← Glossary

The Contemporary Marketing Management Glossary

Impact Marketing

Short Definition

A strategic and people-centered approach that mobilizes all stakeholders to generate a positive social and environmental impact, where profit is the natural result of ethical and responsible business practices.

Context

Impact Marketing represents the latest evolution in marketing thought, following the transition from transactional to relational marketing. As defined by Gabriele Carboni and Philip Kotler, it integrates the principles of sustainability, social responsibility, and stakeholder engagement into the very core of marketing strategy. It is grounded in theories of shared value creation (Porter & Kramer, 2011), stakeholder capitalism (Freeman, 1984), and sustainability management, extending marketing’s role from persuasion to transformation. The Impact Marketing Framework, a cornerstone of Enlightened Management, operationalizes this philosophy as a pathway toward long-term prosperity.

Extended Definition

Impact Marketing is a holistic model that views business as part of a larger social and ecological ecosystem. It reframes the purpose of marketing—from maximizing short-term profit to maximizing long-term positive impact—by aligning business objectives with collective well-being.

Its core principles include:

  1. Human centrality – People are at the heart of every successful organization. Impact Marketing prioritizes the needs, aspirations, and well-being of all stakeholders.

  2. Shared value creation – Companies generate value not only for themselves but also for society and the environment.

  3. Social and environmental impact – Organizations commit to sustainability, reducing ecological footprints, and supporting social causes.

  4. Integration of sustainability – Sustainability is embedded in every phase of marketing, from design to communication.

  5. Transparency and authenticity – Honest and open communication builds trust and accountability.

  6. Active stakeholder engagement – Stakeholders are involved in defining goals and evaluating results.

The Impact Marketing Framework visualizes this model as an inverted pyramid, starting from Purpose and culminating in Positive Impact. Each level—purpose, stakeholder engagement, shared value generation, sustainable business model, and measurable impact—builds upon the previous, guiding companies toward an enlightened form of leadership and market participation.

In this paradigm, profit is not the goal but the consequence of doing good: a company grows because it improves lives, supports communities, and regenerates the environment.

Contemporary Example

OrCam Technologies exemplifies Impact Marketing by designing assistive technology that enhances accessibility for the visually impaired. Its commercial success derives from its positive societal impact, showing that “doing good” and “doing well” can coexist. Similarly, brands like Brunello Cucinelli and illycaffè embody Impact Marketing by integrating ethics, transparency, and sustainability into their entire value chain.

See also

Part of chapter: Glossary