GREEN MARKETING Sustainable Marketing Presented by Sharon Seaford Fayetteville Technical Community College Resources used: “Sustainable Marketing “ Marketing: An Introduction 10th Edition, Armstrong/Kotler Pearson Education, 2011 , Study Shatters Stereotype of Green Consumer “Green Living Pulse” Shelton Group (www.sheltongroupinc.com) 2009, and Greenwashing Report 2010 (www.sinsofgreenwashing.org)

Objectives: 1. Define Sustainable Marketing 2 Objectives: 1. Define Sustainable Marketing 2. Identify the Social Responsibility in Consumerism & Environmentalism 3. Test You Knowledge of the Green Consumer 4. Make the Connection and Draw Your Own Conclusions Concerning ………….. GREEN MARKETING

Green Consumer- Definition Consumer participating in at least some green attitude and behavior 63 million adults and growing Buying power of $230 billion and growing

“Green Consumer” True or False Green Consumers’ top concern is the environment. Green Consumers’ main motivation when reducing their energy use is to save the planet. Green Consumers are all-knowledgeable about environmental issues.

“Green Consumer” True or False Green Consumers fall into a simple demographic profile. Children play a big part in influencing their parents to be green. If people just knew the facts, they would make greener choices.

Sustainable Marketing Sustainable marketing is socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Sustainable Marketing Notes to Accompany Slide: The marketing concept recognizes that organizations thrive from day to day by determining the current needs and wants of target group customers and fulfilling those needs and wants more effectively and efficiently than competitors do. It focuses on meeting the company’s short-term sales, growth, and profit needs by giving customers what they want now. Whereas the societal marketing concept identified in Figure 16.1 considers the future welfare of consumers and the strategic planning concept considers future company needs, the sustainable marketing concept considers both. Sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.

Marketing in Action McDonald’s “Plan to Win” addresses environmental issues related to food-supply sustainability, environmentally sustainable packaging, and more responsible store designs.

Social Criticisms of Marketing False wants and too much materialism Too few social goods Cultural pollution Marketing’s Impact on society Acquisitions Creating barriers to entry Unfair competitive marketing practices Marketing’s Impact on other businesses

Social Criticisms of Marketing Planned obsolescence refers to products needing replacement before they should because they are obsolete.

Marketing in Action A recent TerraChoice study found that 98% of products making green claims committed at least one of the greenwashing sins.

Sin of the Hidden Trade Off Sin of no Proof Sin of Vagueness “Greenwashing” is the act of misleading consumers regarding the environmental benefits of a product or service and the seven sins are: Sin of the Hidden Trade Off Sin of no Proof Sin of Vagueness Sin of Worshiping False Labels Sin of Irrelevance Sin of Lesser of the Two Evils Sin of Fibbing

Consumer Actions to Promote Sustainable Marketing Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.

Consumer Actions to Promote Sustainable Marketing – Buyer’s Rights Traditional Buyer’s Rights Additional Consumer Rights The right to be well informed about important aspects of the product. The right to be protected against questionable products and marketing practices The right to influence products and marketing practices in ways that will improve the “quality of life” The right to consume now in a way that will preserve the world for future generations of consumers The right not to buy a product that is offered for sale The right to expect the product to be safe The right to expect the product to perform as claimed

Consumer Actions to Promote Sustainable Marketing Environmentalism is an organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment.

The Environmental Sustainability Portfolio Notes to Accompany Slide: At the most basic level, a company can practice pollution prevention. This involves more than pollution control—cleaning up waste after it has been created. Pollution prevention means eliminating or minimizing waste before it is created. Companies emphasizing prevention have responded with internal “green marketing” programs—designing and developing ecologically safer products, recyclable and biodegradable packaging, better pollution controls, and more energy-efficient operations. At the next level, companies can practice product stewardship—minimizing not just pollution from production and product design but all environmental impacts throughout the full product life cycle, and all the while reducing costs. Many companies are adopting design for environment (DFE) and cradle-to-cradle practices. This involves thinking ahead to design products that are easier to recover, reuse, recycle, or safely return to nature after usage, becoming part of the ecological cycle. Finally, companies can develop a sustainability vision, which serves as a guide to the future. It shows how the company’s products and services, processes, and policies must evolve and what new technologies must be developed to get there. This vision of sustainability provides a framework for pollution control, product stewardship, and new environmental technology for the company and others to follow.

Marketing in Action Suburu of Indiana works towards pollution prevention, and claims that it now sends less trash to the landfill each year than the average American family.

Marketing in Action To reduce its packaging waste, Coca-Cola is now testing new contour bottles made from corn, bioplastics, or more easily recycled aluminum.

Business Actions Toward Sustainable Marketing Sustainable Marketing Principles Consumer-oriented marketing Customer-value marketing Innovative marketing Sense-of-mission marketing Societal marketing

Sustainable Marketing Principles Consumer-oriented marketing is the philosophy of sustainable marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view.

Sustainable Marketing Principles Customer-value marketing is a principle of sustainable marketing that holds that a company should put most of its resources into customer-value building marketing investments.

Sustainable Marketing Principles Innovative marketing is a principle of sustainable marketing that requires that a company seek real product and marketing improvements.

Sustainable Marketing Principles Sense-of-mission marketing is a principle of sustainable marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

Marketing in Action Timberland’s corporate mission is about “trying to make a difference in the communities where we live and work.”

Sustainable Marketing Principles Societal marketing A principle of sustainable marketing that holds that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

The Sustainable Company Sustainable companies are those that create value for customers through socially, environmentally, and ethically responsible actions.

Marketing in Action That’s right-big bad, Wal-Mart. “The company whose 2,300 superstores take up at least 46,000 acres of earth, whose 117 square miles of asphalt parking lots add up to the size of Tampa, Florida, and in 2004 faced fines for violating laws in nine states has …found green religion.”

Six Myths Regarding the “Green Consumer” True or False Green Consumers’ top concern is the environment. False Green Consumers’ main motivation when reducing their energy use is to save the planet. False Green Consumers are all knowledgeable about environmental issues. False

Six Myths regarding the “Green Consumer” True or False Green Consumers fall into a simple demographic profile. False Children play a big part in influencing their parents to be green. False If people just knew the facts, they’d make greener choices. False

Conclusion: Provide Desirable Products High on Both Counts

Marketing in Action Haworth’s Zody office chair fits the bill as a desirable product. Not only is it attractive and functional, but also environmentally responsible.

Make the Connection and Draw Your Own Conclusion about Green Marketing-No Myths, No Greenwashing, No Joking!!! Thank You!