Cultivating Your ‘Green’ Marketing Thumb

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