Trying to reach these varied consumer groups can be challenging. Advice is always welcome.
So some interesting information from Yahoo Green, a website launched last year by the venerable internet giant, sheds some light on the best way to do that. Yahoo managers have been tracking click-throughs, purchases and eyeballs on their new site. Incremental changes in the sight have revealed nuances not considered before and at the recent Sustainable Brands Conference,Erin Carlson, director of Yahoo’s social responsibility department, went over a few.

1. Consumers don’t want doom and gloom. They want to hear about optimistic innovations – to hear about what’s possible. For example, a story on an air-powered car proved a powerful draw

2.There’s a lot of skepticism about celebrities’ green endorsements. “People want to know if there’s been a back-room deal signed to promote that star’s image,” Carlson said. “Green and celebrities are not necessarily a good match.” Imagery of real people making a difference is much more effective.

3.Consumers love surprises. Some of last year’s biggest clickthroughs? An article about a woman who lives in an 84-square-foot house, and a feature on the Pope adding environmental degradation to list of sins. “People want to be able to drop these tidbits at the next cocktail party,” said Carlson.

4.What’s in it for me? Consumers are interested in new gadgets that save money and products that offer health benefits.

5.There’s a shift from awareness to action. Top-searched environmental term in 2006? “Climate change.” Top-searched in 2007? “Recycling.”

Reported in Sustainable Brands Weekly, the advice provided by Yahoo Green is applicable for both web based and more traditional, bricks and mortar companies.

Carlson’s advice to online marketers? Piggyback green promos on traditionally high-interest categories (remember all those consumers that are curious about green products and services, but only if they’re served up on a platter). For example, Yahoo’s holiday gift guide last year featured a green product alongside the latest hot gadgets and toys – and traffic on those products went through the roof.

Related Posts:

How to Reach Green Consumers - Using Psychographics To Define Your Target Market

The 4 Green Fashion Consumers – Which One For You?

Target Practice - Finding The Right Green Consumer

One of my favorite things about using the internet to promote my business is that it’s green and inexpensive (if not free). So online marketing and social networking is a great way to get your name out there without using any paper or creating any trash. A good way to start your foray into the world of online marketing is to first establish a web site for your business. This will often be your potential customers’ first impression of your company, so it will be an important investment in both time and money. Once you have a web site, networking through social media sites is a great way to promote it and drive traffic to your site. Online marketing is a strategy that’s becoming more and more popular among entrepreneurs, and thankfully it is one with minimal impact on the planet.

There are countless social networking web sites out there. The tricky part is narrowing them down to just the ones you’ll actually be able to keep up to date on and those that fits your company’s target market the best. When creating a business profile on any social media site, be sure to share only information you want the entire world to see, and avoid making your profile too personal. You can always create a personal profile as well, just keep the two separate. Once you’ve found a few sites you like, spend some time on the sites and get to know the community before posting anything. Many times, straight marketing pitches don’t do well on social media sites (you don’t want to be labeled a spammer), so keep your marketing subtle and stay relevant to the topics discussed. I find all I really need is to add my web site links to my profile and my signature. Be careful, some sites become quite addicting!

Here’s a brief list of some social media sites that I’ve found useful for networking, bringing in visits to my site, and meeting others in my field or the green market niche.

• StumbleUpon is the granddaddy of social media sites. Install the toolbar to “stumble” around the web, keep track of your favorite sites, and build a following of stumblers. Submitting links to StumbleUpon is a great way to drive traffic to your site.
• LinkedIn is a professional networking site that business owners will find especially helpful. It’s a way to manage and make connections, rub elbows with other professionals, and even find jobs or employees. There are groups within LinkedIn such as Sustainability Working Group that cater to various niches.
• Responsible World Citizen is a niche online network dedicated to promoting social responsibility and sustainability. It’s a community for conscious business owners and ecopreneurs, so I’m sure you’ll fit right in!
• Ning is not really a social networking site, but it allows you to create your own social network, or join one that others have created. So it acts as a hub for themed social networks. A search for “green business” on Ning turned up a bunch of results worth checking out.
• Hugg is the Digg of green. It’s a collection of green news, articles and web sites submitted by the community, so it’s a great place to post your most recent green-themed article from your business blog. Brought to you by the folks at TreeHugger, it’s a great networking tool (and source of green news) for sustainable businesses.
• Co-op America’s Green Business Network is a useful site for connecting with other green businesses. Co-op America offers many additional benefits, such as green certification, a listing in their directory, and many other useful resources, to businesses that become members.
• Don’t forget the Green Options network! From advertising options to the discussion forum, there are a lot of great opportunities to network with like-minded greenies.

There are many more social media sites, from Facebook to MySpace to Digg, that can help you network and bring in traffic to your web site. Many offer groups you can join on specific topics and can be a great place to find potential customers, clients, and vendors. Be sure to look for groups that fit your market niche and industry, as well as those promoting green living and sustainability. With online marketing, it’s helpful to cast a wide net so that links to your company site are all over the web. But as with anything, the more time and effort you put into each social media site, the more you’ll get out of it. So it may be wise to pick a few sites to focus your efforts on. There are definitely enough to keep you busy, the hard part is choosing just a handful and not becoming a complete internet junkie. For some of us, it’s far too late for that!

Related Articles on the Green Options Network:

• Times They Are a Changing: Green Marketing Tips for Eco Entrepreneurs in 2008 on Ecopreneurist.
• Ten Ways to Change the World Through Social Media on Sustainablog.
• PR Tips For Green Entrepreneurs on Ecopreneurist.

Check out my interview here and here:

I’ll be appearing on the show again on June 11th so stay tuned.

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.

64% of those surveyed said they would be willing to pay more for a hybrid car

63% indicated they would spend more for organic, fair trade, or locally sourced food

62% said they would dig deeper into their wallets for green/organic cleaning supplies

57% of those surveyed said they would pay the additional costs for products made from recycled materials.

Obviously purchasing a hybrid car has less to do with being environmentally conscious and more to do with saving money. With gas prices souring, consumers are willing to try anything they can to save on gas.

The next two, though they are green initiatives, they also address health issues. Consumers are willing to pay more and cut back in other areas if their own or their family’s health is at stake.

The last point, addressing consumers’ willingness to pay extra for products made from recycled materials, may be the most vulnerable to inflationary pressures.

Since this survey looked at willingness to purchase, as well as current purchase behavior, the results may only be indicative of consumers hopes, not necessarily their behavior. The survey found that, in a representative sample of the population, close to half of all consumers would be willing to pay more for green products.

The question remains…which half?

Related Posts:

How to Reach Green Consumers - Using Psychographics To Define Your Target Market

Natural Marketing Institute, Nielsen Value LOHAS Mart At $209 bn

How To Package A Green Product

Photo Courtesy: Burning Image at Flickr under Creative Commons License

Enter Psychographics, often used by niche marketers, it can be an effective tool for eco entrepreneurs.

• Demographics looks at characteristics of people that include age, income, education, occupation, household size, home ownership and home value, among other factors.
• Psychographics delves deeper into people’s lifestyles and behaviors, including their interests and values.

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.

• LOHAS — very progressive on environment and society, looking for ways to do more; not too concerned about price (16%).
• Naturalites — primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment (25%).
• Conventionals — practical, like to see the results of what they do; interested in green products that make sense (e.g., save money) in the long run (23%).
• Drifters — not too concerned about environment, figuring we’ve got time to fix environmental problems; don’t necessarily buy a lot of green products, though may like to “be seen” in Whole Foods to enhance their image (23%).
• Unconcerned — have other priorities, not really sure what green products are available, and probably wouldn’t be interested anyway; they buy products strictly on price, value, quality, and convenience (23%).

Notice the decided lack of information on demographics. Both drifters and LOHAS might live in upper middle class neighborhoods. A college degree may be held by both the Unconcerned and the Naturalites. Income? Well, we do know that green products tend to be on the more expensive side but, a true devotee just cuts in other areas.

And so targeting green consumers gets messy. Identifying which segment of the green market is most likely to purchase your product is the first step. That is, your product fills a particular need…which segment feels the need the most? Now how can we use psychographics to locate the appropriate media and promotional tools to reach that segment?

In general, understanding your targeted segment’s interest and hobbies goes a long way toward reaching them. While deep green, LOHAS consumer might be found doing yoga, driving a Prius and visiting the recycling center, a Naturalite might be more likely to drive an SUV but purchase only organic fruits and vegetables and visit a homeopathic Doctor.

Defining these traits through research and often through simply brainstorming and observing can lead to appropriate media selection and more targeted programs. I’ll talk more about this in a future post and give some examples. In the mean time – how do you define your target consumer using psychographics?

Related Posts:

4 Questions to Ask Before You Launch an Organic Product

The 4 Green Fashion Consumers – Which One For You?

Natural Marketing Institute, Nielsen Value LOHAS Mart At $209 bn

Photo courtesy: macinate on Flickr under a Creative Commons License

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 suburban stores with an environmental cause. Banana’s solution is to donate 1% of in-store and online sales during Earth Week, April 22nd thru April 27th, (up to $100,000) to The Trust for Public Land, a land conservation organization. The donation is specifically targeted to preserving open space in urban settings (generally fixing up and creating new parks and public gardens). Banana Republic could have chosen any number of worthy environmental projects, but they chose an environmental organization that is greening many of the locations where Banana Republic has a high density of stores.

Long-term Association

Not every potential customer is going to see your promotional event even if it lasts for an extended period, like a month. And even a customer that knows about a one-time event may not be convinced about your social responsibility or commitment to a cause right away. Longer-term programs have a much better chance of associating your brand to both a particular cause and to “the greater good”. In the example I am using here, Banana Republic has made a $1 million commitment to The Trust for Public Land and has organized volunteer events in New York and San Francisco on April 27th, for Banana Republic employees and the public. (If you are interested in signing up or just want more information, go to www.BananaRepublic.com/Earthweek.)

Walk the Talk

You won’t get a lot of marketing benefit from supporting a nonprofit organization, if the way you operate your business conflicts with the mission of the nonprofit. Not a moment too soon, Banana Republic has just come out with a collection of clothing made from renewable or sustainable fabrics (like bamboo, organic linen and cotton, and soy/silk knit blends). Unfortunately, I can not find them on the Banana Republic site, but maybe that is just me, or maybe they are not yet on the site.

To really be seen as an environmentally concerned business, Banana Republic will need to do a lot more in terms of store design and locations, as well as distribution, packaging and operations, but I see their Earth Day promotion as having legs beyond Earth Day.

Your Experience?

If you have conducted a cause-related campaign or have seen one that you thought was particularly good or bad, we’d love to hear from you. Please let us know your thoughts in the comment section below.

Photo by: Lisa Hokholt, USDA (Visitacion Valley, San Francisco)

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.”

While seemingly simple, developing an effective coupon requires research and forethought. Over the past decade, coupon redemption has declined to about 1%. That is, only 1 out of every 100 coupons distributed, on average is redeemed. But, a 3-5% or higher return is not unheard of if the couponing program is developed effectively.

With consumers more interested in and more likely to try green products than in the past, providing an incentive for purchase can build your business rapidly as word of mouth travels from consumer to consumer. An effective couponing program uses key selling point copy prominently displayed on the package and reinforced on the coupon face.

But, what about all of that paper waste? To a green company, couponing, at first glance seems ecologically wasteful and contrary to eco-business practices. Fortunately, today e-couponing has become mainstream with sites like coupons.com and ecoupons.com. Savvy shoppers check out the top coupon sites prior to making a major purchase or embarking on the weekly shopping trip.

The ICM survey found even more ways to leverage your couponing program.

In the area of coupon technology, 58% of consumers responding to the ICOM survey see their coupon use increasing if they could download a coupon from the Internet and have it automatically connected to an electronically swiped frequent shopper card.

Major grocery store chains, like Kroger are currently testing these programs. If successful we should see more of them in the future.

In the meantime, consider posting coupons on your company website. Include copy referring to your couponing program in press releases and test various means of distributing coupons for your products.

A more technologically savvy consumer combined with an economic downturn makes this the perfect time to perfect your couponing strategy.

Related Posts:

How to Write a Press Release In The Internet Age

How To Package A Green Product

Target Practice - Finding The Right Green Consumer

Photo credit: ninjapoodles at Flickr http://www.flickr.com/photos/ninjapoodles/ under a Creative Commons license.

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.

Four Questions to Ask Yourself About Your Organic Product

1. How much interest is there for organic products in my category? A recent Mambo Sprouts Marketing survey found that:

When it comes to grocery spending in particular, natural category consumers indicated they were most likely to choose organic options for produce (60%), dairy products (54%) and child/baby food products (50%). Only one in four or fewer felt it was very important to buy organic in the categories of beer and wine (10%), pet food (23%) and desserts and snacks (23%)

2. What is the dollar size of the total market?

Data is available on the roughly $25 billion market for organic and natural products in ever increasing detail. As more players enter the market, more surveys are done and natural foods companies can, with a little research get an idea of the real value of the marketplace.

3. Who is the competition and what share does each player currently have?

Keeping an eye on the competition is key for success in any business. At this point in the organic and natural foods lifecycle, as more and more bigger players enter the natural food marketplace, they, fortunately tend to increase the size of the whole market rather than steal share from smaller players. As the market becomes more saturated, this will not always be the case. So find out and broadcast…

4. What makes my product different and better than competing product?

A key marketing tool used by major manufacturers is defining and promoting the unique selling proposition. By establishing what makes your product different….from other organic and natural products…you create your own niche in the marketplace. The time is past when simply being “natural” or “organic” is enough. Now it’s time to dig deep to determine what makes your product different.

Asking and answering these questions is the first step in competing in today’s organic and natural products market. Once the sole purview of small entrepreneurs, as bigger and bigger players enter the market, more sophisticated analysis is required to remain competitive.

Related Posts:

Which Organic Consumer Are You? Dabbler, Devoted or Reluctant?

Natural Marketing Institute, Nielsen Value LOHAS Mart At $209 bn

Target Practice - Finding The Right Green Consumer

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.

The new vodka is marketed for being organic and the campaign is so effective you’d think you were buying milk. McCormick distills the vodka in a newly established outlet called Earth Friendly Distilling Co. Distillation facilities have been built to meet EPA air and water quality standards. Sulfur dioxide emissions have been virtually eliminated; they’re down by 99%. Fossil fuel energy saved is 250%. The bottles of vodka themselves are packaged in eco-friendly materials which even don water-based, rather than oil based inks. Beat that.

The rationale behind McCormick’s decision to go green is compelling. The Mintel report indicates that there’s no end in sight for the growth prospects of organic food and drink food. The market has been growing rapidly for a few years already but the growth trend stays upwards.

Apart from spirits, locally produced wine will win the hearts (probably not the minds) of consumers in years to come because the industry is making a convincing effort to be as eco friendly as possible. Wine is increasingly packaged in eco-friendly glass and local wine producers claim they’re reducing the impact on the environment also by eliminating producer-consumer distances.

In other green product branches such as toiletries, cosmetics or cleaning products, health associations are not as prevalent as in the food and drink sector.

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.

Secondary research tools like this report allow green companies to benefit from large scale research conducted on green consumers. By taking this information and applying it to your product, you can target your marketing campaigns and modify your marketing spending to reach those consumers who are most likely to buy your product.

Are you a “deep green” company? Do you sell products most likely to be used by the most dedicated eco-consumers? Are you Certified Organic? Then your core market may be Devoteds - The 16% of most committed to organic and its ideals; the most likely to have changed their lifestyle to integrate organic. The more they use a certain type of product, the more it has to be organic.

You’ll want your packaging to reflect those ideals near and dear to hard-core eco-consumers. Your marketing dollars should be used primarily to reach those who are heavy users of organic products.

It’s important for “deep green” companies to recognize their limited appeal, at this time and focus on the heavy user of their product. Since heavy users are just that, you can get a lot of bang for your buck by making sure you get your marketing message to as many of these consumers as possible.

Is your product a bit more mainstream? Is it in one of the key categories in which consumers are most likely to buy organic (fruits and vegetables/meat and poultry products/baby items)? Then your market may include both Devoteds (16% of shoppers) and Temperates (22% of shoppers).

Temperates are also knowledgeable about organic food but fit it into their, sometimes more mainstream, lifestyle. The more a category is used, the more buying organic becomes a treat. They may insist on only buying organic in certain categories and may buy organic primarily but not always in others.

Green companies targeting both Devoteds and Temperates can still focus on a “deep green” appeal since both consumer segments understand the benefits of organic food. As information trickles down to less informed consumers, this category of consumers will grow and will look for those products that seem “authentic.” This is where it becomes important to ensure you have the right certifications.

Some consumers are Dabblers. They are non-committal about organic – they can take it or leave it. For them, buying organic is more about being hip than it is about being healthy. This is almost half (44%) of all consumers that buy organic products!

Dabblers are a fickle market. Since they have no strong commitment to buy organic, they may buy your product one month and the next switch back to the conventional alternative. The key to increasing trial with Dabblers is reaching purchase influencers. Since being hip is an important reason that they purchase organics, they look for products used by those they perceive as hip. A strong PR program is integral to reaching this market and may include blogger outreach and the use of social media. (A strong PR program is important for most all organic product companies since the market is still in the growth phase.)

Whichever type of organic consumer you target, it’s critical to identify and formalize this information. Include it in your business and marketing plans; talk about it in marketing meetings; make sure it is top of mind when developing new products and packaging.

Related Posts: Times They Are A Changing: Green Marketing Tips For Eco Entrepreneurs

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.

While hardcore green consumers are quick to pick up on greenwashing, the average consumer may not immediately perceive any “stretching of the truth.” However, today roughly half of American consumers take into account “sustainability” when choosing a brand, according to a new survey by Information Resources, a market research firm, so that uninformed group is shrinking.

While there are a variety of sources available to consumers showing them how to avoid greenwashing, the resources available to marketers are few. But, that is changing. A close look at The Six Sins of Greenwashing from Terra Choice provides a broad but, useful guide to copywriting with a clear conscious.

1. Sin of the Hidden Trade-Off: Focusing consumer attention on a single environmental issue such as recycled content or energy efficiency while ignoring additional important environmental issues such as toxic content or the impacts of the manufacturing process.

2. Sin of No Proof: Being unable or unwilling to provide proof of an environmental claim.

3. Sin of Vagueness: Making broad, poorly defined environmental claims that are essentially meaningless.

4. Sin of Fibbing: Making a blatantly false or misleading claim.

5. Sin of Irrelevance: Making an accurate statement that is unimportant and unhelpful for consumers seeking more environmentally responsible products.

6. Sin of the Lesser of Two Evils: Claiming environmental benefits for products that are actually harmful or that pose significant environmental challenges.

Click here for more information and examples of products guilty of the six sins of greenwashing.