1 green marketing june 2010

7/31/2019 1 Green Marketing June 2010

1/32

Green Marketing

June 2010

1


2/32

Green or Environmental Marketing

Consists of all activities designed to generateand facilitate any exchanges intended tosatisfy human needs or wants, such that thesatisfaction of these needs and wants occurs,

with minimal detrimental impact on thenatural 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.2


3/32

Green or Environmental Marketing

Looks at how marketing activities utilizelimited natural resources, while satisfyingconsumers wants, both of individuals andindustry, as well as achieving the selling

organization's objectives.

3


4/32

WHY GREEN MARKETING?

1. Organizations perceive environmental marketing to be anopportunity that can be used to achieve its objectives [Keller1987, Shearer 1990];

2. Organizations believe they have a moral obligation to be moresocially responsible [Davis 1992,Freeman and Liedtka 1991,Keller 1987, McIntosh 1990, Shearer 1990];

3. Governmental bodies are forcing firms to become moreresponsible [NAAG 1990];

4. Competitors' environmental activities pressure firms to changetheir environmental marketing activities [NAAG 1990]; and

5. Cost factors associated with waste disposal, or reductions inenergy and material usage forces firms to modify their behavior[Azzone and Manzini 1994].

4


5/32

OPPORTUNITIES

A 1994 study in Australia found that 84.6% ofthe sample believed all individuals had aresponsibility to care for the environment.

A further 80% of this sample indicated thatthey had modified their behavior, includingtheir purchasing behavior, due toenvironmental reasons [EPA-NSW 1994].

As demands change, many firms see thesechanges as an opportunity to be exploited.

5


6/32

US Federal Trade Commission

Firms using green marketing must ensurethat their activities are not misleading toconsumers or industry, and do not breachany 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.

6


7/327

Why DoesGreenMatter?


8/328Source: National Technology Readiness Study, Rockbridge Associates, December 2007

I want to protect theenvironment for the benefit of

future generations

The Earth belongs to humanityto do with as it pleases

Americans Believe inEnvironmental Stewardship


9/329

Chances Are Good

California has been leading the wayin enacting green laws:

Mandated recycling of TVs and monitors

Requiring retailers to take back plastic bags

Almost outlawed incandescent light bulbs


10/3210

GreenSentiment Runs High


11/3211

Is There An Environment Problem?

% Who Agree With Statement

69%

85%

The evidence of global warming

is real

More needs to be done to curb

air and water pollution in our

country

Source: National Technology Readiness Study, Rockbridge Associates, December 2007


12/3212

Can Something Be Done?

Consumers believe collective action will work

And regulation will not hurt



13/3213

Can Technology Help?

There is strong faith in technology

Green tech helps the economyThe internet gives us a medium to work together

while more efficient products and services help the wallet



14/3214

What is the Potential for Green

Products and Services?

S r i T h l E r


15/3215

Service Technology EmpowersConsumers to Be Green


34%

44%

53%

52%

52%

58%

21%

31%

33%

42%

46%

51%

58%

73%

Power company controlled air

conditioner

Telecommute

Switch to electricity based on

clean/renewable resources

Replace paper utility statement with

electronic

Access online pub instead of print

version

Replace paper financial statements

with electronic

Recycle/refurbish old computer

% Who Have Done

% Maximum Potential Incidence

Opportunities forfinancial

services, utilities,IT firms,

publishers

There is an Emerging Market for Green


16/32

There is an Emerging Market for GreenProducts

39%

41%

43%

52%

60%

64%

66%

80%

10%

10%

20%

29%

33%

37%

45%

69%

Eco-Friendly Home

Weather station

High MPG vehicle

Home water

purification system

High efficiency

cooling

High efficiency

heating

Programmable

thermostat

Energy saving

lighting% Who Have Own% Maximum Potential Incidence

Many include making homes and transportation

greener


17/32

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

Fidelitys strategy in this area?


18/3218

Segmenting the Green Market


19/3219

Key Questions

Who is driving the green movement?

What is the role of innovativeness (if any) indriving the movement?

?


20/3220

A Green Segmentation of the Market

1 out of 10 adultsGreen Tech Leaders are influencers

They also embrace technology and believe in its ability to solve problems

Another 2 out of 10Green Tech Followers are deeply committed togreen issues and view technology as playing a role


10%

31%

12%

22%

7%

18%

Green Tech Leaders

Green Tech Followers

Tech Savvy Green Sympathizers

Enviro-Friendly Skeptics

Nave Consumers

Anti-Greens

C it t I E F i d / F il t B


21/3221

Commitment: I Encourage Friends / Family to Be

Environmentally Friendly



6%

41%

88%

50%

89%

98%

Anti-Greens

Nave Consumers

Enviro-Friendly Skeptics

Tech Savvy GreenSympathizers

Green Tech Followers

Green Tech Leaders


22/3222

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 influenceothers on green products

Like doing business withgreen 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 toonline music and video


23/32

23

Green Tech Followers 18% of Market

How They Think Who They Are

Adamant about protectingthe environment

People must reduce their

impact on the environment Green gadgets are fun

Like trying new greentechnologies

Research green products Like dealing with green cos.


Older

Female

Higher homeownership rates

Lower incidence ofcell-only households

Spend fewer hoursonline

Lower webpresence


24/32

24

Other Relevant Green Segments

Tech-Savvy Green

Sympathizers (31%) Care about the environment

Early adopters oftechnology

NOT green activists orboosters, but sympathetic

Like doing business withgreen 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 tohelp the environment

Research green products

Like dealing with green cos.


Skew older, less techy


25/32

25

Segments Where Green is Less Relevant

Nave Consumers (22%)

Hold socially acceptableopinions, but no urge to act

More concerned withgetting by on a day to day

basis than being green Many are technophobic

Low interest/awareness ofgreen tech or products

Will avoid using greentechnologies until they areproven

Skew female, less techy

Anti-Greens (7%)

Not committed toenvironmental issues

Dont care about green

technologies or products

More concerned with gettingby on a day to day basis

Environmental activists areirresponsible; the Earth

belongs to humanity Oppose regulation

Skew younger


26/32

26

Deploying a Green

Services Marketing Strategy


27/32

Will Green Marketing Help a Company?

Yes! but they have to be sincere!



68%72%

I like to do business with

companies that are

environmentally responsible

I resent companies that say they

care about the environment but

don't mean it


28/32

78%

60%63%

31%35%

56%

85%

70%

65%

40%

45%

56%

Green Tech

Leaders

Green Tech

Followers

Tech-Savvy

Green

Sympathizers

Enviro-Friendly

Skeptics

Nave

Consumers

Anti-Greens

Use Now

Potential

Example: Online Financial Statements


29/32

Example: Green Investments

13%

6%

2%0%

2%

3%

32%33%

12%

5%

15%

9%

Green Tech

Leaders

Green Tech

Followers

Tech-Savvy

Green

Sympathizers

Enviro-

Friendly

Skeptics

Nave

Consumers

Anti-Greens

Own NowPotential


30/32

30

To Sum It Up

T S I U


31/32

31

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 exclusiveideologies

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


32/32

Questions?

1 green marketing june 2010

Documents