Marketing For The Green Movement

Green marketing, also referred to as eco-labeling, environmental marketing, ecological marketing, or eco-marketing is the process of incorporating an environmentally conscious marketing mix in conjunction with a particular product and/or service.  Remember from Marketing 101 that the marketing mix is made up of the four P’s: product, price, promotion, and place (distribution).  This means that any of these four broad categories can be tweaked in a way to capitalize on a firms eco-standpoint.  

Marketers can reinforce their company’s environmental stance by "banging the drum" for a companies product and/or services environmental benefits.  This not only encourages businesses to think green, but creates yet another core competency or point of differentiation for customers to choose from. Environmentally safe practices are more that just a way to improve the community. Marketers are discovering that a typical customer is willing to pay more for a product that is an environmentally friendly one.

The Dark Side of Green Marketing

  Despite the growing trend many customers still remain skeptical of the authenticity or credibility of an eco-labeled product, and for good reason. Companies of all shapes and sizes manipulate the facts, advertising their products and services as environmentally friendly, but continuing to harm the environment behind closed doors. The two-faced practices of companies trying to take advantage of the eco-friendly trend have left many consumers skeptical, and have paved a very treacherous road for businesses who are on the borderline of a truly green product.  

Eco-labeling is one of very subjective and debatable terms.  There are many complicated factors that determine whether a company can legally market their product as an environmentally friendly one.  The ISO (International Organization of Standardization) has tried to level the playing field with a universally recognized process for product life cycle analysis  The ISO is not the only entity standardizing green marketing.  Several other organizations have tried to establish similar standards. Even with standardization there are many questions left in the hearts of consumers.  Questions like: how do I know that the company performed a legal and ethical product life cycle analysis, or can money buy a green thumbs up from the government?  When a company does in fact take advantage of the gullibility of the market and eco-label their product unethically, the company is doing what is called green washing.  This is a growing practice that is not only deceptive to consumers, but is setting back the green movement in general.

Differentiating Your Business with Eco-Labeling

Despite the potential for rotten green apples, eco-labeling can be a potent tool in a marketer’s belt.  Not only is green marketing a product differentiator that offers a credible reason for consumers to pay higher prices, but it also attracts new customers from an environmentally-conscious subsegment of society that is growing at faster rates then ever before.  Environmental marketing is also perfect for new ventures trying to niche themselves into a market.  There are several basic rules of thumb to live by for green marketers:

Teach your customers why what your doing is changing the world.  By understanding what you are doing they will feel like they too are part of the solution which will ultimately magnify their brand experience.

 After informing your customers about the environmental process that goes on behind your product allow them to further participate.  Give them the opportunity to have a hands-on environmental impact.  In the case of a retail store, this can be done by giving shoppers reusable hemp bags, or a chance to participate in a supplemental charity.  By allowing them an option to participate in an environmental program you are building their trust, their lifelong patronage, and amplifying their satisfaction.

Tell them the truth, and not just because it’s the right thing to do.  Aside from the moral arguments against "green-washing", smart customers will be able to see through flimsy and fake proclamations.  With the ever-growing power and popularity of the internet, the consumer’s voice is becoming more and more powerful. One angry customer with a little bit of motivation can be a potentially fatal PR nightmare that your company won’t wake up from.

Conclusion

Regardless of how you choose to include an environmental program in your business plan, adapting to the growing trend of environmental sustainability is a powerful marketing tool.  Marketing is a dynamic force of business that will continually change, much in the same way that customer perceptions of satisfaction change.  If entrepreneurs and marketers alike don’t begin to ethically promote their businesses as environmentally responsible, their competition will.  Addressing the issue often forces entrepreneurs to adjust their business model in more creative and profitable ways than ever before.  Not only does green marketing enhance current customers’ experience with your product, it also opens up products and services to customers who never would have tried it in the first place.  The Greenhouse challenges entrepreneurs and marketers to change the way they implement their marketing mix strategies.  By doing so they are strengthening their product offering and promoting a noble cause: saving the world.

Works Cited

Ward, Susan . "3 Keys to Successful Green Marketing." About.Com: Small Business. 2008.

Ward, Susan . "Green Marketing." About.Com: Small Business. 2008.