Environmental sustainability is not simply a matter of compliance or risk management.

Business is increasingly recognising the many competitive advantages and business

opportunities to be gained from eco-sustainability and green marketing.
World-wide evidence indicates people are concerned about the environment and are
changing their behaviour accordingly. As a result there is a growing market for sustainable
and socially responsible products and services. The types of businesses that exist, the
products they produce and their approaches to marketing are changing.
People generally want to do the right thing, so the challenge and opportunity for the green
marketer is to make it easy for people to do so. When all else is equal – quality, price,
performance and availability – environmental benefit will most likely tip the balance in
favour of a product.
The marketing industry can ‘walk the talk’ and become the new corporate champions of
the environment. Successful green marketers will reap the rewards of healthy profits and
improved shareholder value, as well as help make the world a better place in the future.
Green marketing involves developing and promoting products and services that satisfy
your customers’ wants and needs for quality, performance, affordable

Benefits of green marketing

Green marketing offers business bottom line incentives and top line growth possibilities.
While modification of business or production processes may involve start-up costs, it will
save money in the long term. For example the cost of installing solar energy is an
investment in future energy cost savings.
Companies that develop new and improved products and services with environmental
impacts in mind give themselves access to new markets, substantially increase profits and
enjoy competitive advantages over those marketing non-environmentally responsible
alternatives.
Socially Responsible Investment (SRI) in Australia is no longer a niche investment. Potential
investors increasingly look to companies to demonstrate their social and environmental
responsibility as well as traditional financial objectives and outcomes. Competitive businesses
with an eye to emerging market forces address their triple bottom line performance. For
example, to support its aim of being a sustainable business, The Body Shop produces a social
and environmental performance report, ‘The New Bottom Line’, every two years.

The four Ps of green marketing

Like conventional marketers, green marketers must address the ‘four Ps’ in innovative ways.

Product
Entrepreneurs wanting to exploit emerging green markets will either:
> identify customers’ environmental needs and develop products to address these needs; or
> develop environmentally responsible products to have less impact than competitors .
The increasingly wide variety of products on the market that support sustainable
development and are good for the triple bottom line include:
> Products made from recycled goods, such as Quik’N Tuff housing materials made from
recycled broccoli boxes.
> Products that can be recycled or reused.
> Efficient products, which save water, energy or gasoline, save money and reduce
environmental impact. Queensland’s only waterless printer, Printpoint, reduces operating
costs by using less water than conventional printers and is able to pass the savings on to
customers.
> Products with environmentally responsible packaging. McDonalds, for example, changed
their packaging from polystyrene clamshells to paper.
> Products with green labels, as long as they offer substantiation.
> Organic products — many consumers are prepared to pay a premium for organic
products, which offer promise of quality. Organic butchers, for example, promote the
added qualities such as taste and tenderness.
> A service that rents or loans products – such as toy libraries.
> Certified products, which meet or exceed environmentally responsible criteria.
Whatever the product or service, it is vital to ensure that products meet or exceed the
quality expectations of customers and are thoroughly tested

Price
Pricing is a critical element of the marketing mix. Most customers will only be prepared to
pay a premium if there is a perception of additional product value.
This value may be improved performance, function, design, visual appeal or taste.
Environmental benefits are usually an added bonus but will often be the deciding factor
between products of equal value and quality.
Environmentally responsible products, however, are often less expensive when product life
cycle costs are taken into consideration. For example fuel-efficient vehicles, water-efficient
printing and non-hazardous products.

Place
The choice of where and when to make a product available will have significant impact on the customers you attract.
Very few customers will go out of their way to buy green products merely for the sake of it. Marketers looking to
successfully introduce new green products should, in most cases, position them broadly in the market place so they
are not just appealing to a small green niche market.
The location must also be consistent with the image you want to project and allow you to project your own image
rather than being dominated or compromised by the image of the venue.
The location must differentiate you from your competitors. This can be achieved by in-store promotions and visually
appealing displays or using recycled materials to emphasise the environmental and other benefits.
Promotion
Promoting products and services to target markets includes paid advertising, public relations, sales promotions,
direct marketing and on-site promotions.
Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and
communications tools and practices. For example, many companies in the financial industry are providing electronic
statements by email, e-marketing is rapidly replacing more traditional marketing methods, and printed materials can
be produced using recycled materials and efficient processes, such as waterless printing.
Retailers, for example, are recognising the value of alliances with other companies, environmental groups and
research organisations when promoting their environmental commitment. To reduce the use of plastic bags and
promote their green commitment, some retailers sell shopping bags, for example those produced by Landcare
Australia, Clean Up Australia and Planet Ark, under the banner of the Go Green Environment Fund.
The key to successful green marketing is credibility. Never overstate environmental claims or establish unrealistic
expectations, and communicate simply and through sources that people trust.
Promote your green credentials and achievements. Publicise stories of the company’s and employees’ green
initiatives. Enter environmental awards programs to profile environmental credentials to customers and stakeholders

Who is the green consumer?

To take advantage of the emerging green market, it is important to understand who green consumers are and the
factors influencing their purchasing decisions and behaviour.

Attributes of environmentally conscious consumers: Implications for green marketers:

Will most likely be well-educated, young adult women who Target products to women who generally buy on behalf of men
have more money to spend. and families.

Use the influence of children

to encourage parents to try
green products. They are the
green consumers of the future
and are generally
knowledgeable about
environmental issues thanks to
school and community
education programs.
Offer samples and incentives
to try products.
Will expect green products to function as effectively as non- Effectively communicate assurances of quality – for example
green products and won’t pay much extra or sacrifice quality for quality of performance, look, feel, fit, comfort, durability, etc.
greener products.

Will not buy green products on the basis of environmental Link environmental attributes such as energy efficiency or toxic
benefits alone. Product choice is still based on whether it meets substance reduction with other benefits such as lower price,
the their basic want or need. Environmental features are added convenience or quality of life improvements.
selling points.

Will be more likely to respond to product attributes that will Emphasise personal benefits by using terms such as ‘safe’,
personally benefit them. ‘non-toxic’, ‘cost effective’ rather than more generalised green
messages such as ‘biodegradable’ or ‘ozone friendly’.
Will tolerate only minimal inconvenience in using green Make using the product simple – for example, minimise or
products and don’t want to have to go out of their way to buy eliminate refilling bottles.
them.

Select mainstream distributors

where possible.
Offer one-stop shopping and
eye-appealing displays.
Will be analytical, eager to learn, and can be cynical about Reinforce product benefits with evidence of corporate
corporate claims for green product unless they have environmental performance and improvements.
independent verification.
 Educate consumers about
environmental issues and your
efforts through a variety of
means.
Provide credible
environmental endorsements.
Use labels, in compliance with
government labelling
guidelines, to convey precise,
detailed information about
your product and its
packaging.
Will not expect companies to have perfect green credentials, but Communicate your steps towards sustainability and
will look for a commitment to improve and evidence backed by commitment to improvement.
facts.
Seek feedback and promote
your efforts to respond to
customer concerns.