June 2010
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You are the Marketing VP for a firm (your choice) that is committed to Sustainable Development, has implemented many Sustainable Initiatives, does
Sustainability Reporting, etc.
Your CEO has asked you to come to Executive Team meeting with two sets of recommendations as part of a Green Marketing Plan:
– Which Market Segments should your firm target?
– What are the Marketing Messages for the targeted segments?
After the break, each team will have 15 minutes to prepare and then 15 minutes to present their recommendations.
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“An Introduction To Green Marketing” by
Polonsky, Michael Jay, University of
Newcastle, Australia, 1994
Videos:
– The Effects of Green Marketing (4 minutes)
– Six Sins of Green Washing (6 minutes)
“It’s Not Easy Being Green……Or, Is It?” by
Rockbridge Associates, US, 2008
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Consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment . [Polonsky 1994b, 2]
Incorporates a broad range of activities, including:
– product modification/innovation
– changes to the production process,
– packaging changes,
– as well as modifying advertising.
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Looks at how marketing activities utilize limited natural resources , while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives.
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1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives [Keller
1987, Shearer 1990];
2. Organizations believe they have a moral obligation to be more socially responsible [Davis 1992,Freeman and Liedtka 1991,
Keller 1987, McIntosh 1990, Shearer 1990];
3. Governmental bodies are forcing firms to become more responsible [NAAG 1990];
4. Competitors' environmental activities pressure firms to change their environmental marketing activities [NAAG 1990]; and
5. Cost factors associated with waste disposal, or reductions in energy and material usage forces firms to modify their behavior
[Azzone and Manzini 1994].
6

A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment.
A further 80% of this sample indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons [EPA-NSW 1994].
As demands change, many firms see these changes as an opportunity to be exploited.
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Firms using green marketing must ensure that their activities are not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with environmental marketing.
Green marketing claims must;
 Clearly state environmental benefits;
 Explain environmental characteristics;
 Explain how benefits are achieved;
 Ensure comparative differences are justified;
 Ensure negative factors are taken into consideration; and
 Only use meaningful terms and pictures.
8

The Effects of Green Marketing: Consumer
Trends Drive Profit (4:13 minutes) www.youtube.com/watch?v=xj1TqhJLaQI&feature=related
Six Sins of Green Washing (6 minutes) www.youtube.com/watch?v=Fnh1Y06DGCs&feature=related
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Easy
Green
Presented by:
Charles L. Colby
Joe Bates
Joe Taliuaga
Rockbridge Associates, Inc.
17 th Annual Frontiers in Service Conference
October 3, 2008
For more information, contact:
Joe Bates, VP
703-757-5213 ext. 14 jbates@rockresearch.com
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Full Service Market Research Consultancy
– Founded in 1992, based in Washington, DC area
Our Practice Areas
– Product Optimization & Concept Testing
– Customer Satisfaction and Retention
– Positioning and Communications Research
– Market Segmentation
– Website Usability
Corporate Partner
Proud Member of
Center for Excellence in Service
Rockbridge specializes in services, technology and media sectors
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Rockbridge’s National Technology Readiness Survey
(NTRS) has gathered consumers’ opinions and usage of technology since 1999
The study is co-sponsored by the Center for Excellence in Service, R. H. Smith School of Business, University of
Maryland
Methodology:
– Representative survey of U.S. adults (18+ years)
– 1025 consumers surveyed in Fall 2007
• 500 by telephone (random-digit-dialing)
• 525 by a representative web panel
– Results weighted by demographics and by type of internet/phone access
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Green
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Americans Believe in
Environmental Stewardship
I want to protect the environment for the benefit of future generations
The Earth belongs to humanity to do with as it pleases
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
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California has been leading the way in enacting green laws:
• Mandated recycling of TVs and monitors
• Requiring retailers to take back plastic bags
• Almost outlawed incandescent light bulbs
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Green
18

% Who Agree With Statement
85%
69%
The evidence of global warming is real
More needs to be done to curb air and water pollution in our country
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
19

Consumers believe collective action will work
And regulation will not hurt
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
20

There is strong faith in technology
Green tech helps the economy…
The internet gives us a medium to work together
…while more efficient products and services help the wallet
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
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Recycle/refurbish old computer
Replace paper financial statements with electronic
Access online pub instead of print version
Replace paper utility statement with electronic
Switch to electricity based on clean/renewable resources
% Who Have Done 58%
% Maximum Potential Incidence 73%
33%
51%
58%
46%
52%
42%
52%
53%
Opportunities for financial services, utilities,
IT firms, publishers
Telecommute
31%
44%
Power company controlled air conditioner
21%
34%
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
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Many include making homes and transportation greener
Energy saving lighting
% Who Have Own
% Maximum Potential Incidence
69%
80%
Programmable thermostat
45%
66%
High efficiency heating
37%
64%
High efficiency cooling
Home water purification system
33%
29%
52%
60%
20%
High MPG vehicle
43%
10%
Weather station
41%
10%
Eco-Friendly Home
39%

Many Energy-Related Products and Services
Have Potential for Long Range Growth
A third of consumers are interested (or already own) an alternative fuel vehicle and solar heating systems
Hybrid fuel vehicle
4%
% Who Own
% Maximum 35%
Potential is
Unrealized
Solar home heating
Natural gas/ electric vehicle
Solar water heater
Trash compactor
Bio-powered vehicle
Remote home system control
Green financial investments
3%
3%
4%
3%
4%
8%
7%
17%
23%
29%
27%
34%
34%
32%

We estimate $104 Billion annual market for green products
Opportunities:
– Green mortgages
– Green home equity loan
– Green vehicle financing
– Partnerships with energy companies
– Securities backed by these investments
Fidelity’s strategy in this area?

% Who Have Done It In Past 12 Months
Got gas mileage info 27%
Researched public transit options Opportunities for online content to help consumers find green solutions and network with other greenminded consumers
Looked up green tips for home
Visited site of environmental org
Researched candidates' enviro views
Got recycling info
Visited co website for green views
Obtained appliance energy ratings
Environment forums
Donated to political campaign
Researched car pools
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
5%
4%
8%
18%
17%
17%
16%
24%
23%
21%
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Who is driving the green movement?
What is the role of innovativeness (if any) in driving the movement?
?
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1 out of 10 adults – “Green Tech Leaders” – are influencers
– They also embrace technology and believe in its ability to solve problems
Another 2 out of 10 – “Green Tech Followers” – are deeply committed to green issues and view technology as playing a role
22%
7%
10%
Green Tech Leaders
18%
Green Tech Followers
Tech Savvy Green Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers
12%
31%
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
Anti-Greens
30

Green Tech Leaders
Commitment to Green
High
Green Tech
Followers
Tech-Savvy
Sympathizers
Enviro-Friendly
Skeptics
Naïve Consumers
High
Medium
High
Medium
Influence
High
Low
Low
Low
Low
Anti-Greens Low Low
Absence of
Skepticism
High
Love of
Tech
High
High
Medium
Medium
High
Skeptical
Medium
Low
Low
Skeptical Medium
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Commitment: “I Encourage Friends / Family to Be
Environmentally Friendly”
% Who Agree With Statement
Green Tech Leaders
Green Tech Followers
Tech Savvy Green
Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers
Anti-Greens 6%
50%
41%
98%
89%
88%
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
32

Influence: “Others Come to Me For Advice on Being Green”
% Who Agree With Statement
Green Tech Leaders
Green Tech Followers
Tech Savvy Green
Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers 2%
Anti-Greens 0%
9%
26%
22%
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
50%
33

% Who Agree With Statement
Green Tech Leaders
17% Green Tech Followers
Tech Savvy Green
Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers
Anti-Greens
21%
20%
35%
50%
Green Tech
Leaders influence others through social media
53%
Anti-Greens also use social media, and may influence others on their views
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Skepticism: “There Is Nothing Anyone Can Do
To Prevent Global Warming”
% Who Agree With Statement
Green Tech Leaders 7%
Green Tech Followers 2%
Tech Savvy Green
Sympathizers
Enviro-Friendly Skeptics
25%
46%
Naïve Consumers 17%
Anti-Greens 63%
Source: National Technology Readiness Study , Rockbridge Associates, December 2007
35

Love of Tech: “Other People Come to Me for
Advice on New Technology”
% Who Agree With Statement
Green Tech Leaders
Green Tech Followers
Tech Savvy Green
Sympathizers
Enviro-Friendly Skeptics
21%
31%
Naïve Consumers 1%
Anti-Greens 28%
58%
96%
36

Green
37

Green Tech Leaders – 10% of Market
How They Think
 Important to be green
 Early Adopters
 Technology can save us
 Green gadgets are cool
 Like trying new green tech
 Do research and influence others on green products
 Like doing business with green companies
 Green is good for the wallet
Who They Are
 Younger
 More likely to have kids
 Tech professions


Higher incidence of
•
•
• work PC use home networks high-speed home Internet
• access Internet on the go
Higher web “presence” and subscriptions to online music and video
38

Green Tech Followers – 18% of Market
How They Think
 Adamant about protecting the environment
 People must reduce their impact on the environment
 Green gadgets are fun
 Like trying new green technologies
 Research green products
 Like dealing with green cos.
 Green is good for the wallet
Who They Are
 Older
 Female
 Higher home ownership rates
 Lower incidence of cell-only households
 Spend fewer hours online
 Lower web
“presence”
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Other Relevant Green Segments
Tech-Savvy Green
Sympathizers (31%)
Enviro-Friendly
Skeptics (12%)






Care about the environment

Early adopters of technology


NOT green activists or boosters, but sympathetic

Like doing business with green companies

Green is good for the wallet

Skew younger, male, heavy users of technology


Adamant about being green
Technophobic
Technology may worsen our problems, not sure what to do
Want proven technologies to help the environment
Research green products
Like dealing with green cos.
Green is good for the wallet
Skew older, less techy
40

Segments Where Green is Less Relevant

Naïve Consumers (22%)
Hold “socially acceptable” opinions, but no urge to act
 More concerned with getting by on a day to day basis than being green
 Many are technophobic
 Low interest/awareness of green tech or products
 Will avoid using green technologies until they are proven
 Skew female, less techy
Anti-Greens (7%)


Not committed to environmental issues
Don’t care about green technologies or products
 More concerned with getting by on a day to day basis
 Environmental activists are irresponsible; the Earth belongs to humanity
 Oppose regulation
 Skew younger
41

Green
42

Yes! …but they have to be sincere!
% Who Agree With Statement
72%
68%
I like to do business with companies that are environmentally responsible
I resent companies that say they care about the environment but don't mean it
Source: National Technology Readiness Study , Rockbridge Associates, December 2007

78%
85%
60%
70%
63%
65%
31%
40%
Use Now
Potential
35%
45%
56% 56%
Green Tech
Leaders
Green Tech
Followers
Tech-Savvy
Green
Sympathizers
Enviro-Friendly
Skeptics
Naïve
Consumers
Anti-Greens

33%
32%
13%
12%
6%
2%
Green Tech
Leaders
Green Tech
Followers
Tech-Savvy
Green
Sympathizers
5%
0%
Enviro-
Friendly
Skeptics
Own Now
Potential
15%
9%
3%
2%
Naïve
Consumers
Anti-Greens

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Consumers care about the environment, even if some are only joining the bandwagon to be PC
Embracing technology and being green are not mutually exclusive ideologies
When marketing green products and services, focus on the following messages:
– Your company cares about the environment (and you have to back this up with actions that show it)
– If we all work together, we can have an impact
– Your product is environmentally conscious
– Buying your product will not only help the environment, it is good for the consumers’ wallets
Target Green Tech Leaders with your message
– They will evangelize on your behalf
– Social media is key
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