Energy Management Standardization in Printing Industry Work Package 5: Specific Guidlines Development Developing a Green Marketing Plan Dr. Joachim Hafkesbrink (jh@innowise.eu) Tim Wöhrmann, B.A. (tw@innowise.eu) innowise GmbH Bürgerstr. 15 47057 Duisburg www.innowise.eu Tel.: +49 (0)203 / 39 37 64-0
List of Contents 1. Definition: Green Marketing 2. An Overview of the Most Important Advantages of Going Green 3. What are the Potential Risks of the Green Marketing Approach 4. Steps to a Successful Green Marketing 5. The Green Marketing Mix
Definition: Green Marketing Green Marketing refers to the process of selling products and/or services based on their environmental benefits Ward, Susan: Green Marketing, Small Business: Canada Expert. http://sbinfocanada.about.com/od/marketing/g/greenmarketing.htm
An Overview of the Most Important Advantages of Going Green (1) 1. Steady compliance for regulations: To go along, or even ahead of legal regulations will most likely result in expenditure savings and the growths of your companies reputation To anticipate measures of greening your company might put you in an advantage when it comes up to fulfil legal regulations
An Overview of the Most Important Advantages of Going Green (2) 2. Respond to customers preferences: The label green has become a major effect on consumers preferences Environmental awareness is set to become an important determinant for a new generation of consumers (generation Y)
An Overview of the Most Important Advantages of Going Green (3) Despite the Economic Downturn, Consumers Care About Green Products Magnet; Roche; Münnich: Capturing the Green Advantage for Consumers Companies, The Boston Consulting Group, Boston 2009, S.7.
An Overview of the Most Important Advantages of Going Green (4) Green Products Compare Favourably Conventional Products Magnet; Roche; Münnich: Capturing the Green Advantage for Consumers Companies, The Boston Consulting Group, Boston 2009, S.15.
An Overview of the Most Important Advantages of Going Green (5) Most Consumers Think It Is Important or Very Important for Companies To Be Green Magnet; Roche; Münnich: Capturing the Green Advantage for Consumers Companies, The Boston Consulting Group, Boston 2009, S.10.
An Overview of the Most Important Advantages of Going Green (6) 3. Green production and green products generate double dividends for cost savings and environmental benefits: The greening of your company might not only provide a positive effect on the environment, but also on your own expenditures Savings through an improved energy efficiency e.g., can be passed on to the consumers The implementation of measures to reduce the CO2 output and/or enhance energy savings, might lead to the opportunity of tax reliefs
An Overview of the Most Important Advantages of Going Green (7) 4. HRM : Being considered as green can also become an advantage in recruiting qualified employees 5. Product policy: Green Marketing might provide a competitive advantage in terms of product differentiation Green Marketing means to educate your consumers, this puts you in a good position to raise the awareness of your products
What are the Potential Risks of the Green Marketing Approach? (1) Greenwashing: Disinformation disseminated by an organization so as to present an environmentally responsible public image. Greenwashing is probably the main risk, when it comes to Green Marketing. Greenwashing can result in: Reputation and relationship damage Compromising organizational behaviour Violations of laws and regulations Oxford Dictionaries: http://www.oxforddictionaries.com/definition/english/greenwash
What are the Potential Risks of the Green Marketing Approach? (2) Serious cases of Greenwashing might even lead to a mistrust in the whole business area of green products
What are the Potential Risks of the Green Marketing Approach? (3) Just because a product is considered as green doesn t mean you can charge more Expenditures to implement green standards and processes won t pay back without a good strategy
Steps to a Successful Green Marketing (1) 1. Educate the consumers 2. Build better products 3. Be honest 4. Offer more 5. Bring products to the people
Steps to a Successful Green Marketing (2) Educate the customers: A lot of customers are interested in green products, without being totally aware of what green products should provide, or what sort of positive impact they actually impose on the environment. That's why companies not only have to promote their products but also explain the larger context of global warming, environmental pollution, waste etc.
Steps to a Successful Green Marketing (3) Build better products: Especially in the technical branch of industry, e.g. the automobile industry, green products still have a negative image in terms of quality and performance. That s why companies have to close the gap between conventional and green products, either in their perception or in their quality.
Steps to a Successful Green Marketing (4) Be honest: Consumers often tend to mistrust the companies claims to produce totally green products. That s why companies, with the goal to be green, should by all means target a policy of transparency and honesty towards their customers. Misleading your customers, will most probably lead to a rapid damage of a companies reputation and credibility. Examples for misleading consumers are: green advertising campaigns for product features that are mandatory by law only highlighting the positive aspects of your product while keeping the negative aspects a secret
Steps to a Successful Green Marketing (5) Offer more: It often appears, that green products are more expensive than conventional products. That may result of more exclusive ingredients or more expensive distribution channels. Because of this green products have to offer more. Their extra value has to be pointed out, e.g. energy efficiency, their environmental benefits, better quality, etc.
Steps to a Successful Green Marketing (6) Bring products to the people: To produce green products isn t enough, companies have to make sure that their products are easy to find and purchased on a broad basis. Therefore companies have to make sure, that retailers and wholesalers advertise and display green products properly.
The Green Marketing Mix (1) When it comes to Green Marketing you can revert to the traditional concept of the marketing mix. In differentiating between the four P s (Product, Price, Place, Promotion) a solid and broad marketing strategy is created. In contrast to the traditional marketing mix, the Green Marketing Mix has to adhere to green principles throughout the whole process. This leads to the positive effect of (1) an enhanced credibility and (2) an increased brand identity, as well as (3) a high degree of honesty and radical transparency with the involved stakeholders.
The Green Marketing Mix (2) Green materials Green production Green packaging Green suppliers Product Price Product: Not only one, but all parts of your product and production should be in line with green principles Promotion Place The products should be adjusted to a environment friendly target group. Every step of the production chain has to be green : usage of green materials suppliers have to commit to green principles too not only the product but also the packaging has to be green the production itself should be green, e.g. reduce the use of energy, minimize the companies carbon footprint, etc.
The Green Marketing Mix (3) Product Price Reduce price gap Highlight extended values Pass down savings to consumers Price: The price is a key determinant in the consumers willingness to buy green products. Promotion Place That s why it is crucial that green marketing eradicates the image of green products being more expensive then conventional ones. Green Marketing has to point out that... green products are less expensive than people think they are savings in the production are handed over to the consumers green products bear extra values (environmental benefits e.g.)
The Green Marketing Mix (4) Price - Best Practices Now you too can get successful guy lighting at normal guy prices with GE Link LED bulbs (McKinsey, p.4) ( ) while exploring new ink technologies, the company has reduced ink consumtion, improved print quality and saved money for themselves and their customers. And in the end, used fewer resources. (Graphic Arts Magazine, p.4-5.)
The Green Marketing Mix (5) Place: Product Promotion Price Place Where can the product be purchased and how is it distributed to this location? The location itself should be green or at least show some sort of commitment to green principles. Green location Green distribution Green Products should be easy to be found. Not only the location but the distribution channel has to be organized according to green standards.
The Green Marketing Mix (6) Place - Best Practices The smaller, more efficient space is projected to reduce annual overhead costs by 30-40 per cent. (Graphic Arts Magazine, p.7.) Finished goods are delivered by bicycle couriers, hybrid cars or biofuel-fueled trucks. (Graphic Arts Magazine, p.7.)
The Green Marketing Mix (7) Promotion: Product Price All sorts of communication to promote your product. Advertising PR Personal selling Consumer Promotion Promotion Place Four different ways of promotion: Advertising Public relations Personal selling (one-on-one selling, cold calls, product presentations) Consumer promotion (coupons, BOGOF, incentives/donation that help the planet/people)
The Green Marketing Mix (8) Promotion - Best Practices P&G Future Friendly campaign provides consumers with specific tips on how they can have a positive impact on the environment by making their homes more energy efficient, using less water and reducing household waste. (McKinsey, p.3.)
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