Beyond the Green Wash: The Competitive Advantage of Green Marketing
July 17, 2008
By Dennis Walsh
Everyone is going "green." But whatever that means, no one really knows for sure. Contrary to what marketers would like to think, when it comes to the environment, the vast majority of people do not have a well-articulated viewpoint. Green-consciousness aside, two out of three consumers cannot even name a single green company.
At best, "going green" is a strong niche opportunity in the consumer marketplace. Green marketing realities fly in the face of conventional marketing wisdom. People do not buy products. They buy solutions to problems. And green behaviors and attitudes often take divergent paths: Green attitudes do not always predict green behavior, and green behaviors often occur without accompanying attitudes.
Regardless, this whole "green thing" has people talking. It has mass-market appeal. The bottom line is that there is no one-size-fits-all marketing strategy when it comes to green. That may seem like common sense, but such wisdom eludes most marketers, who insist on pushing out marketing efforts that are variously too vague, too technical, or way too, well, mushy.
Misleading Media Madness
Truth be told, the media interest given to the environment far exceeds consumer interest. It is not that consumers are not aware of the environment, but there is something missing in the way consumers process the information that we are giving them. It is only a matter of time before consumers become suspicious about claims of environmentally friendly products. Any green strategy must acknowledge that different consumers will need to be engaged differently, and that communications must be tailored accordingly. Green marketing strategy must involve well targeted, intelligent messaging. Businesses need to engage in transparent and authentic discussions with their customers and their critics alike. But that is easier said than done.
Market segmentation of green consumers is not new. There are true-blue greens, green-back greens, sprouts and grousers. There are optimists, people of faith, pragmatics, cynics and pessimists with entirely divergent views on saving the planet. A few people are radically engaged, and very progressive on environment and society, looking for ways to do more; others are primarily concerned about their own personal health and wellness. There are those who are interested in green products that make sense and save money while some consumers like to be seen in natural foods markets to enhance their image.
A Greener Future?
What next? Will meaningless green marketing terms fall by the wayside? Will we see fewer claims of biodegradability? Will consumers consider the companies whose packaging "looks" green to be green? Will claims that packaging is made from 'recycled material" soon disappear?
After all, the familiar recycle symbol does not guarantee recycling. Packages must be separated and taken to recycling facilities. Even recyclable packages end up in landfills. Expect more green and not-so-green products to hit the shelves, especially in the area of packaging. Eco-friendly packaging will be a great business opportunity for eco-entrepreneurs.
Green product sales will soar. Major manufacturers will continue to snap up smaller green companies and larger entrepreneurial companies will grow.Competitive advantages and profits are a byproduct of doing the right and sensible thing. But, as more and more companies go green, being green will have less impact. Green will be the standard, and become much less likely to appeal to mainstream consumers unless they offer added benefits. Make environmental product and consumer claims specific, and meaningful. It will be necessary to design environmental products to perform as well as or better than alternatives. Bundle consumer desired value into environmental products. And educate consumers with marketing messages that connect environmental product attributes with consumer value.
The corporate sustainability movement has gathered momentum and seems poised to gain acceptance. The greatest benefits of sustainability programs are improving public opinion, improving customer relations, and attracting and retaining talent. Building a brand is not about "What are we going to do?" It is "What do we stand for?"
Employers who "walk the green talk" gain a competitive advantage. Green strategies are not just operational, they involve educating employees, engaging them in ideas and innovation, and translating environmentalism into employment brands that attract and retain talent. Employees come up with ideas for conservation. They know how to make business processes greener and have the passion to bring solutions to fruition.
Proctor & Gamble plans to maximize their competitive advantage. Through green marketing they hope to generate at least $20 billion in cumulative sales of products with reduced environmental impact over the next five years. In response to such optimistic projections, the Financial Times reported that the environmental impact of those products would be less than those of previously available products. Why? Everyone can see in. There is no longer an "out." Actions and communications must be aligned. Successful green strategies must as sustainable as they are credible. They must deliver sound economic ROI and competitive advantage to the business.
Editor's Note: Read "Will Green Marketing Bring You the Green?" to find out more about green marketing trends and consumer research.
Formerly the publisher of Green At Work Magazine, S&MM online columnist Dennis Walsh is a well-informed sustainability writer, motivational speaker, session leader, thinker, and strategist who campaigns to gain increased support for corporate national and international coalition building, grassroots organization, media networking, product endorsements and market development. He is a sustainability advocate, and consultant with corporations and communities in the delivery of economic and environmental ROI.
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