Green marketing is the process of promoting products or services based on their environmental benefits. These products or services may be environmentally friendly in themselves or produced in an environmentally friendly way.
What is Green Marketing?
Green marketing involves companies promoting their products or services in a way that highlights their environmental friendliness. This can include products that are manufactured sustainably, that do not contain toxic materials or substances that contribute to ozone depletion, that are made from recycled or recyclable materials, that are made from renewable resources, that do not use excessive packaging, and that are designed to be repairable rather than disposable.
Green marketing is often practiced by companies committed to sustainable development and corporate social responsibility. More organizations are making efforts to implement sustainable business practices. They realize that they can make their products more appealing to consumers while simultaneously reducing costs in packaging, transportation, and energy and water usage, among others.
Furthermore, businesses are increasingly finding that demonstrating a high level of social responsibility can enhance brand loyalty among consumers who have social consciousness. The main barrier to sustainable business practices, such as green sourcing, is the short-term cost. The initial costs of going green are typically higher, but they generate significant rewards in the long term.
How Does Green Marketing Work?
Green marketing starts with a company that actually implements and practices sustainable business methods. Companies face labeling themselves as insincere if their business practices do not match their green marketing messages, so they must ensure they practice what they preach. Authenticity is key in green marketing.
Generally, companies have three angles for marketing their environmental friendliness: the materials used to make their products, the actual products themselves, and the packaging in which the products are sold. They may choose to focus on how their products are made from recycled materials, or how their products are designed to be recyclable or reusable, or their use of biodegradable packaging, or a combination of the three. It is also common to find large companies participating in various programs aimed at increasing recycling throughout the company, reducing waste disposal, and supporting community initiatives.
Grocery stores and restaurants are known for their green marketing. For grocery stores that advertise organic products, sales of organic foods have more than doubled since 2010, as consumers increasingly prefer non-GMO and pesticide-free foods. Restaurants that promote locally sourced meats, products, and alcohol are thriving. The local focus is attractive to consumers as it reflects sustainability and a willingness to invest in the community.
Note: The Toyota Prius is the best-selling hybrid car of all time, primarily because its unique design reflects the typical owner’s passion for sustainability.
Is Green Marketing Worth It?
Green marketing can be a very powerful marketing strategy when executed correctly. Consider the following:
- 48% of consumers in the United States say they will definitely or possibly change their consumption habits to reduce their environmental impact.
- Products with sustainable attributes account for a larger share of store sales, from 19.7% in 2014 to 22.3% in 2017, and are expected to reach 25% in 2021.
- 90% of millennials say they are willing to pay more for products that contain sustainable or environmentally friendly ingredients.
A previous Nielsen survey indicated that according to retail purchasing statistics, brands that advertised sustainability on their packaging saw a 2% annual increase in sales from 2011 to 2014, compared to 1% for those that did not. Brands that promoted sustainability through their marketing saw a 5% increase in sales.
Criticism
Green Marketing
The public tends to question green claims. Companies can damage their brand and sales if a false green claim is discovered or contradicts their other products or practices. Presenting a product or service as green when it is not is called greenwashing.
For example, in 2012, a CBC market study found that the antibacterial dish soap “Dawn,” which displays labeling with images of seal pups and ducks and claims that “Dawn helps save wildlife,” contains Triclosan, which has been officially declared toxic to aquatic life.
SeaWorld Orlando’s attempt to market an environmentally friendly cup in 2013 was another bad example of green marketing failure. The cup was marketed as eco-friendly: each time someone refilled the cup at a park vending machine, a built-in chip would display the amount of carbon dioxide saved. These claims were not documented. Moreover, the cup and the 40 accessories that could be purchased with it were made of plastic, which is not considered one of the best materials for environmental advocates.
For green marketing to be successful, it must align with your brand. For example, if you have one green product while the rest of your products are not, it may lead customers to question your environmental commitment.
Key Takeaways
Green marketing involves promoting products or services based on their environmental friendliness. Companies may choose to focus on how their products are made, the products themselves, or the packaging used. Using green marketing without having green practices is known as greenwashing.
Sources:
– Harvard Business Review. “The Comprehensive Business Case for Sustainability.” Accessed July 17, 2020.
– PwC. “How Can Resilience Prepare Companies for Environmental and Social Change?” Page 4. Accessed July 17, 2020.
– Organic Trade Association. “U.S. Organic Sales Break Through $50 Billion Mark in 2018.” Accessed July 20, 2020.
– U.S. Department of Agriculture. “Why Local Food Matters: The Rising Importance of Locally Grown Food in the U.S. Food System,” Page 10. Accessed July 17, 2020.
– Marketing Week. “How Toyota Sold Six Times as Many Cars as Its Hybrid Rival.” Accessed July 18, 2020.
– Nielsen. “Was 2018 the Year of the Influential Sustainable Consumer?” Accessed July 17, 2020.
– Nielsen. “Global Consumers Are Willing to Put Their Money Where Their Heart Is When It Comes to Goods and Services From Companies Committed to Social Responsibility.” Accessed July 17, 2020.
– CBC. “10 Worst Household Products for Greenwashing.” Accessed July 17, 2020.
– The Guardian. “Five Sustainable Boondoggles: Greenwashing All the Way to the Bank.” Accessed July 17, 2020.
Source: https://www.thebalancemoney.com/green-marketing-2948347
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