Sometimes it’s nice to communicate verbally for a change. I had that opportunity this week when I was a guest on PR 101 Radio - Marketing Advice for Small Business. Erika Taylor, from Three Girls Media conducted a great interview where i was able to discuss some of the pleasures and pitfalls of green marketing.
Check out my interview here […]
Today’s Register features an amusing series of screenshots illustrating how computer companies and Web hosts are falling over one another in the race to put on a green face for their customers. One of my favorite comments in the post: “So, do windmill makers use servers on their web sites to advertise the greenocity of their windmills?”
SCA poll by Harris Interactive, conducted in the beginning of April, found that consumers were definitely willing to pay more for green products…up to almost 20% more.
Good news for green businesses. But, take a little closer look at the findings.
A recent article in Business Green discusses several ways of classifying the green consumer and the issues related to reaching them. Though demographics, the tried and true way of sorting out consumers into groups by income, age, education, etc. works well in some categories, it’s not as helpful in segmenting green consumers.
Enter Psychographics, often used by niche marketers, it can be an effective tool for eco entrepreneurs.
While segments of green consumers vary according to the source you use (check out this hilarious post that outlines some of them) I’ll use the Natural Marketing Institute’s labels for LOHAS ( lifestyles of health and sustainability) consumers.
The goals for a businesses - nonprofit organization partnership or cause-related marketing campaign are generally one or more of the following:
1. Branding – Associating with a good cause
2. Awareness – Getting the nonprofit organization to promote the business among its supporters
3. Promotion – Incenting consumers to buy from a business in a particular time frame, such as by donating a certain percentage (or a fixed amount) of sales to a charity
Businesses need to beware that the effort to create a unique program with a particular nonprofit organization can be very labor-intensive, even if the program seems “cheap” in terms of cash expenses. In order to limit the time and effort needed to run a cause-related marketing campaign, many businesses opt to participate in third-party programs such as 1% for the Planet. Member businesses pledge 1% of sales to worthy causes and receive networking and promotional benefits in addition to the recognition (via a logo on their website) that they are a member.
Unique Programs May Stand Out More and Can Get You Press
If you have a PR budget for your business and some time to develop a unique marketing partnership, you can get some extra mileage from a creative program. No member of the press is going to write a story about your business joining a standard program. However, you might interest the press in a special event or a program with unusual features.
Make Sure the Marketing Program Relates to the Audience You are Trying to Influence
Face it. If you are a business owner, you are creating a marketing partnership with a nonprofit to boost your business. You want your customers and potential customers to appreciate your efforts.
Say, for example, you are Banana Republic, and you want your brand to be more green. How do you associate your urban and
Couponing is a strategy employed by almost all big packaged goods companies to increase trial and to encourage increased usage. Though most marketing managers today haven’t managed during a recession before, many are now learning the value of coupons during a downturn too.
A recent ICOM study of U.S. shoppers found that two-thirds said they are more likely or somewhat more likely to use coupons during a recession. Well, the recession is here and eco-entrepreneurs should consider using this effective promotional tool.
“The consumer incentive certainly is there,” said Peter Meyers, ICOM marketing vice president. “Look at it this way: households of two adults and two children who use coupons wisely can save 25% on their grocery bill annually, without cutting purchases. That saves $2,400 a year based on a typical $800 a month grocery spend, which outstrips the $1,800 economic stimulus check this family has coming in May from Washington.”
Watching the news and reading the popular press you’d think that the interest in organic products is so high that simply making your idea for a new product a reality ensures success. Not so fast.
One of the biggest fallacies in popular folklore is:
“Make a better mousetrap and the world will beat a path to your door.”
In reality, over 90% of businesses fail within the first five years, even the ones with really great ideas. Good execution beats originality any day. And good execution requires good solid market information.
With organic products so hot many a natural product manufacturer or organic food processor has found initial success came easy. As the field matures however, competitors enter the market and bigger retailers show interest in the product. Both require a fledgling company to be prepared with data and selling points.
Despite all the talk of the fight against global warming, the major driving factor behind US consumers’ appetite for green products is health, according to research published by Mintel.
The report, entitled Green Living, researches the factors involved in environmentally friendly purchasing decisions and establishes a firm connection between health concerns and green food products. Green food sales are experiencing massive growth, Mintel says. The research house predicts the natural food and drink products market to be worth $19.6 billion this year, compared to $11.9 billion last year.
One factor in the growth is the ever increasing sophistication by producers who go to great lengths to innovate product development procedures. In the next few years, the alcoholic beverages branch might be one to watch. Mintel singles this area out as a new growth sector. A clear example of an alcohol company “going green” is McCormick Distillery’s recent launch of a new luxurious brand called 360 Vodka.
Many entrepreneurs I have worked with have insisted that everyone can benefit from using their product. While possibly true, I’ve always encouraged my clients to focus not on who could USE their product but, who would BUY their product … right now … today or in the very near future. Focusing most of the marketing time and money on those consumers results in immediate sales and the opportunity to spend more in the future to attract those perhaps more reluctant to purchase today.
Last week in my post, Which Organic Consumer Are You? , I wrote about a new report that can help green companies identify that “right now” consumer.
The Natural Marketing Institute just released their latest report on the state of the organic food industry … in other words … who’s going organic. It turns out more than half of us are buying organic foods at least sometimes.
For consumers, this report offers an opportunity for a little introspection. For green entrepreneurs it offers an important marketing tool – a chance to hone in on the right target market for your product.
Growing green companies should tread cautiously when considering using certifications, marketing hype and eco claims on their product package.
A great article over at Marketing Sherpa explains how you can avoid making some common green marketing mistakes.
Hyping your business or products as environmentally friendly can attract eco-concerned consumers and boost overall customer affinity. But beware! It holds just as many risks. You could get slapped with “greenwashing” your brand.
With a wide variety of certifications offered, and many regulating agencies taking a hand’s off approach to words such as “natural”, entrepreneurs are left to figure out on their own exactly what consumers understand and what they find valuable. As this leaves green marketers in a bit of a lurch, it’s no wonder that:
99% of 1,018 consumer products surveyed were guilty of greenwashing, according to TerraChoice’s ‘Six Sins of Greenwashing’ study.
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