms marketing from a driver of demand into a facilitator of sustainable relationships—between companies, consumers, and the environment.
Rather than promoting newness for its own sake, the circular model encourages organizations to emphasize longevity, service, and shared responsibility.
In practical terms, it integrates multiple disciplines:
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Strategic design, ensuring that products and services are conceived for reuse and modularity.
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Supply chain innovation, supporting reverse logistics, material recovery, and renewable resource use.
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Consumer engagement, turning customers into participants in circular systems through transparency and education.
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Digital technologies, including IoT and data analytics, which enable traceability and closed-loop efficiency.
Within Contemporary Marketing Management, the Circular Economy represents not just an operational framework but a new marketing paradigm: one that measures success through resilience, reputation, and relevance rather than volume or velocity.
It challenges organizations to redefine growth as a continuous process of renewal—economic, environmental, and relational.
Contemporary Example
See also
Part of chapter: Glossary