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Avoiding

Green Marketing Myopia

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Green Marketing

Process of selling products or services based ontheir environmental benefits.

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Eco friendly produced and packaged

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Objectives of Green Marketing

• Improved environmental quality

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Objectives of Green Marketing

• Customer Satisfaction

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Green Products which scored

success

•Toyota Prius

44 mpg hybrid

Customers enduring waiting period and higher price

• High demand due to meeting customer expectation

along with green product label. Academy Awards,2003

Eco-friendly label after names Motor Trend’s Car of year

2004

Higher fuel economy, Performance and technology

Dazzling looks

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Green Products which scored success

Google CEO Larry Page in his Toyota Prius, after widespread demand of Prius

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Successful Green Products

• Organic food

20% annual growth since 1990

5x faster than conventional food market

Increase in Organic baby food for kids’ development

• Construction Industry Demand for resource efficient and cost effective office buildings

No Volatile Organic Compounds – healthy for occupants

Home buyers looking for natural lighting, solar heating, reflectivewindows

• Increased Market growth due to perceived safety and moneysavings + environmental factors

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Green Marketing Myopia

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Green Marketing Myopia

Green Marketing must satisfy two objectives: improved

environment quality and customer satisfaction. Misjudging

either or overemphasizing the former at the expense of the

latter can be termed “green marketing myopia”.

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Whirlpool Refrigerator GMM

CFC free cooler , one that was 30% more efficient than the U.S. Departmentof Energy’s highest Standard

Whirlpool won the “Golden Award” a $30 million award package of

consumer rebates from Super-Efficient Refrigerators Program.

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Mobil’s Hefty Photodegradable

Introduced in 1989, Hefty

degradable plastic trash bag.

“Degradable ” with special

ingredients promoted itsdecomposition into harmless particles

in landfills.

Seven state attorney general sued

Mobil on charges of deceptiveadvertising.

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Keys to Avoiding

Green Marketing Myopia• Consumer Value Positioning (design

environmental products to perform as well asalternatives; products that have health benefits;

fixed price for renewable energy products)• Calibration of Consumer Knowledge (connect

environmental products attributes with desiredconsumer value—pesticide-free; solar powered);

use of internet.• Credibility of Product Claims (environmental

product and consumer benefit claims)

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Consumer Value

Positioning

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Calibration of Consumer

Knowledge

• Employ compelling, educational marketing

messages and slogans that connect green product

attributes with desired consumer value

• Environmental benefits positioned secondary, if

mentioned at all

• Ambiguous but Myopically focused on pollution

rather than a more mainstream consumer benefit• Encouraging consumers to think implicitly about

what else they are “saving”.

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• Connection between environmental benefit

and consumer value

•Compelling marketing communicationseducating consumers to recognize green

products as “solutions” for their personal

needs and the environment

• Analysis suggests that advertising that draws

attention to how the environmental product

benefits and deliver desired personal value

can broaden consumer acceptance of green

products

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Credibility of Product Claims

• Foundation of Effective Green Marketing

• Products should meet consumer expectations

by delivering the promised consumer value

• Provide Substantive Environmental Benefits

• Misperceptions and Skepticism created as

consumers don’t have the expertise or ability

to verify green products’ environmental and

consumer values

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• Green marketing that touts a product’s or a

company’s environmental credentials can

spark the scrutiny of advocacy groups or

regulators

• Green product attributes should be

communicated honestly and qualified so that

the consumer believes and trusts it

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The Future of Green Marketing

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What’s lacking ?

• Business scholars have viewed it as a “Fringe”

topic.

• It does not mesh well with marketing’s axioms

i.e. “give customers what they want” and “sell

as much as you can”

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• Sustainability is destined to dominate 21st

century commerce.

• All marketing will incorporate elements of

green marketing.

How it will work out ?

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Product dematerialization

“Innovations that transform material goods into efficient streams ofservices”

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Thank You :)