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Green Marketing

Green Marketing. June 2010. 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.

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Green Marketing

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  1. Green Marketing June 2010

  2. 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.

  3. 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

  4. 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.

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

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

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

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

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

  10. It’s Not Easy BeingGreen……Or, Is It?Presented by:Charles L. ColbyJoe BatesJoe TaliuagaRockbridge Associates, Inc.17th Annual Frontiers in Service ConferenceOctober 3, 2008 For more information, contact: Joe Bates, VP 703-757-5213 ext. 14 jbates@rockresearch.com

  11. A Little About Us…

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

  13. 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, R. H. Smith School of Business, University of Maryland Methodology: Representative survey of U.S. 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 Background & Methodology

  14. Why DoesGreenMatter?

  15. Americans Believe in Environmental Stewardship I want to protect the environment for the benefit of future generations The Earth belongs to humanity to do with as it pleases Source: National Technology Readiness Study, Rockbridge Associates, December 2007

  16. Will The Green Trend Last?

  17. 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

  18. GreenSentiment Runs High

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

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

  21. 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, Rockbridge Associates, December 2007

  22. What is the Potential for GreenProducts and Services?

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

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

  25. 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

  26. 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?

  27. 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, Rockbridge Associates, December 2007

  28. Segmenting the Green Market

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

  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, December 2007

  31. Psychographic Profile of 6 Segments

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

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

  34. Influence: The Use of Social Media Green Tech Leaders influence others through social media Anti-Greens also use social media, and may influence others on their views

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

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

  37. Profile of Green Segments

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

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

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

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

  42. Deploying a GreenServices Marketing Strategy

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

  44. Example: Online Financial Statements

  45. Example: Green Investments

  46. To Sum It Up…

  47. To Sum It Up… Consumers care about the environment, 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, 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, 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

  48. Questions?

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