The Importance of Green Marketing Green Marketing as part of Relationship Marketing Management theory is firmly rooted in an economic and technical systems perspective which concentrates on exchanges, products, production and profits. Over time it has evolved to become more ‘human’ with the emergence of disciplines like organizational behaviour, human resource management, business ethics and societal marketing. Green marketing’s key concepts of sustainability and holistic thinking are both apparently simple, but can be extremely difficult to translate into action. Relationship Marketing means to have a look from the customer site to the own products and the own company. So if the customer insight changed, the relationship and the communication to the customer has to be changed as well.

Green Marketing Introduction Definitions and history of Green Marketing Green washing (7 sins) Green Marketing and Relationship Marketing Short overview about the presentation

Of course a lecture about (green) marketing starts with an add…. http://www.youtube.com/watch?v=GzK0OAPESW4&NR=1 This consultancy company has an interesting website: please check the first 3 steps: http://www.greenprofitsolutions.com/Default.aspx The firs link is a short (about 3 minutes) promotion film about sustainabilit. It shows that sustainability is fun to implement and is a “hot” topic for consumers nowadays. The second link refers to the maker of this promotion film: greenprofitsolutions.com. This consulting company helps other companies to become greener and helps them to communicate this to their customers. You have to clic and wait a few seconds. The presentation soon begins. Then click on : Green Profit Bennefits (a summary is presented in the next slide) Then click on: How it works

So the following advantages of “going green” were mentioned: So the question remains: what is a “marketable image” and “environmental responsibility” ? This will be explained in this lecture. The social aspect (equity) is not mentioned that clearly!

All of this can be achieved by a certification programme So now you have seen the product of this consultancy company: question: do you believe that there is a market for these companies? Or do you think that their customers (other businesses) can manage to become green by their own. Is it difficult? Why? You can refer to the FIHE scheme: on every part of the supply chain there are possibilities to become “greener”.

Marketing is…. searching for, devellop and operate the connection of what you as a company have to offer and the needs of a (potential) customer. There are many definitions about marketing, as a short introduction we take this one. The workhop about custiomer insight (insight activation) is just one method to gain insight in the need of a customer. You can also make a combination with the POM model: By matching the Product (range, current) and Organization with the Market (trends) you can define opportunities (needs!) that in the end result in an attractive product for a certain market. Customer Insight

Can you name of a company or brand you considder green? Green Marketing Can you name of a company or brand you considder green? What have students in mind if they think about a green brand? Do they know one? There are hyperlinks behind the logos. Aveda is a manufacturer of “body care” products Philips: click to the green products, at every product it is explained why it has green. Philips also a new logo/trademark: so it is easier for consumers to select green products. Short discussion: So: after having seen all the efforts these 4 companies made in communication that they have green ambitions: did they succeed? Do consumers consider these companies as being green? Why or why not?

Green Marketing-Definitions (There are more than one definition of green marketing): “the holistic management for identifying, anticipating and satisfying the requirements of customers and society, in a profitable and sustainable way” (Peattie 1995, p. 28) Green marketing’s key concepts of sustainability and holistic thinking are both apparently simple, but can be extremely difficult to translate into action. This is because conventional management wisdom emphasizes reductionalism and specialism, and is founded on economic theories which mistakenly treat environmental resources as limitless, free (beyond the cost of extraction) or, for commodities like stratospheric ozone without a market, worthless. Green marketing attempts to relocate marketing theory and practice away from the economic hyperspace it has evolved in, and bring it back down to earth and reality. You can also relate tot thte 3 E’s : Economy (profit) and Ecology and Equity (=sustainable) This definition does not however exlain: Sustainable: is it green and has aspects of equity ?

Green Marketing- some definitions Environmental sustainability involves developing strategies that sustain the environment and produce profits for the company. It protects and preserves the environment (Armstrong and Kotler, 2007, pp. 509-510). A green consumer someone who voluntarily engages in consumer practices that are regarded as environmentally friendly. Peattie (2001, p. 187-191) green or environmentally friendly activities energy-efficient operations, better pollution controls and recycled materials (Armstrong and Kotler, 2007, p. 509). As you can see, in the definitions the word “equity” is not mentioned. For our course: green means : environmental friendly and social (equity). In a video later we will see some other aspects of a green consumer: average income, well informed, eager for information. (Germany: Lohas gruppe).

Other terms relating to Green Marketing Corporate Social Responsibility corporate responsibility, corporate citizenship, responsible business and corporate social opportunity's a form of corporate self-regulate integrated into a business model. Triple Bottom Line Accounting In practical terms, triple bottom line accounting means expanding the traditional reporting framework to take into account ecological and social performance Company Ethos focused on our client and market needs Short summery about green marketing. What is essential. Can you find Ethos in a companies mission? It is very difficult to verify the Ethos of a company.

Eco labels labels which identify overall environmental preference of a product or service within a specific product or service range. An eco label serves as an art of quality check for the consumer. If this logo is on it, you can rely on it. So the product should somehow be sustainable. But the question remains what does the label actually mean? Greenguard: for evaluating the inner climate (sick building). FSC: Forrest Stuardship Counsil: for wood Der Blaue Engel: das “mindest schlechteste” product, the reason is also mentioned. Bioland: in Germany and Austria http://en.wikipedia.org/wiki/Energy_Star

Every Label has its own certification method (other criteria)

So green marketing can relate to: Companies (CSR, vision, corporate image) Products (part of portfolio, product lines, ecolabels) CSR: Corporate Social Reporting

Green Marketing Green Brands were measured from Landor in 2009. Consumer said that green brands for household products are most important and the well known brand was Frosch.

Green Marketing Frosch is regarded the greenest brand in Germany. Discuss with student if they agree with this overview.

Green Marketing

Green Marketing

Green Marketing

What is Greenwashing? “Greenwash” is defined in the 10th edition of the Concise Oxford English Dictionary as the “Disinformation disseminated by an organization so as to present an environmentally responsible public image.” “Greenwashing,” a term derived from the term “whitewashing,” was coined by environmental activists to describe efforts by corporations to portray themselves as environmentally responsible in order to mask environmental wrongdoings. The concept of greenwashing refers to the shaping of public perceptions that firms have an environmental consciousness and are actively engaged in activities that improve the environment when, in reality, their income-generating activities remain largely unaltered (and environmentally suspect). The 'environmental PR' firms which are at the core of greenwashing seek to penetrate the media, educational organisations, conferences and other fora, with the aim of ‘talking up’ a company’s products by emphasising their positive value and/or attempting to keep public concern about a company’s activities to a minimum.

In the US, the organization TERRACHOICE (a marketing firm) publishes reports about this theme. Students can download them on their website. Now lets have a look at the different sinss and later we are going to play a short game (play: name that sin). Tip: write the sinns on the blackboard (for DE: translate) http://sinsofgreenwashing.org

DE: Tausch (verborgen) For example: cows are fed on a field, but it is not stated how long they are inside in the Winter season!

DE: Kein beweis (offizielles logo)

Vagheit, Ungenauigkeit

Now Play that game: Name that Sin: attention you should skip the questions with the US logo’s (students and you are not familiar with these). Although: you can start a discussion: there are logo’s on national scale and Continental scale: (EU and US): is there a need for a uniform global system of labeling (UN): risk of uncontrolled bureacracy?? Energy Star is a rather global label. You can see this in PC products: all kind of labels are on it if this product is distributed in different countries. http://sinsofgreenwashing.org

Examples of greenwashing? A closer look at who is “greenwashing,” and how these companies are successfully marketing false advertisements.

Ford Ford, for example, has launched the new Escape Hybrid. What they fail to tell the public is they only produce 20,000 of these cars a year, while continuing to produce almost 80,000 F-series trucks per month! http://www.youtube.com/watch?v=oMNECJpUepQ&feature=related (Ford Commercial) http://www.youtube.com/watch?v=3GEfqM3P4ZA&feature=related (Green washing?) Have a short discussion with your students. Show the 2 video’s on youtube. And have a short discussion. The Ford Example is misleading: Ford tries to build up a green image with only a part of its product portfolio.

Conclusion: Greenwashing Greenwashing has become a very popular way for corporations to get ahead of their competitors. It is a way for corporations to make themselves more marketable by hiding behind a mask and concealing their true colors. Greenwashing has proven itself a workable solution for the many corporations using the technique, but at the same time, has stirred up a lot of discussion. Companies will face the risk that others (consumers / NGO’s / Companies will publish the negative aspects of their greenwashing communication (you-tube)

Green Marketing It’s a growing market, see the following promotion film http://www.youtube.com/watch?v=xj1TqhJLaQI Authenticity: is it real? This is really important. Brand loyalty is very important. Consumers know that Companies know this as well. So consumers might think that a famous brand will not take the risk to “harm itself” by giving false information and being accused for misleading the public. Discussion?

Green Marketing and Relationship Marketing Definition Relationship Marketing: “the process of identifying and establishing, maintaining, enhancing, and when necessary terminating relationships with customers and other stakeholders, so that the objectives of all parties involved are met, where there is done by a mutual giving and fulfillment of promises” (Grönroos p. 101, 2004). This is the most important definition of relationship marketing in the literature. The idea of relationship marketing is to identify, to establish, to maintain and enhance long term relationships to all customers, but also to other stakeholders. The aim is to realize a “Win – Win” situation. Relationship marketing focus on: Customers (most known) Suppliers Other stakeholders.

Companies have to be informed about the environment of their partners: Domain and environment of relationship marketing Target Market Environment Infrastructure Social Norms Culture Product/ Service uniqueness Evaluating foreign markets International experience Preferred style of distribution Training know how Cultural specificity Technology Price Benefits To be successful on markets and especially on new markets means that companies need information's about everything.

Relationship Marketing: a shift in focus Relationship Marketing means that companies shift from traditional marketing to a customer experienced focus of marketing. The idea is that long run relations ship give more profit than (hit and run) short term transactions with all kinds of anonymous customers. An important aspect is TRUST, given by “green promises”. With a focus on green you can gain TRUST, and this is an enabler for long term relations.

A crash course Relationship Marketing (10 min) Maybe show the first minutes: let students watch this video at home. http://www.youtube.com/watch?v=3nBFiasFQdM

Green Marketing  Relationship Marketing Relationship Marketing and green marketing is the creation of confidence, trust and value for customers. Customer relationship commitment, trust, confidence and loyalty as a result of satisfaction are as important in customer relationship marketing as in green marketing,

What is needed to realize Green Marketing? In summary….make it simple 1. Build up truth relationship 2. Understood by consumers 3. Engage your own people 4. Give consumers what they want 5. Innovate innovate innovate

Thank you very much for your attention! Introduction ecological footprint