Green Marketing


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Green Marketing

  1. 1. Gavin D. J. Harper GREEN Marketing
  2. 2. The P’s <ul><li>Product </li></ul><ul><li>Pricing </li></ul><ul><li>Promotion </li></ul><ul><li>Placement </li></ul><ul><li>People </li></ul><ul><li>Process </li></ul><ul><li>Physical Evidence </li></ul>
  3. 3. Product <ul><li>Green products should take into account materials used in production, energy use in production. </li></ul><ul><li>Products should have minimal environmental impact in production and use. </li></ul>
  4. 4. Pricing <ul><li>Some consumers are willing to pay a ‘premium price’ for a product with Green credientials. </li></ul><ul><li>However, there is no reason that ‘Green’ products have to cost more to produce or manufacture than ordinary products. </li></ul>
  5. 5. Promotion <ul><li>Use methods of promotion that are not resource/energy intensive. </li></ul><ul><li>‘Disposable’ promotions, throwaway flyers/leaflets could be incongruent with the product’s ‘Green’ mission. </li></ul><ul><li>Can the product be promoted in a manner with minimal environmental impact? Internet? Viral Advertising? </li></ul>
  6. 6. Placement <ul><li>How is the product sold? </li></ul><ul><li>What is the supply chain from producer to consumer? Is it supplied in a manner that has minimal impact, or is the supply chain from producer-to-consumer, resource intensive? </li></ul><ul><li>Can the product be sold locally / produced locally? </li></ul>
  7. 7. People <ul><li>People coming into contact with customers can affect overall satisfaction. </li></ul><ul><li>For green consumers: </li></ul><ul><ul><li>Are the people selling the product articulate about the products environmental impact? </li></ul></ul><ul><ul><li>Are the values of the person selling the product congruent with the consumers? </li></ul></ul>
  8. 8. Process <ul><li>The process through which a product is produced, may be as important to ‘Green Consumers’ as the product itself. </li></ul><ul><ul><li>Was much energy used in the production of the goods? </li></ul></ul><ul><ul><li>From where was this energy sourced? </li></ul></ul><ul><ul><li>Was it produced ethically? </li></ul></ul><ul><ul><li>Was the labour used in production treated fairly and paid fairly? </li></ul></ul>
  9. 9. Physical Evidence <ul><li>Services cannot be experienced like physical products. </li></ul><ul><li>Some evidence of the quality of the service needs to be provided: - </li></ul><ul><ul><li>E.g/ </li></ul></ul><ul><ul><ul><li>Testimonials </li></ul></ul></ul><ul><ul><ul><li>Demonstrations e.t.c. </li></ul></ul></ul><ul><li>For Green Products, ‘Evidence’ is often needed that the product can provide the consumer with a similar ‘quality of service’ with lessened environmental impact – at an attractive price. </li></ul>
  10. 10. …the other ‘P’ <ul><li>Packaging </li></ul>
  11. 11. Packaging <ul><li>Green consumers are likely to be acutely aware of the materials and amount of packaging a product comes in. </li></ul><ul><li>Opt for recycled materials – strike the balance of protecting the product and protecting the environment. </li></ul>
  12. 12. Image Source : GREEN Wash
  13. 13. Greenwash <ul><li>Greenwash (a portmanteau of green and whitewash ) </li></ul><ul><li>Making false or misleading claims about a product, with the aim of increasing its ‘Green Credentials’. </li></ul><ul><li>The Informed Consumer can generally see through spurious claims. </li></ul>
  14. 14. Greenwash <ul><li>TerraChoice Environmental Marketing Inc. in their 2007 paper entitled: </li></ul><ul><ul><li>“ The Six Sins of Greenwashing” </li></ul></ul>Image © TerraChoice Discuss the six deadly sins of Greenwashing…
  15. 15. Greenwash <ul><li>Sin of the Hidden Trade-Off </li></ul><ul><li>Sin of No-Proof </li></ul><ul><li>Sin of Vagueness </li></ul><ul><li>Sin of Irrellevance </li></ul><ul><li>Sin of ‘Lesser of Two Evils’ </li></ul><ul><li>Sin of Fibbing </li></ul>
  16. 16. Greenwash Sins By Category Data From: “The Six Sins of Greenwashing”™* TerraChoice Environmental Marketing Inc. (2007)
  17. 17. Greenwash <ul><li>Sin of the Hidden Trade-Off </li></ul><ul><ul><li>Suggesting a Product is ‘Green’ based on a single attribute, whilst neglecting a holistic view of the product and it’s environmental impact. </li></ul></ul>
  18. 18. Made Up Product No. 1… The Biodiesel Powered Tank The All New... 100% Biodiesel Powered ECO-TANK It may seem like an exaggeration, but is the concept of a tank powered by Biodiesel really sustainable in any way shape or form? The U.S military are currently investigating ‘sustainable’ alternatives to their fighter aircraft fuel. /
  19. 19. Greenwash <ul><li>Sin of No-Proof </li></ul><ul><ul><li>Making claims about environmental performance, without sound, independent verification of the validity of these claims. </li></ul></ul>
  20. 20. Real Product No.1 Multi-foil Insulation <ul><li>Claims superior insulation performance. </li></ul><ul><li>Spurious claims about performance compared to traditional insulation. </li></ul><ul><li>No independent certification of insulation performance. </li></ul>
  21. 21. Greenwash <ul><li>Sin of Vagueness </li></ul><ul><ul><li>Claims without any supporting evidence that are generalistic and do not support themselves with evidence. </li></ul></ul><ul><ul><ul><li>E.g </li></ul></ul></ul><ul><ul><ul><ul><li>“ Free from Chemicals” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Non-Toxic” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Green” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Environmentally Friendly” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ All Natural” </li></ul></ul></ul></ul>
  22. 22. Greenwash <ul><li>Sin of Irrelevance </li></ul><ul><ul><li>Makes a claim about environmental performance that is ‘true’ but not relevant or exhibits no unique properties over competing products. </li></ul></ul><ul><ul><ul><li>E.g </li></ul></ul></ul><ul><ul><ul><ul><li>CFC Free Deodorant – As CFC’s are banned, all deodorants should be CFC – this is not a unique environmental advantage. </li></ul></ul></ul></ul>
  23. 23. Greenwash <ul><li>Sin of ‘Lesser of Two Evils’ </li></ul><ul><ul><li>Less Bad ≠ Good </li></ul></ul><ul><ul><ul><li>Environmental Claim on a Product With ‘Questionable Environmental Value Anyway’ </li></ul></ul></ul><ul><ul><ul><ul><li>‘ Organic’ Weedkiller </li></ul></ul></ul></ul>
  24. 24. Greenwash <ul><li>Sin of Fibbing </li></ul><ul><ul><li>A blatant misleading lie about a product. </li></ul></ul><ul><ul><ul><li>E.g. </li></ul></ul></ul><ul><ul><ul><ul><li>Claims on Packaging Incongruous With Actual Product </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Blatant Lies ‘Made from Recycled Material’ when made from virgin material. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Misleading claims about energy performance. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Misleading claims about product supply chain or ethical origin of product. </li></ul></ul></ul></ul>
  25. 25. CASE Studies
  26. 26. CASE Study Innocent Smoothies
  27. 27. CASE Study Innocent Smoothies
  28. 28. CASE Study Innocent Smoothies
  29. 29. CASE Study Sheep Poo Paper
  30. 30. CASE Study Ecover
  31. 31. CASE Study Ecover
  32. 32. Ecover is an international company active in the production of ecological detergents and cleansing agents. It was founded in 1980 in Belgium. Ecover has been a trendsetter from the very start: as a pioneering company, it marketed a phosphate-free washing powder even before phosphates were branded as a problem. Since 1999, under the sole ownership of Jørgen Philip-Sørensen CBE, Ecover has developed into the world’s largest producer of ecological detergents and cleansing products. Besides its headquarters in Malle, close to Antwerp in Belgium, Ecover has sites in the United States of America, the United Kingdom and Switzerland, and its products are marketed in more than 20 countries. CASE Study Ecover
  33. 33. <ul><li>Ecover’s progressive environmental policy is not only demonstrated by the products it sells; it is also an integral part of the company’s business operations. Acting in the spirit of the externally audited  ISO 14001 standard, Ecover has extended its environmental policy to all departments of the company, from production to marketing. One of the most striking results is the world’s first ecological factory, which has a green roof extending over more than 6000m². That building was put into service in October 1992. It received extensive press attention at the time, and it draws more than a thousand visitors every year even now. Ecover has received awards and recognition  on many occasions for its special contributions and achievements in the field of environmentally sound, sustainable development. Perhaps the most prestigious recognition was being named to the Global 500 Roll of Honour of the United Nations Environment Program, which was awarded to Ecover as early as 1993. </li></ul>CASE Study Ecover
  34. 34. Reading List <ul><li>Peattie, K., (1992) ‘Green Marketing’, Pearson Higher Education </li></ul><ul><li>Polonsky, M.J., (1996) ‘Environmental Marketing: Strategies, Practice, Theory, and Research, Haworth Press’ </li></ul><ul><li>Ottoman, J.A., (2004) ‘Green Marketing: Opportunity for Innovation’ </li></ul><ul><li>Bhat, V.N., (1993) ‘Green Marketing Begins With Green Design’, Journal of Business & Industrial Marketing 8, 4 </li></ul><ul><li>McDaniel, S. W., & Rylander, D.H., ‘Strategic Green Marketing’, Journal of Consumer Marketing 10, 3 </li></ul>