Posts Tagged ‘Sustainability’

Cultivating Your ‘Green’ Marketing Thumb | Part II

Saturday, 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

Tags: , , , , ,
Posted in Newsletters | No Comments »

Cultivating Your ‘Green’ Marketing Thumb

Tuesday, 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

Tags: , , , , , ,
Posted in Newsletters | No Comments »