Cultivating Your ‘Green’ Marketing Thumb | Part II

April 11th, 2009

Want to Stay in the Black? Try Going Green

Consumer Preferences Steadily Shift To Earth Friendly Businesses

Until recently, most American businesses had just one motive: to make a profit, preferably a big one. If that meant wasteful manufacturing processes, superfluous packaging and other practices that led to deforestation, toxic waste, and excessive greenhouse gas emissions, then so be it. Consumers didn’t seem to care as long as they got the product or service they needed.

That business paradigm, however, is changing quickly. And if you haven’t felt its effects yet, you soon will.

That’s because as concern for the environment and sustainable living continues to grow, consumers are showing significant changes in attitudes and buying preferences. Businesses would be well advised to adapt their practices swiftly or risk being left behind.

The Right Thing to Do?
In other words, GOING GREEN, is going to become central to a business’s profitability in the coming years. Why? Customers are starting to demand it. Recent polling shows 80% of American adults expect that businesses should be mindful of their environmental impact in the products and services they offer.

Forty-four percent surveyed believe damage to the environment caused by business practices is a very important issue and 18% think it’s extremely important. In all likelihood, for a growing number of your customers, living green and buying green is now the RIGHT thing to do.

Obviously, simply offering your product or service isn’t going to be good enough anymore, especially if you’re perceived as being indifferent to, or worse, as harming the environment and collective societal health in the process.  If your business isn’t as green as it could or should be in just a few years time, then even the most vigorous “only profit matters” mentality isn’t going to save you.

Rewards Growing for Greenies
On the other hand, the rewards for making your business greener and more sustainable will be increasing. The market for green products and services is estimated now at $209 billion. That figure will only continue to grow as environmentally astute consumers seek out businesses that share their values. By gradually becoming a greener business, you eventually will sell more products, add more value and enhance your reputation over competitors who reject a more sustainable approach to doing business.

Surveys indicate that many consumers already are willing to pay a premium for greener products. Yet even large discounters such as Wal-Mart are getting on board with green practices. In its relentless efforts to cut costs, Wal-Mart has insisted on a more efficient, sustainable supply chain, thus reducing energy and transportation costs. Aveda, which makes a range of hair and skin care products, has gone to greener packaging (using recyclables) and biodegradable materials, and incorporates organic ingredients into its product lines.

So what can you do to begin the process of greening up your business?

  1. Commit your business to sustainability
    Get educated on the issues and opportunities. If you’re starting a business, design it from the beginning with sustainable elements and products in mind. When it’s time for a renovation, introduce sustainable elements and practices. Use recycled materials, increase natural and low energy lighting as well as low VOC paints and carpets and solar power if possible. Reduce your waste, water consumption and overall energy use. If you operate vehicles, introduce hybrids or alternative energy units (compressed natural gas) to your fleet. All these things will increase your credibility with customers. Not only that, you may actually cut costs by adopting greener practices.
  2. Offer greener products and services
    Look for a “green need” in the marketplace and fill it. Make sure your offerings are truly green, made with environmentally friendly materials and packaged in like manner. But make sure your products work and are competitive with alternatives. You may have to educate your customers about the value of your sustainable products and services. If you’re charging a higher price, the customer must feel that it’s worth it. Also, do some local market research and see who’s on board and who’s missing the boat when it comes to sustainability.
  3. Get the word out
    Once you’ve introduced greener products, services and business practices, tell your customers and your community about it. Highlight your sustainability on a WEBSITE, create a blog, issue press releases, get involved with or even sponsor “green” community events. It’s important to show that you are not only offering quality products and services that customers value, but that you are being environmentally responsible and helping solve a problem that affects us all.

Written by Scott Wigton

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Cultivating Your ‘Green’ Marketing Thumb

March 24th, 2009

As the Globe Goes ‘Green’ Opportunities Grow Bigger

More and more, we’re told, our future will be a green one, replete with green cars, green homes, green manufacturing, green products and green jobs.


Why? Our livelihoods — not to mention our survival — may depend upon it. With alarm bells ringing on about melting ice caps, homeless polar bears, rising temperatures, rising seas, droughts and disasters unless we change our wasteful ways, it’s clear there’s plenty of momentum for the creation of a wide range of green products.

The question then becomes: How do you market them?

Expanding today’s $209 billion “green” market, represents a tremendous opportunity, yet also a frustrating conundrum. Experts are still debating the most effective marketing strategies for green products. How, exactly, do you turn growing environmental concern and awareness among consumers into sales, especially given that many green products carry inherent price premiums?

The obvious assumption is that green products are seen by many as a benefit, but in what way? Do people purchase green products strictly for altruistic reasons or for more self-interested reasons because “buying green” aligns with their values, saves them money (at least over the long term) or confers upon them an “elite” status.

Self Interest and Environmental Vanity

It’s instructive to look at some examples. In the early 1990s when the green movement first got going, manufacturers brought the now famous compact fluorescent light bulbs (CFLs) to market, touting them as “earth friendly.” Consumers, however, snubbed the expensive products until they were repackaged and re-launched as a longer life bulb that would save money over the long term versus compared to standard incandescent bulbs.
The outcome for the first chlorofluorocarbon (CFC) free refrigerator, marketed by Whirlpool, also challenged assumptions that consumers would choose an environmentally friendly product on this merit alone. As it turned out, this award winning, first-in-class refrigerator fizzled because people didn’t feel like paying the extra $150 premium in spite of its environmental benefit.

But some marketers have learned that vanity often is a bigger motivator than altruism (or even long-term savings) when it comes to green products. Say what you will about the Toyota Prius — its, um, distinctive styling, and premium price for a midsize car, but one thing is certain. It’s been a mean, super-selling “green” machine. Since its introduction in North America in late 2000, nearly one million have been sold. Hundreds of thousands more have been sold on the worldwide market.

And while that amounts to a drop in the bucket of overall auto sales, it’s one very significant drop, making the Prius the world’s first green vehicle to achieve real marketplace success. Designed to be environmentally friendly and get excellent fuel economy, this gas-electric hybrid demonstrates a key green marketing concept: It has identified its core audience and delivered on its promises. Perhaps most importantly, it has empowered its market — people who feel so deeply about “living green” and being seen as “green” that they are willing to pony up the extra cash to do so. In fact, a July 2007 New York Times article using data from CNW Marketing Research found that 57% of Prius purchasers bought their vehicles because it “makes a statement about me.” Interestingly, just 36% cited improved fuel economy as the reason for their purchase.

Basic Principles of Green Marketing

While “Green Marketing” continues to be defined, there is little doubt it offers tremendous potential in coming years. Purveyors of green products would be wise to apply the following three marketing principles.

  1. First, a business offering or manufacturing green products ought to be as “green” as possible, founding its credentials upon its own commitment to actual green practices. Are you selling recyclable materials and you don’t recycle?
  2. Second, a company must educate its customers about why their product matters and position it so that customers understand that it performs as well or better than non-green alternatives.
  3. Finally, customers must be empowered by green products, giving them the clear feeling that they are affirming their principles and participating in an action that helps to “save” the environment.

Green products may be good in and of themselves, but unless they’re marketed properly, they’re not going to make a far reaching impact. And that’s not good news for polar bears, or people or the bottom line.

Written by Scott Wigton

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Are You Blind to Good Design?

February 24th, 2009

For too long, the power of good design has been relegated to a secondary role when it comes to developing a marketing strategy. But with more clients and customers basing their purchasing decisions on design, businesses must look at ways to incorporate design from the beginning.

Remember when the Apple Inc. iPhone debuted a couple of years ago? Within 30 hours, stores sold 270,000 units and some opportunistic entrepreneurs even began hawking the devices on Ebay for thousands of dollars above the retail price of $599.

And they had buyers.

Since then, Apple has sold more than 13 million of the touchscreen multimedia devices and Time Magazine named it the invention of the year in 2007. Apple’s CEO, Steve Jobs was named Fortune Magazine’s Most Powerful Businessman of the year.

Most companies would kill for that kind of response to a new product or service. Talk about buzz and brand loyalty. What people forget is that the iPhone was introduced into a very competitive, crowded marketplace, and it still blew away the competition.

Why? In a word: Design.

The value of design is something Apple has capitalized on since its inception over 30 years ago. That’s because Apple, under CEO Steve Jobs, has understood that design is much more than snazzy looks and slick packaging. Rather, Apple and a few other visionary companies, have realized that design, properly incorporated into strategic planning, is what drives innovation which in turn drives brand and builds customer loyalty.

Here’s what Jobs said about design (related to the iMac computer) in a Fortune Magazine article a few years ago:

“We don’t have good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. It’s interior decorating. It’s the fabric of the curtains and the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service. The iMac is not just the color or translucence or the shape of the shell. The essence of the iMac is to be the finest possible consumer computer in which each element plays together.”

What is Jobs suggesting? Clearly he means that if any product, service or, for that matter, company, is to succeed, good design (and designers) must be brought into the strategic marketing process from the beginning.

In far too many businesses, however, design remains a secondary consideration. It is left until the latter stages of the marketing process, its only purpose to furnish products and services with a glossy company veneer. The hope, of course, is that this veneer, as Jobs puts it, will make a favorable impression on customers.

But as the Oracle of Apple hints, this veneer is too superficial to connect with customers. Why? Because it isn’t rooted in the core essence or value proposition of the company itself and the design ends up being weak. Sure, it may look pretty or be exciting in some way, at least initially, but it’s simply window dressing that fails to deliver on your company’s key promises.

How important is design? According to a 2007 “Design for Living” survey conducted by Kelton Research, 7 in 10 Americans said design is the most important factor when it comes to influencing them to desire a product. For people under 30, the power of design is even more persuasive. For many companies, the role that design plays in their strategic processes will have to be rethought. No longer should only left-brain, number crunching analysts dominate throughout planning processes. To remain competitive, companies will have to make room at the table for the right-brain creative types, the ones with the innate talent for distilling a company’s core values to their purest essence and then designing processes, systems, services and products that end users desire.

Great design, above all, connects with clients and customers on an emotional level, causing them to yearn for a product because of a desirable feeling it gives them. By incorporating design into strategic marketing processes from the start, a business can be assured that its value proposition will affect customers where it counts the most – in their hearts. And once you’ve got a customer’s heart, you’ve got a customer’s loyalty. So, does good design matter? Just ask 13 million iPhone users.

Written by Scott Wigton

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Why Marketing Planning Is Important (Especially for the Coming Year)

February 14th, 2009

A little bit of marketing planning goes a long way. And yet we’ve found far too many businesses whose approach to marketing is often unfocused, undisciplined and geared for short term results at best.

With the economy projected to be rocky in 2009, it may be time to seize the initiative and create a plan that will guide you to desirable — and long-lasting — results in spite of downbeat predictions.

Imagine a coach announcing to his players before the Big Game — “OK, guys, we’re just going to wing it today! Good luck!” Hardly inspiring stuff. But even worse, the coach has made a fundamental error. He’s sent his team into the game without a plan for winning. Sure, the players might be talented, but even the best are likely to fail without a clear plan of action.
The same is true when it comes to meeting your business goals for the coming year. You may have high hopes and a good staff, but without a concrete marketing plan, your team will be no better off than the one in our hypothetical example.

Unfortunately, too many small business leaders behave just like that coach, either neglecting to develop a marketing plan, or else failing to update their plans for a new year and new economic realities. In fact, as recently as 2005, 75% of companies didn’t have an approved marketing plan.

In a booming economy you might just get away with that — if you’re lucky. When things go south, however, lack of a marketing plan could spell disaster. And with a turbulent economy expected for many months to come, a well conceived marketing plan could be worth its weight in gold.

Why? In short, it helps you focus on the Big Picture when you are tempted to hide among the details of day-to-day operations. Crucially, it supports your overall marketing efforts by helping you identify your best prospects, effectively communicate with them, and create the sales opportunities that make your business thrive. Finally, if done properly, a marketing plan will equip you with ways of measuring outcomes.

So, how do you get started? Begin by evaluating your company’s strengths and weaknesses; what do you do well and in what areas could you improve? Assess your market thoroughly. Who are your competitors and how are they doing? How are you positioned? Are market conditions stable or could they change in the near future?

A solid plan should also clearly express an overall strategy (as well as “ground level” tactics) intended to increase your business’s market share, customer acquisition, customer lifetime value, and frequency and recency of customer purchases. Importantly, your plan must stipulate how to increase your brand awareness and value. Every successful football team has a written playbook and the discipline to follow it, and when it comes to marketing, so should your business.

Of course, even the best plan is worthless without implementation. That means you must provide a sufficient marketing budget. Backing your plan with dollars means you are truly committed to sustained action, rather piece-meal steps in hopes of achieving your goals.
Finally, now is the time to get going on your plan.

Starting the New Year (or at least next business quarter) with a marketing plan completed, will pay dividends down the road and give confidence and energy to your team over the long term. That way when it’s time for the big “locker-room” speech to your team you’ll be prepared to say: “Listen carefully, here’s how we’re going to win the game!”

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Business Self Defense During a Downturn (And the Number 1 Mistake to Avoid!)

January 15th, 2009

What goes up, as they say, must come down. In the last few months, we’ve all seen our once soaring economy struggle like a wounded duck to stay aloft. But there’s no reason for your business to suffer a similar fate — if you take the right steps.

Daily, the media remind us how bad things supposedly are – customers aren’t buying, productivity has plunged, banks aren’t lending, etc. It’s enough to make even the most optimistic among us want to run for the hills and hibernate in a cave.

So what’s your business to do in times like these? Hunker down? Cut back? Sit tight and play the “Woe is me, nobody wants to buy” game?

Are you kidding? Now is the time to seize the initiative, get a leg up on competitors, and position your business not just to ride out the recession, but to experience remarkable growth when the economy picks up again.

Sound too good to be true? For many business owners, it does. Faced with a slowdown, they instinctively cut back in an effort to protect profits. What they don’t realize is they will end up limping through the recession. Worse, they will be unable to take full advantage of an economic turnaround.

So what can you do to avoid this tempting recession trap? First of all, don’t panic. Yes, slowing sales can be expected, at least for a while. But you can turn that around by avoiding the number one mistake made by too many businesses during an economic recession — cutting back or eliminating marketing efforts.

Multiple studies show that businesses that do NOT cut their marketing budgets during recessions experience nearly twice the growth of competitors who pare down their marketing efforts.

In fact, some firms are actually INCREASING their marketing efforts. For example, some major food manufacturers including Sara Lee and Kraft are planning marketing blitzes this year. Why? They understand that in spite of increased food prices and the overall glum economic mood, they need to keep their brands front and center in the minds of customers. Brand recognition and value are central to generating new customers and maintaining the loyalty of existing ones.

They also are exploiting multiple marketing channels ranging from print and television to in-store promotions and the Internet. Now, you may not be able to do all that, but chances are you can use some to your advantage, especially the low-cost Internet.

Along with operating efficiency, maintaining a strong marketing posture is absolutely essential to success in recessionary times.  Here are some tips for keeping your marketing efforts primed in 2009:

  1. Keep your happy customers happy. During a recession, 95% of a typical business’s sales volume comes from just 5% percent of its clients (compared to 80% of sales volume from 20% of top clients during normal times). So, it may be worth considering benefits or incentives for this key constituency.
  2. Boost your online marketing efforts. This marketing channel is relatively inexpensive and easily measurable.
  3. Keep in touch. Let your best customers/clients know you’re looking out for them by maintaining regular contact with them.
  4. Hone your messages. Make sure every marketing message has a specific purpose intended to move customers through your sales process.
  5. Reinforce your brand. Keep your brand front and center, with your core value proposition clearly apparent to clients/customers.
  6. Introduce a new product: Your competitors may be weakened by the recession. Now’s the time to debut a good product and capture overwhelming market share ahead of the competition.
  7. Get involved locally. Sponsor community events, get involved in cross promotions, take up a cause. These are great ways to raise brand awareness. And, don’t be afraid to get the media involved. A simple, well-timed press release can pay big publicity dividends.
  8. Word of mouth. There is no better marketing for your business than good word of mouth. It’s inexpensive and gives you tremendous credibility. Plus, the buzz often outlives the initial promotions.

Yes, we’ve all read the headlines. According to experts, we’re in a recession. But it doesn’t have to be a disaster for your business. In fact, it can be an enormous opportunity. All you have to do is keep a cool head and continue to tell your customers that you have a great brand — one that is well worth their investment.

Written by Scott Wigton

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