Green Marketing

June 2010

1

Team Assignment
You are the Marketing VP for a firm (your choice) that is committed to Sustainable
Development, has implemented many Sustainable Initiatives, does Sustainability
Reporting, etc.
Your CEO has asked you to come to Executive Team meeting with two sets of
recommendations as part of a Green Marketing Plan:
– Which Market Segments should your firm target?
– What are the Marketing Messages for the targeted segments?
After the break, each team will have 15 minutes to prepare and then 15 minutes to present
their recommendations.

2

SOURCES
“An Introduction To Green Marketing” by Polonsky, Michael Jay, University of
Newcastle, Australia, 1994

Videos:
– The Effects of Green Marketing (4 minutes)
– Six Sins of Green Washing (6 minutes)

“It’s Not Easy Being Green……Or, Is It?” by Rockbridge Associates, US, 2008

3

Green or Environmental Marketing
Consists of all activities designed to generate and facilitate any exchanges intended to
satisfy human needs or wants, such that the satisfaction of these needs and wants
occurs, with minimal detrimental impact on the natural environment. [Polonsky 1994b,
2]
Incorporates a broad range of activities, including:
– product modification/innovation
– changes to the production process,
– packaging changes,
– as well as modifying advertising.

4

5 . both of individuals and industry. as well as achieving the selling organization's objectives.Green or Environmental Marketing Looks at how marketing activities utilize limited natural resources. while satisfying consumers wants.

Shearer 1990]. Organizations believe they have a moral obligation to be more socially responsible [Davis 1992. or reductions in energy and material usage forces firms to modify their behavior [Azzone and Manzini 1994]. 3. 2. McIntosh 1990. Shearer 1990]. and 5. Cost factors associated with waste disposal. Governmental bodies are forcing firms to become more responsible [NAAG 1990]. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives [Keller 1987. 6 .Freeman and Liedtka 1991. 4. WHY GREEN MARKETING? 1. Keller 1987. Competitors' environmental activities pressure firms to change their environmental marketing activities [NAAG 1990].

many firms see these changes as an opportunity to be exploited. 7 . As demands change. OPPORTUNITIES A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment. due to environmental reasons [EPA-NSW 1994]. including their purchasing behavior. A further 80% of this sample indicated that they had modified their behavior.

 Explain how benefits are achieved. 8 .US Federal Trade Commission Firms using green marketing must ensure that their activities are not misleading to consumers or industry.  Ensure negative factors are taken into consideration. Green marketing claims must. and  Only use meaningful terms and pictures.  Explain environmental characteristics.  Ensure comparative differences are justified. and do not breach any of the regulations or laws dealing with environmental marketing.  Clearly state environmental benefits.

com/watch?v=xj1TqhJLaQI&feature=related Six Sins of Green Washing (6 minutes) www.youtube.com/watch?v=Fnh1Y06DGCs&feature=related 9 . Videos The Effects of Green Marketing: Consumer Trends Drive Profit (4:13 minutes) www.youtube.

17th Annual Frontiers in Service Conference October 3. 14 jbates@rockresearch. Colby Joe Bates Joe Taliuaga Rockbridge Associates. VP 703-757-5213 ext.com 10 . It’s Not Easy Being Green… …Or. Inc. 2008 For more information. Is It? Presented by: Charles L. contact: Joe Bates.

A Little About Us… 11 .

DC area Our Practice Areas – Product Optimization & Concept Testing Rockbridge specializes in – Customer Satisfaction and Retention services. based in Washington. Rockbridge Overview Full Service Market Research Consultancy – Founded in 1992. – Positioning and Communications Research technology – Market Segmentation and media sectors – Website Usability Corporate Partner Proud Member of Center for Excellence in Service 12 .

University of Maryland Methodology: – Representative survey of U. adults (18+ years) – 1025 consumers surveyed in Fall 2007 • 500 by telephone (random-digit-dialing) • 525 by a representative web panel – Results weighted by demographics and by type of internet/phone access 13 . H. R. Background & Methodology Rockbridge’s National Technology Readiness Survey (NTRS) has gathered consumers’ opinions and usage of technology since 1999 The study is co-sponsored by the Center for Excellence in Service.S. Smith School of Business.

Why Does Green Matter? 14 .

Americans Believe in Environmental Stewardship IIwant wantto toprotect protectthe the TheEarth Earthbelongs belongsto tohumanity humanity environmentforforthe thebenefit benefitof of The environment todo dowith withas asititpleases pleases futuregenerations generations to future Source: National Technology Readiness Study. Rockbridge Associates. December 2007 15 .

Will The Green Trend Last? 16 .

Chances Are Good California has been leading the way in enacting green laws: • Mandated recycling of TVs and monitors • Requiring retailers to take back plastic bags • Almost outlawed incandescent light bulbs 17 .

Green Sentiment Runs High 18 .

Is There An Environment “Problem”? Source: National Technology Readiness Study. December 2007 19 . Rockbridge Associates.

Rockbridge Associates. Can Something Be Done? Consumers believe collective action will work And regulation will not hurt Source: National Technology Readiness Study. December 2007 20 .

December 2007 21 . Rockbridge Associates. Can Technology Help? There is strong faith in technology Green tech helps the economy… The internet gives us a medium to work together …while more efficient products and services help the wallet Source: National Technology Readiness Study.

What is the Potential for Green Products and Services? 22 .

Rockbridge Associates. IT firms. utilities. Service Technology Empowers Consumers to Be Green % Who Have Done % Maximum Potential Incidence Opportunities for financial services. December 2007 23 . publishers Source: National Technology Readiness Study.

There is an Emerging Market for Green Products Many include making homes and transportation greener % Who Have Own % Maximum Potential Incidence .

Many Energy-Related Products and Services Have Potential for Long Range Growth A third of consumers are interested (or already own) an alternative fuel vehicle and solar heating systems % Who Own % Maximum Potential is Unrealized .

Where is the Services Opportunity? We estimate $104 Billion annual market for green products Opportunities: – Green mortgages – Green home equity loan – Green vehicle financing – Partnerships with energy companies – Securities backed by these investments Fidelity’s strategy in this area? .

Rockbridge Associates. Many Are Turning to the Web for Help % Who Have Done It In Past 12 Months Opportunities for online content to help consumers find green solutions and network with other green- minded consumers Source: National Technology Readiness Study. December 2007 27 .

Segmenting the Green Market 28 .

Key Questions Who is driving the green movement? What is the role of innovativeness (if any) in driving the movement? ? 29 .

December 2007 30 . A “Green Segmentation” of the Market 1 out of 10 adults – “Green Tech Leaders” – are influencers – They also embrace technology and believe in its ability to solve problems Another 2 out of 10 – “Green Tech Followers” – are deeply committed to green issues and view technology as playing a role Source: National Technology Readiness Study. Rockbridge Associates.

Psychographic Profile of 6 Segments Commitment Absence of Love of Influence to Green Skepticism Tech Green Tech Leaders High High High High Green Tech Followers High Low High Medium Tech-Savvy Sympathizers Medium Low Medium High Enviro-Friendly Skeptics High Low Skeptical Low Naïve Consumers Medium Low Medium Low Anti-Greens Low Low Skeptical Medium 31 .

December 2007 32 .Commitment: “I Encourage Friends / Family to Be Environmentally Friendly” Source: National Technology Readiness Study. Rockbridge Associates.

Rockbridge Associates. Influence: “Others Come to Me For Advice on Being Green” Source: National Technology Readiness Study. December 2007 33 .

and media.Influence: The Use of Social Media GreenTech Green Tech Leaders influence Leaders influence othersthrough others through socialmedia social media Anti-Greensalso Anti-Greens also usesocial use social media. andmay may influence others influence others ontheir on theirviews views 34 .

Skepticism: “There Is Nothing Anyone Can Do To Prevent Global Warming” Source: National Technology Readiness Study. December 2007 35 . Rockbridge Associates.

Love of Tech: “Other People Come to Me for Advice on New Technology” 36 .

Profile of Green Segments 37 .

Green Tech Leaders – 10% of Market How They Think Who They Are  Important to be green  Younger  Early Adopters  More likely to have kids  Technology can save us  Tech professions  Green gadgets are cool  Higher incidence of  Like trying new green tech • work PC use • home networks  Do research and influence • high-speed home Internet others on green products • access Internet on the go  Like doing business with  Higher web “presence” green companies and subscriptions to  Green is good for the wallet online music and video 38 .

 Lower web  Green is good for the wallet “presence” 39 . Green Tech Followers – 18% of Market How They Think Who They Are  Adamant about protecting  Older the environment  Female  People must reduce their impact on the environment  Higher home ownership rates  Green gadgets are fun  Lower incidence of  Like trying new green cell-only households technologies  Spend fewer hours  Research green products online  Like dealing with green cos.

but sympathetic  Want proven technologies to  Like doing business with help the environment green companies  Research green products  Green is good for the wallet  Like dealing with green cos. heavy  Green is good for the wallet users of technology  Skew older. Other Relevant Green Segments Tech-Savvy Green Enviro-Friendly Sympathizers (31%) Skeptics (12%)  Care about the environment  Adamant about being green  Early adopters of  Technophobic technology  Technology may worsen our  NOT green activists or problems. male.  Skew younger. not sure what to do boosters. less techy 40 .

but no urge to act environmental issues  More concerned with  Don’t care about green getting by on a day to day technologies or products basis than being green  More concerned with getting  Many are technophobic by on a day to day basis  Low interest/awareness of  Environmental activists are green tech or products irresponsible. Segments Where Green is Less Relevant Naïve Consumers (22%) Anti-Greens (7%)  Hold “socially acceptable”  Not committed to opinions. less techy 41 . the Earth  Will avoid using green belongs to humanity technologies until they are  Oppose regulation proven  Skew younger  Skew female.

Deploying a Green Services Marketing Strategy 42 .

Will Green Marketing Help a Company? Yes! …but they have to be sincere! Source: National Technology Readiness Study. December 2007 . Rockbridge Associates.

Example: Online Financial Statements .

Example: Green Investments .

To Sum It Up… 46 .

To Sum It Up… Consumers care about the environment. focus on the following messages: – Your company cares about the environment (and you have to back this up with actions that show it) – If we all work together. even if some are only joining the bandwagon to be PC Embracing technology and being green are not mutually exclusive ideologies When marketing green products and services. we can have an impact – Your product is environmentally conscious – Buying your product will not only help the environment. it is good for the consumers’ wallets Target Green Tech Leaders with your message – They will evangelize on your behalf – Social media is key 47 .

Questions? 48 .