Avoiding Green Marketing Myopia

Green Marketing

Process of selling products or services based on their environmental benefits.

Eco friendly produced and packaged

Objectives of Green Marketing

Improved environmental quality

Objectives of Green Marketing

Customer Satisfaction

Green Products which scored success

Toyota Prius
44 mpg hybrid Customers enduring waiting period and higher price

High demand due to meeting customer expectation along with green product label.
Academy Awards,2003 Eco-friendly label after names Motor Trends Car of year 2004 Higher fuel economy, Performance and technology Dazzling looks

Green Products which scored success

Google CEO Larry Page in his Toyota Prius, after widespread demand of Prius

Successful Green Products

Organic food
20% annual growth since 1990 5x faster than conventional food market Increase in Organic baby food for kids development

Construction Industry
Demand for resource efficient and cost effective office buildings No Volatile Organic Compounds healthy for occupants Home buyers looking for natural lighting, solar heating, reflective windows

Increased Market growth due to perceived safety and money savings + environmental factors

Green Marketing Myopia

Green Marketing Myopia

Green Marketing must satisfy two objectives: improved environment quality and customer satisfaction. Misjudging either or overemphasizing the former at the expense of the latter can be termed green marketing myopia.

Whirlpool Refrigerator GMM

CFC free cooler , one that was 30% more efficient than the U.S. Department of Energys highest Standard Whirlpool won the Golden Award a $30 million award package of consumer rebates from Super-Efficient Refrigerators Program.

Mobils Hefty Photodegradable

Introduced in 1989, Hefty degradable plastic trash bag.

Degradable with special ingredients promoted its decomposition into harmless particles in landfills. Seven state attorney general sued Mobil on charges of deceptive advertising.

Keys to Avoiding Green Marketing Myopia

Consumer Value Positioning (design environmental products to perform as well as alternatives; products that have health benefits; fixed price for renewable energy products) Calibration of Consumer Knowledge (connect environmental products attributes with desired consumer valuepesticide-free; solar powered); use of internet. Credibility of Product Claims (environmental product and consumer benefit claims)

Consumer Value Positioning

Calibration of Consumer Knowledge

Employ compelling, educational marketing messages and slogans that connect green product attributes with desired consumer value Environmental benefits positioned secondary, if mentioned at all Ambiguous but Myopically focused on pollution rather than a more mainstream consumer benefit Encouraging consumers to think implicitly about what else they are saving.

 Connection between environmental benefit and consumer value Compelling marketing communications educating consumers to recognize green products as solutions for their personal needs and the environment Analysis suggests that advertising that draws attention to how the environmental product benefits and deliver desired personal value can broaden consumer acceptance of green products

Credibility of Product Claims

Foundation of Effective Green Marketing Products should meet consumer expectations by delivering the promised consumer value Provide Substantive Environmental Benefits Misperceptions and Skepticism created as consumers dont have the expertise or ability to verify green products environmental and consumer values

 Green marketing that touts a products or a companys environmental credentials can spark the scrutiny of advocacy groups or regulators Green product attributes should be communicated honestly and qualified so that the consumer believes and trusts it

The Future of Green Marketing

Whats lacking ?
Business scholars have viewed it as a Fringe topic.
It does not mesh well with marketings axioms i.e. give customers what they want and sell as much as you can

How it will work out ?

Sustainability is destined to dominate 21st century commerce.
All marketing will incorporate elements of green marketing.

Product dematerialization
Innovations that transform material goods into efficient streams of services

Thank You :)