Green Marketing
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Intro to green marketing as it relates to green construction. Just the basics for folks who aren't familiar with "green" construction issues. There's still some of us left!

Intro to green marketing as it relates to green construction. Just the basics for folks who aren't familiar with "green" construction issues. There's still some of us left!

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  • This presentation is about Green Marketing in the construction industry, and what it means to us in the SWR Institute. The photo, by the way, comes from Vail, Colorado, which instituted new “Green” building codes several years ago.
  • We’ll look at what Green Marketing is, why it’s important and how it can be helpful. I’ll discuss some Green Marketing guidelines for doing it right – as well as Green Marketing obstacles and how to overcome them. Along the way, I’ll point out some companies that have successfully marketed themselves as “Green.”
  • Now I don’t want you to think I’m some big expert and this presentation is about telling you your business.
  • This presentation is more of a report that I’m giving to you – fellow SWR Institute colleagues – on what I’ve learned recently about Green Marketing.
  • I think some of the things we’re learning about Green Marketing at PROSOCO might be useful to you, too. This is our “Green” webpage on the PROSOCO dot com website.
  • We started learning about Green Marketing in early 2009 when trying to get our products specified for well-known big box store.
  • This chain is heavily involved in Green Marketing. They want the market to know that they are on the side of the environment and sustainability.
  • Their officials not only quizzed us on how “environmentally friendly” our products are…
  • They also wanted to know how environmentally friendly and sustainable our whole operation is! They want their customers to know that not only are the stores built and maintained with environmentally friendly products – but the manufacturers who make the products are ALSO environmentally friendly and sustainable.
  • Fortunately, we had some things we were able to tell them about how “green” PROSOCO is. They liked our New, improved recyclable packaging program, for one.
  • The big box store officials also liked the fact that we recycle some of the water we use in making our products. We call the recycled water “Goldwater,” because it saves us money on our water bill.
  • Now don’t get me wrong. We’re not doing these things to try to save the world. Recycling water is good, but we’re doing it to save money on our water bill. The recyclable packaging is great for the earth, but we’re doing it to save money, storage, transport and disposal costs for ourselves, our customers and our end-users. If the earth can survive as a result, that’s an added plus.
  • But the whole big box store exercise got us thinking. If Wal-Mart found our construction products and practices desirable from a “green” standpoint… maybe others would too! And to our standard marketing points of “quality products” and “top customer care,” we could add “sustainable products and practices.”
  • Now just like you, I’ve seen all the “Green Marketing” frogs, flowers and bunnies out there. Very nice. But before we jumped into promoting PROSOCO for the Green Construction market, I wanted to know –
  • -- what kind of money is involved in the “green” construction market? And is the “Green Construction” movement a real thing ? Or is it just a passing fad full of unverifiable claims? Here are some interesting things I found in answer to those questions.
  • Is there money in Green construction? Let me ask you this -- do you recognize any of the construction outfits on this list? Of course you do. They are some of the biggest contractors in this country.
  • They are also 2008’s Top 10 “Green” Contractors in the country, by revenue, according to the publication “Engineering News-Record.”
  • Let’s look at #1 on the list, The Turner Corporation. They are also the third biggest U.S. contractor overall, according to Engineering News-Record. Only Bechtel and Fluor corporations are bigger.
  • The Turner Corporation earned $10.49 BILLION in 2008. In my opinion, any number that ends with the word “billion” is worth paying attention to.
  • 30 percent of that revenue – $3.14 Billion – came from so-called GREEN projects.
  • “ Green” projects are projects that are registered or certified by third-party rating groups using objective environmental or sustainable development standards.
  • An example is the Ford Motor Company Engineering Design Center, Evanston, Illinois. This Turner new construction project achieved a LEED silver rating.
  • As you probably know, LEED stands for Leadership in Energy and Environmental Design. It’s one of those objective rating systems for sustainable or environmental design and construction.
  • LEED is developed and administered by the U.S. Green Building Council – one of those third-party groups I mentioned. I’ll talk more about LEED later in the presentation, because it helps answer the question – “Is Green construction real or just a passing fad?”
  • Back to the money question -- I found that Green construction is big business and getting bigger. Green Building Insider, an e-newsletter covering Green construction, recently reported that 44 states, 163 localities, 12 Federal agencies and 39 colleges and universities currently REQUIRE green construction or at least consideration of green construction. That’s in addition to demands for Green construction from private enterprise, like Wal-Mart.
  • In addition to its Green contractors list, Engineering News-Record also compiled a list of the top 100 Green Design firms. Recognize any of these names? Like the contractors, they are some of the biggest design firms in the country.
  • Let’s look at #4 HKS.
  • I like HKS, because they used my company’s products at the recently completed Cowboys Stadium, just outside of Dallas.
  • Here are some of HKS’ Green Marketing points from their website. They’re a little out of date. Since HKS posted this, the company moved up on the “Green List” from #5 to #4. And that largest LEED project?
  • That’s the Palazzo Hotel and Resort Casino in Las Vegas. Certified LEED Silver.
  • What makes the Palazzo Green? According to the HKS website, the building is proven annually to save 10. 1 million kilowatt hours in energy; 41 million gallons of water (which is important when you live in the desert), and 19,000 therms of gas. I’m not sure what 19,000 therms of gas actually represents, but it sounds expensive. Now, anyone can make claims like these – but these claims are backed up by the U.S. Green Building Council’s independent LEED certification.
  • So let’s briefly review what LEED is and how it works.
  • LEED is a voluntary program. It’s administered by the non-profit group, the U.S. Green Building Council.
  • LEED is an independent certification system. It provides guidelines in 5 main categories for sustainable, high-performance buildings like the Palazzo.
  • If the building design and performance meet the LEED requirements in these five areas, the U.S. Green Building Council will award the building LEED certification. The building must meet standards for sustainable site development, water savings, energy efficiency, material selection and indoor environmental quality.
  • Based on how well the building meets those standards, it could be certified as LEED Platinum (the highest level), LEED Gold, Silver, or LEED Certified.
  • Though LEED is one of the most well-known third-party certifiers, it’s not the only one. A group called GreenGuard also offers independent, third-party certification of buildings for sustainability and environmental performance. Other groups, like EcoLogo and GreenSeal certify products and services. Like LEED they look closely before they give their seal of approval. SCS, which stands for Scientific Certification Systems, subjects products to rigorous testing and examination before certifying them as sustainable or environmentally responsible.
  • Some of the advantages of buildings constructed to LEED or other “Green” specifications are that operating costs are generally lower, and the asset value is higher than that of traditional buildings that haven’t taken sustainability issues into account. Other advantages include better environments for occupants, and the fact that “green” buildings often qualify for tax rebates, zoning allowances and other incentives. And in today’s environment-conscious society, there’s status involved in owning, designing, building and working on a certifiably sustainable building.
  • So, is Green construction just a passing fad marked by unverifiable claims of environmental friendliness? The organizations, advantages and money involved would suggest otherwise. How much money is involved in green construction each year?
  • Figures vary. Green Construction Insider reports the value of Green Construction in this country at closing in on $60 Billion in 2009. Mc-Graw Hill Construction is more conservative, estimating $36 - $49 billion. Either way, it’s a lot.
  • A study by technology consulting firm Booz Allen Hamilton, released in November 2009, found that spending on green construction already supports more than 2.4 million jobs, and from 2000 to 2008 generated more than $120 billion in wages alone.
  • The study also predicted green building practices will create 7.9 million MORE jobs and add $554 billion to the Gross Domestic Product of the U.S. over the next four years.
  • What about the recession and the down economy?
  • Building consultant McGraw-Hill Construction estimates continued growth in Green Construction despite the recession. How much?
  • Over the next five years, McGraw-Hill forecasts Green construction market growth to $96 billion, upward to $140 billion. The company bases that on growing public awareness of green practices, heavy government interventions, and recognition by owners of bottom-line advantages.
  • They say Green construction is the one area of the construction industry that seems recession-proof.
  • Companies like Turner are aggressively pursuing – and getting -- their share of those billions. They’re doing it by marketing their commitment to Green construction. The header you see here comes from the Turner website. And while 30 percent of their 2008 construction was green, 40 percent of their backlog for 2009 is green, and 50 percent of their new sales are being registered for LEED certification, according to Engineering News-Record.
  • To build green designs like the Palazzo, green contractors like Turner hire green sub-contractors who use the green products specified by green designers, like HKS.
  • So we came to realize what HKS, Turner, Wal-Mart and many other big, successful companies already know. We needed to tell the market about PROSOCO’s Green products, projects and procedures. Just like the big boys do.
  • That, simply, is what Green Marketing is all about – creating a favorable environment for sales by promoting your green attributes.
  • Wal Mart does it. Turner does it. HKS does it. And PROSOCO is starting to do it.
  • But like you, I’ve seen enough of green marketing done the wrong way to know I’d better do some research on how to do green marketing right before committing PROSOCO’s time, talent and treasure. I know the Hummer has many wonderful features, but I struggle with the concept that fuel efficiency is one of them.
  • So I read some books, and went online. I found no shortage of rules for how to market green. They were all pretty good, but there was far too much advice to get on this slide.
  • It all seemed to boil down to these main concepts: Identify your green marketing points; look at those marketing points from your customers’ point of view; Pay attention to core business issues of product and service pricing, effectiveness and meeting customer needs; be able to back up your claims with solid information. Get your Green story out to the market. Let’s look at each one of these principles more closely.
  • Chances are you are already engaged in sustainable practices, for the same reason PROSOCO is. Who can afford waste any more? Do you recycle? That’s a green marketing point. Have you found ways to reduce fuel, energy or water use? Have you been involved in LEED or other certifiably green or sustainable building projects? Do you make or use products that are verifiably green, or, if not, that contribute to sustainability? These are all points you can use to tell your “Green” story.
  • Once you’ve listed all your “Green” marketing points, look at them from your customers’ point of view. That tells you how loudly to trumpet or softly to whisper about what you’ve got going on. If recycling cardboard packaging is all you’ve got – that’s ok. That’s still a blurb and photograph on your website. But if you use all certified “green” products and your vehicles are all fuel-efficient, then maybe that’s an ad in the trade magazines, or a marketing flyer, or a page in your brochure.
  • The point is that customers will be skeptical of companies that promote themselves as “green” if they only have a little green activity going on. But even a little green activity is worth promoting, as long as it’s kept in perspective.
  • Just because we’re talking “green” and “environment,” and “sustainability” doesn’t mean we can lose sight of core business issues. The green products and services we market have to be priced for profit. They have to be as effective as non-green alternatives. And customers have to want them.
  • 3M provides a good example. Attempting to make audio tape without VOC-producing solvents, 3M scientists came up with a water-based coating for the tape the company could market as VOC-free. Unfortunately the VOC-free version didn’t have the temperature range of the solvent-coated tape. It often melted under normal use. They were so excited about their “green” tape, they forgot the customers’ need for an effective product.
  • On the other hand, Toyota paid strict attention to business issues with its wildly successful Prius hybrid. 10 years after its intro in 2000, the cars are still selling faster than the company can make them. That’s because Prius is eco-friendly, without sacrificing performance. It meets customers’ needs for reliable transportation, and while pricey, isn’t out of the ballpark.
  • It sounds obvious – don’t make claims that can’t be supported. But that’s tougher than it sounds. At PROSOCO, we are positive that when schools use our Consolideck products to put in finished concrete flooring, they save money on maintenance, that they can spend on computers and other educational tools. We would love to use that as a marketing point. Unfortunately, there are no numbers or case studies to back it up. So maintenance savings from concrete floors equal more money for educational tools is a claim we don’t make. That concept – back up your claims – is important in Green Marketing, where consumers are already skeptical about Environmental claims.
  • On the other hand, we got Consolideck ® LS, LS Guard, and LS/CS -- lithium-silicate hardeners, densifiers and sealers for concrete floors – and GemTone Stains -- tested by Scientific Certification Systems to see if they met the nation’s toughest standards for Indoor Air Quality. They did!
  • Here’s our press release about certification published free in Environmental Design & Construction Magazine.
  • Here we tout it as part of one of our ads in School Construction News. We always knew these products help protect indoor air quality. But we couldn’t make the claim until we had the facts and figures to back us up.
  • These days, there’s no shortage of ways to communicate your green attributes. Some, like ads and brochures can be pricey. Others, like press releases, website and social media postings, and word-of-mouth are free.
  • Marketing your green attributes is also good for the environment – the sales environment!
  • In my research, I also learned about a few obstacles to green marketing. They’re not insurmountable, though.
  • Here are four big ones. Customers and end-users can be reluctant to change to “green”. Also, despite all those third-party independent verifiers I mentioned, sometimes it’s hard to nail down whether or not a product or service is green. And when marketers make false or misleading green claims – called “greenwashing,” that hurts us all. It leads to “Green Fatigue” – where customers get so bombarded that they can’t figure out what’s green and what isn’t – so they just tune it all out. Let’s look at each of these and see how to get past them.
  • Let’s face it – some of us in construction may be reluctant to change our ways. Trying something “new, ” let alone “green” on a multi-million dollar project may seem like too much of a gamble for some customers or end-users. Oregon-based market research firm Research 13 suggests communicating “green” attributes second or third – behind the solution to a problem, or using endorsements.
  • Concrete is green, right? It lasts a long time, so it’s sustainable. It’s also recyclable. On the other hand, maybe it’s not so green. Concrete is energy-intensive to make and transport. In production, concrete creates a lot of the world’s greenhouse gasses. So is it green or not? One thing is sure – green can be hard to nail down.
  • In cases like that of concrete – it may be up to you to decide whether you can market the product or service as “green” or not. If that’s the case, look at it from your customers’ point of view. If your customers would be skeptical, you probably should be, too. Take into account facts and figures. Water-based? Recyclable? If what you do or make isn’t green – but helps produce a sustainable result, that could be “environmentally preferable.”
  • Greenwashing is intentionally making green claims for products and services that aren’t. An example is a well-known U.S. car maker that promotes its SUVs as environmentally friendly, when the facts are that those vehicles are far more harmful to the environment than most other autos.
  • Greenwashing is a common practice according to Canadian environmental marketing company Terrachoice. In a 2007 study called “The six sins of greenwashing,” the company found that of 1,018 common consumer products, 99 percent were guilty of some form of greenwashing.
  • Companies greenwash to exploit market desire for environmentally responsible products and services. Although it can boost short-term profit, in the long run greenwashing damages the credibility and reputation of the company, just as any false claim would. Worse, Greenwashing also damages the credibility of companies with authentic green products and services to promote.
  • We can’t stop others from greenwashing. But we can make sure our own claims are supported by facts and figures such as test data and independent third-party verifications. Doing so helps restore and maintain market trust.
  • People bombarded with “Green” this and “Green” that can get tired of it all and just tune it out. Greenwashing is a major contributor to Green fatigue – eventually, you can’t tell real from fake and don’t care anyway. It’s another obstacle to promoting our legitimate green products and practices.
  • But Green Fatigue hasn’t kept Toyota from selling out of Priuses. In my research, I found that products and services that solve problems, meet customer needs, are appropriately priced, and are environmentally responsible have been shown time after time to find their markets --
  • --as long as we can get the word out about them! Getting the word out about our green products and practices is what Green Marketing is all about.
  • I hope that was helpful! Thank you for your time and attention.

Green Marketing Green Marketing Presentation Transcript

  • Green marketing, construction and how we stand to benefit This presentation is about Green Marketing in the construction industry, and what it means to us in that industry. The photo, by the way, comes from Vail, Colorado, which instituted new “Green” building codes several years ago.
    • What Green Marketing is
    • Why it’s important in the construction industry
    • Rules for Green Marketing
    • Obstacles
    • Successful green marketers
    We’ll look at what Green Marketing is, why it’s important and how it can be helpful. I’ll discuss some Green Marketing guidelines for doing it right – as well as Green Marketing obstacles and how to overcome them. Along the way, I’ll point out some companies that have successfully marketed themselves as “Green.”
  • Now I don’t want you to think I’m some big expert and this presentation is about telling you your business.
  • This presentation is more of a report that I’m giving to you on what I’ve learned recently about Green Marketing.
  • Green Marketing I think some of the things we’re learning about Green Marketing at PROSOCO might be useful to you, too. This is our “Green” webpage on the www.prosoco.com website.
  • We started learning about Green Marketing in early 2009 when trying to get our products specified for a well-known big box store.
  • This chain is heavily involved in Green Marketing. They want the market to know that they are on the side of the environment and sustainability.
  • Their officials not only quizzed us on how “environmentally friendly” our products are…
  • They also wanted to know how environmentally friendly and sustainable our whole operation is! They want their customers to know that not only are their stores built and maintained with environmentally friendly products – but the manufacturers who make the products are ALSO environmentally friendly and sustainable.
  • New and improved Recyclable packaging under way for PROSOCO products Fortunately, we had some things we were able to tell them about how “green” PROSOCO is. They liked our New, improved recyclable packaging program, for one.
  • Wal-Mart also liked the fact that we recycle some of the water we use in making our products. We call the recycled water “Goldwater,” because it saves us money on our water bill.
    • Test line 1
    • Test line 2
    Now don’t get me wrong. We’re not doing these things to try to save the world. Recycling water is good, but we’re doing it to save money on our water bill. The recyclable packaging is great for the earth, but we’re doing it to save money, storage, transport and disposal costs for ourselves, our customers and our end-users. If the earth can survive as a result, that’s an added plus.
    • Quality Products
    • Customer Care
    • Sustainability
    But the whole big box store exercise got us thinking. If they found our construction products and practices desirable from a “green” standpoint… maybe others would too! And to our standard marketing points of “quality products” and “top customer care,” we could add “sustainable products and practices.”
  • Now just like you, I’ve seen all the “Green Marketing” frogs, flowers and bunnies out there. Very nice. But before we jumped into promoting PROSOCO for the Green Construction market, I wanted to know –
  • Green construction
    • What kind of money?
    • Real or fad?
    -- what kind of money is involved in the “green” construction market? And is the “Green Construction” movement a real thing ? Or is it just a passing fad full of unverifiable claims? Here are some interesting things I found in answer to those questions.
  • Is there $$ in Green construction? Is there money in Green construction? Let me ask you this -- do you recognize any of the construction outfits on this list? Of course you do. They are some of the biggest contractors in this country. 1 The Turner Corp., New York, N.Y. 2 Webcor Builders , San Mateo, Calif. 3 Skanska USA Inc., Whitestone, N.Y. 4 Bovis Lend Lease , New York, N.Y. 5 Swinerton Inc., San Francisco, Calif. 6 PCL Construction Enterprises Inc ., Denver, Colo. 7 Clark Group , Bethesda, Md. 8 Hensel Phelps Construction Co., Greeley, Colo. 9 Gilbane Building Co., Providence, R.I. 10 The Haskell Co ., Jacksonville, Fla.
  • 2008 Top 10 “Green” contractors They are also 2008’s Top 10 “Green” Contractors in the country, by revenue, according to the publication “Engineering News-Record.” 1 The Turner Corp., New York, N.Y. 2 Webcor Builders , San Mateo, Calif. 3 Skanska USA Inc., Whitestone, N.Y. 4 Bovis Lend Lease , New York, N.Y. 5 Swinerton Inc., San Francisco, Calif. 6 PCL Construction Enterprises Inc ., Denver, Colo. 7 Clark Group , Bethesda, Md. 8 Hensel Phelps Construction Co., Greeley, Colo. 9 Gilbane Building Co., Providence, R.I. 10 The Haskell Co ., Jacksonville, Fla.
  • The Turner Corporation #1 Green contractor #3 Overall contractor Let’s look at #1 on the list, The Turner Corporation. They are also the third biggest U.S. contractor overall, according to Engineering News-Record. Only Bechtel and Fluor corporations are bigger.
  • The Turner Corporation $10.49 BILLION - overall The Turner Corporation earned $10.49 BILLION in 2008. In my opinion, any number that ends with the word “billion” is worth paying attention to.
  • The Turner Corporation $10.49 BILLION - overall $3.14 BILLION - green 30 percent of that revenue – $3.14 Billion – came from so-called GREEN projects.
  • Green projects
    • 3 rd party rating groups
    • Objective standards
    “ Green” projects are projects that are registered or certified by third-party rating groups using objective environmental or sustainable development standards.
  • LEED - Silver Ford Motor Company Engineering Design Center An example is the Ford Motor Company Engineering Design Center, Evanston, Illinois. This Turner new construction project achieved a LEED silver rating.
  • Leadership in Energy and Environmental Design L E E D As you probably know, LEED stands for Leadership in Energy and Environmental Design. It’s one of those objective rating systems for sustainable or environmental design and construction.
  • U.S. Green Building Council L E E D LEED is developed and administered by the U.S. Green Building Council – one of those third-party groups I mentioned. I’ll talk more about LEED later in the presentation, because it helps answer the question – “Is Green construction real or just a passing fad?”
  • Green Construction is big business
    • 44 States
    • 163 localities
    • 12 Federal agencies
    • 39 colleges & universities
    Back to the money question -- I found that Green construction is big business and getting bigger. Green Building Insider, an e-newsletter covering Green construction, recently reported that 44 states, 163 localities, 12 Federal agencies and 39 colleges and universities currently REQUIRE green construction or at least consideration of green construction. That’s in addition to demands for Green construction from private enterprise, like the big box store.
  • 2008 Top 10 “Green” design firms In addition to its Green contractors list, Engineering News-Record also compiled a list of the top 100 Green Design firms. Recognize any of these names? Like the contractors, they are some of the biggest design firms in the country. RANK (2008) FIRM 1 HOK, St. Louis, Mo. 2 URS Corp., San Francisco, Calif. 3 Gensler, San Francisco, Calif. 4 HKS Inc., Dallas, Texas 5 Fluor Corp., Irving, Texas 6 Kimley-Horn and Associates Inc., Raleigh, N.C. 7 AECOM Technology Corp ., Los Angeles, Calif. 8 Perkins+Will, Chicago, Ill. 9 Tetra Tech Inc., Pasadena, Calif. 10 Perkins Eastman, New York, N.Y.
  • 2008 Top 10 “Green” design firms Let’s look at #4 HKS. RANK (2008) FIRM 1 HOK, St. Louis, Mo. 2 URS Corp., San Francisco, Calif. 3 Gensler, San Francisco, Calif. 4 HKS Inc., Dallas, Texas 5 Fluor Corp., Irving, Texas 6 Kimley-Horn and Associates Inc., Raleigh, N.C. 7 AECOM Technology Corp ., Los Angeles, Calif. 8 Perkins+Will, Chicago, Ill. 9 Tetra Tech Inc., Pasadena, Calif. 10 Perkins Eastman, New York, N.Y.
  • I like HKS, because they used my company’s products at the recently completed Cowboys Stadium, just outside of Dallas.
    • 300+ LEED-accredited professionals on staff
    • 40 million square feet of LEED-certified and LEED-registered projects
    • $11 billion of LEED-certified and LEED- registered projects
    • Ranked 5 th in ENR’s Top 100 Green firms
    • Designed world’s largest LEED project
    Here are some of HKS’ Green Marketing points from their website. They’re a little out of date. Since HKS posted this, the company moved up on the “Green List” from #5 to #4. And that largest LEED project?
  • That’s the Palazzo Hotel and Resort Casino in Las Vegas. Certified LEED Silver.
  • Palazzo Hotel and Resort LEED Silver
    • Annual savings
    • 10.1 million kilowatt hours
    • 41 million gallons of water
    • 19,000 therms of gas
    What makes the Palazzo Green? According to the HKS website, the building is proven annually to save 10. 1 million kilowatt hours in energy; 41 million gallons of water (which is important when you live in the desert), and 19,000 therms of gas. I’m not sure what 19,000 therms of gas actually represents, but it sounds expensive. Now, anyone can make claims like these – but these claims are backed up by the U.S. Green Building Council’s independent LEED certification.
  • Leadership in Energy and Environmental Design So let’s briefly review what LEED is and how it works.
    • Voluntary program
    • U.S. Green Building Council
    LEED is a voluntary program. It’s administered by the non-profit group, the U.S. Green Building Council. Leadership in Energy and Environmental Design
    • Independent certification
    • Guidelines
    • 5 main categories
    LEED is an independent certification system. It provides guidelines in 5 main categories for sustainable, high-performance buildings like the Palazzo. Leadership in Energy and Environmental Design
  • 5 main categories
    • Sustainable Site Development
    • Water savings
    • Energy efficiency
    • Material selection
    • Indoor environmental quality
    If the building design and performance meet the LEED requirements in these five areas, the U.S. Green Building Council will award the building LEED certification. The building must meet standards for sustainable site development, water savings, energy efficiency, material selection and indoor environmental quality.
  • LEED certification levels
    • Platinum
    • Gold
    • Silver
    • Certified
    Based on how well the building meets those standards, it could be certified as LEED Platinum (the highest level), LEED Gold, Silver, or LEED Certified.
    • LEED
    • GreenGuard
    • Green Seal
    • SCS
    • EcoLogo
    Independent certification Though LEED is one of the most well-known third-party certifiers, it’s not the only one. A group called GreenGuard also offers independent, third-party certification of buildings for sustainability and environmental performance. Other groups, like EcoLogo and GreenSeal certify products and services. Like LEED they look closely before they give their seal of approval. SCS, which stands for Scientific Certification Systems, subjects products to rigorous testing and examination before certifying them as sustainable or environmentally responsible.
  • Advantages Some of the advantages of buildings constructed to LEED or other “Green” specifications are that operating costs are generally lower, and the asset value is higher than that of traditional buildings that haven’t taken sustainability issues into account. Other advantages include better environments for occupants, and the fact that “green” buildings often qualify for tax rebates, zoning allowances and other incentives. And in today’s environment-conscious society, there’s status involved in owning, designing, building and working on a certifiably sustainable building.
    • Lower operating cost
    • Increased value
    • Better for occupants
    • Qualify for incentives
    • Bragging rights
  • NOT a passing fad Green construction So, is Green construction just a passing fad marked by unverifiable claims of environmental friendliness? The organizations, advantages and money involved would suggest otherwise. How much money is involved in green construction each year?
  • $60 BILLION $36 -49 billion Figures vary. Green Construction Insider reports the value of Green Construction in this country at closing in on $60 Billion in 2009. Mc-Graw Hill Construction is more conservative, estimating $36 - $49 billion. Either way, it’s a lot.
  • Green construction
    • Supports 2.4 million jobs
    • $120 BILLION in wages
    A study by technology consulting firm Booz Allen Hamilton, released in November 2009, found that spending on green construction already supports more than 2.4 million jobs, and from 2000 to 2008 generated more than $120 billion in wages alone.
  • Green construction
    • Create 7.9 million MORE jobs
    • Add $554 BILLION to GDP
    The study also predicted green building practices will create 7.9 million MORE jobs and add $554 billion to the Gross Domestic Product of the U.S. over the next four years.
  • What about the DOWN economy? What about the recession and the down economy?
  • What about the DOWN economy? Green building will grow despite current negative market conditions. --McGraw Hill Construction, building consultants Building consultant McGraw-Hill Construction estimates continued growth in Green Construction despite the recession. How much?
  • What about the DOWN economy?
    • $96 - $140 BILLION - 2010 to 2015
    • Growing public awareness
    • Government interventions
    • Advantages for owners
    • --McGraw Hill Construction, building consultants
    Over the next five years, McGraw-Hill forecasts Green construction market growth to $96 billion, upward to $140 billion. The company bases that on growing public awareness of green practices, heavy government interventions, and recognition by owners of bottom-line advantages.
  • What about the DOWN economy? Green seems to be the one area of construction insulated from the downturn. --McGraw Hill Construction, building consultants They say Green construction is the one area of the construction industry that seems recession-proof.
  • 30% 2008 Construction 40% 2009 backlog 50% New Sales Green Marketing Companies like Turner are aggressively pursuing – and getting -- their share of those billions. They’re doing it by marketing their commitment to Green construction. The header you see here comes from the Turner website. And while 30 percent of their 2008 construction was green, 40 percent of their backlog for 2009 is green, and 50 percent of their new sales are being registered for LEED certification, according to Engineering News-Record.
    • Green Designs
    • Green Contractors
    • Green Subs
    • Green products
    Green Marketing To build green designs like the Palazzo, green contractors like Turner hire green sub-contractors who use the green products specified by green designers, like HKS.
    • Products
    • Projects
    • Procedures
    Green Marketing So we came to realize what HKS, Turner, Wal-Mart and many other big, successful companies already know. We needed to tell the market about PROSOCO’s Green products, projects and procedures. Just like the big boys do.
  • Green Marketing Create a favorable environment for sales by promoting green attributes. That, simply, is what Green Marketing is all about – creating a favorable environment for sales by promoting your green attributes.
    • Wal Mart
    • Turner
    • HKS
    Green Marketing Wal Mart does it. Turner does it. HKS does it. And PROSOCO is starting to do it.
  • But like you, I’ve seen enough of green marketing done the wrong way to know I’d better do some research on how to do green marketing right before committing PROSOCO’s time, talent and treasure. I know the Hummer has many wonderful features, but I struggle with the concept that fuel efficiency is one of them. Wrong way
  • Green Marketing
    • Focus on customer needs.
    • Know your customer.
    • Educate your customer.
    • Be transparent.
    • Price properly.
    • Reassure the buyer.
    • Empower the consumer.
    • Act holistically.
    • Engage emotionally.
    • Strive to eco-innovate.
    So I read some books, and went online. I found no shortage of rules on how to market green. They were all pretty good, but there was far too much advice to get on this slide.
    • Identify green marketing points
    • Use the customer’s point of view
    • Remember core business issues
    • Back up your claims
    • Communicate
    Green Marketing It all seemed to boil down to these main concepts: Identify your green marketing points; look at those marketing points from your customers’ point of view; Pay attention to core business issues of product and service pricing, effectiveness and meeting customer needs; be able to back up your claims with solid information. Get your Green story out to the market. Let’s look at each one of these principles more closely.
  • Identify green marketing points
    • Recycling
    • Reduced fuel/energy/water
    • Green projects
    • Green products
    Chances are you are already engaged in sustainable practices, for the same reason PROSOCO is. Who can afford waste anymore? Do you recycle? That’s a green marketing point. Have you found ways to reduce fuel, energy or water use? Have you been involved in LEED or other certifiably green or sustainable building projects? Do you make or use products that are verifiably green, or, if not, that contribute to sustainability? These are all points you can use to tell your “Green” story.
  • Use customers’ point of view
    • Recycling
    • Certified green products & services
    • Energy & resource efficiency
    • Some of the above
    • All of the above
    Once you’ve listed all your “Green” marketing points, look at them from your customers’ point of view. That tells you how loudly to trumpet or softly to whisper about what you’ve got going on. If recycling cardboard packaging is all you’ve got – that’s ok. That’s still a blurb and photograph on your website. But if you use all certified “green” products and your vehicles are all fuel-efficient, then maybe that’s an ad in the trade magazines, or a marketing flyer, or a page in your brochure.
  • Use customers’ point of view
    • Lots of green activity
    • Some green activity
    • Little green activity
    The point is that customers will be skeptical of companies that promote themselves as “green” if they only have a little green activity going on. But even a little green activity is worth promoting, as long as it’s kept in perspective.
  • Core business issues
    • Pricing
    • Effectiveness
    • Customer need
    Just because we’re talking “green” and “environment,” and “sustainability” doesn’t mean we can lose sight of core business issues. The green products and services we market have to be priced for profit. They have to be as effective as non-green alternatives. And customers have to want them.
  • Core business issues 3M provides a good example. Attempting to make audio tape without VOC-producing solvents, 3M scientists came up with a water-based coating for the tape the company could market as VOC-free. Unfortunately the VOC-free version didn’t have the temperature range of the solvent-coated tape. It often melted under normal use. They were so excited about their “green” tape, they forgot the customers’ need for an effective product.
  • Core business issues On the other hand, Toyota paid strict attention to business issues with its wildly successful Prius hybrid. 10 years after its intro in 2000, the cars are still selling faster than the company can make them. That’s because Prius is eco-friendly, without sacrificing performance. It meets customers’ needs for reliable transportation, and while pricey, isn’t out of the ballpark.
  • No numbers or case studies means no claims. It sounds obvious – don’t make claims that can’t be supported. But that’s tougher than it sounds. At PROSOCO, we are positive that when schools use our Consolideck products to put in finished concrete flooring, they save money on maintenance, that they can spend on computers and other educational tools. We would love to use that as a marketing point. Unfortunately, there are no numbers or case studies to back it up. So maintenance savings from concrete floors equal more money for educational tools is a claim we don’t make. That concept – back up your claims – is important in Green Marketing, where consumers are already skeptical about Environmental claims. Back up claims
  • Back up claims 3 rd -party certificationmeans claims. On the other hand, we got Consolideck ® LS, LS Guard, and LS/CS -- lithium-silicate hardeners, densifiers and sealers for concrete floors – and GemTone Stains -- tested by Scientific Certification Systems to see if they met the nation’s toughest standards for Indoor Air Quality. They did!
  • Here’s our press release about certification published free in Environmental Design & Construction Magazine.
  • Here we tout it as part of one of our ads in School Construction News. We always knew these products help protect indoor air quality. But we couldn’t make the claim until we had the facts and figures to back us up.
  • Communicate
    • Ads
    • Brochures
    • Flyers
    • Press releases
    • Social media
    • Website
    • Word-of-mouth
    These days, there’s no shortage of ways to communicate your green attributes. Some, like ads and brochures can be pricey. Others, like press releases, website and social media postings, and word-of-mouth are free.
  • Good for the environment Marketing your green attributes is also good for the environment – the sales environment!
  • Obstacles In my research, I also learned about a few obstacles to green marketing. They’re not insurmountable, though.
  • Obstacles
    • Old habits
    • Hard to define
    • Greenwashing
    • Green fatigue
    Here are four big ones. Customers and end-users can be reluctant to change to “green.” Also, despite all those third-party independent verifiers I mentioned, sometimes it’s hard to nail down whether or not a product or service is green. And when marketers make false or misleading green claims – called “greenwashing,” that hurts us all. It leads to “Green Fatigue” – where customers get so bombarded that they can’t figure out what’s green and what isn’t – so they just tune it all out. Let’s look at each of these and see how to get past them.
  • Old habits
    • Change is a gamble
    • Don’t lead with green
    • Solve a problem
    • Use endorsements
    Let’s face it – some of us in construction may be reluctant to change our ways. Trying something “new, ” let alone “green” on a multi-million dollar project may seem like too much of a gamble for some customers or end-users. Oregon-based market research firm Research 13 suggests communicating “green” attributes second or third – behind the solution to a problem, or using endorsements.
  • Hard to define Is concrete green? YES NO
    • Sustainable
    • Recyclable
    • Energy-intensive
    • Greenhouse gasses
    Concrete is green, right? It lasts a long time, so it’s sustainable. It’s also recyclable. On the other hand, maybe it’s not so green. Concrete is energy-intensive to make and transport. In production, concrete creates a lot of the world’s greenhouse gasses. So is it green or not? One thing is sure – green can be hard to nail down.
  • Hard to define
    • May be up to you
    • Use customers’ viewpoint
    • Use facts and figures
    • May be ‘environmentally preferable’
    In cases like that of concrete – it may be up to you to decide whether you can market the product or service as “green” or not. If that’s the case, look at it from your customers’ point of view. If your customers would be skeptical, you probably should be, too. Take into account facts and figures. Water-based? Recyclable? If what you do or make isn’t green – but helps produce a sustainable result, that could be “environmentally preferable.”
  • Greenwashing Purposely false or misleading Greenwashing is intentionally making green claims for products and services that aren’t. An example is a well-known U.S. car maker that promotes its SUVs as environmentally friendly, when the facts are that those vehicles are far more harmful to the environment than most other autos.
  • Greenwashing Common practice Of 1,018 products studied 99% greenwashed --TerraChoice , environmental marketing Greenwashing is a common practice according to Canadian environmental marketing company TerraChoice. In a 2007 study called “The six sins of greenwashing,” the company found that of 1,018 common consumer products, 99 percent were guilty of some form of greenwashing.
  • Greenwashing
    • May help short-term profit
    • Damages credibility
    • Makes green marketing harder
    Companies greenwash to exploit market desire for environmentally responsible products and services. Although it can boost short-term profit, in the long run greenwashing damages the credibility and reputation of the company, just as any false claim would. Worse, Greenwashing also damages the credibility of companies with authentic green products and services to promote.
  • Greenwashing
    • Back up claims
    • Facts & figures
    • 3 rd -party verifications
    We can’t stop others from greenwashing. But we can make sure our own claims are supported by facts and figures such as test data and independent third-party verifications. Doing so helps restore and maintain market trust.
  • Green fatigue
    • Too much Green
    • Can’t tell real from fake
    • Tunes out Green messages
    • Makes Green marketing harder
    People bombarded with “Green” this and “Green” that can get tired of it all and just tune it out. Greenwashing is a major contributor to Green fatigue – eventually, you can’t tell real from fake and don’t care anyway. It’s another obstacle to promoting our legitimate green products and practices.
  • Fighting green fatigue
    • Solve problems
    • Meet customer needs
    • Are priced appropriately
    • Are Green
    But Green Fatigue hasn’t kept Toyota from selling out of Priuses. In my research, I found that products and services that solve problems, meet customer needs, are appropriately priced, and are environmentally responsible have been shown time after time to find their markets --
  • Green marketing --as long as we can get the word out about them! Getting the word out about our green products and practices is what Green Marketing is all about.
  • Green marketing, construction and how we stand to benefit I hope that was helpful! Thank you for your time and attention.