GREEN MARKETING Sustainable Marketing Presented by Sharon Seaford

GREEN MARKETING Sustainable Marketing Presented by Sharon Seaford Fayetteville Technical Community College Resources used: “Sustainable Marketing “ Marketing: An Introduction 10 th Edition, Armstrong/Kotler Pearson Education, 2011 , Study Shatters Stereotype of Green Consumer “Green Living Pulse” Shelton Group (www. sheltongroupinc. com) 2009, and Greenwashing Report 2010 (www. sinsofgreenwashing. org)

Objectives: 1. Define Sustainable Marketing 2. Identify the Social Responsibility in Consumerism & Environmentalism 3. Test You Knowledge of the Green Consumer 4. Make the Connection and Draw Your Own Conclusions Concerning …………. . GREEN MARKETING 2

Green Consumer- Definition • Consumer participating in at least some green attitude and behavior • 63 million adults and growing • Buying power of $230 billion and growing 16 - 3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

“Green Consumer” True or False • Green Consumers’ top concern is the environment. • Green Consumers’ main motivation when reducing their energy use is to save the planet. • Green Consumers are all-knowledgeable about environmental issues. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 - 4

“Green Consumer” True or False • Green Consumers fall into a simple demographic profile. • Children play a big part in influencing their parents to be green. • If people just knew the facts, they would make greener choices. 16 - 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Sustainable Marketing Sustainable marketing is socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. 16 - 6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Sustainable Marketing 16 - 7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing in Action Mc. Donald’s “Plan to Win” addresses environmental issues related to food-supply sustainability, environmentally sustainable packaging, and more responsible store designs. 16 - 8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 8

Social Criticisms of Marketing • False wants and too much materialism • Too few social goods • Cultural pollution Marketing’s Impact on society • Acquisitions • Creating barriers to entry • Unfair competitive marketing practices Marketing’s Impact on other businesses 16 - 9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Social Criticisms of Marketing • Planned obsolescence refers to products needing replacement before they should because they are obsolete. 16 - 10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16 - 10

Marketing in Action A recent Terra. Choice study found that 98% of products making green claims committed at least one of the greenwashing sins. 16 - 11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 11

“Greenwashing” is the act of misleading consumers regarding the environmental benefits of a product or service and the seven sins are: 1. 2. 3. 4. 5. 6. 7. Sin of the Hidden Trade Off Sin of no Proof Sin of Vagueness Sin of Worshiping False Labels Sin of Irrelevance Sin of Lesser of the Two Evils Sin of Fibbing 16 - 12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Consumer Actions to Promote Sustainable Marketing Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. 16 - 13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Consumer Actions to Promote Sustainable Marketing – Buyer’s Rights Traditional Buyer’s Rights Additional Consumer Rights The right not to buy a product that is offered for sale The right to be well informed about important aspects of the product. The right to be protected against questionable products and marketing practices The right to expect the product to be safe The right to influence products and marketing practices in ways that will improve the “quality of life” The right to expect the product to perform as claimed The right to consume now in a way that will preserve the world for future generations of consumers 16 - 14

Consumer Actions to Promote Sustainable Marketing Environmentalism is an organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment. 16 - 15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

The Environmental Sustainability Portfolio 16 - 16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing in Action Suburu of Indiana works towards pollution prevention, and claims that it now sends less trash to the landfill each year than the average American family. 16 - 17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 17

Marketing in Action To reduce its packaging waste, Coca-Cola is now testing new contour bottles made from corn, bioplastics, or more easily recycled aluminum. 16 - 18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 18

Business Actions Toward Sustainable Marketing Principles Consumer -oriented marketing Customervalue marketing Innovative marketing Sense-ofmission marketing Societal marketing 16 - 19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Sustainable Marketing Principles Consumer-oriented marketing is the philosophy of sustainable marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view. 16 - 20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Sustainable Marketing Principles Customer-value marketing is a principle of sustainable marketing that holds that a company should put most of its resources into customer-value building marketing investments. 16 - 21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Sustainable Marketing Principles Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Innovative marketing is a principle of sustainable marketing that requires that a company seek real product and marketing improvements. 16 - 22

Sustainable Marketing Principles Sense-of-mission marketing is a principle of sustainable marketing that holds that a company should define its mission in broad social terms rather than narrow product terms. 16 - 23 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing in Action Timberland’s corporate mission is about “trying to make a difference in the communities where we live and work. ” 16 - 24 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 24

Sustainable Marketing Principles Societal marketing A principle of sustainable marketing that holds that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long -run interests. 16 - 25 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

The Sustainable Company Sustainable companies are those that create value for customers through socially, environmentally, and ethically responsible actions. 16 - 26 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing in Action That’s right-big bad, Wal-Mart. “The company whose 2, 300 superstores take up at least 46, 000 acres of earth, whose 117 square miles of asphalt parking lots add up to the size of Tampa, Florida, and in 2004 faced fines for violating laws in nine states has …found green religion. ” 16 - 27 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 27

Six Myths Regarding the “Green Consumer” True or False • Green Consumers’ top concern is the environment. False • Green Consumers’ main motivation when reducing their energy use is to save the planet. False • Green Consumers are all knowledgeable about environmental issues. False 16 - 28 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Six Myths regarding the “Green Consumer” True or False • Green Consumers fall into a simple demographic profile. False • Children play a big part in influencing their parents to be green. False • If people just knew the facts, they’d make greener choices. False 16 - 29 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Conclusion: Provide Desirable Products High on Both Counts 16 - 30 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Marketing in Action Haworth’s Zody office chair fits the bill as a desirable product. Not only is it attractive and functional, but also environmentally responsible. 16 - 31 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14 - 31

Make the Connection and Draw Your Own Conclusion about Green Marketing-No Myths, No Greenwashing, No Joking!!! Thank You! 32