Green Marketing_2.ppt

8/10/2019 Green Marketing_2.ppt

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Green Marketing


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What is it?

Using claims about a product'senvironmental "friendliness" in orderto promote the product


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Examples of green advertising

claims?

biodegradable

compostable

recyclable/recycled environmentally safe

ozone friendly


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Why do companies use it?

Research shows that consumersprefer--and are willing to spend moremoney on--products they perceive as

environmentally safe More than half of American

consumers have purchased a productbecause of a label that said it wasenvironmentally safe orbiodegradable


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Are there problems of deception

with green claims?

Keyes Fibre Company's claims for Chinetdisposable tableware

biodegradable

compostable in municipal solid wastecomposting facilities

Recyclable

In fact, according to the FTC

Wont degrade in landfill

Few municipal composting facilities

No facilities accept it for recycling
http://www.ftc.gov/opa/predawn/F95/keyes-fibre.htmhttp://www.ftc.gov/opa/predawn/F95/keyes-fibre.htm


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Why are consumers fooled by such

claims?

consumers generally can't tellwhether a product will do what theadvertiser claims

degrade in a landfill

not deplete the ozone layer

even if the claims are true, it may

not be evident for five, ten, fifty ormore years


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As a result of concerns aboutgrowing use of such claims, the FTCissued Guides for the Use of

Environmental Marketing Claims


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What do the Guides cover?

Any way in which a message can bereceived

labeling

advertising

promotional materials


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Any form a message can take

words

symbols emblems

logos

depictions product brand names


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260.6 General Principles

(a) Any qualifications or disclosuresshould be sufficiently clear,prominent and understandable to

prevent deception

(b) Claim should make clear whether itapplies to the product or the package

(c) Claims should not overstate theenvironmental attribute or benefit


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260.7 Environmental Marketing

Claims

(a) General claims (e.g., eco-safe)must be

not misleading

substantiated in advance of the claim

burden of proof on advertiser


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(b) Claims of degradability,biodegradability, and photodegradability

are deceptive unless there is

scientific evidence that the entireproduct or package will completelybreak down and return to nature (i.e.

decompose) within a reasonablyshort period of time


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(c) Claims of compostability (of theproduct or package)

are deceptive unless all the materialsin the product or package will breakdown into usable compost in a safeand timely manner

in an appropriate composting facility; or

a home compost pile


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are deceptive if

the item is not compostable in a homecompost pile; and

there are no institutional or municipalcomposting facilities in the communitywhere the item is sold


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(d) Claims of recyclability

are deceptive unless the product orpackage can be collected, separated or

otherwise recovered from the solid wastestream

for reuse; or

in the manufacture or assembly of another

package or product

through an established recycling program


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If only part of a package or item isrecyclable, any claim of recyclabilitymust be adequately qualified to

avoid consumer deception

A claim of recyclability is notdeceptive if only minor, incidental

components are non-recyclable


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As a general rule, use of the term "recyclable"and/or use of symbols that imply recyclability aredeceptive

unless collection sites for recycling the material

are available to a substantial majority ofconsumers or communities

even if collection sites are established in asignificant percentage of communities oravailable to a significant percentage of the

population unless the claim is qualified to indicate the

limited availability of recycling programs


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Symbols that imply recyclability include

three chasing arrows

FTC Guide says that, unless qualified, it means

product or package is made of recycledmaterials as well as being recyclable

SPI symbol

code developed by the Society of the Plastics

Industry to indicate the type of plastic fromwhich product is made

numbers run from 1 to 7


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Qualifications that adequately notifyconsumers of limited availability ofrecycling programs include

"This bottle may not be recyclable in yourarea"

"Recyclable in the few communities withfacilities for foam polystyrene cups"

providing the approximate number orpercentage of communities or populationto whom programs are available


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(h) Claims relating to the preservationof the ozone layer

For example:

ozone safe

ozone friendly

contains no CFCs

are deceptive if the product containsany ozone-depleting substance


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Problem: all ozone is not alike:

ozone layer in upper atmosphere isnecessary to prevent sun's harmfulradiation from reaching earth

ozone at ground level forms smog

can cause serious breathing problems

"ozone safe" products should notharm the atmosphere at either level


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Green Power

Green marketing heavily used inelectricity generation/marketing

What is green power?

electric power that is

generated by renewable resources

less polluting than fossil fuels andnuclear power


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What types of power are green?

Wind

Bioenergy

Geothermal energy Solar power

Hydroelectric power


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Why is green power attractive to

consumers?

Electricity generation is largest industrialpolluter in US; currently produces:

two-thirds of the annual U.S. emissions of

sulfur dioxide (main cause of acid rain) 30 percent of the nitrogen oxide emissions

(stress forest ecosystems; combine withorganic compounds in sunlight to formsmog)

40 percent of carbon dioxide emissions

toxic-metal emissions (mercury and lead)

nuclear waste.


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What are the dirtiest energy

sources?

Coal Oil Nuclear power Natural Gas


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What are the green power options?

1. Green Pricing

Consumers do not have to change theirelectricity provider

Customers choose to pay a premium ontheir electricity bill to cover the extra costof purchasing clean, sustainable energy

As of March 2003, more than 300

electricity providers in 32 states haveimplemented green pricing options orannounced plans to do so

Green Mountain Powers Coolhome,

Coolbusiness
http://epa.gov/greenpower/locator/vt.htmhttp://epa.gov/greenpower/locator/vt.htmhttp://epa.gov/greenpower/locator/vt.htmhttp://epa.gov/greenpower/locator/vt.htm


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2. Green Marketing

Sale of green power in competitivemarkets; consumers have option to

choose among suppliers and serviceofferings like choosing long-distance telephone carriers

As of October, 2003 green marketing was

available in nine states all in the northeast except Texas not in Vermont


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3. Green Tags

Tradable Renewable Certificates (TRCs)represent the environmental (non-power)attributes or benefits of renewable electricity

generation consumer pays for the benefit of adding clean,

renewable energy generation to the regional ornational electricity grid

provides same environmental benefit aspurchasing green pricing or green marketingproduct

provide green option for people in stateswhere green pricing/marketing not available


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Consumer Protection Issues in

Green Power

When power flows from thegenerator to your house, electronsget mixed together on the wires

You can't specify which electrons youget

you can't know for sure if they are beinggenerated by "green" power sources

A number of mechanisms have beenestablished to avoid consumerdeception


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1. Voluntary certification

Green-e Establishes consumer protection and environmental

standards for electricity products, and verifies that theseproducts meet the standards.

Standards include: 50% or more of the electricity supply comes from one or

more of these eligible renewable resources: solar, wind,geothermal, biomass, and small or certified low-impacthydro facilities

if a portion of the electricity is non-renewable, the air

emissions are equal to or lower than those produced byconventional electricity there are no specific purchases of nuclear power, and the product meets the Green-e new renewablerequirement
http://www.green-e.org/what_is/standard/standard.htmlhttp://www.green-e.org/what_is/standard/standard.htmlhttp://www.green-e.org/what_is/standard/standard.htmlhttp://www.green-e.org/what_is/standard/standard.html


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3 National Association of Attorneys


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3. National Association of Attorneys

General (NAAG)--Environmental

Marketing Guidelines for Electricity Provisions include:

term "green" and other similarly generalstatements of environmental benefit should be

used with caution; every implied representationof environmental benefit must be substantiated

term "clean energy" means energy whosegeneration does not cause significant emissions

a "renewable" energy source is one which isnaturally replenishable and is replenished onsome reasonable time frame


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Green Power in Vermont

Apparently the only green power optionavailablein Vermont is Green MountainPower's Cool Home project

Customers make a $6 monthly tax-deductible contribution to the non-profitgroup Clean Air-Cool Planet

through the Vermont-based group

NativeEnergy, new renewable energyprojects are developed wind farms farm methane systems
http://www.gmpvt.com/coolhome/coolhome.htmhttp://www.gmpvt.com/coolhome/coolhome.htmhttp://www.nativeenergy.com/http://www.nativeenergy.com/http://www.nativeenergy.com/http://www.gmpvt.com/coolhome/coolhome.htm

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